Hatim Piplodwala-3549884Zainab Dabo Aliyu-3607744

Arshed Aydrose-3351166

Summary

1. History & Introduction2. Pestle Analysis3. 5 Forces Analysis4. SWOT Analysis5. Current Strategy & competitive

advantage6. Problems & Recommendation

Introduction

• Founded in 1948• Mr. Ray Kroc in San

Bernardino, California• Sold 100 millionth hamburger

in 1958 & bought the rights to the McDonalds Corporation name

• 3-legged stool

“In business for yourself, but not by yourself.”

Market Served•Fast food (Burgers, Fries, Drinks)•58 million customers all age all

gender/Day

Location

•Found in 119 countries•operates over 31,000 restaurants

Current Strategy• Cutting labor, food and utility costs

through implementing Technology & Innovation

McDonalds UAE• In 1994, Emirates Fast

Food Company acquired the McDonald’s franchise

• 100% locally owned• The first restaurant in Al-

Ghurair City• More than 90 restaurants

geographically located• Striving to Innovate

“We offer people choice. We have salads, fruit, milk, soft drinks, fruit juices and we let people decide for themselves.”

PESTLE

•Civil & Political unrest in the Middle East.

•Each Emirate has its own governmental institution.

Political

•A solid supporter of its economy

•80% of its supplies from local and regional suppliers in the Arab world.

Economical

•Established a good system in determining the need market

•McDonald’s UAE runs a wide range of altruistic initiatives in the UAE.

Social

PESTLE

•Has revolutionized Fast food delivery.

•From cash registers to POS.

•Training through Nintendo DS.

Technological

•Meat Should be Halal.

•Food safety and hygiene certificates.

Legal

•GCC's first step into a biofuels market with Neutral fuel

Environmental

Porters 5 Forces• Threat of competition HIGH

– Very competitive Fast Food industry– Competitors Advertising Capabilities– Location of outlets– Major competitors- Burger King and YumBrand INC.

• Threat of New Entrance HIGH– Regulation of Limit– Easy Access Market and Low start up cost– Example of SubWay’s market penetration

• Threat of Substitutes Low-Moderate– Availability of the MCD products– Choose MCD for Easting and Entertainment– Narrows Threat of Substitutes due to introduction of local taste

products.

Porters 5 Forces

• Power of Suppliers LOW– Worlds largest restaurant chain in sales– High bargaining power over its suppliers– Most of them owe MCD for their own existence– LOW the power of suppliers- LOWer the cost of raw materials

and HIGH competitive price.

• Power of Buyers LOW– Industry limitations– Low quantity purchases– Less chances of switching, high brand image thru differentiation

and uniqueness– Buyers don’t have bargaining power

SWOT Analysis

Strength1. Has a good image in the

minds of consumers.

2. Strong product value.

3. Innovative in producing new product lines.

Weaknesses1. Over exposure all over

the world.

2. Children as their main target audience.

3. Slow drive-through services.

SWOT Analysis

Opurtunities Threats1. Partnership with UAE

government to reduce carbon footprint

2. Advertising strategy

3. They have the ability to add healthier lines of food

1. Changes in commodity prices

2. Emergence of other fast food

3. competitors Hardees and KFC.

4. Heavy investments on promotional campaigns.

Current Strategy

McDonald’s strategy is focused on1. Achieving the most powerful brand

image2. product innovation and development3. Having the greatest market share in the

ham burger industry.

Competitive Advantage

• Their competitive advantage is that they have been in the fast food business for a longer time than their competitors.

Issues faced by Mcdonalds

• Nutritional issues– MCD taking away the traditional nutrition values– Replace the fresh and healthy food by mass production– Projection the product nutrition values– Comparison of daily consumption and MCD products– Serves 30million people daily

• Advertising Issues– 2billion dollars for Advt annually– Concentrated on Children- Parental Concerns– MCD has a better advertising than its customers– Follows the advertising codes of each country– Making aware of MCD’s charity activities, events and learning

programs

Issues faced by McDonalds

• Employment ethics and issues– Criticized as low paid jobs- named ‘McJobs’– Low paid, non-union, part time jobs with low

rights and conditions– Giving importance on individual goals than

organizational goals– Fact of 1.5million workers with above 70% job

satisfaction rate– Introduction of collective tips system

Thank YouSee you atMcDonalds