McDonalds - 500 TOP Companies - Tatit Kurniasih

7/28/2019 McDonalds - 500 TOP Companies - Tatit Kurniasih

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Mc Donald Analysis

Tatit Kurniasih

20125216013

Analysis of 500 biggest company in the

World (Fortune)


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McDonalds

consist of :

1. McDonaldsRestaurant

2. McCafe

3. McDrive

4. McDonalds

Drive Trough

5. McExpress

6. McStops

7. Hamburger

University

(HU)

McDONALDs History

The world's largest chain of Hamburger Fast Food serving around

68 million customers daily in 119 countries. Headquartered in theUnited States, the company began in 1940 as a barbecue

restaurant operated by Richard and Maurice McDonald and in

1948 they reorganized their business as a hamburger stand. Ray

Kroc joined the company as a franchise agent in 1955. He

subsequently purchased the chain from the McDonald brothers and

oversaw its worldwide growth.


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From

the start,

we've been committed to doing

the

right thing

. And we've got the

policies,

programs and practices

in place that allow us to

use our size and scope

to help make a difference.

Because what's good for us, is good for us all

.

-

Ray Kroc

-


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1. McDonalds Restaurant

*McDonalds is listed as one of 500 Largest Companies based on Fortune Magazine

2012. This company become the 107 largest corporation in USA. McDonalds which is

leading by James A. Skinner revenue increase about 12,2% in 2012 become US$ 27,006

million.

McDonald Rank : 107 of 500 Largest

Companies in USA, 2012 *

The McDonalds restaurants are operated

by MacDonalds Corp, franchisees, or

affiliates under joint venture agreements.At March 31, 2010 there were 21,306

franchised restaurants (generating 60% of

2009 system wide sales), 10,091 company

operated restaurants (27%) and 6,111

affiliated restaurants (13%).


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McCaf is a coffee-house-style foodand drink chain, owned by McDonalds,

Created and launched in Melbourne,Australia in 1993 by McDonald'sLicensee Ann Brown. Reports indicatedthat McCaf outlets generated 15%more revenue than a regular

McDonalds and by 2003, it was thelargest coffee shop brand in Australiaand New Zealand.

2. McCafe


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3. McDrive

In some countries, "McDrive"locations near or in the side of

highways.

McDrive offer no counterservice or seating.

It firstly open in Fallowfield,Manchester, Britain in 1986.


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4. McDonalds Drive Trough

Most standalone McDonald'srestaurants offer both counter stand

or drive through, it often hasseparate stations for placing, payingfor, and picking up orders, thoughthe latter two steps are frequently

combined it was first introduced inArizona in 1975, following the lead ofother fast-food chains.


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5. McExpress

McExpress have limited seating

and/or menu or may be located in

a Shopping Mall and Wal-Mart. It

usually provide a take-awal meals for

a fast moving customers.


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6. McStop

McStop is McDonalds counter

that targeted at truckers and

travelers which may have services

found at some locations are

connected to gas station and

convenience store


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7. Hamburger University (HU)

This corporate university was designed to

instruct personnel employed by McDonalds inthe various aspects of restaurant

management. More than 80,000 restaurant

managers, mid-managers and

owner/operators have graduated from thisfacility and more than 275,000 McDonalds

franchisees, employees and suppliers have

graduated from Hamburger University

worldwide.

Hamburger University is a 130,000-square-

foot (12,000 m2) training facility of McDonaldsCorporation, located in 2715 Jorie Boulevard,

Oak Brook, IL 60523.


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The facility comprises 13 teaching rooms, a 300 seat auditorium, 12 interactive

education team rooms, and 3 kitchen labs. Hamburger University interpreters can

provide simultaneous interpretation, and the faculty has the ability to teach in 28

different languages. Restaurant employees receive approximately 32 hours of training in their first

month with McDonald's and more than 5,000 students attend Hamburger

University each year.

Today, there are 22 regional training teams, and seven total Hamburger Universitycampuses around the world: Oak Brook, Sydney, Munich, London, Tokyo, Brazil &

Shanghai.

On March 30, 2010, McDonald's opened a Hamburger University location in

Shanghai, China.

Hamburger University

Sources : http://en.wikipedia.org/wiki/Hamburger_University


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DON THOMPSON

As President and Chief ExecutiveOfficer of McDonalds Corporation,

Don Thompson leads McDonalds asthe worlds largest foodservicecompany.

During his 22 years at McDonalds,Thompson has helped drivebusiness results and global strategicinnovation across the organization.

Sources : http://www.aboutmcdonalds.com/mcd/our_company/leadership.html


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TIM FENTON

As Chief Operating Officer, Tim Fentonoversees business operations for more than34,000 McDonalds restaurants in 119

countries. He also has responsibility forGlobal Supply Chain, Franchising andDevelopment.Previously, Fenton served for seven yearsas President, McDonalds Asia, Pacific,

Middle East and Africa, where he wasaccountable for the 38 countries and morethan 8,800 McDonalds restaurants in thisregion.

