mc donald- customer aquisition & retention

8/6/2019 MC DONALD- Customer Aquisition & Retention

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CUSTOMER ACQUISITION & RETENTION


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CHAPTER- 1

INTRODUCTION

y MEANING

y OBJECTIVE OF THE STUDY

y RESEARCH METHODOLOGY

y RESEARCH DESIGN


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MEANING

Research is a common language refers to a search for knowledge. Research is a scientific andsystematic search for pertinent information on a specific topic. Infact, reseaech is an act ofscientific investigation

OBJECTIVE OF THE STUDY

Primary objective

To understsnd the strategies of MCDonald behind the their customer acquisition and retention in

order to strengthen the organizations existing retention policy

Secondary objective

To construct a basic framework towards improvement of customer satisfaction factors so as to

drive product and brand improvement.

RESEARCH METHODOLOGY

Research methodology is a systematic way to solve research problems. It may be understood as

a science of studying how research is done scientifically. On it we study the various step that are

generally adopted by researcher in studying research problem. There are several ways of


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collecting the appropriate data., which differ considerably in context of money, cost, time and

other resources. They can be broadly divided in to two categories:-

1. PRIMARY SOURCES.

2. SECONDARY SOURCES.

PRIMARY SOURCES OF DATA COLLECTION

Primary data collection in form of questionnaire (VCS)

QUESTIONNAIRE METHOD

This method of collecting the data personally giving the questionnaire to respondent is most

extensively employed in various economic survey, this method of collecting the data is much

popular, particular in case of big enquiries. A questionnaire consist of a number of questions

printed or typed in definite order on a form. The questionnaire is given to the reply in thje space

meant for the purpose in the questionnaire itself.

The merits of questionnaire are as follows:-

1. Respondents have adequate time to give well thought out answer.

2. It is free from the bias because answers are in the respondents own words.

3. It is a low cost method.

4. Large sample can be made use of and thus the results can be made more dependable and

reliable.

The main demerits of this system are as follows:-

1. It is difficult to know whether willing respondents are truly representative.

2. This method is likely to be the slowest of all.

3. It can be used only when respondents are educated and co- operative.


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SECONDARY RESEARCH DATA

y Primary & Secondary data analysis of the separations of the AMMD was done.

y The data made available was necessary to find the areas which have shown high rate of

attrition. Such areas were consequently focus group for the project.

y Attrition data was made available for the period from April 1, 2009 to March 31, 2010.

2. PROJECT EXECUTION:-

The execution of the project is a very important step in the research process. If the execution of

the project proceeds on correct lines, the data to be collected would be adequate and dependable.

This step should be taken to ensure that the survey is under statistical information.


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CHAPTER 2

REVIEW OF LITERATURE

EXIT INTERVIEWS

y PROCEDURE OR PROCESS OF ANALYSIS OR INTERVIEWS

y EXIT INTERVIEW FORM & FORMALITIES

y REASONS FOR EXIT THE COMPANY

y EXIT INTERVIEW ANALYSIS (VOICE CAPTURING SURVEY)

y OPPORTUNITY & THREATS


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Two mechanisms drive the financial correlation. Retention of old customers costs much less thanacquisition of new ones. The profit generated from the retained customer must thereforehandsomely exceed the harvest reaped from the new clientele. The retained customer base is thusa huge intangible asset. If you want to make it look tangible, use averages like the cost pertransaction and the profit margin to work out the net present value of the retained customer base.That value demonstrates the return that's won by successful efforts to satisfy the customers sogreatly that their custom stays with you.

The other way round, look no further than McDonald's to see what happens when unhappycustomers start passing a business by.

OBJECTIVES


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1. To find out the number of the departuring employees and also departued employees and

reasons behind their departure.

2. To find out grade, location, functions, designations of the departured employees.

3. To find out the lackings and demeits about the company which is the basic reason for

employees departure.

TOP TEN TECHNIQUES:-

. Strategic planning (2)2. Mission statements (1)3. Benchmarking (4)4. Customer satisfaction measurement (3)5. Core competencies (6)6. Total Quality Management (5)

7. Reengineering (9)8. Pay for performance (8)9. Strategic alliances (10)10. Growth strategies (-)

This technique is a somewhat long-winded expression of the principle that you start analysingthe business system at the customers' end, and work back from their satisfaction. As you moveback along the value chain, you reform or eliminate processes, until you gain competitiveadvantage: you cost the key activities, find out what drives the costs, and strengthen the linkswith the customer to differentiate your offering and increase satisfaction.


