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' "our customers' favorite place and way
to eat." Our worldwide o erations
have been aligned around a globalstrategy called the Plan to Win
cen er ng on e ve as cs o anexceptional customer experience
, , ,Promotion. We are committed to
enhancing our customers' experience.
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Cor orate Head uarters:
McDonalds Corporation2111 McDonald's DrOak Brook, IL 60523
Employees: A roximatel 400 000 McDonalds em lo ees loball
1.6 million people globally are employed throughMcDonalds restaurants and their franchises
Restaurants: 32,000 world-wide, 118 countries
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James SkinnerVice Chairman, CEO
Left to Right: Jose Armario, Group President Canada & Latin America; Janice Fulds, US Chief OperationsOfficer; James Skinner, Vice Chairman and CEO; Donald Thompson, President U.S.A; Jeffrey Stratton,
Chief Restaurant Officer; Mary Dillion, Global Chief Marketing Officer; Timothy Fenton, President
Asia/Pacific Middle East & Africa; Peter Bensen, Chief Financial Officer; Dennis Henequen. President
Europe; (at table) Gloria Santona, General Counsel & Corporate Secretary; Richard Floersch, Chief HumanResource Officer.
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Innovation from within
Em owered bi thinkin
Social responsibility Communit Focus
Responsible Purchasing
Protectin Our Environment Diversity
Em lo ee Force
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INPUT OUTPUTPROCESS
Employees
Cook and packagefoods
Satisfied customers
Restaurants
Food Prep/Assembly
Assemble meals to thecustomers order
place and way to eat
Provide a relaxed and
fun environment to eat
Frozen foods (patties, fries,chicken nuggets, etc.)
Produce
Containers
Company image
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Operational Strategic
Performance Dimensions
COST
QUALITY
SPEEDFLEXIBILITY
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Economies of scale Allows McDs to ass the value to consumers
McValue Dollar Menu
Party Pack
Cost contro s
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Universal taste
Taste appeal to its target market
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Order Qualifier: Product design:
Gender based kids meals Happy meals vs. Mighty kids meals
Promotiona pac agingOrder Qualifier: Product Mix: Soft serve offerings (milkshakes, ice cream
cones, sundaes)
Order Qualifier: Production Volume: Staffing based on consumer traffic and meal
me 24 Hour restaurants and drive-thru
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FIRMINFRASTRUCTUREFIRMINFRASTRUCTURE
HUMANRESOURCES
TECHNOLOGY
HUMANRESOURCES
TECHNOLOGY
PROCUREMENTPROCUREMENT
INBOUNDLOGISTICS
MARKETING& SERVICES
OUTBOUNDLOGISTICSOPERATIONS
SERVICEINBOUNDLOGISTICS
MARKETING& SERVICES
OUTBOUNDLOGISTICSOPERATIONS
SERVICE
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Strengths: Economies of scale
Pass value to customer (i.e. $1 menu)
ust-in-time order & deliver
Sustainable packaging
Renewable resources ac aging composition renewa e resources
Oil recycling (diesel oil)
Supply chain control Quality control Freight truck inspections
Weaknesses:
Media backlash
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FIRMINFRASTRUCTURE
Brand recognition
#1 in retail fast food industry
Leadership
Financial Stren th
Company image
Intellectual property
Franchising
Lawsuits
Company image
Culture insensitivities
HUMANRESOURCES
TECHNOLOGY
Economies of
Just-in-time order
& delivery
STRENGTH
sca eSustainable
packagingRenewable
resources
control
Quality controlMedia/PR
INBOUNDLOGISTICS
MARKETING& SERVICES
OUTBOUNDLOGISTICSOPERATIONS
SERVICEWEAKNESS
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Strengths: n- ne on-s te os o app cat on
systems 2nd lar est em lo er in the U.S. Reinforced information systems Wireless headsets Wi-Fi offered in all locations R&D in target consumer demands and
Corporate guidelines imposed onfranchisees
Franchisees must purchase supplies fromMcDs
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Weaknesses: g turn-over more t en
90 second drive-thru rule (unsuccessful)
-(telemarketer like, person is not in store)
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FIRMINFRASTRUCTURE
Brand recognition
#1 in retail fast food industry
Leadership
Financial Stren th
Company image
Intellectual property
Franchising
Lawsuits
Company image
Culture insensitivities
HUMANRESOURCES
Job appliationsystems
2nd largest U.S.
employer
High turn-over
Reinforced IT s stems
TECHNOLOGY
PROCUREMENTEconomies of
scale
Sustainable
- -
& delivery
Wireless headsets
Wi-Fi
Drive-thru voice
Franchsor purchase
agreement
STRENGTH
packagingRenewable
resourcesSupply chain
control
R&D based on
consumer demands
Corp guidelines for
Franchisees
90 second drive-thru
rule
INBOUNDLOGISTICS
MARKETING& SERVICES
OUTBOUNDLOGISTICS
OPERATIONS SERVICEWEAKNESS
Quality controlMedia/PR
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Distributor a reements Quality control
Freight truck inspections
ran om au s Refrigerated trucks Reinforced Information S stems
Cashier Assembly Line
Just in time order and delivery
Ensurin freshness
Packaging quality reinforces freshness
Hot/Warm food
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FIRMINFRASTRUCTURE
Brand recognition
#1 in retail fast food industry
Leadership
Financial Stren th
Company image
Intellectual property
Franchising
Lawsuits
Company image
Culture insensitivities
HUMANRESOURCES
Job appliationsystems
2nd largest U.S.
