the mcdonalds turnaround story ppt

8/6/2019 The McDonalds Turnaround Story PPT

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The McDonalds TurnaroundStory


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Group Members

Faiza Hussain

Salma RamzanRehab Masood

Aneela Feroze


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Background


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Cont


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Cont


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Cont


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Product Line

Hamburger

Cheese Burger

Three soft Drink Flavors Milk

Coffee

P

otato chips Pie

Salads


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SWOT Analysis

STRENGTHS

WEAKNESSES

OPPORTUNITIES THREATS


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STRENGTHS

Worlds best brand name

Real estate operations allow

McDonalds to open more stores Large market share

Countless new innovations- Breakfast,Big Mac, Happy Meal etc.

Specialized training for managers

Strongest international presenceamong fast-food chains

Strong leader, Jim Cantalupo

McDonalds Plan to Win

WEAKNESSES

Customer service ranking is the

lowest among fast-food chains

Many stores beginning to look out

dated

Quality becoming inconsistent

Order accuracy is low compared to

other chains

OPPORTUNITIES

Diversification and acquisition of

other quick-service restaurants

Low-cost menu to attract different

customers

Initial public offerings in othercountries could raise revenues

Retail merchandise potentially used

to raise revenues

Marketing opportunities rising.

New cooking styles

THREATSIncreased competition among rivalsellers, including price wars, productinnovation, and growthHealth conscious consumersdemanding better quality, healthiermenu itemsLaw suitsAll fast-food chains expected tostruggle to meet new consumer healthexpectationsOverall weaker economy


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TOWS MATRIX

INTERNAL FACTORS/

EXTERNAL FACTORS

STRENGTHS WEAKNESSES

OPPORTUNITIES Large market share allowsdiversification.

Innovative products with low

cost.Specialized training can help

in retail merchandise.

Low customer service ranking

can be overcome through low

cost menu opportunities.

Strong Marketing could beused to overcome quality

issue.

New cooking styles used to

give better quality, improved

taste.

THREATS

Countless new innovationscan help dealing with

competitors.

Plan to win for health

conscious people.

Plan to win strategy gives newproducts for health conscious

people including salads and

sandwiches which can over

come quality issue among

customers.


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STRATEGIC REVIEW OF CASE

Richard and Maurice, the McDonald brothers,

opened a drive in restaurant in California.

CRITICAL SUCCESS FACTORS

SPEED

SERVICE

CLEANLINESS


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CONT.....

Concept ofSelf Service.

Kitchen design.

First Franchise building

Two reasons for franchising failure

Transparent Business practices

Standards not met.


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Problems to be handled Strategically

No longer the Great American Meal

Changing consumer eating habits

Health Conscious People Preferred reheat able supermarket products

Competitors promotion and discount offers

Worst menu rating in 1998 survey

Increased service time and costs

Economic turmoil


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QUESTION TO BE CONSIDERED

How can we sell more Hamburgers?

NO

INFACTTHE QUESTION WAS

What does our brand allow us to consider sellingto our customers?


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STRATEGIC SOLUTION TO PROBLEMS

The Golden Arches Rise Again

Plan to win Strategy

Improvement of comparable sales throughimproved quality of services and operations in

existing restaurants.

Reduced inventory.New menu boards

French-fry bins


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Healthy options

Entre-sized Salads

McGriddles Breakfast SandwichesWhite-meat chicken nuggets

Fruit with Happy Meals

Adult Happy meal


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Innovation strategy

New York Reuben

Grilled VeggieLeaning Tower Italian


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Monitoring and Control strategy

Mystery Shoppers

Travel path


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Service Oriented strategy

24-hour service

Cashless option


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Pricing Strategy

Average sale price under $5

Salads priced a bit highDifferential pricing


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Promotion strategy

Appealing advertising campaigns

JinglesOlympic games


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Anthropological strategy

Fundamental changes in traditional strategies

Differential pricing in Latin America


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Diversification strategy

Diversified burger, fries and breakfast items

Food Courts


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Results

Comparable store sales increase

Share price increased


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the mcdonalds turnaround story ppt

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