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Business Strategy and CRM

We now consider the Business Strategy Perspective on CRM. Here, we propose a model, whichis a hybrid, and typical of many of the models and diagrams of CRM that you will find on TheInternet and in popular books on the topic of marketing/ecommerce. The model has three key

phases and three contextual factors:

Three key phases:

y 1. Customer Acquisition.y 2. Customer Retention.y 3. Customer Extension.

Three contextual factors:

y 4. Marketing Orientation.y 5. Value Creation.y 6. Innovative IT.

1. Customer Acquisition - This is the process of attracting our customer for the first their firstpurchase.We have acquired our customer.

Growth - Through market orientation, innovative IT and value creation we aim to increase thenumber of customers that purchase from us for the first time.

2. Customer Retention - Our customer returns to us and buys for a second time.We keep themas a customer. This is most likely to be the purchase of a similar product or service, or the nextlevel of product or service.


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Growth - Through market orientation, innovative IT and value creation we aim to increase thenumber of customers that purchase from us regularly.

3. Customer Extension - Our customers are regularly returning to purchase from us.Weintroduce products and services to our loyal customers that may not wholly relate to their

original purchase. These are additional, supplementary purchases. Of course once our loyalcustomers have purchased them, our goal is to retain them as customers for the extendedproducts or services.

Growth - Through market orientation, innovative IT and value creation we aim to increase thenumber of customers that purchase additional or supplementary products and services.

4. Marketing Orientation - means that the wholes organization is focused upon the needs ofcustomers. Customer needs are addressed by the Three Levels of a Product whereby theorganisations not only supplies the actual, tangible product, but also the core product and itsbenefit, and also the augmented product such as a warranty and customer service. Marketing

orientation will focus upon the needs of consumers for all three levels of a product. (N.B.'market' orientation and 'marketing' orientation are not the same).

5. Value Creation - centers on the generation of shareholder value based upon the satisfaction ofcustomer needs (as with marketing orientation) and the delivery of a sustainable competitiveadvantage.

6. Innovative IT - is exactly that - Information Technology must be up-to-date. It should beefficient, speedy and focus upon the needs of customers.Whilst IT and/or software are not theentire story for CRM, it is vital to its success. CRM software collects data on consumers andtheir transactions. Huge databases store data on individuals and groups of individuals. In some

ways, CRM means that an organization is dealing with a segment of one person, since everyconsumer displays different purchasing habits and preferences. Organizations will trackindividuals, and try to market products and services to them based upon similar buyerbehaviorseen in other individuals (e.g. When Amazon tells you those customers that viewed/bought thesame product as you, also bought another product).


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OPPORTUNITIES AND THREATS:-

Opportunitiesy There are opportunities for new restaurants outside the United States, and McDonald's has been

taking advantage of them. China is a great opportunity for the company, as is much of Asia.

y Menu innovations are limited only by imagination.

y Low interest rates provide cheap capital for growth. In addition to dollar-denominated debt,

McDonald's recently became the first foreign company to issue Yuan-denominated bonds in

Hong Kong

Threats

Changes in commodity prices

McDonalds, because of its nature of business may get affected by price fluctuations in beef,chickenand cheese, which are critical ingredients of the company's menu. The company remainssusceptibleto increases in food costs as a result of factors beyond its control, such as general economicconditions, seasonal fl

y Governments are considering regulations targeting fast food.

y McDonald's faces competition from strong peers such as recent 11 Oclock Stock pickYum!

Brands (NYSE: YUM ) and Burger King (NYSE: BKC ) .

y New product rollouts often have to go head-to-head with established players like Starbucks

(Nasdaq: SBUX ) coffee orJamba (Nasdaq: JMBA ) smoothies.

y Commodity price increases could increase costs while a weak economy limits the ability to pass

the price hikes through to consumers.


