Group Members:• Khawaja Shahrukh 1535199• Usama Afsar Khan 1535206 • Taha Zaki 1535204

INTRODUCTION

• McDonald's fast food restaurant is one of the largest franchises in the United States as well as aboard.

• Serving around 58 million customers daily in 118 countries across 35,000 outlets.

• A McDonald's restaurant is operated by either a franchisee, an affiliate, or the corporation itself. The McDonald's Corporation revenues come from the rent, royalties, and fees paid by the franchisees, as well as sales in company-operated restaurants

• Over 57% are conventional franchisees, 24% are licensed to foreign affiliates and just 18% are Company-operated.

VISION STATEMENT

• We wish to become worlds largest fast food chain in terms of customers and outlets and to sell healthier food to fulfill our customer needs more accurately, quickly and in a cleaner environment.

MISSION STATEMENT

• McDonald’s mission statement is to be benchmark for competitors and our customers most preferred place to eat with value of money. We are keen to maximize profitability improve shareholder value and deliver sustainable growth.

INTERNAL ASSESMENT

STRENGHT

• They have around 32,000 restaurants in 118 countries and looking to expand 1000 restaurants in Europe and serving over 58 million customers daily

• They could cater big market such as Asia and continents

WEAKNESS

• Stock price falls from $48 to $13 per share which was a massive decline.

• They should take measures to avoid such losses in future.

EXTERNAL ASSESMENT

OPPORTUNITES

• McDonalds could expand their menu by offering Breakfast and wide range of coffee to compete the rivals.

THREATS• Expanding into different

regions can be challenging due to diversified cultures and food preferences.

• For example: India and Saudi Arabia.

SWOT MATRIX

STRENGHTS: • McDonald’s has successfully rolled out to McCafe

coffee bars adding range to their menus• With strong product offering the company has grown

the income throughout the recession and end up with the gain.

• They have around 32,000 restaurants in 118 countries and looking to expand 1000 restaurants in Europe and serving over 58 million customers daily

WEAKNESS:

• It failed to notice changes in customer’s interest and need which lead to first loss in 2003.

• Stock price falls from $48 to $13 per share which was a massive decline

• McDonald’s Food was considered unhealthy because of high fat and super-size option which let them to

• In advertising McDonald just targeting young children only

OPPORTUNITIES:

• McDonalds discontinued the Boston market operations outside of the U.S

• There are opportunities for new restaurants globally including European market

• McDonalds could expand their menu by offering Breakfast and wide range of coffee to compete the rivals.

• Low cost menu that will attract the customers.• Globalization, expansion in other countries (especially in China & India).

THREATS:

• Very similar products in the fast food industry.

• Having Tough competition with competitors like Burger King and Wendy’s.

• Limited menu offering less choice to customer.

• Health professionals and consumer activists accuse McDonald's of contributing to the country’s health issue of high cholesterol, heart attacks, diabetes, and obesity

Recommendations

Long-term Strategy: Expanding influence and presence in Asia market.

Specific Strategy: Opening at least 1 restaurant per day in China

• Having diversity menu in India• Expand further into Asia markets over a 2-year

period by adding 500 restaurants per year at a cost of $4 billion annually.

EPS/EBIT

CONCLUSION

• McDonald is strong enough to withstand recession and create revenue.

• McDonald's will continue growing worldwide.