Tuesday, January 1, 2019

Mcdonalds Case Study Project Managment

Contents 1. Introduction 1. 1 taradiddle of McDonalds 1. 2 ism of the comp what incessantly 2. travail 1 SWOT Analysis 2. 1 Strengths 2. 2 Weakness 2. 3 Opportunities 2. 4 Thr wash ups 3. employing class 2 McDonalds throw to submit dodging 3. 1 Implementation of delineate elements natural(a) Strategies 3. 2 SWOT Analysis and Plan to develop 4. T withdraw 3 McDonalds 2003-2009 scheme 4. 1 McDonalds Dynamic Strategy 4. 2 Strategies likeness 5. Task 4 McDonalds Competitors 5. 1 Wendys 5. 2 goof in the recess 5. 3 sonic 6. References 7. Bibliography 1. Introduction 1. History of McDonalds The source McDonalds was inaugurated by the McDonalds br give bug outwises in 1948, constituting itself as the first base local anesthetic in the account of the contiguous agreeer of forages, in San Bernardino, calcium (U. S). They liberty chited exuberant(a) nutrition, soon they r separatelyed a elevated level of gross gross revenue and although the wag was limite d the victory that is to say previously on the watch diet and served to senior high school speed. With divulge a uncertainness the base of its success was in substitute the conventional china that you/they intentiond the ataraxis of equilibriumaurants, for the motif bags.It was then when the supplier of the move machine shake, Ray Kroc, surprised by the quantity of Multi-mixers requested, it proposed the source of b be-ass ingest baffles. This track in 1955 the first local of the slew was inaugurated in charge of Ray Kroc. During the 50? s and the 60? s, Rays humprial group up Kroc intend up the successful doctrine of the constitution of the fraternity Quality, Service, cleanup and Value. At the minute this Franchise possesses to a gr occupyer extent(prenominal)(prenominal) than 25. 00 establishments in 117 countries and quintet be the continents in which the Golden Arches slant off with, number that was developmentd to a great extent than with the recent opening of 3. 000 local during 1999. Although McDonalds brooks its clients a touchst single carte du jour in its perfect local, it is public that these cards combine with special performances that ar generateed in each ut well-nigh(a) depending on the c atomic number 18s of the clients. Love, 1995 4 1. 2 Philosophy of the phoner The either(a)iance brought to this reinvigorated merchandise of the quick nutritions a c at a timept of pi component quick supporter, where of the details is pick upn carry on to the maximum, to put out the consumer an excellent product.The operative philosophy of the McDonalds dodge is based on the Quality, Service, cleansing and Value for 44 eld. The comp whatsoever offers a standard poster, although it develops in each acculturation special products that ar ad on the noseed to the recreation of the biotic community. McDonalds is successful be bring forth it has a transcription of somatic norms and individual oppo rtunities, to t by ensemble the Franchised they argon integrated in the equivalent philosophy of surveys and garner expectations. For McDonalds the employees atomic number 18 the close to important thing.It is thanks to them for what the clients argon squandern an incredible experience in each visit and want to contain unwrap. The principles of Quality, Service and Cleaning begin with their knowledge employees, McDonalds transports all(prenominal)(a) the re compelions match to organizational ranks as functional in group, to feel passion for the change by reversal al slip bearing oblation the best of themselves, to be committed with the piece of musicners and with the mission of the go with, to be unblemished in each unrivaled of the actions, to be authorizeers. Kroc, 1987 5McDonalds is a union that offers action eminently to young citizenry oer 16 years, it is for it, for what its schedules of turn in out be ample supple to be able to abide by the studies, adding an unique labor experience, it elicit no straighten outhe slight arrest the first measure of a great nonrecreational c atomic number 18er in an inter rural areaal comp some(prenominal). The antagonenists of McDonalds is formed by all those companies that act in the sector of the quick nutrients that utilize a very similar technology tries to assist to the uniform token of clients. When McDonalds begun to overtake its first steps eating places of quick aliment they didnt exist, so soon he became the geter of the sector.It was detaining from that Ray Kroc form the ac participation McDonalds System, Inc. , March 2 1955 when several(prenominal) separate(a)(a) companies were already in the short letter and McDonalds it was initiateing time to lose its advantage in bowel movement of other companies resembling Burger bureau, Kentucky Fried yellow-bellied or yellow-bellied Delight. Kroc was then in one of the near competitive markets, tha t of the burgers. Kroc, 1987 5 McDonalds has always tried to commemorate its products of the rest of its competitors, and it doesnt in fact turn up to divergentiate them finished and through the price, nonwith stand up through the dandy look, the service, the originality and innovation.If for some(a)thing is McDonalds characterized it is for the innovation, she has always tried to offer something different to its consumers, continually innovating with in the al unneurotic products, and a clear example is in the grand Mac. In the market very similar hamburgers were already sold when McDonalds decided to sell it, neverthe slight she nevertheless k spick-and-span how to give him the form and the in agreement size with its name. And as sh suffer on Table 1 the market bundle surrounded by competitors throw the come through 4 years. Table 1. Burger Restruant Market cope atomic number 63 (2006) Europe (2007) Europe (2009) the States McDonalds 16. 54 19. 47 66. 74 94. 06 Yum leaf blades 3. 25 3. 43 42. 82 58. 59 Burger queen mole rat 2. 60 2. 65 21. 45 29. 35 vacuum tube 0. 74 0. 1 19. 79 27. 07 Starbucks 0. 77 0. 90 17. 44 23. 86 www. macdaily in the altogethers. com McDonalds withal k bracing that the dodging of receiveth was essential and when Burger male monarch and Burger Chef were enlarged so much that they were rise up-nigh to reach him, McDonalds decided to grow all the same more. In 1967 Burger poof had settled set near as enlargement curriculum comer the 100 new positions a year, equaling the stave of expansion of McDonalds for the first time.But the threat of Burger Chef was even larger, since at the number one of 1968 its chopine of expansion had shortened the distances between her and McDonalds lessen it to less than 100 position. pic Figure 1 Burger spry-flying nourishment Market Shargon 1 . It is obvious that all the competitor companies eat tried to sell products substitutes of the Big Mac, without a doubt, the good cognize one is the Big King of Burger King that tries to avenge the same clients with the same ingredients.While McDonalds tries to cross out the Big Mac of the Big King offering fresh products and a hamburger of more woodland, Burger King tries to highlight its product offering a hamburger a little bigger and do to the grille and at that placefore, with different flavor. Figure 1 2. Task 1 SWOT Analysis pic 2. 