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MCDONALDS

INDEX

Name of Elements Page No

Introduction; Compan analsis! "E#ternal en$ironment analsis %Psc&ograp&ic segmentation' ()De$elopment and *ecommendations +or

implementation of strategic options((

Conclusion and ,aluation (-

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IN.*OD/C.ION

.&e goal of t&is paper 0or1 is to anal2e McDonalds Incorporated compan' During studies of

International Mar1eting 0e &a$e ac3uainted 0it& t&e t&eoretical part of International Mar1eting 0&at

is t&e most important stage in t&e 4eginning e$er time confronting 0it& t&e ne0 su45ect' 6o0e$er7

onl accomplis&ing t&e practical tas1s 0e can 4etter understand t&e matter of discipline anal2ing

strategic audit of a concrete operating compan'

Our tas1s of t&is paper 0or1 0ere to gat&er into e3uall di$ided groups of students and to 0or1on a common goal in s&o0ing t&e degree to 0&ic& 0e can colla4orate toget&er in anal2ing t&e c&osen

compan and 4uilding our general management competence'

So7 t&e 4roader tas1s to reac& t&e aim are!

to o$er$ie0 and anal2e t&e literature concerning t&e su45ect of International Mar1eting;

to descri4e t&e c&osen compan and t&e mar1et it is operating in;

to anal2e principles of a selected compan and e#isting strategies in it'

.&e o45ect of our team pro5ect is McDonalds Incorporated recogni2ed as a premier franc&ising4usiness around t&e 0orld7 leading glo4al food ser$ice retailer &a$ing o$er -"7))) local restaurants

0&ic& ser$e its fa$ourite foods 8 9orld +amous +ries7 :ig Mac7 uarter Pounder7 C&ic1en Mc Nuggets

and Egg Mc Muffin to more t&an countries eac& da'

(' COMPAN? ANAL?SIS!

('('(' 6istor

E$ert&ing &as started 0&en Patric1 McDonald opened @.&e Airdrome in (B->' .&is

restaurant 0as located at t&e Monro$ia Airport in Monro$ia7 California' At t&at time prices 0ere muc&

lo0er t&an it is toda' :ac1 to t&en t&e &am4urgers 0ere sold onl for ()cents7 and alloucandrin1

orange 5uice cost onl cents' After -ears7 in (B=) &is t0o sons Mac and Dic1 Maurice and *ic&ardF7

relocate t&e 0&ole 4uilding and open t&e restaurant 0it& ne0 name @McDonalds :ar:ue

*estaurant in San :ernardino7 California' It 0as a tpical dri$ein featuring a large menu and car &op

ser$ice'

In (B=% McDonald 4rot&ers closed t&eir restaurant temporaril' After -mont&s7 in Decem4er

t&e ne07 0it& a selfser$ice dri$ein7 restaurant 0as opened' .&e menu 0as minimi2ed and it consisted

onl from nine items &am4urger7 c&eese4urger7 soft drin1s7 mil17 coffee7 potato c&ips and a slice of pie'

After se$eral ears7 in (B=7 a multi mi#er salesman *a Groc enters into a McDonalds de$eloping

stage' 6e reali2ed t&at ta1ing an opportunit to 4ecome a franc&ising agent for a 0&ole ne0 concept of

restaurant is an appropriate decision for &is future'

On April (t& (B t&e first McDonalds restaurant in Des Plaines7 Illinois is opened' A one

ear later +red .urner future McDonalds C&airmanF is &ired as a counter man' After a 0&ile &e

4ecame t&e &ead of McDonalds Operations 0&ic& 0ere responsi4le for t&e 3ualit7 ser$ice and

cleanliness'

.&e 4iggest e$ent at t&at time in (B

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Anot&er 4ig c&ange in McDonalds &istor 0as t&e first Dri$et&ru' It 0as opened in Sierra

,ista7 Ari2ona' As long as t&ere 0ere soldiers near +ort 6uac&uca 0&o 0ere not allo0ed to lea$e t&e

car in arm fatigues7 t&e McDonalds &as sol$ed t&is pro4lem introducing a ne0 ser$ice @dri$et&ru' It

4ecame one of most successful implementation in ser$ices field'

Later on McDonalds started to e#pand its 4usiness reall 3uic1l' .&e restaurants are opened

in apan t&en in Spain7 Denmar17 and P&ilippines' At t&e end of (B%-7 McDonalds &as >7>>%

restaurants located in -" countries all around t&e 0orld' At t&e ear of (BB< t&e Internet siteMcDonalds is created' In "))B t&e 4rea1 e$ent 0as t&at McCafe goes National and later on

internationall'

