Case
analysis
On
McDonalds
Introduction and Background
McDonalds as
establishes in 1955 corporation and the multinational was first started by form
Roy, it has its global operation for more than 119 countries selling its food
items globally specially Korc. Currently as we see the data there are more than
50 million people per day enjoying foods from McDonalds, burgers, nuggets,
French fries are their popular foods that they sell at the daily basis. even
though we don’t have a branch in our country Nepal but the marketing and the
brand awareness is so high that we most of the people know the tagline and the
most essence of the product that is burger and I’m loving it. This is how McDonalds
is achieving success and awareness getting through the heart of the customers.
With the affordable
price and the well-known brand and services for the fast food it has always
been a integral part of the customers heart and the mind. It has also one of
the highest employing place or organizations.
There are some of the
interesting facts about the McDonalds which I have enlisted them below with the
points and which are:
·
It was first introduced in 1940 with two
brothers in California
·
1965 was the first time it has gone
public with the stock market
·
80000 and more are graduated every year
from Hamburger University with the name of hamburger logy.
·
More than 85% of MacDonald’s are
operated with franchisee
·
One in 8 Americans is employed by
MacDonald’s
·
In every 14.5 hours they open up with a
new restaurant
·
They serve more than 68 million people
worldwide which is more than a population of U.K.
·
They are also the largest distributor of
toys
·
It is not the one of the largest chain
but Subway is.
·
Their revenue is more than 75 million
dollars per day.
·
To earn enough to buy a Mac one person
in India has to work for 6 hours.
·
The queen of England also owns store of
MacDonald’s near Buckingham Palace
As I have already given
details of MacDonald and their history on my two previous cases I hereby would
like to go straight to the SWOT analysis of MacDonald’s.
Strengths
·
Just in time delivery, as MacDonald’s is
the fast food industry they serve as the order comes in.
·
Good brand value
·
Huge advertising budget
·
Target audience(children)
·
Collaboration with the coca - cola
company
·
Competitive price for the fast food
services
·
Professional training for employees
·
Clean environment and spacious
environments and play space for kids
Weaknesses
·
Product development is weaker
·
Unhealthy food menu
·
High numbers of employee which could be
the weakness
·
Disrupts locality
·
Quality and standardization issues
Opportunities
·
Growing market for the family dining
·
Increasing population with increasing
demands
·
Taste according to the market for
example MahaRaja Burger for the Indian markets
·
Changing culture and taste habits of the
people
·
Home delivery of foods
Threats
·
Health conscious people who is
tremendously increasing are creating threats to the MacDonald’s
·
Also competition among the local
restaurants and local food chain markets
·
Recession in economy
·
Currency fluctuations make changes in
the price and other factors
Value
chain analysis of McDonalds
Primary
activities
In
bound logistics: this is done in order to minimize the
cost and to ensure that the product quality is superior and well. MacDonald’s
has been adopting backward vertical integration, it has always purchased its
material from fixed vendors and there are always some agreements and contracts
for the fixed period of time so that the price and the material won’t be
fluctuate.
·
Production in bigger and huge plants for
extensive distribution
·
Third party logistics operators are used
to operate well
Operations:
the operation is really fast they got a very speedy kitchen and them got fast
and new technology so that they can work fast and provide fast service and
quality service to the customers. They contains some large grill, fryer, soda
fountain and some of the machines for the milk shakes and counters and one
person can also manage numerous works.
·
Specific and exact same guidelines are
followed by every outlets
·
They have computerized tracking system
to track the orders
Outbound
logistics: they have always focused on quality and the
superior customer service they have always made cleanliness and good ambience
in the restaurants. Even at the restaurant they have been focusing on energy
consumption, packaging and waste management. They have been always determined
for the quality service, innovation and improving operations.
·
Efficient crew members logically store
and distribute goods
·
McDonalds recycling system with the
distribution centers
Marketing
and sales: MacDonald’s from their expansion till the date they
have always excel the market with the brand and the marketing campaign to the
strategies they have made themselves as the most popular brand in the world not
only in the fast food industry they have markup themselves as one of the best
fortune 500 companies. The popularity and brand recognition was gained through
the long practice of strategies and marketing the excellent marketing strategies
from many years has made it possible. they have very unique kind of marketing
campaign always as per now I have seen the Indian advertisement which says
“friends sharing key bad hi bante hain” the main theme of MacDonald’s Indian
advertisement is to show that the sharing food gives friendship. so while
watching it we feel funny, excitement and a new approach to show the world that
the MacDonald’s cares about us. They have always done extensive advertising
campaigns also they are active in corporate social responsibility.
·
Franchisee can use their own marketing
mix and advertising campaigns
·
Long term objectives are turned down to
short term measurable and achievable goals
Services:
fast
food and the customer service have created additional value to McDonald’s
product the value adds is the free wifi at their every outlet. Even for the
birthdays and other special moments they gift their valuable customers
sometimes gift cards and discount cards which allow them to pay at the quicker rate,
there are play space for the children’s so that they can learn and enjoy at the
restaurants and even smaller portions of food for the children’s. They have
added value through the added service and their customer service.
Support
activities
Firm
infrastructure: Modern infrastructures, good ambience, innovation modern information
technology, information resources has enhanced the value. Successful
integration of activities
Human
resources Management: As McDonald’s is one of the best
place to get their placement there are more than 50000 employees which are
giving their efforts to the organization to grow even bigger and McDonalds is
giving extensive training and resources to make their employee best in the
corporation.
Technology
Development: just in time and the continuous
improvement less errors are the technology development, they are using
computerized menu and the modern restaurants with the latest technology in the
restaurant to adds value.
Procurement:
E-procurement service has provided them the best support to the supply chain
management of the McDonalds which gives them best to provide the excellent
service to their customers.
Conclusion
As they are one of the
largest fast food restaurant which operated in more than 119 countries and in
2016 they are opening up their new outlets in Kazakhstan with their customer
base and the millions of happy customers they are happy to serve and earn
millions per day, the recognition as the brand and low cost leadership through
their products the customization in the product as the country needs it the
immediate process and activities their logistics and their supply chain
everything is so manageable and in the right way. As they are related with the
service industry so customer satisfaction is always important so , the
McDonalds gives me the clear lesson of no idea is big or small it’s us and our
vision that will take our idea and the plan to the reality. As per the
McDonalds learning it was the great learning experience if anyway I will be
opening up with the fast food in Nepal I will be clearly taking footsteps of
McDonalds ,Low cost, focus and the clear strategy which added completive advantage and the
organization can go on the next level.
Bibliography
fagansusanto. (2012, 11 22). Value Chain and
Competitive Advantage of McDonald’s. Retrieved from Fagansusanto:
https://fagansusanto.wordpress.com/2012/11/22/value-chain-and-competitive-advantage-of-mcdonalds/
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