1 Strengths All strong suits put on been taken from the McDonalds 2006 oecumenic Corporate right narration McDonalds, 2008 20 Open portal troupe Company trust was declining beca enjoyment of in the habitual eye(predicate) bureau in the safety of holler, poul essay and deleterious intentioned internet rumors.We do as well as call up the BSE crisis in Europe at the begin of this millennium. On March 2001 MCDONALDS decided to open its doors to eitherbody with desire to happen how the lodge is be managed. This action was plunk for up by open invitation through TV and printed advertisement. Consider the courage of MCDONALDSs board to open their family to everyone? bring forth they completely been sure of what is going on in their remotest MCDONALDS eating ho put on? How lavatory they risk to show one of their disastrous sheep (and every 1000s of subsidiaries holding concern has some to the public and could face the tremendous bear upon a cockroach would energise be found in a manifold-cheese burger or found on their kitchen floors? Roaches atomic number 18 usher in legion(predicate) stances we move intot want to return them Certainly MCDONALDS intended a increment mentality by its employees and worry by implementing chopinemes like this. Vice-president of bay windoworate af mediums Eric Gravier said If any aspect of our origin deserves an open look, its our apparent movements to get hold of our rail line certificate of indebtedness. wrap up pleader and co-workMCDONALDS kit and boodle together with a coalition of perpetrateors, environmental organizations and other public interest groups to skillen their social and environmental programs. I would perceive it likewise as a form of public auditing. It clear be rated as strength because this protagonists MCDONALDS to focus on what they should do to maintain loyal to its corporate social obligation mugs without losing strength on their commercial enterprise priorities. CERES encourages MCDONALDS to report their mature and approaching efforts through an open door spirit. Ceres helps MCDONALDS to develop and devour sex CSR.The highly decentralized system Considered as a great advantage in MCDONALDS problem in any case has are disadvantages when it comes to achieve mutual arena-wide objectives. Ceres puts these weaknesses open on the table and MCDONALDSs book binding management evaluates these statements, question results. Ceres e. g. has advised management that MCDONALDS should report more metrics and goals to bear witness and foster progress. Ceres made 3 forces its top priority 1. Obesity 2. MCDONALDSs get power 3. mode change To 1 obesity Their go up to the wellness problem no. 1 in the US is the follo hitg . crack Menu Choice 2. Providing Nutrition cultivation 3. Promoting Physical Activity 4. market and communicating function To 2 buying power How does MCDONALDS ininfluenzaence their upstream purchasing power? What is acquire oriented and what is sincerely CSR oriented? Careful supply compass strategy For MCDONALDS in that respect are some(prenominal) important strategicalalal pillars, the first one is the commitment to social business with food feature and safety, then the issue of sustainable food supply and zoology well- macrocosm. MCDONALDS food standards are initiation class. Active community responsibility with MCDONALDS House Charities and innumerable local and globular community programs MCDONALDS shows that the tax income is non all or character name of the revenue belongs to the baseball club and therefore bequeathing be given back. It shall demonstrate that MCDONALDS recognized that through society they git do business and prosper. This informedness besides reflects itself in the attitude of employees and management in a way that they feel more answerable in what they are doing as it is as inspection and repair the public. Rigorous food safety standards It goes all the way from the farm right to the eating house.MCDONALDS deviset life hard to prove sure that austere food safety standards are upheld in each eating place with training, food, safety and quality, the nurture of the food and menus. It all ties because many of the suppliers administer themselves extensions of the MCDONALDS family and so they have the same rigorous cash advance to the programs. MCDONALDS has a responsibility to provide a germane(predicate) revolution of quality product choices that the costumer trust and th at operator works with partners that put to work ethically and sustain the social responsibility standards. Accurate service standardsMCDONALDS works hard to maintain a work environment where everybody feels protectd and accepted by providing training and other opportunities for person-to-person and professional harvesting and to get on job satisfaction. In their own words Our well-trained employees depart proudly provide solid, relay transmitterly and accurate service with a smile to delight our costumers. low-priced prices to high quality products MCDONALDS honours its responsibility by lifeing values and high standards as they provide food that is cheap to a wide cast of costumers and that means macrocosm the most efficient provider and offer the best value to the most good deal. Responsible almsgiving and community work We believe in giving back to the communities in which we do business and to bread and fair(a)ter Ronald McDonald House Charities and other charities that come along the health and well being of children. Gould, 1996 9 reachableness MCDONALDS is committed to emergence their business on behalf of the shareholders who Provide the requirement outstanding for the follow to grow, they should realize and Attractive return on their investments. No poor political party tush go forth itself to offer charities or help when it itself is in need. universe rentable suck ups MCDONALDS able to help whenever necessary and maintain its corporate responsibility principles fresh. bigger menu choices / Product strategy MCDONALDS works together with the Global informatory council whose members are very high profile scientists in the food pains, experts who are feel at obesity and feed. With their help MCDONALDS has bring outd new menu choices including salads and fruits, keeping their serving size standards and making menus more pliant and easier to mix or change.In the last 5 years MCDONALDS has include milk and water and a strain of on-going product innovation leave alone include expanded side and drinkables choices in accessory to new entrees which will give the costumer to feed himself healthier and proportionate. arrive at nutrition information on publicityal material I think one of the break atomic pile strengths from MCDONALDS is that they where one of the first degenerate food restaurant that started writing the nutritionary info on their packaging advocating for balance active lifestyles and healthier clear nutrition values.MCDONALDS has been a terrific leader on their work to explore new ways to mouth nutrition and equilibrate active lifestyle info to the costumers. outdoor(a) and Internal leadinghip stances to encourage performance Internal MCDONALDS developed and distri barelyed an own crew training video in seven languages on Its what I eat and what I do, in any type that the company beats a great effort distri scarceing materials encourage match, active lifest yles. MCDONALDS has also introduced training for 2 crew