Wednesday, September 7, 2016

Case analysis On McDonalds( Case 4)/ MBA Capstone



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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