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CHAPTER 3

THE COMPANY

y COMPANY PROFILE

y MILESTONES

y BOARD OF DIRECTORS

y DIVERSIFIED AREAS

y INTERNATIONAL SUBSIDIARIES

y STRENGTH AND WEAKNESSES


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Company profileMcDonald's Corporation franchises and operates McDonald's restaurants in the global restaurantindustry. These restaurants serve a varied, limited, value-priced menu in more than 100 countries

around the world. All restaurants are operated either by the Company or by franchisees,including conventional franchisees under franchise arrangements, and foreign affiliated marketsand developmental licensees under license agreements. The Company and its franchiseespurchase food, packaging, equipment and other goods from various independent suppliers. Itoffers a range of products. Independently owned and operated distribution centers, approved bythe Company, distribute products and supplies to McDonald's restaurants. s menu includeshamburgers and cheeseburgers, Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, severalchicken sandwiches, Chicken McNuggets, Chicken Selects, SnackWraps, french fries, salads,shakes, McFlurry desserts, sundaes, soft serve cones, pies and cookies.

McDonald's Corporation (NYSE: MCD) is the world's largest chain of hamburgerfast foodrestaurants, serving more than 58 million customers daily.[3] In addition to its signature restaurantchain, McDonalds Corporation held a minority interest in Pret A Mangeruntil 2008, was amajor investor in the Chipotle Mexican Grill until 2006,[4] and owned the restaurant chainBoston Market until 2007.[5]

A McDonald's restaurant is operated by either a franchisee, an affiliate, or the corporation itself.The corporation's revenues come from the rent, royalties and fees paid by the franchisees, as wellas sales in company-operated restaurants. McDonald's revenues grew 27% over the three yearsending in 2007 to $22.8 billion, and 9% growth in operating income to $3.9 billion.[6]

McDonald's primarily sells hamburgers, cheeseburgers, chicken products, french fries,breakfastitems, soft drinks, shakes, and desserts. In response to obesity trends inWestern nations and inthe face of criticism over the healthiness of its products, the company has modified its menu toinclude alternatives considered healthier such as salads, wraps and fruit.

History of McDonald's

The business began in 1940, with a restaurant opened by brothers Richard and MauriceMcDonald in San Bernardino, California. Their introduction of the "Speedee Service System" in1948 established the principles of the modern fast-food restaurant. The original mascot ofMcDonald's was a man with a chef's hat on top of a hamburger shaped head whose name was"Speedee." Speedee was eventually replaced with Ronald McDonald by 1967 when the companyfirst filed a U.S. trademark on a clown shaped man having puffed out costume legs.

McDonald's first filed for a U.S. trademark on the name McDonald's on May 4, 1961, with thedescription "Drive-In Restaurant Services," which continues to be renewed through the end ofDecember 2009. In the same year, on September 13, 1961, the company filed a logo trademarkon an overlapping, double arched "M" symbol. The overlapping double arched "M" symbol logo


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In some countries, "McDrive" locations nearhighways offer no counter service or seating. Incontrast, locations in high-density city neighborhoods often omit drive-through service. Thereare also a few locations, located mostly in downtown districts, that offerWalk-Thru service inplace of Drive-Thru.

Specially themed restaurants also exist, such as the "Solid Gold McDonald's," a 1950s rock-and-rollthemed restaurant.[15] In Victoria, British Columbia, there is also a McDonald's with a 24-carat (100%) gold chandelierand similar light fixtures.

To accommodate the current trend for high quality coffee and the popularity of coffee shops ingeneral, McDonald's introduced McCaf, a caf-style accompaniment to McDonald's restaurantsin the style ofStarbucks. McCaf is a concept created by McDonald's Australia, starting withMelbourne in 1993. Today, most McDonald's in Australia have McCafs located within theexisting McDonald's restaurant. In Tasmania, there are McCafs in every store, with the rest ofthe states quickly following suit. After upgrading to the new McCaf look and feel, someAustralian stores have noticed up to a 60% increase in sales. As of the end of 2003 there were

over 600 McCafs worldwide.

Some locations are connected to gas stations/convenience stores,[16] while others calledMcExpress have limited seating and/or menu or may be located in a shopping mall. OtherMcDonald's are located inWal-Mart stores. McStop is a location targeted at truckers andtravelers which may have services found at truck stops.[17]

Playgrounds

McDonald's in Panorama City, California designed for family-friendly image

Some McDonald's in suburban areas and certain cities feature large indoor or outdoorplaygrounds. The first PlayPlace with the familiar crawl-tube design with ball pits and slides wasintroduced in 1987 in the USA, with many more being constructed soon after. Some PlayPlaceplaygrounds have been renovated into "R Gym" areas.

Redesign


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The Mc Donalds restaurant in Dudley Town, nearBirmingham, during 2002. It is in the old red,gold and grey livery.