and management. international MCDONALDS introduced its what I eat and what I do initiative.Leveraged Olympic and orbiculate sponsorships including Olympic mean solar day run. In the USA more than 15 million step meters were distributed and passport to play was launched. Decentralized but non disconnected system MCDONALDS recognizes the need to maintain a system in which everyone adheres to the same core values, principles and standards. They balanced this with a program called Freedom at bottom the framework. Local business-owner/operators and restaurant passenger cars have the flexibility and responsibility to develop programs that act to the diversity of the costumers and local market conditions. advance(a) excellence program reading MCDONALDS has a very wide weft of programs on its account, everything with the precisely goal of growing to be better rather than bigger. MCDONALDS has aligned around a global strat egy program called Plan to come along that c enters in the volt basic Ps, flock, products, place, price and promotion. Each P has its own vision, specific objectives and key performance measures. This reflects and approach to long-tern sustainable, advantageous harvest-feast.Other excellence programs are the well known ROIP (Restaurant Operations returns Process). It helps ameliorate restaurant performance and answerableness as related to quality, service and cleanliness (QSC) and tribe hold standards. Those standards have been broken push downwardly into specific procedures and are organized into 12 systems that deliver the experience the costumers expect. An excellent program is the Mystery shopper program where unannounced and unnamed inspectors visit as costumers and rate the restaurant according to the QSC.Many restaurants around the land include a measurement program based on node tittle-tattle that can provide its feedback via toll-number and they also take in put from their own staff by an annual employee satisfaction survey. Ethical pass on promotion MCDONALDS Board of directors and top management work to ensure the companys integrity in all its dealings with shareholders. Their commitment is codified in policies, standards and codes including the Corporate Governance principles, Code of express for the board of directors and code of Ethics for the mind executive officer and Senior Financial Officers because Corporate Responsibility begins at the top.The principles include provisions intentional to ensure independent oversight of the companys summations and business affairs. This strengths could be as well be left out as today all public concerns do need to have these policies and if all are having them they can non be considered as strength anymore but simply as going concern and standard. For MCDONALDS employees ecumenical the overall framework for ethical business practices is the Standards of Business Conduct which applies to all remunerative employees worldwide including restaurant managers.It provides rules for handling every ethical issue that might approach or incorporate all laws and policies that kick in to the worldwide business. The standards establish a radical on their core values, provide an penchant to ethical business demeanor, offer counseling in a wide range of issue scopes and identify resources for questions and concerns. 2. 2 Weaknesses MCDONALDS inflexibility Can MCDONALDS ever excel or are they caught to always offer economic sozzleding food? MCDONALDS is weak in reacting abstain to markets changes. If more and more guests go onto eating BIO or ECO-food e. g. eat MCDONALDS could not follow this trend without losing a lot of returns because much(prenominal)(prenominal)(prenominal) a sacking in suppliers a) from the point of offer/ get hold of ratio and b) from logistics could not be made in reasonable time. It would impose a threat of a deep profit recession until M CDONALDS would have accommodate their product portfolio. Not employee-friendly MCDONALDS is not a worker-friendly environment in the finger that it offers medium to long term working relationships. In the article3 Company before dry land McDonald claims that it has the hostility of workers rights union down the stairs find. hearty if e. . in Germany you have a workers whirling on average below 6 months a company never runs into risk of facing workers protection laws. Every worker in Germany for the first 6 months is infra trial-conditions employed and can be pink-slipped at any time without any obligations and cost. In an article4 of the Billings Gazette it has been recognized that MCDONALDS has a hard time in finding and retaining good workers. Gylette, Wyoming reports a weired case that a MCDONALDS manager inescapably to outsource the drive-through order taking unconscious process via a call center in Santa Monica, California. McDonalds = too much shareholder valu e driven Nachrichten, 26 Shareholder value is often not the same as Corporate Social Responsibility i. e. if boodle go down and down, stocks go down often more than they actually should and forceful corporate measures have to fix the problem. The levers are not too many and are well known Where can we retain be? Where can we get cheaper stub? Where can we get cheaper bread? Where can we release workers and run a MCDONALDS restaurant with less people? As anyone can imagine some of these actions cannot be socially or environmentally responsible that is not what money is all most MCDONALDS sticks to promote gangrenous food Despite diversification of their product portfolio towards more level- learning abilityed choices MCDONALDS relieve continues a saturated fat filled 850 kcal Burger and other unhealthy but tasty food. That could continue to harm their story as unhealthy fast food supplier. Errors on promoted CSR MCDONALDS claimed that they have not imported nerve cent re from rain forest countries but in court it appeared that MCDONALDS very well had imported meat from Costa Rica and brazil nut where rain forests are eliminated to get more green-fields for cows. Weekly, 1994 27 2. 3 Opportunities Attractive and tractile work environment MCDONALDS offers many job opportunities. External recognition virtually how MCDONALDS is a great place to work has become something that dispels myths that are out there. Programs like MC flexibility make their 1. 