Presentation on Mc Donald’s

Corporation

Group-1
Members-- Anupam
Anupam Bordoloi
Bordoloi
Hrishikesh
Hrishikesh Rajbanshi
Rajbanshi
Nilotpal
Nilotpal Das
Das
Rupankar
Rupankar Das
Das
Case synopsis
 12,611 quick service restaurants spread world wide.
 In the USA alone Mc Donald serves 20 million customers
everyday
 Mc Donald brothers opened the first drive in restaurant in
1941.
 Mc Donald’s operating system concentrated on four areas

Improving Developing
outstanding supplier
the product relationship

Training and
Improving
Contd..

Continuous evaluation of Mc Donald’s achieve

the restaurants took place success by focusing
& accordingly QSC ,V on limited menu low
grades were given. prices and fast service.

Mc Donald’s slogan
was “what you want
is what you get”.

In 1990,in collaboration with EDF

Mc Donald’s most Mc Donalds gave an eco friendly
menacing competitors dimension to their business by
forming a waste reduction task
were Burger force, using brown bags &
King,Wendy’s,KFC. various other measures.
Means of a successful company to
achieve competitive strategy through its
operations
Speed of product introduction.
Production flexibility like using
equipments that are not fixed to floors.
Low cost process.
Convenience and location.
Product variety and facility size.
Quality.
Role of supplier and franchisee for
effective operation strategy
 Brought a supplier loyalty that the restaurant
business had never seen.
 A simple hand shake secured every arrangement
between Mc Donald’s and suppliers.
 Initially small and fledgling suppliers were to
gamble on Mc Donald’s after rufusal of food
processing giants like Kraft,Heinz and Swift.
 Mc Donald’s reffered its 3500 franchisee as its
partners.
 ‘Partners’ would make money before the company
did.
Contd..
 Generated 39% of its revenue from
franchissed restaurants.
 Franchisees also formed powerful
regional co-operatives for both
advertisement and purchasing.
 Corporate management suppliers and
franchisees infused Mc Donald’s with an
entrepreneurial spirit.
 Phases of life cycle
Use/Re-
Distribution
Manufacturing
Raw materials
and
use/Maintenanc
Processing and
Acquisition
formulation
eTransportation

OUTPUT
R
ec
INPUTS y
cl
e

Waste Management
Factors pertaining to growth
and success of Mc Donald’s

 Focused on a simple formula- limited menu low

prices and quick service.
 Restricted its menu to 10 items, when restaurants
in 60s and 70s offered a variety of menus.
 In early 1990, Mc Donald’s cutting prices
averaged 20%
 Cheeseburgers sold for only 69cents
 Mc Donald’s Happy Menu (complete children’s
meal)was sold at only $ 1.99.
Contd…

Engineers Mc. Donald’s

introduced a special
engineers has
french-fry scoop
introduced a pizza
and a grill that
oven that could
prepared
hamburgers half the prepare pizzas
time of others. within 5 minutes.

To ensure quality Mc Donald’s

and taste, no distinguish
products were
kept for more than
itself in the
10 minutes in the quick service
transfer bin. industry.
Primary new challenges of Mc Donald’s
in 1990
 Share of US quick service market dropped from
18.7% in 1985 to 16.6% in 1991.
 Sales per US outlay dropped to 3.7%.
 Hamburger consumption fell to 17% in 1990 from
19% in 1982.
 The quick service industry grew at an annual rate of
8.7% in 1980’s but in 1990’s during inflation it
tried hard to keep up the pace.
 The service industry market became complex with
new entries, who emulated Mc Donald’s strategy to
capture their own segments.
Contd…

Entities like Chili, Olive Garden, Sonic and Rally etc proved to be tough
competitors.

Taco Bell owned by PEPSI used the cost based strategy to compete prices,
thus it served 60%more customers and their and sales rocketed to 63%.
Basis for the future growth
 To maintain an uniform growth rate.
 To review the work of the task force.
 Serving quality foods at a low price.
 Maintaining consistency and quality
through standardization.
 Unprecedented challenges for variety and
flexibility in its services.
 By allowing greater franchise autonomy.
I’M Lovin it…..