McDonald's

A Company Case Study

Presented to the Faculty of the

College of Business Administration

University of Perpetual Help System Dalta

Las Piñ as Campus

In Partial Fulfillment of the Prelim Requirements for the Subject

MKT 401-3 –MARKETING MANAGEMENT, STRATEGY PAPER

by

De Leon, Euge Daniel S.

Rodriguez, Nicko M.

Salvador, Laurence Nikky A.

Belmonte, Stephen Eric L.

Bachelor of Science in Business Administration (BSBA)

Major in MARKETING MANAGEMENT

Submitted to

Dr. DOMINGO T. BALSE, JR.

Course Adviser

February 28, 2020

Revision of this document should undergo the standard procedure and should be approved by Dr. Domingo T. Balse, Jr. (document creator).
Page 1 of 7
 I. Statement of Facts

- McDonald’s is one of the leading restaurant chains in the world. The business
began in 1940, when two brothers Dick and Mac McDonald in San Bernardino,
California open a restaurant. They had introduced “speedee Service System” in
1948 which was their one of the principles of their modern fast food restaurant.
Before that, it was a Bar-B-Que restaurant which brothers had open in
California. McDonald has had always been famous because of its HAM BURGERS
- In 1940, Dick and Mac McDonald open McDonald’s Bar-B-Que restaurant on
Fourteenth and E Streets in San Bernardino, California. It is a typical drive-in
featuring a large menu and carhop service.
- In 2009, Today McDonald’s has become world largest fast food chain it has
made so many changes and has introduced new menus and service styles.
- These facts have written below date wise from 1940 to 2009.

II. Viewpoint

The case is viewed as if we were the Marketing Managers for McDonalds.

III. Statement of Problem

A. General Problem:

In order for McDonalds to reach its goal of “par excellence”, it must use the
full meaning and definition of marketing.

B. Specific Problems:

1. There is lack of proper management of resources within McDonald restuarants and this has
led to tremendous drop in sales over the years. Most of the stores in the Far East have closed
due to economic downturn. At the same time consumers are shifting their tastes and
preferences from hamburgers to other types of food. This has contributed to low sales since
the number of people visiting the stores decreased over the years.

The number of prospective franchisees has also decreased attributing their exit to poor
customer turnout owing to cheap brand that McDonald has exposed itself to by offering too
much discounts on its products. The firm is also experiencing poor quality services and
uncleanliness; this is due to laxity by the top management making them not to inspect the
franchises. There is also lack of skilled manpower due to postponement of training sessions
that were once used to equip employees.

Revision of this document should undergo the standard procedure and should be approved by Dr. Domingo T. Balse, Jr. (document creator).
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 IV. Objectives

A. General Objective:

Analyzing detailed information about their product, customer’s interest and

advertising.

B. Specific Objectives:

McDonald's main aims are to serve good food in a friendly and fun environment, to be a socially
responsible company, and to provide good returns to its shareholders.
The company aims to provide its customers with food of a high standard, quick service and value for
money.

V. Areas for Consideration

 Goals
 Market Share
 Sales Last Fiscal Year
 Customer Service

VI. Alternative Courses of Action

Generating strategic options using SWOT/TOWS

Strengths (S) Weaknesses (W)

S1: Successful W1: Weak product

Advertisement & development
  Brand Name W2: Management of
S2: Clean Franchise/Joint
Environment & Play Ventures
Space for kids.

Opportunities (O) SO Strategies WO Strategies

(MaxiMax) (MiniMax)
O1: Internationalization
ACA#1: S1S2O1 ACA#5: W1W2O1
O2: Growing Dining out Focus more on
market Well-known brand developing brand
name makes image as well as their
McDonalds easily to product to adapt the
adopt by any demands of the
international growing market.
country.
ACA#2: S2O2 ACA#6: W2O2
Capturing the Branching out to
interest of the franchisors
Revision of this document should undergo the standard procedure and should be approved by Dr. Domingo T. Balse, Jr. (document creator).
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 younger generation international
of markets and also
their parents as well.
Threats (T) ST Strategies WT Strategies
(MaxiMin) (MiniMin)
T1: Threat from Local
competitor from different ACA#3: S1S2T1 ACA#7: W1W2T1
countries
T2: Playing in a mature and Most of the Focus on making
Saturated industry population will products that are based
consider the on the preferences of
products from the local
McDonalds because ACA#8: W2T2
of its successful
Brand Name More low cost menu,
promos and discounts
ACA#4: S2T2 which is preferred by
customers. This may
Even mature result to gain more
industry will still customers.
consider McDonalds
because of its price.