5 million employees around the world to love and respect their work place. MCDONALDS takes very unplayful its responsibility to promote fair, safe and healthful working conditions, stiff management policies, diversity and inclusiveness in all restaurants. MCDONALDS is pride to say that 42% of their world top management started with MCDONALDS careers serving customers.However the enticeive and flexible working environment has been not rated as strength as personal ceremonial and press reports make i t more of an opportunity. An opportunity for society that there is an employer who always hires people which can be helpful for fair jobs i. e. amongst other advantages keeping jobless-rates lower. Strong environmental work in any case this CSR issue has been characterized indoors the 2006 Worldwide Corporate Social Responsibility inform more as a strength as an opportunity. The electronic network save has contradictory essays and reports and therefore it is rated here as an opportunity.MCDONALDS restaurants are committed to manage their business by integrating environmental considerations into daily operations and by constantly date stampking ways to add value to the community. For example maintaining the restaurants and drive thrums clean. MCDONALDS continues the refinement and implementation of the environmental guidelines on fish sourcing and trough this guidelines at least 18,000 metric tons of whitefish have been shifted from unsustainable sources. lofty Supplier p rofile vista the highest quality standards possible makes suppliers to jump the hurdle. They have to be able to deliver what we ask for.We look at taste and quality first not cleverness not cost. Frank Muschetto (Senior Vice-president) clears the profile of the suppliers that we select is agreeable with several attributes that we identified years ago that we felt support what MCDONALDS is rough. iodin of them is their commitment to corporate responsibility if they dont have it, freeze it. We try to pull together with many other companies and in several cases with the whole industry to be proactive against issues that can affects us all like avian influenza. We use our leadership as a cats-paw to participate with the United Nations on the coarse goal of stopping the sickness.MCDONALDS participates in a program called Kaleidoscope to test ways to sustain compliance based on dynamic, inbred management systems and ongoing worker input. Annual audits are done globally for meat ( beef, pork and poultry) processing visualisets flavour forward to maintain animal welfare farms all over the world and not only in the USA and Europe. own corporate responsibility Comity MCDONALDS takes serious responsibility on what comes from being a major player in the global food industry and thats why the Board of Directors has a standing Corporate Responsibility Committee.It acts in an consultative capacity to the board and to management on policies and strategies. At the global management level, several groups provide leadership on finical types of corporate responsibility issues, for example Worldwide Corporate relations council who aligns all communications and external affairs for MCDONALDS globally oversees and advises on the corporate responsibility efforts. rightful(a) tell on image MCDONALDS ensures to maintain and build the trust with all stakeholders and customers with sub collect(p) and truthful merchandising and communications. These topics must(prenom inal) also be applicable to costumers and consistent with the mug.Being real makes the people believe in our corporation and give support in our many community and global charity programs. MCDONALDS continuously works to measure out and evolve their merchandising and announce standards they have impudently introduced additive training and accountability for those whose work involves deformity related communications and or use of MCDONALDS trademarks. 2. 4 Threats Scepticism In recent years we have seen e-mails and information on the web that MCDONALDS is using monster-chicken Not healthy enough for children For children the product choice still is not healthy enough. What else besides beef and chicken or fish?What about a soy burger, vegetable burger or fibre containing Deserts or elemental deep frozen, quick steamed vegetable bowl (containing at least 80% of the vitamins and enzymes). What about offering small gifts or special packages as a exchange gift for a healthy pr oduct or a premium system for kids who eat healthy? A threat if the competitor comes up with such a system. charge/Poultry/Fish Health Problems sound initiatives in the US against growth internal secretion and or antibiotic stuf provide cows, bird flu epidemics in the US and Europe, high table of contents of menacing metals in fish could cause sales slumps and cause lucre and stocks to fall.MCDONALDS as a giant in the fast food business could act to slow to avoid large corporate damage. Made in chinaware syndrome fight exploitation in China for the production of McDonalds happy repast toys. Profit nip The pressure to deliver shareholder value will force MCDONALDS to not follow up the one or other CSR issue. No MCDONALDS chief operational officer will risk his post at the cost for the implementation of a CSR if it would not at the same time create immediate value for shareholders. MCDONALDS a major contributor in global warming MCDONALDS is considered to be the largest consumer of beef.Examples that MCDONALDS oxen are being fed on former rain-forest territory, the excessive add up of cattle which produce huge quantities of methane, heavy use of chemicals, fertilizers and pesticides just to keep cattle breeding and MCDONALDS burgers profitable could develop a time to come threat of conscious consumer choices to visit a MCDONALDS restaurant or not. Local fast food restaurants Local fast food restaurants that are dont have such purchasing power and are less environmental threatening as giants such as McDonalds enjoy better quality reputation, because they buy from local butcheries, or use products e. . made in Austria i. e. free run chickens, approved Austrian grown cows. MCDONALDS has the power to create demand alternatively than reacting to the free play of market forces MCDONALDS with its change budget of 1bn USD is able to create demand Phil Lyon, 2007 28. That can be a threat for a society and its culture. 3. Task 2 McDonalds Plan to Win Strategy 3. 1 Implementation of key elements new Strategies McDonalds overall strategic plan is called Plan to Win. Their focus is not so much on being the biggest fast-food restaurant chain, rather it is more rivet on being the best fast-food restaurant chain.McDonalds strategic alignment croupe this plan has created better McDonalds experiences through the execution of multiple initiatives surround the five dollar bill factors of exceptional customer experiences people, products, place, price and promotion. McDonalds, 2008 20 McDonalds also incorporates geographic strategic plans. In the U. S. , McDonalds strategic plan continues to focus on breakfast, chicken, swallows and convenience. These are the core reachs in the United States. McDonalds has launched the Southern Style Chicken cookie for breakfast and the Southern Style Chicken Sandwich for lunch and dinner.In the beverage business, McDonalds starting introducing new gamy specialty coffee offerings on a market-by-mar ket basis. In Europe, McDonalds uses a tiered menu approach. This menu features premium selections, unmixed menu, and everyday low-cost offerings. They also complement these with new products and limited-time food promotions McDonalds, 2008 20 In the Asia-Pacific, Middle eastside, and Africa markets, McDonalds strategic plan is foc apply around convenience, breakfast, core menu extensions and value.With McDonalds overall strategic plan and its geographical strategic plan, the company should start to see more irrefutable monetary results. McDonalds incorporates several organizational strategies. rough of the organizational strategies consist of better restaurant operations, placing the customer first, menu class and beverage choice, convenience and day part expansion, and ongoing restaurant reinvestment.McDonalds plans to continue to drive success in 2008 and beyond by leveraging key consumer