sm401 - final pwp
Post on 07-Apr-2018
222 Views
Preview:
TRANSCRIPT
-
8/4/2019 Sm401 - Final Pwp
1/47
McDonalds
ST401EDirk SCHNECKENBERG
AN David
PADILLA AlejandraROBIN DamienSOTO ThaliaVon Manteuffel Nicolas
-
8/4/2019 Sm401 - Final Pwp
2/47
Summary1. Analyse of the situation
2. The strategic challenge
3. Alternatives analyse
4. Implementation plan
-
8/4/2019 Sm401 - Final Pwp
3/47
Analyse of the
situation
1
1234
-
8/4/2019 Sm401 - Final Pwp
4/47
McDonalds : Success story
1234
1937 : Brothers Mac Donald opened adrive-in in Passadena.
After opening a much larger restaurant inSan Bernardino, the created the Speedy Service System in 1948.
1952 : first Mac Donald franchise inPhoenix.
1955 : Ray Kroc fund McDonald's System,Inc.
-
8/4/2019 Sm401 - Final Pwp
5/47
1961 : Kroc & Sonneborne change thefranchise concept in real estate operation.
In the same year the Hamburger Universitywas established : a key element for the
McDonald's Business Model. 1963 : McDonald sells 1 million hamburgers a
day, and had its first national meeting.
1965 : the firm became a public company.
1971 : the company opened its firstrestaurants in Japan, Germany and Australia.
1234
-
8/4/2019 Sm401 - Final Pwp
6/47
In the 90's, the firm had to cope with a
number of challenges : the microwaveoven, increasing health consciousnessand competition. So McDonald's focuson international expansion and
adaptation.
In 1999, as Jack Greenberg took over the
reins of the firm, the situation wascomplicated due to competitionbetween fast-food giants.
1234
-
8/4/2019 Sm401 - Final Pwp
7/47
Organization and humanresources management
Culture: offering the best
Philosophy: giving back to thecommunities
Restaurant-one manager
-autocratic management
Corporation-hierarchical structureMcDonalds develop new products to
satisfy customers
1234
-
8/4/2019 Sm401 - Final Pwp
8/47
SWOT ANALYSIS
Strenghts Weaknesses
Opportunities Threats
McDonalds
1234
-
8/4/2019 Sm401 - Final Pwp
9/47
Strengths
Most recognizable logos. Golden Archer.
Global Company. More than 30,000
restaurants in 109 countries.Cultural Adaptation.
Leader in Quick Service Sandwich Industry.
Based on Franchise Business Model.
1234
-
8/4/2019 Sm401 - Final Pwp
10/47
Strengths
Systematization of all its food preparationprocess.
The use only high quality standards. 2005 - the best place to work for
minorities, ranked by Fortune Magazine .They invest more than 1 billion dollarannually
1234
-
8/4/2019 Sm401 - Final Pwp
11/47
Weaknesses Food Service Market is really saturated.
High employee turnover.
Hard manage of companys principle:Quality, Service, Value and Cleanliness
Lack of product innovation.
1234
-
8/4/2019 Sm401 - Final Pwp
12/47
Opportunities
The need to penetrate in some countries.Asia and South America.
Acquisition of some restaurants, non-McDonalds branded (Chipotle Grill).
New and premium products: good saladsand better hamburgers.
Implementation of a low-fat and healthymenu. First with FDA approval.
1234
-
8/4/2019 Sm401 - Final Pwp
13/47
Threats
Health conscious consumer trend.
Fast food market has a very slow growth.
Huge competitive pressure-Price War.
The current economic recession. Losses inexchange rate
1234
-
8/4/2019 Sm401 - Final Pwp
14/47
-
8/4/2019 Sm401 - Final Pwp
15/47
Product...McDonalds began in 1937 serving a menu
with 25 products.
80% of total sales were hamburgers,therefore in 1948 they began selling only15 cent hamburgers, cheeseburger,potatoes chips, pie and 5 differentbeverages.
In 1968 McDonalds introduced thefamous Big Mac in their menu.