McDonald's in Darlington, UK. This is an example of the new look of McDonald's in Europe.

In 2006, McDonald's introduced its "Forever Young" brand by redesigning all of theirrestaurants, the first major redesign since the 1970s.[18][19]

The design includes the traditional McDonald's yellow and red colors, but the red is muted toterra cotta, the yellow was turned golden for a more "sunny" look, and olive and sage green werealso added. To warm up their look, the restaurants have less plastic and more brick and wood,with modern hanging lights to produce a softer glow. Contemporary art or framed photographshang on the walls.

Business model

McDonald's Corporation earns revenue as an investor in properties, a franchiser of restaurants,and an operator of restaurants. Approximately 15% of McDonald's restaurants are owned andoperated by McDonald's Corporation directly. The remainder are operated by others through avariety of franchise agreements and joint ventures. The McDonald's Corporation'sbusinessmodel is slightly different from that of most other fast-food chains. In addition to ordinaryfranchise fees and marketing fees, which are calculated as a percentage of sales, McDonald'smay also collect rent, which may also be calculated on the basis of sales. As a condition of manyfranchise agreements, which vary by contract, age, country, and location, the Corporation mayown or lease the properties on which McDonald's franchises are located. In most, if not all cases,the franchisee does not own the location of its restaurants.


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The UK business model is different, in that fewer than 30% of restaurants are franchised, withthe majority under the ownership of the company. McDonald's trains its franchisees and others atHamburger University in Oak Brook, Illinois.

In other countries, McDonald's restaurants are operated by joint ventures of McDonald's

Corporation and other, local entities or governments.

As a matter of policy, McDonald's does not make direct sales of food or materials to franchisees,instead organizing the supply of food and materials to restaurants through approved third partylogistics operators.

According to FastFood Nation by Eric Schlosser(2001), nearly one in eight workers in the U.S.have at some time been employed by McDonald's. (According to a news piece on Fox News thisfigure is one in ten.) The book also states that McDonald's is the largest private operator ofplaygrounds in the U.S., as well as the single largest purchaser ofbeef,pork,potatoes, andapples. The selection of meats McDonald's uses varies with the culture of the host country.

ProductsMain article:McDonald's products

See also:McDonald's products (international)Main article:McDonald's products

See also:McDonald's products (international)

McDonald's predominantly sells hamburgers, various types ofchickensandwiches and products,French fries, soft drinks,breakfast items, and desserts. In most markets, McDonald's offers

salads and vegetarian items, wraps and other localized fare. Portugal is the only country withMcDonald's restaurants serving soup. This local deviation from the standard menu is acharacteristic for which the chain is particularly known, and one which is employed either toabide by regional food taboos (such as the religious prohibition of beef consumption in India) orto make available foods with which the regional market is more familiar (such as the sale ofMcRice in Indonesia).


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McDonald's predominantly sells hamburgers, various types ofchickensandwiches and products,French fries, soft drinks,breakfast items, and desserts. In most markets, McDonald's offerssalads and vegetarian items, wraps and other localized fare. Portugal is the only country withMcDonald's restaurants serving soup. This local deviation from the standard menu is acharacteristic for which the chain is particularly known, and one which is employed either to

abide by regional food taboos (such as the religious prohibition of beef consumption in India) orto make available foods with which the regional market is more familiar (such as the sale ofMcRice in Indonesia).

Headquarters

McDonald's Plaza, the headquarters of McDonald's

The McDonald's headquarters complex, McDonald's Plaza, is located in Oak Brook, Illinois. Itsits on the site of the former headquarters and stabling area of Paul Butler, the founder of OakBrook.[55] McDonald's moved into the Oak Brook facility from an office within the Chicago

Loop in 1971.[56]

visison

visisonMcDonald's Vision Statement

"McDonald's vision is to be the world's best quick

service restaurant experience. Being the best means

providing outstanding quality, service, cleanliness, and

value, so that we make every customer in every

restaurant smile."