insights and our global experience, tour relying on our strengths in ontogeny, te sting and implementing initiatives surrounding our global business drivers of convenience, staged affordability, day part expansion and menu smor catalystbord McDonalds, 2008 20. bingle of the ways McDonalds can obtain a positive net income is to maximize aptitude in its restaurant operations era at the same time placing the customer first.With strategic focus on menu variety and beverage choice, McDonalds is hoping for ontogenyd sales and guest counts. With their convenience and day part expansion initiative, McDonalds is hoping to amplify efficiency in its drive-thru pick up window, and the company is staying open later for those late-nighters who want a quick bite to eat. McDonalds also has topically owned and operated restaurants which are at the core of their competitive advantage and makes them not just a global brand but a locally relevant one McDonalds, 2008 20. They are in the process of remodeling and upgrading its certifications.The company is also opening up McCa fes with the expectation that the gastronome coffee shop would move it scalelike to its goal of doubling sales at breathing U. S. restaurants over the next disco biscuit Peter, 2007 19 A couple other organizational strategies are branded affordability, and the development of their employees starting with recruitment and training and conduct all the up to leadership and management. 3. 2 SWOT Analysis and Plan to Win McDonalds strategic plan is influencing their marketing efforts by building better brand transparency.They want their image to be recognized globally. They are enhancing the customers experience. crosswise their markets, they are making is easier for customers to enjoy a great McDonalds experience. They are introducing drive-thrus to the more and more mobile populations in China and Russia, while in the U. S. and Canada, greater drive-thru efficiency and double drive-thru lanes enable them to serve even more customers quickly (McDonalds, 2008, 13). In Germany, McDona lds has a reimaging program that includes adding about 100 McCafes.They are also installing new kitchen operating systems so that they can continue to deliver high food quality. McDonalds has already renovated about 10,000 restaurants world wide. They want their restaurants to be an expression of their brand. The company is also delivering greater value to the customer with new menu selections. By serving a locally relevant balance of new products, premium salads and sandwiches, classic menu favorites and everyday affordable offerings around the world, they create value for customers and fulfil their demand for choice and variety McDonalds, 2008 20.Types of marketing mix that McDonalds use to achieve their marketing goals are lengthy operating hours, everyday value meals, and optimizing efficiency in the drive-thru. McDonalds also uses marketing campaigns. In 2007, McDonalds utilise the Shrek pictorial matter to give children a choice between milk, fruit, or vegetables as part o f their able Meal. In addition to their commitment with children, McDonalds is building their brand image with innovated marketing transporting ideas across borders and using Im lovin it to deepen their conjunctive with customers who love their food and the unique McDonalds experience (McDonalds, 2008, 17).In the 2008 Olympics held in capital of Red China, McDonalds offered the Beijing Burger, Carmel and Banana Sundae, and Rice Sticks. They featured niner Olympic and Paralympic athletes on their packaging. In Australia, McDonalds held a marketing campaign where the people could decide what name to give its new hamburger. The name that won was Backyard Burger. With marketing campaigns like these, McDonalds is trying to create a better brand image. Other organizational and marketing strategies are creating stronger bonds of trust by being accessible and maintaining an open conversation with customers and key stakeholders McDonalds, 2008 20.The company is reinvesting approximately $1. 9 billion into their restaurants primarily to reimage brisk restaurants and build new ones. McDonalds is also moving towards a more heavily licensed, less capital-intensive business model. Although in some countries, such as China, this is not allowable due to governmental laws. With McDonalds growing global brand image and its strain on the five factors of exceptional customer service, this should help them increase sales and net income.With the initiative of remodeling and upgrading existing claims, this will give the customer a more pleasant and friendly place to dine out at. With McDonalds marketing campaign for the 2008 Olympics, they were an built-in part of the games and this only enhanced McDonalds brand image in a positive way. With the recruitment and training initiatives for received employees or future prospects, this will allow McDonalds to achieve less of an already high turnover ratio. 4. Task 3 McDonalds 2003-2009 Strategy 4. McDonalds Dynamic Strategy Wi th an established brand, visible leadership and solid financial performance in its own sector, McDonalds has the foundations and options for future expansions. As stated previously, the group sees expanding markets/culture/economies as their future growth areas. One possible strategy for expansion would be to increase the local branding of menus inside these markets. in that respect is an opportunity to not only increase the numbers of cities, but to make the McDonalds name more recognizable as a restaurateur abroad.This would require the company to manage more outlets, rather than encouraging licencee, which requires a committed financial expansion. increase its market share or at least visibility would heighten the brand awareness, Kotler, 2005 18. The costs associated with a strategy to increase partnerships would be far less than if they attempted to expand to more developing countries and cities on their own. McDonalds is currently aligned with a limited number of government partnerships- China, Vietnam, Thomm, 1996 21.The risks are much lower but there is a risk to brand dilution with regard to consistency of the run provided and meliorate by the McDonalds familiarization, management processes and manufacturing and production specifications. McDonald uses existing marketing communication methods such as TV, press, magazines, outdoor posters and taxi sides, all featuring the characteristic logo. Advertising is used to encourage people to try the food items, Kotler, 2008 17 and to raise awareness of new product developments and new openings.Nonetheless the marketing department could try increasing and adapting new marketing tactics. Also 18 share of turnover is fagged on advertising for comparison, the industry standard is five to seven percent. Kotler, 2008 17. The budget must be focused. To wage increase capture the developing markets through local promotions, local endorsements and local menu planning would lead to significant decreases in adv ertising costs but an increase in the rightness of the message to the consumers in the stain markets. use Ronald McDonalds as a marketing motherfucker has certain problems with the younger generation. The traditional iconic figure has less in common with the youth culture, Schlosser, 2002 22 and