Sources : http://www.aboutmcdonalds.com/mcd/our_company/leadership.html


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INTRODUCTION (VISION, MISSION, VALUES, GOALS)

SUSTAINABILITY PROGGRAMMESTRATEGY (COMMUNICATION, MARKETING, MANAGEMENT, FINANCE)

PLAN TO WIN

ANALYSIS (SWOT, PEST)CONCLUSION

McDonalds Analysis

Contents

1

2

3

4

5

6


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McDonald's brand mission is to be our customers' favorite place andway to eat. Our worldwide operations are aligned around a global

strategy called the Plan to Win, which center on an exceptionalcustomer experience People, Products, Place, Price andPromotion. We are committed to continuously improving ouroperations and enhancing our customers' experience.

INTRODUCTION :

Vision & Mission

McDonald's vision is to be the world's best quick service

restaurant experience. Being the best means providing

outstanding quality, service, cleanliness, and value, sothat we make every customer in every restaurant smile.


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INTRODUCTION

Values

McDonalds Values

We place the customer experience at the core of all we

do. We are committed to our people.

We believe in the McDonalds System.

We operate our business ethically.

We give back to our communities.

We grow our business profitably.

We strive continually to improve.


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The goals of McDonald's are :

To serve good food in a friendly and fun environment

To be a socially responsible company

To provide good returns to its shareholders

To provide its customers with food of a high standard,quick service and value for money

INTRODUCTION

Goals


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Think Globally, Act Locally

McDonalds has introducedmenu choices tailored to localtaste and preferences usingtraditional regional and

national products. This has

meant new opportunities forlocal suppliers and there aresome great examples ofproducts that are specific to

certain markets.

INTRODUCTION :

Culture


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Global comparable sales increased 7.3%, and benefitedfrom one additional day due to leap year

Consolidated revenues increased 7% (8% in constantcurrencies)

Consolidated operating income increased 8% (9% inconstant currencies)

Diluted earnings per share of $1.23, up 7% (8% in

constant currencies) Returned $1.5 billion to shareholders through share

repurchases and dividends

ANALYSIS :

Current Business Performance


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McDonalds customer-focused Plan to Win provides a

common framework for our global business yet allows forlocal adaptation.

we have enhanced the restaurant experience forcustomers worldwide and grown comparable sales and

customer visits in each of the last eight years. This Plan, combined with financial discipline, has

delivered strong results for our shareholders.

PLAN TO WIN

Consist of : People, Products, Place, Price and Promotion


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McDonalds and their independent franchiseesemploy more than 1.6 million people worldwide.

People are the face of their brand and differentiatethem from the competition.

McDonalds aims to deliver consistent, locally-relevant restaurant experiences to customers andbe an integral part of the communities we serve.

So, they have to facilitates their people ability toidentify, implement and scale innovative ideas that

meet customers changing needs and preferences.

PLAN TO WIN :

PEOPLE


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PLAN TO WIN :

PRODUCT


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Year Place Year Place

1955 United States 1984 Taiwan

1967 Canada 1985 Thailand, Mexico1971 Japan, Australia, Germany 1986 Turkey

1972 France 1988 South Korea

1973 Sweden 1990 China (SAR, Shenzen), Russia

1974 Britain 1991 Indonesia

1975 Hong Kong 1992 China (Beijing), Poland

1976 New Zealand 1993 Israel

1979 Brazil, Singapore 1994 Saudi Arabia

1981 The Philippines 1995 South Africa

1982 Malaysia 1996 Croatia

PLAN TO WIN :PLACE - Internationalization

Setting Up Year McDonalds in different countries


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Price of McDonald's is different in every country. It isdepend on the price of raw material in each market.

Since BigMac burger is sold everywhere, it becomeemblematic of globalization referred to as theMcDonaldization of society.

The Economist newspaper uses the Big Mac Index : thecomparison of a Big Macs cost in various world

currencies can be used to informally judge thesecurrencies' purchasing power parity.

Norway has the most expensive Big Mac in the world asof July 2011, while the country with the least expensiveBig Mac is India

PLAN TO WIN :

PRICE - McDonaldization


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PRODUCT & PROMOTION :

PROMOTION

Electronic Media :Television

RadioWebsite

Press Media :Brochure/Coupon

NewspaperMagazines

Reservation & Delivery Media :Phone

Website

Benefit :Playspot

Internet AccessToys MealAnimated DepictionsLoving it campaignEndorsed by popularcelebrity


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PRODUCT & PROMOTION :

PROMOTION


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ANALYSISGOAL & STRATEGY ANALYSIS


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Goal Achievement Analysis

GoalAchieved/

notReason/Proof

To serve good food in a friendlyand fun environment.

