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McDonald’s

TransFORM consultant
Strengths
• Strong brand awareness • High quality of services in
Indonesia (ICSI of 3.9621 for
• large number of restaurants the year 2008)
spread all over Indonesia (±110
outlets) • Wide range of market.
• Adaptive with Indonesian • Great partnership with some
culture (sells only halal food big companies.
and provides rice).
• Heavy advertisement and
• Widest range of services continuous promotion
among fast food restaurant in
Indonesia
Weakness
• Mc Donald’s Indonesia has no website.
• Foods offered can be categorized as junk food
• Lack of menu development since Mc Donald’s is currently more
focused in its services (24/7, 14047 Delivery Service, Drive Thru).
Opportunities
• Different food varieties in Indonesia
provides opportunities for Mc • The lifestyle of visiting cafe in young
Donald’s to explore and innovate for people opens opportunity to create
its menu development more McCafe
• Indonesian slower economic
• The various sport event in Indonesia growth, due global economic crisis
available to be sponsored by Mc
Donald’s would reduce unhealthy • Customers more concern with
image of Mc Donald’s
healthy food
• Growing concern towards • Strong American image of Mc
environmental issues could boost Mc
Donald’s image due to its usage of Donald, prone to anti-US
paper bag demonstration
• Existence of new competitors

Threat
External Assessment
McDonald’s Overall Strategy

Operational
Exellence Focusing on operational
excellence

Customer Product
Intimacy Leadership
• Café with operational excellence
OUR CONCEPT approach

• Teenager (35%) and Young Adults (30%)


OUR TARGET • People who are mobile, active and concern
about their life style
Mc Café as Low Budget Café

Low Standard Café


Medium Standard Café
High Standard Café
Mc Café
McCafe Layout
LONG TERM COMPANY OBJECTIVE
Increase revenue in three years by
15% through product development

MARKETING
FINANCE
Do market research to further
analyze the needs of customer Obtain source of fund to
Design an advertising to educate invest in Mc Café
customers and communicate
with them about Mc Café

HUMAN RESOURCE OPERATION

To find and train new Design SOP for Mc Café


employees for working in Mc
Café Research on food and beverage
menu for Mc Café
Design organization structure
suitable for Mc Café Find supplier for Mc Café
products
Marketing
Strategy
PRODUCT • Coffee and cakes

Low price
• LowCappucino
Price starting from Rp 15.000
PRICE • Price of cappuccino starting from Rp 15.000

• 45 additional Mc Café in the next three years


PLACE • Cover almost 50% of Mc Donald’s
• In 24 hours Mc Donald’s

• Advertisement (Above The Line)


PROMOTION • To communicate and educate market about
Mc Café
Finance Strategy
• Investment for Mc Café : Rp 700 million per store
• Investment for Mc Donald’s : Rp 5 billion per store
• Adding 15 Mc Café and 5 Mc Donald’s per year
Mc Donald's Indonesia
Capital Expenditure Assumption
(in million Rupiah)

Year 2009 2010 2011 2012


1 Opening Book Value 550,000 563,251 574,801
2 Capital Investment 35,500 35,500 35,500
3 Depreciation 22,249 23,950 24,412
4 Closing Book Value 550,000 563,251 574,801 585,889
Finance Strategy
• Mc Café will increase sales by 5%
• Our long term objective: increase sales by 15% in the
next 3 years
Mc Donald's Indonesia
Pro Forma Income Statement
(in million Rupiah)

Year 2009 2010 2011 2012


Sales 792,000 832,050 872,100 912,150
Cost of Goods Sold 282,897 296,514 310,131
Gross Profit 549,153 575,586 602,019
Operating Expense 124,808 130,815 136,823
EBITDA 424,346 444,771 465,197
Depreciation 22,249 23,950 24,412
EBIT 402,097 420,821 440,784
Tax 48,252 50,499 52,894
Net Income 353,845 370,322 387,890
Finance Strategy
• Not only generate profit, our strategy also give economic
value added to shareholders.
Mc Donald's Indonesia
EVA
2010 2011 2012
Sales and Revenue 832,050 872,100 912,150
COGS 282,897 296,514 310,131
Gross Profit 549,153 575,586 602,019
Operating Expense 124,808 130,815 136,823
EBITDA 424,346 444,771 465,197
Depreciation 22,249 23,950 24,412
Taxable Income 402,097 420,821 440,784
Tax 48,252 50,499 52,894
NOPAT 353,845 370,322 387,890
Capital Charges 45,060 45,984 46,871
EVA 308,785 324,338 341,019
Operation
Strategy
• Design SOP for Mc Café

• Drive thru coffee, this is the


main distinctive that we offer
to the market, which is the
express coffee.

• Delivery service coffee with


14045.
Human Resource
Strategy
• train and develop individual skill
• create good working condition
• employee could maintain their
working excellence
• to create good quality food and
beverages
• to serve our customer with
friendliness.
Conclusion
suggested McDonald’s increase McCafe outlet in Indonesia
to make a new innovation in the fast food industry in
Indonesia
With this innovation, we optimist that McDonald’s Indonesia can
make higher growth than the past years.
thank you..

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