CASE STUDY PRESENTATION

SUMMARY OF THE CASE

1955 Ray Kroc opened first Mc Donald’s in USA

In 1983 more than 6000 restaurants in USA

1967 opened first in Canada(international)

By 2001 it covered 121 countries, 29000 outlets

14 years of regress planning lead to success in European market(Moscow) with 27000 customers daily

SUMMARY OF THE CASE

This case study examines the positive way in which McDonald's is responding to changing customer habits and increased levels of competition.

o Introduction of traditional menu according to the culture.

o Introduction of QSC&V and training of employees in cooking and customer service(Hamburger university and skills in 22 languages)

Pricing is becoming more critical to decision-making - McDonald's introduced BIG MAC index to evaluate the currency of the country and buying power of the customer

SUMMARY OF THE CASE Demographic scanning , customers according to age

(children and adults)

Using same competitive strategies world wide by concentrating heavily on advertisement and establishing there brand

Business structure— frank franchises 66% , joint venture in east , company operated restaurants 21% and developed license similar to franchises with no company investment

Threats with competitors like KFC, Pizza hut , Burger King

1. WHAT OPPORTUNITIES AND THREATS DID MC DONALD'S FACE? HOW DID IT HANDLE THEM? WHAT ALTERNATIVES COULD IT HAVE CHOSEN

SWOT ANALYSISStrengths:

•Training and monitoring the franchises•QSC&V•Broad geographic locations•McDonalds standard and conformed changes in large areas efficiently

Weaknesses: They are lagging in innovationsLow differentiation

Opportunities: New products More franchises - less risk Increasing demand for fast food

THREATS o Tough competition by KFC,BURGER

KING,PIZZAHUTo Local fast food restaurants chaino Currency fluctuation

How they handled:-

By appointing skilled staff Opened new outlets According to culture and customer choice

Alternatives

McDonald opened many Quality Assurance Centers US, Europe, and Asia.

It also supports training and coaching in 22 languages to reach 100% customer satisfaction.

2.BEFORE MC DONALD'S ENTERED THE EUROPEAN MARKET, FEW BELIEVED THAT FAST FOOD COULD BE SUCCESSFUL IN EUROPE. WHY DO YOU THINK MC DONALD'S SUCCESSES? WHAT STRATEGIES DID IT FOLLOW? HOW DID THESE DIFFER FROM ITS STRATEGIES IN ASIA?

McDonalds stay in close contact with its customers, who want good taste, fast & friendly services clean surroundings, and quality.

It is interesting that McDonalds was one of the first restaurants in Europe to welcome families with children.

they are also entertained with crayons and paper, a play land, and clown Ronald McDonald, who can speak 20 languages.

STRATEGIES More importance to QSC&V.

Training of employees in how to operate McDonald restaurant

Proper selection procedure for hiring.

Heavy advertisement for promotion.

In Asia people wants food as per their taste and culture whereas, in Europe it doesn’t require as they want luxuries services.

3. WHAT IS MCDONALDS BASIC PHILOSOPHY? HOW DOES IT ENFORCE THIS PHILOSOPHY IN ADOPT TO DIFFERENT ENVIRONMENTS?

BASIC PHILOSOPHY Be first in the market Establish the brand rapidly by heavy

advertisement Knowing the needs & wants of customers Different marketing strategy for different

environment

These philosophy were adopted by:- Providing different traditional menus in

different countries as per their local food preparation law

4. SHOULD MCDONALDS EXPAND ITS MENU? IF YOU SAY NO, THEN WHY NOT? IF YOU YES, WHAT KIND OF PRODUCTS SHOULD BE ADD?

McDonalds do not need to expand its menu. McDonalds has been famous and liked for its very short and well prepared traditional menu, which people loves to have in their day to day life.

Even expanding the menu requires more resources for varieties and more skilled persons.

Though it can add some items according to regional taste but it should not change its traditional menu of burgers.

5. WHY IS MCDONALDS SUCCESSFUL IN MANY COUNTRIES AROUND THE WORLD?

Analyzing strength and utilizing opportunities to overcome threats and weakness.

Proper marketing strategy

Providing services as per customer taste and culture.

Maintaining QSC&V always

Overall focus on customer satisfaction

PRESENTED BY

T.KRUSHI KUMAR