Yes By setting a playground andgiving several facilities.

To be a socially responsiblecompany.

Yes By doing Sustainabilityprogram and environmentResponsibility.

To provide good returns to itsshareholders. Yes Total Shareholder return34,7%, Earnings per share11%.

To provide its customers with foodof a high standard, quick serviceand value for money.

Yes By launching a extra valuemeal and extra value menu.


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SUSTAINABILITY PROGGRAME

McDonalds always strive to be better tomorrow than we are today.This, more than anything, speaks to who McDonald's is as a

company. The overarching goal of our sustainability efforts isfocused on continuous improvement through our five focus areas:

Launched the Nutrition Information

Initiative that provides easy-to-understand and globally relevant bar

chart icons to illustrate the amount of

calories, fat, sodium, carbohydrates and

protein in their core products

We envision a supply chain that profitably

yields high-quality, safe products without

supply interruption while leveraging our

leadership position to create a net benefit

by improving ethical, environmental and

economic outcomes.

Doing More With Less

"Less is more" when it comes to the

environment less energy, fewer

emissions, and less waste. McDonalds

aim to use less and spend less through

three areas of activity: Sustainable

Packaging and Waste Management,

Energy Conservation, Green Restaurant

Design.

McDonalds develop and retain a diverse,

engaged and talented workforce. Thats

why they focus on three priority areas:

Respect & Inclusion, Employee Value

Proposition (EVP), Talent Management.

McDonalds committed to using

their scope, people and profits to

create lasting impact on the

communities in which we live

and work. Through our support

of Ronald McDonalds House

Charities involvement by our

owner/operators in their local

communities; and disaster relief.


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Environmental Responsibility

Save Energy

Packaging

Anti-littering Recycling

Source & Wastereduction

Greening therestaurant

Logistic

Communication

Power-saving

Re-use

Composting


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McDonalds success is built on a foundation of

personal and professional integrity.We earn that trust everyday by serving safe food,respecting our customers and employees and

delivering outstanding Quality, Service,Cleanliness and Value (QSC&V). We build on thistrust by being ethical, truthful and dependable.

STRATEGY

McDonalds Strategy consist of :


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McDonalds websites

Third-party websites

Mobile devices Packaging

Communication Strategy

Brochures

Trayliners

Toll-free phone lines Voice-activated information


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Marketing Strategy

Meal Bundles

Favorites Under 400 Dollar Menu

Extra Value Menu

Extra Value Meals

Happy Meals Mighty Kids Meals


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McDonald's has for decades maintained an extensiveadvertising campaign.

In addition to the usual media (television, radio, andnewspaper), the company makes significant use ofbillboards and signage

Sponsors sporting events ranging from Little League tothe Olympic Games and makes coolers of orange drinkwith its logo available for local events of all kinds.

MARKETING Analysis


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FINANCE Analysis Income Statement


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ANALYSIS : SWOT Analysis

STRENGTH1. Being a market leader in both the domestic and

international markets.

2. Get benefit from cost reduction through economies of

scale because of its enormous size and its huge

global presence allows it to diversify risk involved withthe economic performance of specific countries.

3. It well placed to expand and take advantage of long-

term economic growth.

4. It has 7 hamburger University and a strong real estate

portfolio.5. It has several kinds of outlet that located in areas that

are highly known for visibility, traffic volume and ease

of access.

6. It has exceptional brand recognition that creates

significant opportunities for the company.

WEAKNESESS1. It has to deal with the

prospect of looming

market saturation.

2. Rather difficult to add new

outlets.3. Facing an increasing price

competition driven by too

many competitors.

4. It limiting the negative

effect of the intense pricecompetition that was

traditionally taking place

among the industry

leaders.

5. Lack of product innovation


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OPPORTUNITIES

1. Increase profitability by doingexpansion of McDonalds.

2. Able to penetrate in many

countries especially in Europe,

Asia and Latin America.3. Increase profitability the

company by refurbish and

change the image of current

restaurants.

4. Changing trends in eating habits

toward more health eating.

5. Doing innovation by producing a

new premium salads and Fruit n

Yogurt Parfaits.

THREATS

1. Changes in the globaleconomy.

2. International expansion has

left it extremely vulnerable

to other countries.

3. Economic slowdown and

foreign currency

fluctuation companies.

4. The Fast food industry is

becoming competitivesector.

5. It often receives bad press

because of health issues.


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Pestle is an analysis of political, economic, social,technology, and environmental factors (the external

macro environment in which a business operates).

ANALYSIS :

PESTLE Analysis

A. Political Factors

The international operations ofMcDonalds are highly influenced by

the individual state policies enforced by each government. Thecompany is controlled by the individual policies and regulations of

operations. Specific markets focus on different areas of concern such

as that of health, worker protection, and environment.