1234
-
8/4/2019 Sm401 - Final Pwp
16/47
Product... Nowadays, McDonalds has huge product
diversity, even when companys aim is to
create a set of standardized products (BigMac)
Adaptation is required for its internationalsuccess; McDonalds changed some productsof its menu in order to fit with the culture,
religious and politic patterns of each country.And in order to please needs and wants ofconsumers.
1234
-
8/4/2019 Sm401 - Final Pwp
17/47
Promotion
Its Golden Arches as the companysrecognition point.
Promotion Strategy: Brand globally,advertise locally
Im loving it was implement andtranslate
The clown Ronald McDonalds needs tobe modifying for some countries.
1234
-
8/4/2019 Sm401 - Final Pwp
18/47
Price
McDonalds uses price as a competitiveweapon. At the beginning 15cents
hamburger and in 2002 Big Mac for 99cents. Pricing Strategic: Focus in localization not
in globalization.
Big Mac in USA is $3.58 USD
China is $1.83 USD
Norway is $7.02 USD
1234
-
8/4/2019 Sm401 - Final Pwp
19/47
Place The first tiny restaurant was opened in
Pasadena, California. Currently
McDonalds has more than 30,000restaurants operating in 119 countries.
The company manages a strategicexpansion, in where each restaurant is
operated by the own company,franchises or a joint venture.
1234
-
8/4/2019 Sm401 - Final Pwp
20/47
Consumer AnalysisMcDonalds sells its products directly to
their final users; is a B2C company
The company had based itssegmentation on demographic variables(age, gender, lifestyle stage)
Primary markets are teenagers and young
adults, but its heaviest target market arechildren and their parents.
1234
1
-
8/4/2019 Sm401 - Final Pwp
21/47
McDonalds creates products like the happymeal and playland places in order to please
its main consumer and has an agreementwith Barbie and Hot Wheels.
For teenagers and young adults the companyhas: price sensitivity, varieties offered, rightambience, products that worth the moneyand healthy.
Finland or Norway teenagers is the marketthat most visit McDonalds.
Consumer Analysis
1234
1
-
8/4/2019 Sm401 - Final Pwp
22/47
Core and Distinctive
Competences
McDonalds has core competences inproduction, image and products. Five of
them are: Brand Equity.
Production and Delivery speed.
Special menu for its main target market(Happy Meal).
Image: Brand image and logo in the mind ofmillions.
Adaptation System.
1234
1
-
8/4/2019 Sm401 - Final Pwp
23/47
Core and Distinctive
Competences
Adaptation System and its Lack ofInnovation, can be unfavorable. They are
diminishing its brand equity and image,straying from its core competency.
Its core competences are a source ofcompetitive advantage and by using
them in the right way the firm candefinitely be sustain in the competitivemarket.
1234
1
-
8/4/2019 Sm401 - Final Pwp
24/47
Porters5
forcesanalysis
The intensity ofcompetitiverivalry
The threat of theentry of newcompetitors
The threat ofsubstitute
products orservices
The bargainingpower ofsuppliers
The bargainingpower of
customers(buyers)
1234
1
-
8/4/2019 Sm401 - Final Pwp
25/47
The intensity of
competitive rivalry Highly competitive industry.
Many small & big fast food businesses
Burger King, Wendys, Hardees, Jack inthe Box, Sonic, etc.
1234
1
-
8/4/2019 Sm401 - Final Pwp
26/47
The threat of the entry of
new competitorsNot hard to enter the restaurant business.
Hard to establish a big franchise.
High costs
war of prices
1234
1
-
8/4/2019 Sm401 - Final Pwp
27/47
The threat of substitute
products or services variety of products
1234
1
-
8/4/2019 Sm401 - Final Pwp
28/47
The bargaining power of
suppliersMany producers of bread, meat and milk
1234
1 2 3 4
-
8/4/2019 Sm401 - Final Pwp
29/47
The bargaining power of
customers (buyers)
Product with discount.