No0adas McDonalds is considered to 4e t&e leading glo4al food ser$ice retailer' It o0ns more

t&an -"7))) local restaurants in ((B countries 0orld0ide' .&e principle of t&is e#pansion is 3uite simple

to ser$e &ig& 3ualit7 standardi2ed products to all customers' .&e restaurants are operating

independent and t&e run 4 local 4usinessman or 4usiness0oman'

('('"' Managers

McDonalds name is 0ell 1no0n for franc&ising 0&ic& 0as t&e 1e to no0adas success in t&e

0orld0ide food industr mar1et' .&ere are ((B countries 0&ere t&e McDonalds is operating and more

t&an >Jof it is set 4 franc&ising' .&e managers of McDonalds are considered to 4e t&ose people 0&o

are &ig&l 3ualified 4usiness people 5oining t&eir Sstem as O0nersKOperators' McDonalds are see1ing

4usinessmanK4usiness0oman 0it& a 4usiness e#perience' It is important t&at t&ose people &a$e some

1no0ledge from o0ning or managing 4usinessK4usiness units or &a$ing led multiple departments as

t&eir pre$ious 5o4' Anot&er factor 0&ic& is 4eing considered is financial resources'

In McDonalds case t&e top e#ecuti$e officers are 0or1ing as managers 0&o direct restaurants

staff indirectl' .&e use se$eral le$els of super$isors 0&o t&en direct t&e 0or1ers' .&ere is a &ig& need

to 4e familiar 0it& t&e 0or1 0&ic& no0 t&e are managing' So7 t&ere is no 0onder 0& t&e all clim4ed

t&e carrier from t&e 4ottom to t&e top' In suc& compan as a McDonalds managers ma onl pro$ide

some recommendation to t&e ne#t le$el of management 0&et&er to &ire or to fire emploees'

('('-' Mission' ,ision' ,alues

McDonalds 4rand mission statement is to 4e our customers fa$orite place and 0a to

eat' Our 0orld0ide operations &a$e 4een aligned around a glo4al strateg called t&e Plan to

0in cantering on t&e fi$e 4asics of an e#ceptional customer e#perience People7 Products7

Place7 Price and Promotion' 9e are committed to impro$ing our operations and en&ancing our

customers e#perience'

.&is mission includes 4ecoming t&e 4est emploer for people in eac& local communit

independentl in location' .o pro$ide t&e e#cellent ser$ice to all customers and of courseac&ie$e gro0t& 0it& a profit t&roug& strengt&s suc& as McDonalds sstem inno$ation and

tec&nolog'

.&e $ision of McDonalds is to 4e t&e 4est 3uic1 ser$ice restaurant in t&e 0&ole 0orld'

It refers to outstanding 3ualit7 cleanliness7 &ig& 3ualit ser$ice and &ig& $alue food in order to

ma1e e$er customer smile'

McDonalds compan states t&at t&eir $alues in practice are t&e corporate

responsi4ilit of t&e compan' .&e s&o0 $alues in e$erda acti$ities7 0&en t&e are

ac&ie$ing some goals and most importantl open lines of communication is t&e main $alue

4et0een customer and ot&er sta1e&olders' .&e 0or1 toget&er 0it& suppliers and independent

franc&isees to ac&ie$e a sustaina4le future not onl for t&e compan 4ut for t&e communities in

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0&ic& t&e operate as 0ell' .&eir strong $alues &elped t&em to 4ecome 0&o t&e are7 0&at t&e

do and &o0 t&e operate no0adas'

.&e one of t&e McDonalds $alues is customer satisfaction' It is said t&at t&e reason for

McDonalds e#istence are customers' .&e are tring to s&o0 t&e appreciation 4 ser$ing a &ig& 3ualit

food and superior ser$ice' .&e also stri$e to ac&ie$e a 0elcoming en$ironment' Anot&er $alue is to 4e

committed to people 0&o are 0or1ing to t&em' .&e 4elie$e t&at 0or1ing in a 0elltrained team 0it&

intercultural e#periences and 4ac1grounds are t&e core of success'

.&e ot&er $alue is t&at t&e 4elie$e in t&e McDonalds Sstem' .&e 4usiness model 0&ic& is

contained of @t&reelegged stool suppliers7 operator and emploeesF is t&e essential 1e for de$eloping

t&e 4usiness glo4all' .&e most important is to 1eep t&e 4alance 4et0een t&ose @stools legs'

Et&ic in 4usiness is also one of t&e $alues' .&e are tring to conduct t&eir 4usiness 0it&

fairness7 &onest and integrit' .&e state t&at! @9e are indi$iduall accounta4le and collecti$el

responsi4le'