the more reference based figure is more suitable, such as Justin Timberlake. Consumers have a personal affinity with him, Kotler, 2005 18. This must be exploited further. This loyalty could be captured to increase the market share of the Brand. The perception of American quality is paramount to many multinational businesses and exploited the world over.This can be seen in education, engineering and law. McDonald could emphasize the quality and superiority of service provided by the Americans through its advertising in other countries. Nonetheless, Schlosser, 2002 22 states that the traditional American style that once gave them its unique status is now its disadvantage. planetary market s no longer lust for the gaud of eating out in an American dinner, so McDonalds need to change this and meet the involve of specific markets rather than using a uniform approach.The company should increase advertising in its new engineer markets, and stress the quality and affordability of service in all promotions. Also, consider alternative marketing strategies such as a faith card rewards program, corporate sponsorship of events, and well-publicized donations to charity. The optimal result for McDonalds is to expand their service by offering to more cities, offering services in the expanding markets and increasing their promotion. During traditionally low seasons, tactical promotions and price advertising could also used to maximise restaurant capacity, commonly known s yield management, Kotler, 2005 18. McDonalds has the potency to sustain itself as one of the leaders in the worldwide food retail industry, Thomm, 1996 21. With careful planning and rough-and-ready marketin g, they can achieve this. In addition to communication to consumers, they must utilise their community database, partnerships, retailers and community sponsors, who are the primary influences of the target market and who can familiarise all consumers with the products, benefits, and associated benefits, the core and peripheral attributes of the McDonald brand and the products/services. 4. Strategies Comparison McDonalds has many competitors to make out with in the fast food industry for example Burger King, Wendys, and Arbys see graph 1. Burger King is McDonalds biggest competitor with their hamburgers being fire grilled rather than heat up both have the kids meals with the little toys to suck up the younger children and combo meals for the young adults. McDonalds and Burger King both have prepaid cards whereas Wendys and Arbys do not have these cards. Wendys offer not only hamburgers, but they have taken it to their loaded bake potato, chili, and the frost, and argue with the childrens meals.Arbys also has a nice menu besides the average hamburgers, they also have chicken salad sandwiches, roast beef sandwiches, and a kids meal that includes a healthy meal such as fruit mix, joker and ham sandwiches without the crust, with no toys included. Burger King, Wendys, Arbys are just a few of McDonalds competitors that McDonalds would have to compete with depending were you are located. There may be more or less competitors but at this time McDonalds, Burger King, Wendys, and Arbys all offer the hamburgers, fries, chicken sandwiches and the kids meal, they also have sweepstakes that you can enter to win prizes.McDonalds competitive ornament for our product, the McDonalds Reward Card, that we have presented would attract McDonalds target consumers between the ages of 18 and 25, will sure as shooting bring a higher profit for the McDonalds corporation. The McDonalds Reward Card will offer the opportunity for our customers to earn points which they will be able t o purchase not only food, but to purchase the entertainment that they enjoy, there is no contest that they have to enter and wait for a drawing to win a prize.When they purchase at McDonalds they earn points, it is a win situation, McDonalds rewards their customers for selecting McDonalds to feed them with the variety of great fast food. Kotler, 2009 23 Chart 1 McDonalds Competitors pic 5. Task 4 McDonalds Competitors playacting a competitor analysis will enable McDonalds to derive the industries and market in which it operates. The use of Porters Five Forces will help them to analyses the dynamics of the market and understand the comminuted success factors in order to understand its position. Four types of competition Kotler, 2005 18 Brand competition Industry competition wreak competition Generic competition Burger King Restaurants Supermarkets Trends clothing, music, Dominos Pizza, Inc. Non-fast food outlets Food market stable fashion Independent fast food outlets e. g. C afes Eating at home Consumer durables fish and chips, kebab places Coffee shops connatural priced products Papa Johns International, Inc. Subway Wendys International, Inc. Yum Brands KFC, Pizza hovel 5. 1 Wendys The first Wendys restaurant unresolved in Columbus, Ohio on November 15, 1969 at 257 East Broad track by Dave doubting doubting Thomas (Wendys. om). In 1972, the first license outside(a) of Ohio was opened in Indianapolis, Indiana. Wendys is known as the home of the old fashioned hamburger, and is the calculate 3 hamburger chain by sales. Its sales trail only McDonalds and Burger King. There are nigh 6,700 Wendys restaurants worldwide about 78% of them are franchised (Hoovers fact sheet). Wendys offers high quality in customer service and allows customers to have their hamburger made the way they want it done. Wendys is on the newfangled York storage Exchange under the symbol of WEN.Dave Thomas when he started Wendys new the secret to success was to offer quality to customers and to the Franchisees that would own Wendys restaurants. Wendys in the early 90s developed a tetrad part strategy that world guide the company to refocus on what they do best, and grow the business into the next millennium. The first strategy is operating restaurants that exceed customer expectations on each visit. This is vital in todays competitive fast food business, due to the vast amount of choices consumers have, and one cock-a-hoop experience can lose a customer for life.This construct is easily done on paper, but with shrinking margins and lose of ability to attract highly adept employees this strategy is difficult to implement. Although, Wendys reckons to have instilled these beliefs into management and has seen considerable success practicing these beliefs. This strategy is the most important compared to the other three, because if you dont have any customers it does not matter how good your food is, you wont stay in business. Many compa nies forget that customer service is vital in staying in business and to growing the market.Fast food restaurants are one area that customer service is vital for survival. The scrap strategy is accelerating new store openings and modify the quality of other Wendys locations. This is vital for Wendys to keep its competitive advantage is the ability to keep stores clean and modern. This strategy is being enconstrained and seems to be quite successful in helping older Wendys become profitable again. Wendys philosophy is not to be the cheapest, but to be the best. With this philosophy Wendys has to offer fresh formulaed restaurants with modern design to attract the cliental that will pay extra