Discuss the basis of the identified Strengths, Weaknesses, Opportunities, and

Threats.

NOTE:
Strengths:

McDonalds Operations are spread around the world, meaning the company is not
exposed to just one currency or economy. McDonald's has successfully rolled out
new items like coffees, smoothies, and burgers, expanding the range of menu
choices.

Weaknesses:

It will be harder and harder to find prime locations to build up another branch of
McDonald’s. For example, The U.S. is saturated with its restaurants, so growth will
have to occur internationally, posing potential cultural challenges.

Opportunities:

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 There are opportunities for new restaurants internationally, and McDonald's has
been taking advantage of them. Asia is a great opportunity for the company.

Opportunities:

There are opportunities for new restaurants internationally, and McDonald's has
been taking advantage of them. Asia is a great opportunity for the company.

Sample Tools to Evaluate Alternative Courses of Action

1. Listing of Advantages and Disadvantages

Alternative Advantages Disadvantages Net Rank

Course of Total
Action (ACA)
ACA#1. Well- To easily know High expectation 3rd
known brand what is the good - +3
name makes in McDonalds
McDonalds easily
to adopt by any
international
country.

ACA#2 – For the wants of For making a bad +5 1st

Capturing the all customer in benefits of all
interest of the one fast food customer
younger chain
generation of
markets and also
their parents as
well.
ACA#3 – Focus To have a good to not keep up the +3 3rd
more on quality food and target demand for
developing service the growing of
brand image as market
well as their
product to adapt
the demands of
the growing
market.
ACA#4 – Quality service Lower demand +4 2nd
Branching out to
franchisors
international
ACA#5 – Most of 4th
the population Gives them an As other people hear
will consider the advantage its Brand Name, The +2
products from because its Brand consumers tend to
McDonalds Name shift their tastes and
Revision of this document should undergo the standard procedure and should be approved by Dr. Domingo T. Balse, Jr. (document creator).
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 because of its preferences
successful Brand
Name

ACA#6 – Even Affordable price McDonald has +1 5th

mature industry exposed itself to by
will still consider offering too much
McDonalds discounts on its
because of its products
price.

2. Cost-Benefit Analysis

Alternative Costs Benefits Net Explanation/ Rank

Course of Total Justification
Action
(ACA)
ACA#1 – Franchising Added Sale: Well –known 3rd
Well-known fee: P30 P24 million – brand name
brand name million – P40 million +3 makes
makes P50 million per year Mcdonalds
McDonalds Reduced Cost: easily to gain
easily to Total: P30- P20 million – franchise
adopt by any P50 million P35 million here in
international per year Philippines
country.
Total Benefit:
P4 – P5
million per
year
ACA#2 – Advertising Brand +5 Advertising is 1st
Capturing fee: Awareness = very effective
the interest P200,000 Sales: most
of the P250,000 especially in
younger younger
generation of generation
markets and
also their
parents as
well.
ACA#3 – Ingredients Increase in +5 Mcdonalds 1st
Focus more : Sale: will capture
on 100,000 Total: customers
developing Total: 200,000 through the
brand image 100,000 taste of their
as well as unique
their product chicken
to adapt the breading and
Revision of this document should undergo the standard procedure and should be approved by Dr. Domingo T. Balse, Jr. (document creator).
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 demands of variety of
the growing foods they
market. offer.

VII. Conclusion

Based on cost benefit and analysis of alternative course of actions, capturing the
interest of the younger generation of markets and also their parents as well is the
most effect way for the McDonald’s to increase their sales and lowering their cost.

VIII. Recommendation/Decision

Based on the evaluation of alternatives, we recommend ACA #2 capturing the

interest of the younger generation of markets and also their parents as well,
because ever since the McDonald’s has been manufactured, their priority is always
the younger generations and by maximizing it is the most efficient way of
increasing their sales and decreasing their cost.

Revision of this document should undergo the standard procedure and should be approved by Dr. Domingo T. Balse, Jr. (document creator).
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