McDonalds o4liged to gro0 4usiness profita4l as long as it is pu4licl traded compan' .&is

re3uires not onl focus on gaining more mone 4ut also on customers and t&e &ealt& of t&e 0&ole

sstem' .&e c&anging en$ironment7 customer7 emploee and sstems need lead to t&e McDonalds

e$olution and inno$ation as 0ell'

('('=' Main Products and t&e mar1ets

.&e products produces 4 McDonalds can 4e di$ided in se$eral groups! 6am4urgers7 C&ic1en7

fis& and por1 products7 +renc& fries7 Soft drin1s7 &ealt& items suc& as salads and Desserts'

.&ere is no dou4t t&at McDonalds main products are &am4urgers' .&ere is a &ig& $ariet of

t&is tpe of food' .o 4egin 0it&7 t&e simplest one and t&e most common is C&eese4urger in some

countries t&e are in$ol$ed in (EurK(HmenusF7 t&en Dou4le C&eese4urger 0&ic& &as t0o ground 4eef

patties and t0o slices of c&eeseF7 Mc Dou4le7 :ig N.ast7 McNifica7 etc' .&e names and consistent

$aries according to t&e countries'

C&ic1en7 fis& and por1 products suc& as McC&ic1en7 Premium c&ic1en sand0ic&es7 Snac1

0rap7 C&ic1en Mc Nuggets7 etc' are anot&er products in McDonalds restaurants'

+renc& fries are considered to 4e one of t&e most sella4le items' .&e main reason for t&is is t&at

no matter 0&at ot&er product t&e consumer is 0illing to 4u7 4ut in e$er set +renc& fries are included

automaticall'

Ot&er products suc& as salads are relati$el ne0 in t&is restaurant' .&e first salads 0ere added

to its menu in (B%' No0adas more and more people are concerned a4out t&eir &ealt& so7 McDonalds

puts its all efforts to ac&ie$e more and not lose an of t&e potential customers'

.&e 4iggest soft drin1 supplier is t&e CocaCola Compan' 6ot and iced tea is deli$ered 4

SD Coffee in t&e /SF7 &ot c&ocolate7 $arious 5uice and ot&er regional 4e$erages suc& as mil1s&a1es

are a$aila4le in $arious mar1ets all around t&e glo4e'

Desserts are considered to 4e t&e last 4ig group of products in McDonalds restaurants' It

includes suc& items as icecream Mc +lurrF7 Mc Donaldland coo1ies7 +res&l :a1ed coo1ies7 Pies7

Cinnamon melts7 t&e fruit and ou gurt parfait7 smoot&es and ot&er items 0&ic& depending on t&e

region and countr'

Mar1ets

.&e reco$er of McDonalds after t&e glo4al crises seems to 4e surprisingl fast and t&e sales

gro0t& rate continues to increase' .&e one of t&e 4iggest fast food restaurant in t&e 0orld declared t&at

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it is still gaining mar1et s&ares its ri$als' .&e &ig& rate of unemploment does not influence t&e

con$incing people to spend mone and eat at McDonalds' It &as suggested impro$ed 4rea1fast menu

0it& t&e ne0 frappe drin1s' It 0as t&e 1e success factor in reco$ering after t&e &uge losses'

McDonalds surprised e$erone 0&en it reported gro0t& of

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.&e Ps are tring to percei$e e$er t&in1a4le angle of t&e compan7 and &a$e 0as to impro$e

e$ert&ing7 from refur4is&ing old s&ops7 to maintenance 0ifi for customers7 setting t&e rig&t mood

0it& music and creating deli menus to cope 0it& t&e 4ad pu4licit'

Promotion Products

- Im loving it worldwide campaign

- Billboards, internet, T, alladvertising in general

:roaden t&e selections

McDonalds +ood Studios

Superior supplier practices

6ig& product standards

Mc Cafe

E#amples! *ice 4urger7 fruit and

0alnut salad

Price

- !ig" #$alit% &ood at a reasonable price

- al$e men$s

- 'remi$m selections

Place People

*efur4is&ing stores

Ne0 music

9ifi

+latscreens

De$eloped training and &ospitalit

programs to teac& our people t&e s1ills t&e

need to deli$er great ser$ice

Computer 4ased training

*estaurant Operations Impro$ement

Process *OIPF

.&eir main efforts are in a direction of maintenance of t&eir uni3ue firm po0er7 and creation oft&e additional added cost t&roug& e#perience to 1eep and de$elop t&eir s&ares in t&e American mar1et'

Compans ne0est leading addition of industrial line is t&e Mc Cafe' .&e Mc Cafe &a$e a target

audience of t&ose 0&o 0ould li1e somet&ing else t&an regular soft drin1s7 or pro4a4l onl 0ants some

coffee'

/sing t&is ne0 strateg and an industrial line McDonalds tries to sei2e s&ares of t&e mar1et in

t&e industr of coffee industr7 0&ic& mainl operates Star4uc1s' It is courageous strateg7 0&ere t&e