PromotionsSomewhere else
1234
1 2 3 4
-
8/4/2019 Sm401 - Final Pwp
30/47
PEST analysis Political & Legal-
international
Economic-purchasingpower of the consumers
Social-many socialgroups.
Technological- offeringinnovation andcomfort.
1234
1 2 3 4
-
8/4/2019 Sm401 - Final Pwp
31/47
Financial Analysis2002 2003 2009
Current Ratio(Liquidity) 0.71 0.76 1.14
Debt Ratio(Leverage) 0.57 0.53 0.53
Net incomein millions of $(Profitability)
893 1471 4551
1234
1 2 3 4
-
8/4/2019 Sm401 - Final Pwp
32/47
Stategic challenge
2
12 34
1 2 3 4
-
8/4/2019 Sm401 - Final Pwp
33/47
The strategic challenge
12 34
1 2 3 4
-
8/4/2019 Sm401 - Final Pwp
34/47
The strategic challenge
12 34
1 2 3 4
-
8/4/2019 Sm401 - Final Pwp
35/47
The strategic challenge
12 34
1 2 3 4
-
8/4/2019 Sm401 - Final Pwp
36/47
AlternativesAnalysis
3
1234
1 2 3 4
-
8/4/2019 Sm401 - Final Pwp
37/47
AlternativesALTERNATIVES PROS CONS
(1) Open morecompany-ownedrestaurants
- unlimited control- no lack ofinformation
- vs. strategy- expensive
(2) Create competitionbetween Franchise Stores
- cheap- no big effort
- risk ofcannibalization
(3) Motivation ofemployees
- performance- corporate identity- work environment
- expensive
1234
1 2 3 4
-
8/4/2019 Sm401 - Final Pwp
38/47
Decision GridWeight indecison
0.4 0.4 0.2 TOTAL = 1.0
Cost Risk Time Total Score
Alternative 1 2 = 0.8 3 = 1.2 3 = 0.6 2.6
Alternative 2 7 = 2.8 6 = 2.4 7 = 1.4 6.6
Alternative 3 4 = 1.6 10 = 4.0 6 = 1.2 6.8
1234
1 2 3 4
-
8/4/2019 Sm401 - Final Pwp
39/47
Winner
Alternative 3
Motivation of employees
1234
1 2 3 4
-
8/4/2019 Sm401 - Final Pwp
40/47
Implementation
plan
4
1234
1
2 3 4
-
8/4/2019 Sm401 - Final Pwp
41/47
How to motivate
McDonalds employees?
1234
Physiological needs(food, water, shelter; pay, working conditions)
Safety needs(job security, protection)
Social needs(work groups, healthy atmosphere)
Esteem needs(self-esteem, recognition)
Self-actualization
(self-development
and realization)
1 2 3 4
-
8/4/2019 Sm401 - Final Pwp
42/47
First need If you treat well your employee,
they will treat well your customers
Respect Ethic charter to be sign
Infrastructures innovation : comfort
Computers in the staff room with a
Wi-Fi connexion
Salary that goes with the job you do
1234
1 2 3 4
-
8/4/2019 Sm401 - Final Pwp
43/47
Second need
Propose to employees some trainingcourses to improve their skills indifferent fields of the restaurant
Become General-purpose
Security job
Not always the same taskavoid theboredom
1234
1 2 3 4
-
8/4/2019 Sm401 - Final Pwp
44/47
Third need
Establish a good atmosphere in therestaurant
Create teams working on differentschedule teamspirit
1234
1 2 3 4
-
8/4/2019 Sm401 - Final Pwp
45/47
Fifth need Encourage McDonalds employee to
multiply training courses
System of level courses with at the toplevel : Manager in a McDonaldsrestaurant
Let the possibility to work abroad
1234
1 2 3 4
-
8/4/2019 Sm401 - Final Pwp
46/47
Fourth need
Reward system Speed seller
The best drive-in seller
The best in store seller
The employee of the week
The employee of the month
1234
-
8/4/2019 Sm401 - Final Pwp
47/47
Thank you foryour attention
Enjoy your meal !
top related