McDonalds Mission Statemen


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Board of Directors Biographical Information

as of January 27, 2011

Andrew J. McKenna

Non-Executive Chairman ofMcDonalds Corporation since April

2004 and also Chairman ofSchwarz Supply Source, a printer,converter, producer and distributor ofpackaging and

promotional materials. Mr. McKenna serves as a director of

Aon Corporation and Skyline Corporation. He has served overthe years on many civic, community and philanthropic boards

and currently serves as a trustee of the Museum ofScienceand Industry and the University ofNotre Dame and as a

director of the Big Shoulders Fund of the Archdiocese of

Chicago, Childrens Memorial Hospital ofChicago, The IrelandEconomic Advisory Board, the Lyric Opera of Chicago and the

United Way ofMetropolitan Chicago among others. Mr. McKenna is also the FoundingChairman ofChicago Metropolis 2020. Director since 1991. Class of2012.

Susan E. Arnold

Former President - Global Business Units ofThe Procter & Gamble Company from 2007 until

March 2009 when she retired from that post. Prior to that time, Vice Chair of P&G Beauty

and Health since 2006; and Vice Chair ofP&G Beauty since 2004. Director of The WaltDisney Company. Director since 2008. Class of2011.

Robert A. Eckert

Chairman and Chief Executive Officer ofMattel, Inc., a designer, manufacturer and

marketer offamily products, since May 2000. Director of Levi Strauss & Co. Director since2003. Class of2012.

Enrique Hernandez, Jr.

President and ChiefExecutive Officer of Inter-Con Security Systems, Inc., a provider ofhigh-end security and facility support services to government, utilities and industrial

customers. Non-executive Chairman ofNordstrom, Inc., and Director ofChevron

Corporation and Wells Fargo & Company. Director since 1996. Class of2012.

Jeanne P. Jackson

President of Direct to Consumer for NIKE, Inc., a designer, marketer and distributor of

athletic footwear, equipment and accessories, since March 2009. Between 2002 and 2009,

ChiefExecutive Officer ofMSP Capital, a private investment company. Director of MotorolaMobility Holdings, Inc. Director since 1999. Class of2012.

Richard H. Lenny


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Operating Partner of Friedman, Fleischer & Lowe, LLC, a private equity firm, since January

2011. Former Chairman, President and ChiefExecutive Officer of The Hershey Company, amanufacturer, distributor and marketer of candy, snacks and candy-related grocery

products, from January 2002 until his retirement in December 2007. Director ofConAgra

Foods, Inc. and Discover Financial Services. Director since 2005. Class of2011.

Walter E. Massey

President of the School of the Art Institute of Chicago, since September 2010. Also,

President Emeritus of Morehouse College having served as its President from 1995 to June

2007. Director since 1998. Class of2013.

Cary D. McMillan

ChiefExecutive Officer of True Partners Consulting LLC, a professional services firm

providing tax and other financial services, since December 2005. From October 2001 to May2004, he was the ChiefExecutive Officer ofSara Lee Branded Apparel and from January

2000 to

May 2004, Executive Vice Presidentof

Sara Lee Corp

orati

on, a branded c

onsumerpackaged goods company. Director ofAmerican Eagle Outfitters, Inc. Director since 2003.

Class of2011.

Sheila A. Penrose

Non-executive Chairman of Jones Lang LaSalle Incorporated, a global real estate services

and money management firm, since January 2005. From October 2000 to December 2007,she was President of the Penrose Group, a provider of strategic advisory services on

financial and organization strategies. Director since 2006. Class of2011.

JohnW. Rogers, Jr.

Chairman and Chief Executive Officer ofAriel Investments, LLC, an institutional moneymanagement firm, which he founded in 1983. Director ofAon Corporation and Exelon

Corporation, and a trustee ofAriel Investment Trust. Director since 2003. Class of2013.

James A. Skinner

Vice Chairman and ChiefExecutive Officer, a post to which he was elected in November2004 and he has also served as a Director since that time. Vice Chairman from January

2003 toNovember 2004. Mr. Skinner has been with the Company for 38 years and has heldvarious management positions during that time. Director of Illinois Tool Works Inc. and

Walgreen Co. Class of2011.

RogerW. Stone

Chairman and Chief Executive Officer ofKap Stone Paper and Packaging Corporation,formerly Stone Arcade Acquisition Corporation, since April 2005. Mr. Stone was Manager of

Stone-Kaplan Investments, LLC from July 2004 to January 2007 and Chairman and Chief

Executive Officer ofBox USA Group, Inc., corrugated box manufacturer, from 2000 to 2004.


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Non-executive Chairman ofStone Tan China Acquisition Corp. and Stone Tan China

Acquisition (Hong Kong) Co. Ltd. Director since 1989. Class of2013.

