MCDONALD'S

Team META - CASE STUDY

 TEAM META - MEMBERS

Ampolu Prathyusha 18CE3EP04

Aashish Kumar 18AG3EP01

Sai Chandan Kadarla 18AG3EP13

Yashwanth Bandaru 18AE3EP10

 BUSINESS MODEL - MCDONALDS
“If I had a brick for every time I’ve repeated the phrase Quality, Service,
Cleanliness and Value, I think I’d probably be able to bridge the Atlantic Ocean
with them.” – Ray Kroc

● Franchise Realty Corporation -> Mcdonald's Corporation

● The revenue model of McDonald’s is based on Franchising. They make money

by leveraging its product line up, fast food, to franchisees who have to lease
properties, often at large markups, that are owned by McDonald's.
THE RESTAURANT AS ASSEMBLY LINE - FAST FOOD FACTORY

★ Henry Ford revolutionized the auto industry and the world when he invented
the assembly line. His new system reduced the time it took to build a car
from more than 12 hours to two hours and 30 minutes.
★ Borrowing from Henry Ford, the McDonald brothers created an assembly
line in the kitchen called The Speedee system.
★ This system was completely different than what any other restaurants were
doing. Instead of using a skilled cook to make food quickly, it used lots of
unskilled workers, each of whom did one small, specific step in the
food-preparation process.
THE RESTAURANT AS ASSEMBLY LINE - FAST FOOD FACTORY
THE RESTAURANT AS ASSEMBLY LINE - FAST FOOD FACTORY

★ Wages stayed low. Cost of food stayed low. Experienced cooks with skill and
training were replaced by low-skilled employees who were disposable easily
replaced. The whole process was automated; it became a factory.
★ Little by little, complicated tasks, requiring more advanced skill sets, are
simplified and broken into much smaller steps able to be done without skill
or training. Eventually, even these steps are outsourced to less qualified
individuals.
 STUMBLING IN 1990
★ In early 1990s, McDonald’s has shifted its focus to environment friendly. The
company introduced recycled napkin, carryout bags, and a restaurant
constructed of virtually all recycled materials
★ In 1995, new restaurants were opending in U.S at a rate 1,130 per year.
★ Due to growing competition the addition of new players to the sector.
★ The market for quick-service restaurant industry was project to expand in
line with inflation.
★ Declining customer satisfaction and customer engagements.
 REINCARNATION OF MC DONALD’S
★ McDonald's stock valued at $47.7 in Nov 1998
fell to below $13 by the end of 2003.
★ Setting its financial goals and focused on its
operations.
★ Company focused on being “Being better, not
just bigger.” Shifted it focus to its core
business.
★ Reduced restaurant openings and focused on
improving the existing restaurants.
 AMBIENT MARKETING
● Ambient Advertising is a form of Guerilla Marketing in which advertising
it is integrated into our natural surroundings, and catches our attention in
places we least expect it to.
● They display a video with different items at mcd, if you capture the image you
can go and collect the item from the MCdonald's by showing the image.
● Mcdonald’s campaign was aimed at increasing sales
of chips from its establishments and putting them on
a zebra crossing positioned its product as “safe” in
the mind of anyone who saw it since crossing a zebra
crossing is, in principle, safe.
 LEARNINGS

★ McDonald’s expansion of market helped them generate good inflow

of revenues which helped them grow and expand, and Franchising
their brand.
★ McDonald’s the “Plan to Win” is mainly framed around the
customer’s need and desire.
★ Setting up clear goals. Continuous and consistent evaluation of
operations and customer satisfaction. For McDonald’s customer is
BOSS.