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MCDONALDS CASE STUDY

By:
John Fraser R (215115011)
Peram Srinath (215115023)
Sasikanth Thota (215115022)
Anju Ajaykumar (215115009)

MCDONALDS INCEPTION
McDonalds first restaurant was opened in the year 1955 by Ray
Kroc.
It operated on the principle of (QSC&V), (Quality, Service,
Cleanliness and Value)
By 1983, it had over 6000 restaurants in U.S.A and by 1995, it had
more than 18,000 restaurants in 89 countries.
As per latest reports it has nearly 32,737 restaurants

What opportunities and threats did


McDonalds face? How did it handle
them? What alternatives could it
have chosen?

Opportunities

The McDonalds logo ranks 7th in the list of 50 most identifiable logos
in the world. It also has a bigger revenue than its competitors. The
sheer popularity of McDonalds world over has led to the creation of
the Big Mac Index, which is used to analyse the PPP( purchasing
power parity) of a nation.
When McDonalds expanded its operation in 1967, It was the first
fast-food chain to do so.

Opportunities
McDonalds had few competitors in the Global Market, when it began. This
enabled McDonalds to establish itself strongly.
It had first mover advantage
Many restaurants at that time did not cater to the younger generation

Threats
Many of its restaurants faced quality issues.
McDonalds faced, and still faces stiff competition from BurgerKing, Kfc,
PizzaHut Dominos, Wendys and Subway.
Though McDonalds has a strong market presence and is a global leader,
its popularity is waning in many countries.
Customer Satisfaction Index was found to be more for its competitors

Threats
Apart from large fast-food giants, McDonald also faces competition
from local restaurants which are slowly widening their menu and
quality.
In the middle east, meat products had to be halal. Hence the
preparation of McDonalds recipes had to be changed.

How it handled
McDonald made full use of its first mover advantage.
Through franchising it became the largest food chain in the world
It made its restaurants attractive to children and even made
changes in its menu. Ronald McDonald was created to entertain
small children

How it Handled
McDonald adopted aggressive marketing strategies to beat its
competitors. It changed its menu to suit to the local culture.
It revoked the first French franchise when it failed to meet
McDonalds quality standards
In the middle east, McDonalds prepared its dishes to suit to the
religious sentiments of the local population.

How it could have handled


McDonald could have expanded its business in Asia slowly.
It could have setup a quality team to frequently analyse the
quality of food products across McDonalds restaurant. Since most
of McDonalds restaurants are franchise owned, profit is usually
chosen over quality by the respective franchise owners. This
contributes overall decrease in McDonalds brand value

believed that fast food could be


successful in Europe. Why do you
think McDonalds succeeded ?
What strategies did it follow? How
did these differ from its strategies
in Asia?

European Market
McDonalds entry into the European market was after 14 years of
planning.
McDonalds planted its new restaurants at major cities. The
concept of fast food restaurants was not popular in Europe.
McDonalds also changed peoples perception on fast food
It promoted its burgers and popularized McDonalds to an extent
people were drawn into trying out the McDonalds.

Popularity
Opening of McDonalds in Russia

Asian market
Since Burgers are essentially from the western cuisine, McDonalds
had to customize their burgers to suit their Asian customers.
This involved changing the menu to suit to the tastes of the local
population.

Japanese McDonalds Burgers

Indian Menu

What is McDonalds basic


philosophy? How does it enforce the
philosophy and adapt to different
environments

Philosophy
McDonalds philosophy was to promote the fast food culture around
the world
It succeeded by adapting its menu based on the geographical
location and keeping its (QSC&V) principle
McDonalds also focussed on different age groups and made its
restaurant children-friendly.

Should McDonalds expand its menu?


If you say no, then why not? If you
say yes, what kinds of products
should it add?

McDonalds Menu
McDonalds should expand its menu. It has already incorporated many changes
sensing the need.
This involved changing the menu to suit to the tastes of the local population
McDonalds success in Japan is hugely because of their menu which blended
with the local culture.
McDonald should focus on popularizing other dishes apart from burger. This
would certainly attract more customers.

Sakura Burger(Japan)
and Mos Burger
McKebab

Why is McDonalds
successful in many
countries around the world?

Success of McDonalds
McDonalds followed its (QSC&V) principle closely.
It established Quality Assurance centres to monitor the quality of
food products at it franchises.
It advertised smartly and made its brand popular globally.

Well planned advertising & Focus on younger


customers

Customized menu

Strategic partnership with popular brands