the mcdonalds turnaround story ppt
TRANSCRIPT
-
8/6/2019 The McDonalds Turnaround Story PPT
1/28
The McDonalds TurnaroundStory
-
8/6/2019 The McDonalds Turnaround Story PPT
2/28
Group Members
Faiza Hussain
Salma RamzanRehab Masood
Aneela Feroze
-
8/6/2019 The McDonalds Turnaround Story PPT
3/28
Background
-
8/6/2019 The McDonalds Turnaround Story PPT
4/28
Cont
-
8/6/2019 The McDonalds Turnaround Story PPT
5/28
Cont
-
8/6/2019 The McDonalds Turnaround Story PPT
6/28
Cont
-
8/6/2019 The McDonalds Turnaround Story PPT
7/28
Product Line
Hamburger
Cheese Burger
Three soft Drink Flavors Milk
Coffee
P
otato chips Pie
Salads
-
8/6/2019 The McDonalds Turnaround Story PPT
8/28
SWOT Analysis
STRENGTHS
WEAKNESSES
OPPORTUNITIES THREATS
-
8/6/2019 The McDonalds Turnaround Story PPT
9/28
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
-
8/6/2019 The McDonalds Turnaround Story PPT
10/28
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.
-
8/6/2019 The McDonalds Turnaround Story PPT
11/28
STRATEGIC REVIEW OF CASE
Richard and Maurice, the McDonald brothers,
opened a drive in restaurant in California.
CRITICAL SUCCESS FACTORS
SPEED
SERVICE
CLEANLINESS
-
8/6/2019 The McDonalds Turnaround Story PPT
12/28
CONT.....
Concept ofSelf Service.
Kitchen design.
First Franchise building
Two reasons for franchising failure
Transparent Business practices
Standards not met.
-
8/6/2019 The McDonalds Turnaround Story PPT
13/28
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
-
8/6/2019 The McDonalds Turnaround Story PPT
14/28
-
8/6/2019 The McDonalds Turnaround Story PPT
15/28
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?
-
8/6/2019 The McDonalds Turnaround Story PPT
16/28
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
-
8/6/2019 The McDonalds Turnaround Story PPT
17/28
-
8/6/2019 The McDonalds Turnaround Story PPT
18/28
Healthy options
Entre-sized Salads
McGriddles Breakfast SandwichesWhite-meat chicken nuggets
Fruit with Happy Meals
Adult Happy meal
-
8/6/2019 The McDonalds Turnaround Story PPT
19/28
Innovation strategy
New York Reuben
Grilled VeggieLeaning Tower Italian
-
8/6/2019 The McDonalds Turnaround Story PPT
20/28
Monitoring and Control strategy
Mystery Shoppers
Travel path
-
8/6/2019 The McDonalds Turnaround Story PPT
21/28
Service Oriented strategy
24-hour service
Cashless option
-
8/6/2019 The McDonalds Turnaround Story PPT
22/28
Pricing Strategy
Average sale price under $5
Salads priced a bit highDifferential pricing
-
8/6/2019 The McDonalds Turnaround Story PPT
23/28
Promotion strategy
Appealing advertising campaigns
JinglesOlympic games
-
8/6/2019 The McDonalds Turnaround Story PPT
24/28
Anthropological strategy
Fundamental changes in traditional strategies
Differential pricing in Latin America
-
8/6/2019 The McDonalds Turnaround Story PPT
25/28
Diversification strategy
Diversified burger, fries and breakfast items
Food Courts
-
8/6/2019 The McDonalds Turnaround Story PPT
26/28
Results
Comparable store sales increase
Share price increased
-
8/6/2019 The McDonalds Turnaround Story PPT
27/28
-
8/6/2019 The McDonalds Turnaround Story PPT
28/28