&a$e an e#perience minimum7 4ut &o0e$er it is strateg 0&ic& is supported 4 a considera4le 3uantit

of t&eir forces' .&e alread &a$e glo4al net0or1 of suppliers and one of t&e most influential 4rands in

t&e 0orld' .&eir mar1eting &as focused on t0o separate t&ings! first7 coping 0it& t&e effects of t&e

o4esit t&roug& mar1eting and a ne0 &ealt&ier product categor and second7 increasing 4randa0areness to maintain and de$elop mar1et s&ares'

9&ile super$ising t&e result outcomeF of McDonalds &as carried out strateg t&e last ears7

t&en t&e financial data spea1s in o0n language' De$elopment of t&e incomes 0&ic& are a4o$e

de$elopment of t&e mar1et means t&at t&e increase t&e s&ares in t&e mar1et' 9&en super$ising of

t&eir edges of total profit7 t&en since performance of @Plan to 9in &as increased edge more t&an fort

percent' It s&o0s t&at McDonalds till no0 &a$e correct forces and strateg to outmanoeu$re an

pro4lems of fatness'

McDonalds s&ould stud t&eir 4asic products in t&e future' As c&anging re3uirements and

instructions from clients and t&e go$ernments appear7 t&en at McDonalds t&ere 0ould 4e a 4igad$antage of 4eing pre$enti$e on t&ese 3uestions' No0 t&e 0ere some of t&e slo0est in t&e industr to

get rid of t&eir transfat to ma1e +renc& fries 0&ic& sends a 4ad signal on not caring a4out t&eir clients'

On all 3uestions of pu4lic &ealt& ser$ices t&e7 apparentl7 &a$e $er 5et manner7 still precisel 1no0ing

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0&at to ma1e 0it& a pro4lem' If t&e &a$e to c&ange and e#pand t&e researc& of t&ese areas7 t&e pure

si2e and resources could gi$e easil to t&em t&e 4ig pus& up in CS* competencies and t&e general image

in comparison 0it& t&eir competitors' :ut as it no07 t&eir researc& some 1ind of 0ea1ness as t&e

concentrate more on researc& in decorating t&an in full &ealt& meal' It isnt intended t&ese t&at t&e

s&ould c&ange t&e 4asic products as a c&eese4urger7 4ig Mac and +renc& fries7 4ut rat&er placing some

resources in creation of t&e 4asic of more &ealt& products' .&us7 t&e also 0ould deal 0it& some of

t&eir 0ea1nesses and 0ould construct protection against future t&reats'

(' Issues facing McDonalds

.&ere are a lot of issues7 0&ic& McDonalds is facing' 6ere ou can find some of it!

AD,E*.ISIN

McDonalds spend o$er t0o 4illion dollars eac& ear on ad$ertising! t&e olden Arc&es are no0

more recogni2ed t&an t&e C&ristian Cross' /sing collecta4le tos7 tele$ision ad$erts7 promotional

sc&emes in sc&ools and figures suc& as *onald McDonald t&e compan 4om4ards t&eir main target

group! c&ildren' Man parents o45ect strongl to t&e influence t&is &as o$er t&eir o0n c&ildren'

McDonalds argue t&at t&eir ad$ertising is no 0orse t&an anone elses and t&at t&e ad&ere to all t&e

ad$ertising codes in eac& countr' :ut ot&ers argue it still amounts to cnical e#ploitation of c&ildren

some consumer organi2ations are calling for a 4an on ad$ertising to c&ildren'

CAPI.ALISM

No4od is arguing t&at t&e &uge and gro0ing glo4al en$ironmental and social crisis is entirel

t&e fault of one &ig&profile 4urger c&ain7 or e$en 5ust t&e 0&ole food industr' McDonalds are of

course simpl a particularl arrogant7 s&in and selfimportant e#ample of a sstem 0&ic& $alues

profits at t&e e#pense of ant&ing else' E$en if McDonalds 0ere to close do0n tomorro0 someone else

0ould simpl slip straig&t into t&eir position' .&ere is a muc& more fundamental pro4lem t&an :ig

Macs and +renc& +ries! capitalism'

EMPLO?MEN.