employer
High turn-over
Reinforced IT s stems Refrid erated trucks
TECHNOLOGY
PROCUREMENTEconomies of
scale
Sustainable
- -
& delivery
Wireless headsets
Wi-Fi
Drive-thru voice
Franchsor purchase
agreement
Reinforced IT
Just-in-time order &
delivery
Distributor agreements
STRENGTH
packagingRenewable
resourcesSupply chain
control
R&D based on
consumer demands
Corp guidelines for
Franchisees
90 second drive-thru
rule
Packaging
INBOUNDLOGISTICS
MARKETING& SALES
OUTBOUNDLOGISTICS
OPERATIONS SERVICEWEAKNESS
Quality controlMedia/PR
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Product
Health and wellness campaign & product
offerings Consumer and market research
rice
McValue Dollar Menu
Promotion
Disne and Nickelodeon license a reements
Coca-Cola endorsement
Feeding the athletes Olympic sponsorship
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con
Place
New upscale MDs
MDs goes green McCafe
Wi-Fi
McDonalds Play Place
Ronald McDonald
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con
Supersize Me movie
Media/PR
Adaptation to global culture and customs Product failures
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FIRMINFRASTRUCTURE
Brand recognition
#1 in retail fast food industry
Leadership
Financial Strength
Company image
Intellectual property
Franchising
Lawsuits
Company image
Culture insensitivities
Job appliation
systems
RESOURCES
TECHNOLOGY
2nd largest U.S.
employerHigh turn-over
Just-in-time order
& delivery
Reinforced IT systems
Wireless headsets
Wi-Fi
Drive-thru voice
Refridgerated trucks
Reinforced IT
Just-in-time order &
delivery
Consumer Research
McValue Dollar Menu
PROCUREMENT
conom es o
scaleSustainable
packagingRenewable
resourcesSupply chain
control
Quality controlMedia/PR
Franchsor purchase
agreement
Distributor agreements
QC
Packaging
Cartoon Affiliations
Coke
Olympic Sponsor
Upscale MD's
Going Green
STRENGTH
ase onconsumer demands
Corp guidelines for
Franchisees
90 second drive-thru
c a e
Wi-Fi
MD's Play Place
Ronald McDonald
"Supersize Me"
Media/PR
INBOUNDLOGISTICS
MARKETING& SALES
OUTBOUNDLOGISTICS
OPERATIONS SERVICEWEAKNESS
ru e Global expansion issuesProduct failures
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FIRMINFRASTRUCTURE
Brand recognition
#1 in retail fast food industry
Leadership
Financial Strength
Company image
Intellectual property
Franchising
Lawsuits
Company image
Culture insensitivities
Job appliation
systems
RESOURCES
TECHNOLOGY
2nd largest U.S.
employerHigh turn-over
Just-in-time order
& delivery
Reinforced IT systems
Wireless headsets
Wi-Fi
Drive-thru voice
Refridgerated trucks
Reinforced IT
Just-in-time order &
delivery
Consumer Research
McValue Dollar Menu
PROCUREMENT
conom es o
scaleSustainable
packagingRenewable
resourcesSupply chain
control
Quality controlMedia/PR
Franchsor purchase
agreement
Distributor agreements
QC
Packaging
Cartoon Affiliations
Coke
Olympic Sponsor
Upscale MD's
Going Green Fast food service
STRENGTH
consumer demands
Corp guidelines for
Franchisees
90 second drive-thru
rule
c a e
Wi-Fi
MD's Play Place
Ronald McDonald
"Supersize Me"
Media/PR
Order accuracy
Clean environment
Friendly customer
service
Lack of customer
service
INBOUNDLOGISTICS
MARKETING& SALES
OUTBOUNDLOGISTICSOPERATIONS SERVICE
WEAKNESS
Global expansion issues
Product failuresEmployee apathy
Dissatisfied
customers
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McDonalds strength lies in the operations and firminfrastructure.
McDonalds core competency is the production ande very spee o a or a e oo o a arge num er o
customers to support a low cost, high speed, andconsistent quality strategy
McDonalds strategy is supported by its strong financialresources, brand image, market leadership, buyer supplier
relations, and product value.
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A rox.. 9 million ounds fries serveddaily
380 sesame seeds on a sesame bun
Approx. 82% of consumer packaging ismade from renewable materials
onver o n o o ese ue
Logo differs between green locations
background vs. red color)
Beer served in German McDonalds
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