ymt college of management no longer the great American meal

Presented By:

Anuranjan

ymt college of management

ymt college of management McHistory McBrothers opened a drive-ins restaurant in 1937. Based upon self service concept. Designed their kitchen for mass production with assembly line procedure. Known for their speed, service & cleanliness. By the mid 1950s it recorded $ 350000 revenues.

ymt college of management

ymt college of management McHistory Ray Kroc finalized a deal with McBrothers for franchisee and established McDonald system Inc. to appoint franchisees in 1955. In late 1990s Mcdonald experienced major problem in sales. In 2002; the board decided to oust present CEO & to bring back retired vice chairman Cantalupo to overcome the present situations.

ymt college of management

ymt college of managementChanges in external environment:

Change in Consumer Preference: Eating at home

Health Conscious

Stiff Competition

Companys Image

Saturation of core markets

ymt college of management

ymt college of managementInternal Environment:

Poor Franchising Policy

Service and Quality compromised

Lack of Innovation

Unhappy Franchisees

ymt college of management

ymt college of managementFranchising Model: Problems

Unplanned Expansion

No Quality Control Measures

Centralized decision making

Concentrated in selected markets

Lack of customer service standard

ymt college of management

ymt college of managementFranchising still best if:

Planned properly

Quality control

Service standard defined

employees are trained properly

franchisees consulted and valued

evenly dispersed

ymt college of management

ymt college of management

Cantalupos efforts: not enough

Our suggestions:

Rework on the menu

Expand in growing markets

Make efforts to change its image

Give customers what and as they want

Keep franchisees happy

ymt college of management

ymt college of management

THANK YOU!

ymt college of management

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