McDonaldsValueChainAnalysis_001-libre.pdf

8/10/2019 McDonaldsValueChainAnalysis_001-libre.pdf

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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


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


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


Leadership

Financial Stren th

Company image


Franchising

Lawsuits

Company image


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



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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


Leadership

Financial Stren th

Company image


Franchising

Lawsuits

Company image


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


control

R&D based on

consumer demands

Corp guidelines for

Franchisees


rule

Packaging

INBOUNDLOGISTICS

MARKETING& SALES

OUTBOUNDLOGISTICS




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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


Leadership

Financial Strength

Company image


Franchising

Lawsuits

Company image


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


delivery

Consumer Research

McValue Dollar Menu

PROCUREMENT

conom es o

scaleSustainable

packagingRenewable


control


Franchsor purchase

agreement


QC

Packaging

Cartoon Affiliations

Coke

Olympic Sponsor

Upscale MD's

Going Green

STRENGTH

ase onconsumer demands

Corp guidelines for

Franchisees


c a e

Wi-Fi

MD's Play Place

Ronald McDonald

"Supersize Me"

Media/PR

INBOUNDLOGISTICS

MARKETING& SALES

OUTBOUNDLOGISTICS


ru e Global expansion issuesProduct failures


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FIRMINFRASTRUCTURE

Brand recognition


Leadership

Financial Strength

Company image


Franchising

Lawsuits

Company image


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


delivery

Consumer Research

McValue Dollar Menu

PROCUREMENT

conom es o

scaleSustainable

packagingRenewable


control


Franchsor purchase

agreement


QC

Packaging

Cartoon Affiliations

Coke

Olympic Sponsor

Upscale MD's

Going Green Fast food service

STRENGTH

consumer demands

Corp guidelines for

Franchisees


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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Documents

McDonaldsValueChainAnalysis_001-libre.pdf