NATIONAL COLLEGE OF BUSINESS AND ARTS

Aurora Boulevard, Cubao, Quezon City  Telephone Nos. 913-87-85 to 87

SESSION 8
CASE STUDY
McDonald’s

Presented by:
Lanny R. Dela Vega
Joanne Alexis V. Biscocho
Michelle G. Encontro
 NATIONAL COLLEGE OF BUSINESS AND ARTS
Aurora Boulevard, Cubao, Quezon City  Telephone Nos. 913-87-85 to 87

I. NAME OF COMPANY: McDonald’s

II. TIME CONTEXT: 2019

III. POINT OF VIEW: Chris Kempczinski , CEO and President

IV. SHORT BACKGROUND:

McDonald's Corporation is the world's largest chain of hamburger
fast food restaurants, serving more than 58 million customers
daily. The business began in 1940, with a restaurant opened by
brothers Richard and Maurice McDonald in San Bernardino,
California. Their introduction of the "Speedee Service System" in
1948 established the principles of the modern fast-food
restaurant. The present McDonald's corporation dates its
founding to the opening of a franchised restaurant by Ray Kroc,
in Des Plaines, Illinois, on April 15, 1955. Kroc later purchased the
McDonald brothers' equity in the company and led its worldwide
expansion. The first McDonald's restaurant opened in Des Plaines
Illinois on April 15, 1955. Their first day sales were $366.12. By
1965 there would be over 700 McDo's throughout the United
States. In 1967 McDonald's went international with restaurant
openings in Canada and Puerto Rico.

McDonald's today:

Number of Global Restaurants:

More than 32,000
Number of Countries:
117
Number of worldwide employees:
1.7 million
Percentage of franchised restaurants around the world:
More than 75%

With the expansion of McDonald's into many international

markets, the company has become a symbol of globalization and
the spread of the 'American way' of life. Its prominence has also
made it a frequent topic of public debates about obesity,
corporate ethics and consumer responsibility.
 NATIONAL COLLEGE OF BUSINESS AND ARTS
Aurora Boulevard, Cubao, Quezon City  Telephone Nos. 913-87-85 to 87

V. STATEMENT OF THE PROBLEM:

What are the ways that McDonald’s should do to maintain their
success in competitive world?

VI. AREAS OF CONSIDERATION:

Strengths

 McDonald’s holds a very strong brand name worldwide.

 They have large partnerships with other companies that provide
them with their desired products; this increases the goodwill of
the company.
 McDonald’s is one of the most reputed firms who are socially
responsible.
 Self-service criteria save a lot of cost.
 Loyal employees & management & customer are their biggest
strength.
 McDonald’s makes sure that cultural & regional barriers are kept
in mind while providing food to different countries.
 Clean environment and play areas for children where they can
enjoy their time.

Weaknesses

 The weakness that hits the list of employee turnover rate. Every
year many of their employees are fired out of the restaurant.
 McDonald’s mostly advertises products and food items that
targets children.
 Health conscious people often complain that they do not provide
us with the organic and healthy food. This becomes their
weakness when they get in the complaints.
 They also face quality issue at times. This affects the business as
they are running the outlet worldwide, if one franchise gets
affected others also get a bad name.

Opportunities

 It can open up online services for their customers so that they

can easily order their desired meals sitting at home.
 Discounts given on every food item may help them gain more
customers.
 They can go for a joint venture with the retailers they work with.
 NATIONAL COLLEGE OF BUSINESS AND ARTS
Aurora Boulevard, Cubao, Quezon City  Telephone Nos. 913-87-85 to 87

 They can introduce healthy hamburgers and healthy drinks for

the people who are health conscious.
 In order to be environment friendly, they can use packing
material which can be recycled later or material that does not
create pollution.

Threats

 Emerging competition of similar outlets is becoming a problem

for McDonald’s.
 Health issue also becomes a problem when it comes to food.
 As it is a multinational food outlet, fluctuations in the currency of
other countries becomes a problem for such companies.
 Recession in any country would definitely affect the whole outlet
worldwide.
 People facing heart problems and obesity accuse McDonald’s for
not providing them with the healthy food.
 They have a threat of local food outlets in different countries.
 McDonald’s is operating in a fully-fledged economy where
competition is increasing day by day therefore they should work
effectively to overcome their drawbacks because of the
recession.

VII. ALTERNATIVE COURSES OF ACTION:

1. Benchmarking
Benchmarking is a process which involves obtaining historic
construction cost information collected. This historic information
provides the benchmark against which a customer can assess their
projects value for money at a base building level with set specifics
separated out.

Advantages:
 Allows a business to close the performance gap.
 Looks at comparisons from the perception of customers, thus providing better customer
satisfaction.
 Can help lower production costs and improve overall competitiveness.

Disadvantages:
 Cost and time needed to collect relevant and up-to-date information is expensive.
 Relying on replicating the ideas and practices of other firms may be seen as second best.
 Sufficient time and finance must be made available to implement the findings of the
benchmarking analysis.
 NATIONAL COLLEGE OF BUSINESS AND ARTS
Aurora Boulevard, Cubao, Quezon City  Telephone Nos. 913-87-85 to 87

2. Continuous Improvement
 In order to comprehend the need for improvement in the construction industry and to
better manage our project and construction companies especially like McDonald.
 To be competitive in market, McDonald has provided more consistent quality and value
to their owners or customers

3. Employee Involvement
 Total Quality Management (TQM) programs are an important
and prominent approach to management. Nowadays, most
large corporations have a program that incorporates some of
the practices and principles of total quality management. One
of the most important principles of TQM concerns employee
involvement.

VIII. CONCLUSION / RECOMMENDATION:

 We conclude that TQM is a very important concept use to

apply in an organization or company daily operations.
 TQM principles must be supported at all levels of the
organization or company as to be effective in improving
quality from the lowest-level hourly.
 McDonald should maintain these techniques to stay
competitive in the business world.

 Reliability in McDonalds is the capability to execute the

service exactly, dependably, and constantly. Reliability a way
to show the service that is right the first time.
 Continue treating their customers with respect and make
customers feel that they can trust the organization represent
the assurance to their customers.
 McDonald’s employee identifies their customers, recognizes
them by addressing their name, and knows their customers’
exact requirements and provides empathy to their customers.
 NATIONAL COLLEGE OF BUSINESS AND ARTS
Aurora Boulevard, Cubao, Quezon City  Telephone Nos. 913-87-85 to 87