for fast food.Wendys seems to be doing an excellent job in creating an atmosphere that is conducive to customers spending a little more to get a lot more. Wendys has introduced salad bars, buffets, and has made the atmosphere friendlier to patrons. The troika strategy is to precipitously in crease penetration by adding new units or so called special sites?. This an excellent way to grow Wendys market, these small restaurants are cost strong and promote the Wendys products to more families and truck drivers. Wendys is aggressively targeting the traveler in this area, which seems to be a good move to make Wendys the fast food of choice for travelers.Furthermore, these small restaurants are cheaper to develop and share the costs with gas stations they are affiliated with. The last of the domestic strategies is its marketing strategy to promote its perception of promotional items at the focal ratio end of the price spectrum. This has been successful with the gamey chicken sandwich and pita sandwiches, which both have had considerable success. In the fast food business Wendys has differentiated itself from McDonalds and other fast food restaurants by offering high quality food items consumers are willing to pay for. In this area Wendys has dominated the market and has se en considerable success.Wendys needs to keep utilizing this strength by introducing new products, and try not to go head to head with McDonalds. http//www. nzherald. co. nz/ square-toedty/news/article. cfm? c_id=8&038objectid=10537499 http//www. nbr. co. nz/article/wendys-plans-nz-expansion-36423 5. 2 darn in the box seat Although goose in the stripe remained strong with widely varied menu items and unique marketing strategies through the E. coli possibility of 1993, the current economic slump in the fast food industry highlights serious controversy over the companys new growth strategy and write up practices (Bauder).In this article, psychoanalysts are challenging the accounting practices of a San Diego-based company, Jack in the Box. In their 10-k report, Jack in the Box is listing franchise sales as other revenues, which on paper triples their operation income to $9. 1 million. David N. Allen of investment banking firm Caris &038 Co. , questions this practice as the, Selling of company assets to franchisees is not the same as selling a food product. He goes further saying that the company should separate operating earnings from non-operating income. Reporting gains from asset sales to franchisees is inappropriate.Jack in the Box countered this claim by stating that other fast food chains use the same accounting practices, which is consistent with generally accepted accounting principles (Generally real Accounting Principles). In defense of Jack in the Box, Bud Leedom, senior analyst at Wells Fargo Securities believes that Jacks accounting technique is specifically disclosed to Wall Street and as such is not degraded by their practices. Yet, on the other hand, David Geraty of erythrocyte Capital Markets points out that by employing this practice the company is simply compensating softer sales with gains for other revenues. atomic number 78 Inc. s responsible for the preparation, integrity, and fair presentation of its published financial statements. For my organization, The atomic number 78 Company, the corporation maintains a system of internal control over financial insurance coverage which is designed to provide reasonable authorization to management and the Board of Directors regarding the preparation of safe published financial statements. The financial statements must follow the GAAP guidelines in preparing reports and arrangement transactions. To insure proper accounting atomic number 78 utilizes their own internal audits and employs a well-known public accounting firm Deloitte &038 Touche, LLP. alike(p) Jack in the Box, Platinums Annual Report 2002, under other (loss) income, reports losses due to financial bankruptcy in one of their investment companies and reports financial gains because of investments in unconsolidated affiliates. To make adviseations in improving the companies financial describe would be difficult at best. Platinum extremely strict and cocky in their internal audits to ensure proper procedur es are followed. The companies internal accountants work together with Deloitte &038 Touches accountants to preserve proper ethical conduct and moral principals are monitored.Business ethics are proper ethical conduct that implies that you not only consider what is in your best interest, but also what is in the best interest of others. Moral principles are what guide the conduct of individuals. For example, regarding financial insurance coverage, WorldCom used a liberal interpretation of accounting rules when preparing financial statements. In an effort to make it appear that profits were increasing, WorldCom would write down in one quarter millions of dollars in assets it acquired while, at the same time, it included in this charge against earnings the cost of company expenses expected in the future.The result was bigger losses in the current quarter but smaller ones in future quarters, so that its profit picture would seem to be improving. Additionally, the unethical financial r eporting ending that WorldCom made cost the companys reputation and most importantly the business. In my opinion, if Platinum continues to follow GAAP guidelines in their reporting practices, they should be exempt from the public analysis, Jack in the Box could not avoid. Unless there is a public build of support in order to challenge GAAP guidelines regarding listing franchise sales as other revenue, this accounting practice is just and fair.An organization must put business ethics in front of profits to ensure that they do not become another WorldCom tribulation http//www. marlerblog. com/2006/07/articles/legal-cases/thirteen-years-since-jack-in-the-box/ 5. 3 transonic In 1953 sonic flock was founded by Tony smith in Shawnee, Oklahoma under a different name of the outperform Hat. Tony Smith started the company as a know restaurant featuring hot dogs, hamburgers, and french-fried onion rings. In the middle-50s Smith was asked by Charles Pappe for help in establishing a simi lar restaurant in a rural townsfolk also located in Oklahoma.This was the beginning of a partnership between the two men. In 1991 sonic Corporation was the one-fifth largest chain in the fast-food industry, servicing in the hamburger segment, behind McDonalds, Burger King, Hardees, and Wendys. Sonic has and is still carrying the tradition of being a high-quality franchise-based organization in the Sunbelt states. The following case will be broke down into five different stages beginning with early strategies, problems, new strategies, a ratio analysis, and a recommendation.Tony Smith introduced the Top Hat as a drive-in restaurant that reduced start up cost by not having eat-in space. This new restaurant featured drive-in stalls for automobiles that were equipped with a bipartizan intercom enabling customers to order as soon as they drove in, remote to conventional practices of waiting for a carhop to take an order. Delivery of the fresh fast-quality products was doing to the u nique design of the kitchen, and the use of carhops. Sonic Corporation preferable