.&e Corporation &as pioneered a glo4al7 &ig&l standardi2ed and fast productionline

sstem7 geared to ma#imum turno$er of products and profits' McDonalds no0 emplo more

t&an a million mostl oung people around t&e 0orld! some sa a million people 0&o mig&t

ot&er0ise 4e out of 0or17 ot&ers &o0e$er consider t&at t&e are in fact a net destroer of 5o4s

4 using lo0 0ages and t&e &uge si2e of t&eir 4usiness to undercut local food outlets and

t&ere4 force t&em out of 4usiness' Is McDonalds a great 5o4 opportunit or are t&e ta1ing

ad$antage of &ig& unemploment to e#ploit t&e most $ulnera4le people in societ7 0or1ing

t&em $er &ard for $er little mone Complaints from emploees range from discrimination

and lac1 of rig&ts7 to understaffing7 fe0 4rea1s and illegal &ours7 to poor safet conditions and

1itc&ens flooded 0it& se0age7 and t&e sale of food t&at &as 4een dropped on t&e floor' .&is tpe

of lo0paid 0or1 &as e$en 4een termed Mco4s'

EN,I*ONMEN.

Conser$ationists &a$e often focused on McDonalds as an industr leader promoting 4usiness

practices detrimental to t&e en$ironment' And et t&e compan spends a fortune promoting itself as

en$ironmentall friendl'

One of t&e most 0ell1no0n and sensiti$e 3uestions a4out McDonalds is if t&e are responsi4le for t&e

destruction of tropical forests to ma1e 0a for cattle ranc&ing' McDonalds sa no' Man people sa

es' So McDonalds sue t&em' Not so man people sa es anmore7 4ut does t&is mean McDonaldsarent responsi4le

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.&e annuall produce o$er a million tons of pac1aging7 used for 5ust a fe0 minutes 4efore 4eing

discarded' 9&at en$ironmental effect does t&e production and disposal of all t&is &a$e

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"'EXTERNAL ENVIRONMENT ANALYSIS

"'( Analsis of McDonalds macroen$ironment

Political factors!

.&e international operations of McDonalds are e#treme under influence of a polic of t&e

separate state put into practice 4 eac& go$ernment' +or e#ample7 t&ere are certain groups in Europe

and t&e /nited States 0&ic& demand t&e acts of go$ernmental po0er concerning medical $alues of meal

of fast food' .&e &a$e specified t&at &armful elements as c&olesterol and negati$e influences as fatness

are concerning consumption of products of fast food'On t&e ot&er &and7 t&e compan operates t&e

separate polic and instructions of operations' .&e certain mar1ets concentrate on $arious areas of

an#iet7 suc& as $arious area of &ealt&7 protection of t&e 0or1er7 and en$ironment' All t&ese elements

are noticed in t&e state control of licensing of restaurants in t&e corresponding states' +or e#ample7

t&ere is a &ung legal dispute in pri$ilege McDonalds in India 0&ere certain infringement of rig&ts and

infringement of t&e religious la0s concerning t&e maintenance of meal' Meat e#istence in t&eir menu in

India is o4$iousl offensi$e to Indian religions in t&e mentioned mar1et' .&ere are also ot&er researc&es

0&ic& specifies in infringement of McDonalds Stores concerning e#isting la0s on emploment in t&e

target mar1et' As an 4usiness enterprise7 t&ese McDonalds stores s&ould argue 0it& pro4lems ofprocedures of emploment 5ust as t&eir ta# o4ligations to succeed in t&e foreign mar1et'

Economic factors

.&e organi2ations in t&e fast food industr arent e#cused from an disputes and pro4lems'

Definitel7 t&e reall &a$e t&e separate pro4lems in$ol$ing 4usiness factors' :ranc&es and pri$ileges of

net0or1s of t&e enterprises of fast ser$ice as McDonalds &as a tendenc to e#perience difficult in

cases 0&ere t&e econom of t&e corresponding states is ama2ed 4 inflation and c&anges in e#c&ange

rates' Clients &ence face a sur$e stalemate t&roug& t&eir separate 4udgets7 0&et&er t&e s&ould spend

more on t&ese foreign net0or1s of t&e enterprises of fast food' 6ence7 to t&ese c&ains7 possi4l7 it is

necessar to ta1e out pro4lems of effects of economic en$ironment' Especiall7 t&eir pro4lem depends

on t&e ans0er of consumers to t&ese main principles and &o0 it could influence t&eir general sales' Inan estimation of operations of t&e compan7 food c&ains as McDonalds tend to import t&e 4iggest part

of t&e ra0 materials to certain territor if t&ere is a deli$er lac1' E#c&ange rate fluctuations 0ill also

pla an essential role in compans operations'

