Case study on

McDonald’s
-Team Twitch
What is a Business Model?
● A canvas that describes the company’s business
strategy, target customers, revenue channels,
pricing strategy, marketing strategy, etc.
● It is one of the fundamentals of the company.
● Difference between a startup and a grown
company lies in the stage of business model it is
in.
● The process put out in the business model must
be scalable and repeatable.
McDonald’s Business Model
● The company follows a franchise model.
● The company gives list of products, marketing strategies, etc to the franchises.
● The franchise operators take care of all operating expenses including salary, goods
cost, maintenance, etc.
● Major part of McDonald’s revenue is Rent paid out by the Franchise Operators.
● Revenue model is the Sonneburn Model.
● The model revolved around an important operating philosophy, the three-legged stool -
Employees, Franchisees, and suppliers.
● It emphasised the importance of each of the Franchisees, Suppliers and customers
through its business model.
Learnings from growth strategies

● Adapts well to the locations, time and

understands the changing interests of the
customers
● Promotion and marketing strategies
● Product standardization
● Maintain consistency
● Pricing strategies.
● Factor of innovation ( the reason for the
first DRIVE THRU).
● Brand value ( they would ensure proper
quality, service , cleanliness and value to
the customer.)
Things of concern
● Are the HEALTHY MEALS really healthy?

The bacon ranch salad has almost 500 calories and 28 gm of fat, which means 51% of the
calories are from fats.

● Are the Mcribs really ribs?

The fake ribs are a pork mixture that is pressed into a rib like structure.
This pork patty is made up of 45 ingredients including a mixture of pork tribe, heart, stomach and
loads of salts and sugar.
A total of 80 ingredients in creating a sandwich.
One sandwich can provide you with 36% of daily salt intake.
● Excessive food wastage
● Everyday thousands of burgers are thrown out.
● The french fries has a 7 min limit for how long they
can sit before they are tossed and new ones are
made.
● Yes McD feeds about 1% of the population on
daily basis but at the same time 12% of world
population is suffering from hunger at the same
time.
● McD food doesn’t decompose at a same pace as
any other.
● Use of excessive additives and preservatives.
Thank you
Team Twitch:

S Ram Prakash
(19AR10031)
Prathik D
(18AG36004)