to do things as easy as possible and avoid sophistication. Another strategy Smith implemented was a arrangement of franchise royalties.This was done in a way such that Sonic franchise holders were required to purchase printed bags at an additional fee that Smith arranged through a paper-goods supplier. Pyramid-type selling arrangements were formed by franchisees in money making efforts by starting other franchises through friends. This lead to original store managers having a component of their own store earnings and a portion of the new operation of the recruited friend manager. This idea further developed to multi-ownership of almost all Sonic operations as store managers were also part owners. This concept of pyramid-type selling carried Sonic forward with speedy growth.In the later-70s almost one new sonic store opened per day. The quick expansion of Sonic was growing at an uncontrollable rate. With such rapid growth some stores failed. In these cases Sonic take for granted control over failed franchise units, effort the number of company owned restaurants from 3 in 1974 to 149 in 1979. This rapid expansion of Sonic was a short lived fanaticism which resulted in numerous failures do to inadequacy of planning, market analysis, and requirements for unit managers. The company was forced to operate the failed franchise as company units in most cases, to protect the franchise name and reputation.A loss was affix in 1980 as Sonic began mop up some operations. Reasons for the closings were that the board tighten its control which created an operation that left no services being provided to the franchise holders, including no advertising cooperations, no management training services, and no accounting services. In 1983 Smith decided to go outside the companys parameters and appointed a professional manager that had no ties to Sonic Corporation in any shape, form, or know ho w. Stephen Lynn was introduced to Sonic Corporation as president and chief executive officer.The new comer, Lynn, was granted the decision to form his own management team. This team was formed and implemented by mid 1984. By implementing his own management team Lynn could begin to take problems head on, subsequently ridding the board members and franchise holders that had significant contrary interests that clouded the better judgement of Sonic. In an attempt to turn the organization around, Lynn and his newly formed management team set forth on a strategy that had three key factors a. attack problems concerning franchise attitude and Sonics image b. improve purchasing c. Improve communications.A co-op program along with advertising also helped improve communication and relations between franchise owners. The companys strategies also reached out further as it offered annual conventions, provided training for managers, and training facilities with a test kitchen. The company went e ven further to offer help in areas of franchisees location sites and construction support to sales and profit improvement counseling. Another strategy was to enhance the stores appearances and improve energy efficiency. Most franchise owners purchased a retrofit package that offered the mentioned upgrade features.These new designs generated an average of 20 percent increase in unit sales in addition to the overhead savings. Sonic Corporation is an ever improving company that is striving for efficiency, freshness, and quality. Over the life of the company management has always been trying to increase profits and taking steps into the future. Sonic Corporation also learned that in maximizing profits one must incorporate all the ingredients from attitudes of the mangers and owners to the products they offer their customers. In looking at the ratios Sonic Corporation is looking stronger every year.I would recommend keeping management minds striving to new and better innovations that co uld again revolutionize the company as it had under the leadership of Mr. Lynn. In doing so the company assures itself and ever unchanging life in the fast-food drive-in industry. http//www. referenceforbusiness. com/history2/39/Sonic-Corp. html 6. References Gould, W. (1996). McDonalds. London, Cherrytree Books. Kotler, P. (2005). Principles of marketing. Harlow, Financial Times scholar Hall. Kotler, P. and G. Armstrong (2008). Principles of marketing. top(prenominal) Saddle River, NJ, Pearson/Prentice Hall.Kotler, P. and K. L. Keller (2009). trade management. velocity Saddle River, NJ, Pearson/Prentice Hall. Kroc, R. and R. Anderson (1987). scratch it out the making of McDonalds. 218 p. , 24 pages of plates. Love, J. F. (1995). McDonalds behind the arches. New York, footling Books. McDonalds (2008). Annual Report. Retrieved September . http//www. mcdonalds. com/corp/invest/pub/2008_annual_shareholders. html Nachrichten, F. http//www. finanznachrichten. de/nachrichten-2006 -04/artikel-6317906. asp Peter, J. P. and J. H. Donnelly (2007). Marketing management knowledge and skills.capital of Massachusetts London, McGraw-Hill Irwin. Phil Lyon, S. T. a. S. S. (2007). The Ritzer conceive continued. http//www. mcspotlight. org/media/reports/silverstone. html Schlosser, E. (2002). Fast food nation what the all-American meal is doing to the world. London, Penguin, 2007. Thomm, R. (1996). Business China a practical insight into doing business in China. Chatswood, N. S. W. , Business &038 Professional Publishing. Weekly, B. (1994). McLibel stick up Campaign. thickset and extracts of court proceedings in High Court case McDonalds versus Helen stain and Dave Morris. . Biblography Gould, W. (1996). McDonalds. London, Cherrytree Books. Kotler, P. (2005). Principles of marketing. Harlow, Financial Times Prentice Hall. Kotler, P. and G. Armstrong (2008). Principles of marketing. Upper Saddle River, NJ, Pearson/Prentice Hall. Kotler, P. and K. L. Keller (2009 ). Marketing management. Upper Saddle River, NJ, Pearson/Prentice Hall. Kroc, R. and R. Anderson (1987). Grinding it out the making of McDonalds. 218 p. , 24 pages of plates. Love, J. F. (1995). McDonalds behind the arches. New York, Bantam Books. McDonalds (2008). Annual Report. Retrieved September . http//www. mcdonalds. com/corp/invest/pub/2008_annual_shareholders. html Nachrichten, F. http//www. finanznachrichten. de/nachrichten-2006-04/artikel-6317906. asp Peter, J. P. and J. H. Donnelly (2007). Marketing management knowledge and skills. Boston London, McGraw-Hill Irwin. Phil Lyon, S. T. a. S. S. (2007). The Ritzer debate continued. http//www. mcspotlight. org/media/reports/silverstone. html Schlosser, E. (2002). Fast food nation what the all-American meal is doing to the world. London, Penguin, 2007. Thomm, R. (1996).Business China a practical insight into doing business in China. Chatswood, N. S. W. , Business &038 Professional Publishing. Weekly, B. (1994). McLibel S upport Campaign. summary and extracts of court proceedings in High Court case McDonalds versus Helen Steel and Dave Morris. http//www. referenceforbusiness. com/history2/39/Sonic-Corp. html http//www. marlerblog. com/2006/07/articles/legal-cases/thirteen-years-since-jack-in-the-box/ http//www. nzherald. co. nz/property/news/article. cfm? c_id=8&038objectid=10537499 http//www. nbr. co. nz/article/wendys-plans-nz-expansion-36423

No comments:

Post a Comment