BUSINESS ORGANISATION PRESENTATION

Presented by:
Yasvanth M K
Pradeep R
Aravindhan D
Snehaa S
Midhun S
 INTRODUCTION

• Industry-American fast food company

• Founded-May 15,1940;79 years ago in San Bernardino, California.
• Founder-Richard &Maurice McDonald’s Corporation-Ray Kroc
• Headquarters-Oak Brook, Illinois, United States
• Area Served: Worldwide.
• Employees-1.7 million employees
• Revenue-US$21.025billion(2018)
• Key people-Enrique Hernandez, Steve Hernandez.
 INDUSTRY PROFILE

• American Fast food Company:

• Type-public.
• The business was started as a hamburger stand which was later converted to
franchise.
• It is the world largest restaurant chain by revenue.
• It serves around 6.9 million customers daily.

• Typology:
• Quick service restaurant typology.
• It offers food items that require minimal preparation time.
• Delivered through quick services.
• Speedee service system is followed
 COMPANY PROFILE

• MISSION:
• “To be our customers’s favourite place and way to eat and drink.”
• McDonald’s corporate mission statement has the following main components:
• Customers’ favorite place to eat and drink.
• Customers’ favorite way to eat and drink.

• VISION:
• “To move with velocity to drive profitable growth and
become an even better McDonald’s serving more customers
delicious food each day around the world.”
• The following are the main components of the company’s
new corporate vision statement:
• Move with velocity to drive profitable growth.
• Become an even better McDonald’s.
• Serve more customers delicious food each day around the world.
 VALUES
•Placing customer experience at core.
•Commitment.
• Believing in the McDonald’s System.
•Operating the business ethically.
•Giving back to the communities.
•Business profitably.
•Strive continually to improve.
SUCCESS FACTORS
• Low price
• Speed
• Service
• Cleanliness
 DEPARTMENT ORGANISATION

CEO Steve Easterbrook

COO Oak Brook

CPO David Fairhurst

CFO Kevin Ozan

SVP development

Corporate affairs Marketing Human resources National operations

Regional managers Finance Information Strategic planning

 OTHER FUNCTIONAL DEPARTMENTS

• Legal
• Customer services
• Franchising
• Safety
• Security and licencing
• Property and construction
• Supply chain
• Restaurant services
 PRODUCTS
• Hamburgers and sandwiches
• Chicken and fish
• Salads
• Snacks and sides
• Beverages
• Desserts and shakes
• Breakfast/All-day breakfast
• McCafé
TOP 13 COMPETITORS
 PRODUCTION PROCUREMENT AND PLANNING

• Design of Goods and services: The design is based on the objective serving sizes and
prices on the consumer expectations. Some will be minimized for affordable prices.
• Quality Management: Farming and Raw materials will be done in a production line
method to maintain its supplies quality.
• Process and Capacity Design: The production line method. As, service implies
subordination or subjugation of the server to the served; manufacturing on the other
hand avoids this connotation because it focuses on things rather than people.
• Location Strategy: McDonald’s reaches the customer both traditional and modern ways
by online apps, kiosks, drive through and websites.
 PRODUCT STRATEGIES

• Permanent product strategy = Items remains same

• Temporary Product strategy = Seasonal Changes
• Local product development strategy = Creation menu based on the place or region
or country whichever is famous as such.
• Local adaptation strategy = Adopting the local market customers and their
products consumption to give the native tastes.
CRITICAL COMPONENTS OF McDonald’s SUPPLY CHAIN
 SWOT ANALYSIS

• Strength: • Weakness:
• Adoption of Local Enterprises and • Low skilled and low paid employers
Entities towards product and • Negative rumors on quality
customer development. • Disgruntled Franchisees
• Frequent product diversification to • Fluctuating Price affordability.
meet the competitors
• Strategic player in Production line
planning.
• Environmental and social
beneficiaries in both serving the
people and society.
 SWOT ANALYSIS

• Opportunities:
• Strengthening its value position in
various Kiosk management
activities.
• New Product Positioning
• Emerging markets switching in
China and India.
• Nutritious in all aspects.
• Threats:
• Recession over the Economy
• Negative rumors by Competitors
• Health conscious Customers
• Boycott threats India regarding the
meat usage.
 NEW STRATEGIES

• McDonald’s plans to expand its newly formed McD tech team by hiring more
engineers and data scientists. This comes with the technology that could
automatically alter individually drive-through menu panels, depending on factors
such as Weather. For eg: Automatically suggesting ice creams during hot seasons
and telling customers which items were already proving popular at that particular
restaurant.
• In Sweden McDonald’s drive thru equipped with electric car charging.
• McDonald’s latest tech move aims to bring voice-based, conversational ordering to
the dining experience.
 MARKETING MIX
• Place(Distribution):
• Restaurants, Kiosks, McDonalds mobile apps, Postmates website and apps
• Products:
• As per local adoption and conditions to seasons. All QSR food menus
• Promotion:
• Kids zone and Play toys
• Joker on Shop
• Small and medium package combos
• Pricing :
• Bundle Pricing ( Happy meal combos)
• Psychological Pricing ( Pricing based on the customer expectations).
 MARKET SHARE
• McDonald’s is the market leader in fast food restaurants in the USA, with a market share of 21.7
percent in 2013 followed by Yum! Brands, Doctor’s Associates, Wendy’s International and Burger
King.
• The Golden Arches face tough competition from local regional restaurants in the region that
together have 54 percent of the market share (Figure 3). The current figures have, however,
changed as the sales and profits of McDonald’s have declined with respect to its competitors.
• McDonald's climbs as global sales grow by the most in 7 years (MCD).
• McDonald's reported its second-quarter 2019 results early Friday. The fast-food chain bested analyst
expectations, especially in same store sales.
• Global same-store sales expanded by 6.5%, the most in seven years.
• Revenue: $5.34 billion reported versus $5.33 billion (expected).
• Shares rose roughly 2% in early trading on the report.
• McDonald's has continued to improve its menu, recently rolling out burgers with fresh beef and
releasing new breakfast items.
CSR
 CONCLUSION

• As McDonald’s tagline indicates “ I am Loving it” as customers “We are Loving it”.
• McDonalds have took the customers into their world and provided them a new sense of
taste and a new experience in the food industry.
THANK YOU