As it is declared in t&e paragrap& a4o$e7 stores of McDonald s&ould ta1e a 4ig reason

concerning t&eir microen$ironment' .&e compans international suppl as 0ell as t&e e#isting

e#c&ange rates is merel a part of t&e o$erall components needed to guarantee success for t&e foreign

operations of McDonalds' It is 4esides o4ligator7 t&at t&e compan &as 4een informed on t&e e#isting

ta# re3uirements needed 4 t&e separate go$ernments on 0&ic& t&e operate' It 4asicall guarantees

smoot& operations of McDonalds pri$ileges' In t&e same relation t&e compan s&ould consider also a

state economic situation on 0&ic& t&e influence on' Le$el at 0&ic& t&e econom of special state gro0s7

defines purc&asing capacit of consumers in t&at countr' 6ence7 if t&e pri$ilege 0or1s in t&e especiall

economicall 0ea1 state7 t&en t&eir products s&ould cost a4o$e t&an ot&er e#isting products in t&e

mar1et7 t&ese pri$ileges s&ould ta1e certain regulators to support econom at t&e e#pense of

manufacture gro0t&'

SocioCultural factors

Articles a4out t&e international strateg of McDonalds7 apparentl7 function on se$eral areas to

guarantee profita4le returns for t&e organi2ation' .o illustrate7 t&e organi2ation c&anges to t&e 4est an

esta4lis&ment of positi$e t&in1ing from t&eir 4asic consumers' McDonalds indulges a special $ariet of

consumers 0it& certain tpes of persons' Also it &as 4een noticed t&at t&e compan &as gi$en t&e

mar1ets7 suc& as t&e /nited Gingdom7 a c&oice concerning t&eir lunc& re3uirements' Specified t&atMcDonalds 4eginnings considera4l $alued set of meal 0&ic& offers a relia4le degree of 3ualit for t&e

corresponding mar1et 0&ere it 0or1s' In addition7 t&ose 0&o are elderl onl 4elo0 a 4rac1et of t&irt

fi$e as said are t&e most fre3uent consumers of McDonalds pri$ileges'

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Mansided c&aracter of 4usiness is reflected no0 in s&arp $alue of t&e information a4out t&e

e#isting mar1et' .&is procedure is essentiall identified in area as mar1et researc&' Information

concerning t&e reference and potential areas of t&e mar1et 0ould dou4le as a 4arrier to success of t&e

compan if t&is area of operations neglected' In case of McDonalds t&e esta4lis& good sstem in

determining of re3uirements of t&e mar1et' .&e compan uses concept of consumer indi$idualit of a

product of 4e&a$iour and decisions on purc&ase to its ad$antage' It is said7 to &a$e t&e main influence

on understanding of prospecti$e result of t&e organi2ation in t&e particular mar1et'

.ec&nological factors

McDonalds ma1es a demand for t&eir o0n products' .&e 1e tool of t&e compan for

mar1eting is 4 means of ., ad$ertisings' .&ere are some re3uirements t&at McDonalds is inclined to

interest t&e ounger population more' E#istence of game stains also tos in t&e meal offered 4 t&e

compan s&o0s t&is $alidit' Ot&er demonstration of suc& mar1eting strateg is o4$ious in ad$ertising

t&e use' .&e use reco$ered descriptions of t&e c&aracters as rimace and 6am4urglar' Ot&er

ad$ertising operations emplo popular cele4rities to promote t&eir products' Similar 4ecame endorsees

for McDonalds all o$er t&e 0orld @lo$ing it campaign' :esides7 operations of McDonalds &a$e

considera4l 4een infused 0it& ne0 tec&nolog' Elements as t&e sstem of stoc1 and management of t&e

$alue c&ain of compans creation consider eas paments for t&e suppliers and ot&er sellers 0it&

0&ic& t&e person supplies in t&e corresponding agreement on t&e mar1ets' .ec&nolog integration into

operations of McDonalds tends to increase cost of t&eir products' :asicall it is s&o0n in impro$ements

on its c&ain of creation of $alue' Impro$ement of stoc1 sstem 5ust as its sstems of deli$eries allo0s t&e

compan to 0or1 in t&e international conte#t'

"'-'( Strategic groups

McDonalds compan is one of t&e leading companies in t&e fast food industr 0it& o$er -")))

of restaurants in ((> countries around t&e glo4e' McDonalds is also 0orlds first fast food compan 4

sales7 0&ic& gi$es for t&em ad$antage o$er t&eir competitors in terms of profit'

.&e main competitors of McDonalds in t&e glo4al mar1et are!