Donald Thompson

President and Chief Operating Officer, a post to which he was elected in January 2010 and

has also served as a Director since January 2011. President, McDonald's USA from August

2006 to January 2010, Executive Vice President and Chief Operations Officer, McDonald'sUSA from January 2005 to August 2006. Mr. Thompson has been with the Company for 20

years and has held various management positions during that time. Director ofExelon

Corporation. Class of2012.

Miles D.White

Chairman and Chief Executive Officer ofAbbott Laboratories, a pharmaceuticals and

biotechnology company, since 1999. Director ofCaterpillar, Inc. Director since 2009. Classof 2013.

Communications with the Board of Directors

Interested persons, wishing to communicate directly with the Board ofDirectors or the non-

management directors, individually or as a group, may do so by sending writtencommunications addressed to them to the following address:

McDonald's Corporation

Product diversification

growing sales of a new product in a new market.

Any modification of a current product that serves to expandthe potential market implies that the company is following astrategy ofproduct diversification .

The product diversification strategy is different from product

development in that it involves creating a new customer base,which by definition expands the market potential of theoriginal product. This is almost always done through brandextensions or new brands, but in some cases the productmodification may "create" a new market by creating new usesfor the product.


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Teen People is thus an example of product diversificationsince it was a new product that expanded the market potentialof the original product,People magazine.While someteenagers undoubtedly boughtPeople magazine, they were

not People's target market. Courtyard by Marriott andFairfield Inn are other examples of product diversificationsince before Marriott offered those new brands they had littlepotential to expand sales in the business and budgetcategories. Marriott had business and budget guests, but theywere notspecifically targeted, so by concentrating on thesetwo markets they were able to add to their market potential. Itshould be apparent why Marriott could not expand into suchdifferent categories with their original brand name.

When Heinz realized that children play with food and itwould be more fun to play with ketchup if it were green orpurple rather than red, they also were following a productdiversification strategy since the market potential for ketchupincreased from food to food plus play. Notice in this case thatthe brand name was unchanged.

Sometimes product diversification takes the form of a

product extension with the same brand name. Reebok, a shoecompany, now sells water under the Reebok FitnessWaterbrand name. Clearly, Reebok's market potential has increasedfrom the previously-defined athletic shoe market to shoesplus water.

The dangers of product diversification

The main dangers facing a company following a productdiversification strategy for a brand are that it could fail to

adequately understand the new customer base and that anynew brand name may result in loss of meaning for theoriginal brand and/or cannibalization of the original brand,particularly if it is a brand extension.

The risk of not understanding the new customer base is


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present as it is with market development. And the risks ofloss of meaning and/or cannibalization are just as significantas with product development.

For every successful magazine likeT

een People, however,there are many more that are unsuccessful. All of thewomen's sports magazines failed, for example. The newmarket (women) was not interested in the new product (newmagazines with various titles) sinceunlike menwomendid not want to read a magazine about sports without somelink to fitness. And the few who did buy the new magazinessimply switched from the men's versions.

McDonald's is testing a new hotel concept in Europe:McDonald's hotels for businesspeople. Perhaps that's all thatneeds to be said!

The special case of retailers

Just as with product development, retailers present a specialcase. Thus, Subway's conversion from a ordinary sub shop toa healthy food outlet not only changed the brand's positioningsubstantially but also added new potential customers since,

before the change, many of them would have neverconsidered a Subway.

Strengths:

y McDonald's has successfully rolled out new items like coffees, smoothies,

and Angus burgers, expanding the range of menu choices.

y With a strong product offering, the company has grown income throughout

the recession, notching strong increases in same-store sales.y Operations are spread around the world, meaning the company is not

exposed to just once currency or economy.

y Even trading near its highs, McDonald's serves up sizzling dividend yields

that top the 10-year Treasury. The yield comes with a side order of annual

dividend hikes dating back to 1976. The annual dividend payment has gone

from 55 cents per share in 2005 to $2.20 this year.


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Weaknesses:

y It will be harder and harder to find prime locations to build a set of golden

arches. The U.S. is saturated with its restaurants, so growth will have to

occur internationally, posing potential cultural challenges.

y While the annual dividend hikes are likely to continue, the dividend growthrate has been slowing and will probably continue to slow or level off.

CHAPTER 4

DATA ANALYSIS

AND

INTERPRTATION


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YES

55%NO

15%

AVERAGE

30%

Is the Product line adequate ?


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mc donald- customer aquisition & retention

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