CASE STUDY MCDONALD’S – Serving Fast Food

Around The World
Group No. 10 Ø Punit Agarwal Ø Anand Nagori Ø Honey Agarwal Ø Sarfaraj Rahman Ø Kailashnath Menon Ø Rahul ghosh

McDonald's Introduction
Ray Kroc opened the first McDonald’s restaurant in 1955. Initially offered limited menu of high quality and moderately

priced food. Maintained QSC&V ( Quality, Service, Cleanliness, Value ) In 1967 first restaurant outside US in Canada By 1983, >6000 restaurants in the US By 1995, >18000 restaurants in 89 countries By 2001, >29000 restaurant in 121 countries

International Presence
Till 1995 80 % International Operation in Canada, Japan,

Germany, Australia, France and England (Big Six Countries) Only 62 McDonald’s restaurants in China (Population 1.2 billion). 14 Years of planning for opening restaurant in Moscow In 1995 first McDonald restaurant in Jerusalem Every day >33 million people eat at McDonald’s around the world with 18 million in US McDonald’s vision is to be the major player in food service around the world.  

Marketing and Business strategy
Marketing strategy was same in every country Be first in market Establish the brand as quickly as possible Advertising heavily Advertisements based on local themes and reflect different

environment. Open restaurant with a bang to grab maximum attention from people

Cont…..
Local taste kept in mind Burger and Fries were accepted by people with diverse dining

habit In Germany, McDonald’s serves chicken, sausage and salads, in Uruguay hamburger with poached egg and In Norway grilled salmon sandwich McDonald introduced the Japanese to French fries In Canada the menu includes cheese, vegetables, pepperoni and deluxe pizza Some far eastern McDonald’s restaurants offer oriental noodles. McDonald corporation operates about 21 percent of restaurant.

Price Variation for the Big Mac

Quality Control
Quality Assurance Centers in US, Europe, Asia Ensures consistent products by controlling every stage of

distribution. Stays in close contact with customers Products, handling, cooking procedures and kitchen layout are standardized and strictly monitored. First French franchise revoked as it failed to meet standards for fast service and cleanliness
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Training and Skill Development
Owners and Managers trained at Hamburger University

and other places Learned how to run McDonald’s restaurant and maintain OSC&V in US, Germany, England, Japan and Australia 22 Languages used for training for complete customer satisfaction

Competitors
Burger King, Wendy’s, KFC and Pizza Hut Fast food also sold in reheatable containers in

supermarkets, convenience stores and gas stations Aggressive strategy of competitors such as Burger King for Asia Customer satisfaction level below Wendy’s and Burger King In China KFC more popular McDonalds expanded too fast but competitors have tastier meals

SWOT Analysis
Strengths  QSCV Principle  Customer satisfaction and Quality Assurance  Training and Skill imparted  Standardization  Competitive Strategy (Aggressive) Weaknesses  Current surveys reveal more focus on expansion than quality  Limited Menus

Contd……
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Contd…….
Opportunities In 1995, 99% population were not McDonald’s customers Increase in demand for fast food worldwide Innovation Threats Competitors rising quickly Customer satisfaction level below competitors Different variants of fast food coming Junk food is considered bad for health.
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