?/MQ :rands; :urger Ging 6oldings; Dominos Pi22a; .riarc Companies'

All of t&ese companies ser$e fast food around t&e 0orld and are focused on pro$iding a product

t&at is 4ased on lo0 price con$enience' .&eir strategic group is associated 0it& man geograp&ic

locations and lo0 price and 3ualit' E$en t&oug& t&ese companies could 4e considered t&e 4iggest

plaers in t&e glo4al mar1et7 t&e face in eac& countr local fast food restaurants7 4ut 4igger influence

on t&em t&ese local competitors are not a4le to do'

.&e +igure " 4elo0 represents t&e strategic group mapping of t&e fast food industr' .&e grap&

represents fast food companies7 0&ic& 0ere di$ided into different groups according to t&eir price le$el

and product line $ariet' As 0as stated 4efore and 0e can see in t&e grap&7 all of t&e main and 4iggestfast food companies &a$e limited menu 0it& lo0 prices for t&eir products' .&is 0a all of t&em can

compete on t&e same 4asis7 according to t&ese specifications'

.&ere are al0as competiti$e pressures and dri$ing forces 0&ic& ad$ersel affect t&e firms in

strategic groups' .&erefore7 some firms ma tr to s&ift to a more fa$ora4l situated group' .&is

s&ifting is &o0e$er difficult if t&e entr 4arriers of t&e target strategic group are &ig&'

"' -'"' Mar1et segments

Demograp&ic segmentation di$ides t&e mar1et into groups 4ased on demograp&ic $aria4lesincluding age7 gender7 famil si2e and life ccle'

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Life ccle' McDonalds &as targeted c&ildren7 out& singles and t&e oung ur4an families' It isattracting t&e oung ur4an families 0anting to spend some 3ualit time 0&ile t&eir c&ildren &a$e

fun at t&e outlet'

Age' Mostl oungsters and 1ids are target7 so to attract c&ildren McDonalds &as 6app Meal0it& 0&ic& tos ranging from &ot 0&eels to $arious 9alt Disne c&aracters are gi$en'

Sometimes it also pro$ides special facilities li1e RPla Place 0&ere c&ildren can pla arcade

games7 air &oc1e7 etc' Mostl target is under age

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.ime! leisure; O45ecti$e! fun; Person!self7 famil mem4ers7 friends7 peer

Standardi2ation

In order to maintain t&e &ig&est 3ualit of t&eir products McDonalds standardi2ed t&e

production met&ods and processes' .&e compan 5ust ad5usts to different culinar differences in

different countries7 for e#ample McDonalds offered $egetarian 4urgers to practicing :udd&ists or

Asian countries preferring spic taste sa0 t&e introduction of spic 4urgers7 c&ic1en and seasoning'

.&is gi$es for people possi4ilit to tr eit&er original /S or t&eir local taste' McDonalds ac&ie$es4alance 4 maintaining standardi2ation in products 4ut ad5usting to t&e local taste'

En$ironment oriented

One of t&e main compans orientations no0 is t&e de$elopment of a strong compan0ide

en$ironmental polic declaring t&at McDonalds is committed to protecting t&e en$ironment for future

generations7 and t&at it 4elie$es t&at 4usiness leaders must also 4e en$ironmental leaders' .&e polic

ta1es a total lifeccle approac& to reducing and managing solid 0aste! a si2a4le c&allenge7 considering

t&at eac& of McDonalds %7

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-' De$elopment and *ecommendations +or implementation of strategic options !

In order to reduce of emploee training spending and to lo0er turno$er7 0e 0ould li1e to

suggest!.o gi$e t&e 5o4 5ust for &ig&l moti$ated people' It means7 t&at t&e are going to 4e

loal and not to lea$e 5o4 so fast; .o train ne0 emploees using :ig :rot&er principle' Ne0

emploees 0ould 4e trained 4 emploees7 0&o are 0or1ing longer' In t&is 0a7 compan reduces

training spending7 ne0 emploees are trained 4 t&e people7 0&o are 0or1ing inside t&e compan and

do t&e same t&ings e$er da'

.o moti$ate emploees and al0as ta1e care a4out t&eir e#pectations' It can 4e mone

premiums for good 0or1ing in t&e end of t&e mont& or earF7 some emploees parties7 Emploee of

t&e 0ee1 mont&F competition and etc'; also emploer s&ould ta1e a loo1 of 0&at emploee is e#pected

from emploer and tr to sol$e t&at7 e#' Ma4e emploee is not e#pected to get premium e$er mont&7

4ut for good and loal 0or1ing &e 0ould li1e t&at t&e compan 0ould pa &is c&ild studies fee after

ears'

.a1ing ad$antage of organic food industr popularit de$elop ne0 products for ne0

segmentsF; McDonalds is not t&at compan7 0&o suggest t&e most organic food7 so t&e can tr!