B. Economic FactorsBranches and franchises of fast food chains like McDonalds has the

tendency to experience hardship in instances where the economy of

the respective states is hit by inflation and changes in the exchange

rates.


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C. Socio-Cultural Factors

McDonalds has launched a sensibly valued set of food that tenders a

reliable level of quality for the respective market where it operates.

They establish a good system in determining the needs of the marketbecause they use concepts of consumer behavior, personality and

purchasing power.

D. Technology Factors

Elements like the inventory system and the management of the valuechain of the company allows for easy payments for their suppliers

and other vendors which the individual stores in respective markets

deal.

E. Environmental Factor

McDonalds is committed to protecting the environment for future

generations, and that it believes that business leaders must also be

environmental leaders.


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BRANDS :

Fast Company : 2011 Most Innovative Food Companies

BrandZ : 2012 #4 Most Valuable Global Brand

Forbes : 2012 #7 World's Most Powerful Brand Interbrand :2012 #7 Best Global Brand

SUSTAINABILITY :

Corporate Responsibility Magazine : 2010 Top 100 BestCorporate Citizens

Dow Jones Sustainability Index : McDonalds has been amember of the Dow Jones Sustainability Index since 2005

Newsweek : 2010 Greenest Companies in America

AWARD & RECOGNITIONBRANDS & SUSTAINABILITY


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Fortune 2012 #11 Most Admired Company in the World Ranked #2 among all companies for Management Quality Ranked #2 among all companies for Global Competitiveness Ranked #1 among all companies for Use of Corporate Assets

Ranked #4 among all companies for Best Long-Term Investment Ranked #2 among all companies for Financial Soundness Ranked #4 among all companies for People Management McDonalds also ranked #1 in the Food Services categoryForbes 2010 Most Admired CompaniesBarron's 2012 #3 Most Respected Company

2012 Jim Skinner Named One of Worlds 30 Best CEOsBlack Enterprise 2012 Don Thompson Named One of Most Powerful CEOsBusinessWeek 2010 20 Best Companies for Leadership 2010 Jim Skinner Named One of 10 Most Innovative People

AWARD & RECOGNITIONLEADERSHIPS


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The first McDonald's () in China was established inShenzhen in 1990.

By the first quarter of 2002, there were 460 McDonald's

around China. The figure reached 600 at the end of2004.

For 2008, China represents one third of all capitalexpenditures in the Asia-Pacific, Middle East and Africa

region, where the fast-food giant is in 37 markets. China becomes the No 1 growth market for McDonald's,

with 960 restaurants and over 60,000 employees.

History in CHINA

First Mc Donald that established in CHINA

Sources : http://www.chinadaily.com.cn/business/2008-09/08/content_7007412.htm


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Chinese fast food market is divided into such two major categories as

Western and Chinese fast food.

In recent ten years, with the quickening pace of social life, China's fast

food industry has maintained annual growth rate of 10%-20%. In 2010,the market scale of China's fast food industry exceeded CNY 260 billion.

The major Western fast food brands in Chinese market are McDonald's,

KFC, Burger King, etc.

The major Chinese fast food brands are Kungfu, Yonghe King, Da NiangDumpling, etc.

KFC and McDonald's, the two fast-food giants, are always leaving

Chinese fast food enterprises far behind

Fast Food Industry in CHINA

Brief Decription

Sources : http://www.researchandmarkets.com/reports/1511788/research_report_on_china_fast_food_industry

Fact abo t Hamb rger Uni ersit in


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Looks like getting into Harvard is not the ultimate taskanymore, Chinas Hamburger University is the new toptarget for professional managers

Only 8 out of a field of 1,000 applicants got the chance tobe be selected as McDonalds management trainee andattend the university. Thats really harder than getting intoHarvard.

McDonalds has 1,300 stores in China and in order to keepall stores running full steam ahead, the fast-food giantneeds more capable managers. So, McDonalds last yearopened a Hamburger University training center on theoutskirts of Shanghai, and successfully trained 1,000 of the

nearly 70,000 McDonalds employees in mainland China.

Fact about Hamburger University inShanghai

It is harder than getting into Harvard University


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McDonald's is the leading global foodservice retailer with morethan 34,000 local restaurants serving nearly 69 million peoplein 119 countries each day.

They are determined to continuously improve their social andenvironmental performance. By doing continuousimprovement, growth opportunity, commitment to doing theright thing for our customers, our communities and the planet.

McDonalds is working hard, together with their suppliers andindependent restaurant franchisees, to strive toward asustainable future for their company and the communities inwhich we operate.

CONCLUSION


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Thats all about McDonalds,

Thank You

McDonalds - 500 TOP Companies - Tatit Kurniasih

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