McDonalds Outline:

Introduction Opportunities and Threats McDonalds faced. Their solutions and alternatives it could choose. McDonalds Success in Europe. Strategies it followed. Difference from strategies followed in Asia. MacDonalds basic philosophy. Enforcement of its philosophy in different environments. Should McDonalds expand its menu? If you say no, then why not? If you say yes, what kinds of products should it add? 4/18/12 MacDonalds Success in many countries of

INTRODUCTION TO MAC DONALDSand Dick opened their first Mac

restaurant in 1940 at California in U.S. They invented a new concept of serving Click to edit Master subtitle style people with low price, speedy service ,big volumes and good quality food .This was the key of their success. There service was like GRAB AND GO. Mac Donalds opened more then 300 branches all over the states since 1952. In 1954 RAY KROC met MC DONALD brothers. He was distributor of milkshake maker. Ray Kroc opened his first McDonalds restaurant in 1955.He had bought the corporation from Dick and Mac. 4/18/12

Opportunities and Threats McDonalds faced. Their solutions and alternatives it could choose. : OPPORTUNITIES

Lack of organized food retail chain or branded food items Vast market availability New food items Low competition

THREATS: Franchisee Consciousness among people about their health Follow the local laws People dining behavior 4/18/12

How McDonalds handled the opportunities and threats: McDonalds success was largely dependent on its strategy to handle the opportunities and threats. The time when McDonalds came , there were many opportunities and threats present in the market and McDonalds correctly matched its strengths with opportunities and worked on its weaknesses to eliminate the threats. How McDonalds cashed the opportunities: created the retail chain and brand for its product rightly analyzed food market 4/18/12

Alternatives available for McDonalds:

Should have targeted aged people as well Should have extended its menu Should have concentrated on its Development rather than growth Should have improved its quality for health issues Should have invested in social welfare Should have decreased its prices in developing or poor countries Should have cancelled the permissions to the franchises who were not working well and still not today.

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McDonalds Success in Europe. Strategies it followed. Difference from strategies followed in Asia.

It is true that European market has a huge scope of fast food because there was no any branded fast food chain available in Europe. European people have different food behavior and think that they can easily follow such change. McDonalds prepared foods accordance with the local laws. It have different price rate of materials according to their people behaviors as well as there make different menu according to the dining habits.

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For example- The prices vary considerably around the world ranging from $5.20 in Switzerland to $1.05 in China for the Big Mac that costs in the United States $2.32. The Economist magazine even devised a Big Mac Index to estimate whether a currency is over or undervalued. Thus, the $1.05 Chinese Mac translates into an Implied Purchasing Power Parity of $3.88.
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McDonalds introduced the Japanese to French fries, potatoes were used in Japan only to make starch. I think McDonalds has succeeded because McDonalds have a great strategy to come in European market. It took the company 14 years of planning before it opened a restaurant in Moscow in 1990. But the planning paid off. After the opening, people were standing in a very huge amount. It has been said that McDonalds restaurant in Moscow attracts more visitors on an average 27,000 daily than Lenins mausoleum (about 9,000 people). The Beijing opening in 1992 attracted some 40,000 people to the largest (28,000 square -foot) restaurant at a location where some 8,00,000 pedestrians pass by every day.

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McDonalds have following strategies given below Be first in the market Well planned for 14 years time period Worked according to local laws Different pricing behavior Different menu according to the dining habits. McDonalds was one of the first restaurants in Europe to welcome families with children.

European strategy is different with respect to Asian strategy by following reasons In case of Europe they take larger time as compare to Asian strategy. They dont know the customer behavior of Asian countries but they well familiar about the European customer behavior. Generally European are prepare to adopt the new things as compare to the Asian. So they may have some extra afford 4/18/12 specially in Asia.

MacDonalds basic philosophy. Enforcement of its philosophy in different environments Mac Donalds have many
philosophies to reach the Peak of success. Our basic philosophy at McDonald's is to develop a collaborative approach with our suppliers. we are committed to sharing best practice with all our suppliers who benefit from this commitment because it helps improve quality and increase value.

David Thomas, senior Agricultural assurance 4/18/12 manager , McDonald's

and McDonald's basic philosophy includes good relation with the suppliers. McDonald's has to apply this philosophy in any environment without any discrimination for better performance and provide fresh food to customer. Other than that, McDonalds have a very great strategy and philosophy. The main philosophy of its success is to cover mainly four golden arches- quality, service, cleanliness and values........

Quality- McDonalds concentrated on quality of 4/18/12 product. Better the quality

Values- The value of the customer is important and well known by each and every worker as well as to the managements. Its products, handling and cooking procedures and kitchen layouts are standardized and strictly controlled. McDonalds revoked the first French franchises because the franchise failed to meet 4/18/12 its standards for fast service and cleanliness,

Should McDonalds expand its menu? If you say no, then why not? If you say yes, what kinds of products should it add?

MACDONALDS: A famous restaurant serving fast food since 1955 Main objective is to maintain the quality food standard and better service It has been doing a good job since 1955 Macdonald's shouldnt expand menu because: It is already doing good job It provides food according to customers needs Menu is according to the cultures of customers 4/18/12

MAC DONALDS TRIES TO CHANGE MENU ACCORDING TO CULTURES: In Norway it served grilled salmon sandwich. In Philippines now, it is serving pasta in a sauce with frankfurter bits. In German restaurants it started serving beer with fast food. In French restaurants, it serves wine. In Canada it starts serving cheese vegetables pepperoni with deluxe pizza. It has opened Mac Caf for coffee lovers. Mac Donald's provides quality food so customers are satisfied. It shouldnt expand its menu but Maintain the quality of existing products.

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MacDonalds Success in many countries of the world.

QSC & V: McDonalds stays in close contact with its customers, who want good taste fast and friendly service, clean surroundings, and quality. To attain quality, McDonalds quality assurance centres are located in the United States, Europe and Asia. Location: McDonalds opened its outlet in most attracting places where the pedestrians pass out more frequently.

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Family entertainment: To attract the families and children McDonalds provide the facilities of play land for the kids, and entertained them with crayons and paper and of course with clown Ronald McDonalds. Law: McDonalds adopt and follow the laws of respective country where it opened its outlets and prepared food according to that countrys Law. Advertisement: McDonalds uses competitive 4/18/12

CONCLUSION
We believe that our executive compensation program is consistent with the Companys pay-forperformance philosophy and is effective at serving the interests of both the Company and our shareholders. The compensation received by our executives is based upon both Company and individual performance. Our programs are designed to motivate and retain a high caliber executive team critical to our future success. We continue to monitor our programs due to the highly competitive global market in which the Company competes for executive talent. We are confident our programs motivate our executives to achieve long-term sustainable growth for the COMPANY

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