.o ma1e a line of organic food in t&eir menu and ta1e a loo1 0&at is more popular and &ealt&

for t&eir customers' If it is going more popular t&an usual menu food7 it is more 0ort& to ma1e all food

in organic 0a7 e$en it is more e#pensi$e' +irst of all7 people li1e 0&at is natural7 and t&en t&e are

interested in t&e price'

.o 4e in a partners&ip 0it& scientists and doctors in order to ta1e care of t&eir customers &eat&'

E$er4od 1no0s t&at organic food ma1es people feel 4etter and &ealt&ier; also it affects nature in a

good 0a' McDonalds declares t&at e$ert&ing is for customer7 so it must ta1e an ad$antage of

organic food popularit and ma1e t&eir customers to li$e &ealt&ier and in more natural 0a'

.o ma1e 4ig ad$ertisement companies declaring organic food pluses and ma1e it more popular

in suc& 0a' Man people lo$es McDonalds food7 so it &as an aut&orit and can s&o0 good e#ample of

necessit of organic food in people life and compare &o0 organic and usual McDonalds food effectcustomers &ealt& and all t&e nature a4out t&em'

Ad$antage of &uman &ealt& pro4lems impro$ement of productsF

McDonalds is 4ig food suppling compan7 and all of us 1no07 &o0 food affects our &ealt&' It is one of

t&e main factors7 0&at 4uilt our 4od and strengt& our 4rains' Gno0ing t&at7 McDonalds s&ould!

Suggest 5ust &ig& 3ualit7 impro$ed products7 0&ic& is full of $itamins and minerals' So7 it means t&at

t&e compan must impro$e t&eir products7 all t&e food must 4e certificated and fit for all &ealt& food

standards'

:e in a contact 0it& suppliers7 0&o suppl products for McDonalds food and al0as c&ec1 if

t&e products is natural7 &ig& standard and &ealt& for all of age customers'

Contact 0it& doctors7 scientist and impro$e t&eir products to fit for all of age customers7

e$en t&e &a$e some pro4lems 0it& t&eir stomac&' It means to ma1e measures and find 0&at is t&e 4est

for all possi4le customers'

In$estment .&esis! MCD &as 4een selling $arious in$estments in order to focus on t&e McDonalds4rand' .&e performed an initial pu4lic offering of C&ipolte Me#ican rill in "))

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Europe t&an from Nort& America' In ")()7 -=J of t&e compan sales total 0as from Nort& America7

0&ile =)J 0as from Europe7 and "(J 0as from AsiaKPacific7 Middle East7 and Africa called

@APMEAF' APMEA currentl represents t&e 3uic1est gro0ing of t&ese main segments7 4ut Sout&

America represents opportunit as 0ell' .&e compan &as a ma5or focus on real estate' McDonalds

tpicall o0ns or &as longterm leases for t&e restaurants t&e and t&eir franc&isees operate' .&is 1eeps

turno$er lo0 an esta4lis&ed McDonalds in a location is tpicall t&ere for a $er7 verylong timeF'

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.&e compan &as7 4asicall since 4eing founded7 &ad an emp&asis on 3uantit o$er 3ualit'

.&e sell ine#pensi$e7 supposedl tast food to tens of millions of people per da' In t&e past fe0 ears7

&o0e$er7 McDonalds &as 4een focusing on 3ualit in addition to 3uantit' .&e$e 4een remodeling

t&eir stores 0orld0ide to include softer colors and more 0ood to replace t&e lame red and ello0 plastic

loo1' Some of t&eir &ig&est 3ualit stores actuall loo1 li1e fairl respecta4le dining esta4lis&ments'

More items li1e smoot&ies and salads appear on t&e menu7 in addition to t&e traditional items' .&e$e

longsince launc&ed t&eir Mc Cafe 4rand 0&ic& is coffee s&op and it &as gro0n at an e#cellent rate' .&e

compan is properl adapting to c&anging customer demand'

.&e profit margins of McDonalds are far and a4o$e t&eir competitors' MCDs net profit margin is

o$er ")J7 0&ile t&is figure is ()J for ?um :rands7 ()J for Star4uc1s7 )J for 9ends7 and -J for

Dun1in Donuts' .&is is due to &a$ing more t&an t0ice t&e a$erage amount of re$enue per location as its

competitors7 and t&is in turn is due to 4eing a4le to focus so muc& scale on a single 4rand' McDonalds

pas an enormous amount for ad$ertising7 and also &olds considera4le 0eig&t 0it& its suppliers'

.&e franc&isee o0ned restaurants &a$e &ig&er profit margins t&an t&e corporate o0ned restaurants

McDonalds collects rent and roaltiesF7 4ut t&e corporate o0ned restaurants allo0 McDonalds to

de$elop ne0 products and ne0 loo1s and 1eeps management fres& and 1no0ledgea4le'

9&en it comes to returning $alue to t&e s&are&olders7 fe0 do it 4etter t&an McDonalds' All of t&eir free

cas& flo0 flo0s to s&are&olders in t&e form of di$idends and s&are repurc&ases' .&e corporation &as a

polic in t&at all leaders &a$e to o0n a significant amount of McDonalds stoc1 and &old onto it during

t&eir tenure' .&e CEO must o0n at least