PAGE

PAGE

7

McDonald'sCorporationCompany

TableofContents

ExecutiveSummary

IntroductionIndustryAnalysis

CompetitorAnalysis

SWOTAnalysis

FutureandRecommendation

ExecutiveSummary

McDonald'srestaurantisalargechainfastfoodgroupandithasapproximatelythirtythousandshopsintheworld,themainsellingishamburgers,Frenchfries,Friedchicken,soda,iceproduct,salad,fruit.Afterthefinancialcrisis,mostcompaniesareexperiencingasituationoffundshortage,howtogetmoreprofithasbecometheproblemwhichthefastfoodindustrymustbefacingwith.Ofcourse,theadvantageofefficiencyandconveniencewillbetheimportantOpportunitytohelpthefastfoodindustrytosolvetheproblem.Now,McDonald'smanagementisverygood,butitstillneedstoimproveinsomeplaces.

Introduction

McDonald'srestaurantisalargechainfastfoodgroupandithasapproximatelythirtythousandshopsintheworld,themainsellingishamburgers,Frenchfries,Friedchicken,soda,iceproduct,salad,fruit.McDonald'srestaurantsspreadallovertheworldsixcontinentsinovercountries.InmanycountriesMcDonald'srepresentsofakindofAmericanwayoflife.

In2001,thenetincomeofMcDonaldshrunk17percentto$1.64billion.ThoughMcDonald’sU.S.marketshareremainedabovethatofcompetitors,itgrewmoreslowly.Becauseofthe“BigMacAttack”,McDonaldacceleratedplansfor“NewTastesMenu”items.What’smore,McDonald’sopenedMcCafeinordertodoublesalesatexistingU.S.restaurantsoverthenextdecade.ThegourmetcoffeeconceptwascreatedtobeplacedwithinoradjacenttoexistingMcDonald’srestaurants.McDonald’sestimatesthatthenewconceptwillboostsalesby15percent.

sales.TheefforttoreverseslowingbutcontinuingsaleserosionatHardee’s,theindustry’sNo.4burgerchain,haddominatedmanagement’sattentioninitsconversionofHardee’stoaformatcalled“StarHardee’s.”Thecompanyattemptedtoreverseslidingsalesbyintroducingnewitemsonthemenuandjoiningtheprice-promotionburgerwars.ThecompanytestedindividualitemdiscountsatmostofHardee’scompany-ownedunits.

●Wendy’sinternational

Wendy’shashadthestrongestsame-salesgainsofthemajorburgerchainsinrecentyears.ChainofficialsandWallStreetanalystsattributedatleastpartofthegrowthtoWendy’slineoffourupscalesaladscalled“GardenSensations.”Thenation’sNo.3burgerchainholdsanenviableposition—analystsconsistentlyrankitaheadofchiefrivalinquality,customersatisfaction,innovation,andunit-levelsales.Wendy’sproductlineincludesfourcoremenuitems:burger,chickensandwiches,itsvaluemenu,anditsGardenSensationssalads.Thesaladlineisdesignedtoprovidecustomtastecomparabletosaladsofferedbycasual-diningchains

2.Majorcompetitorsinthenon-hamburgersegment

●PizzaHut,“pizzaandmore“

PizzaHutisoneofthebiggestandbest-knownpizzarestaurantsintheworldafterfiftyyearsofdevelopment.Oneoftheirmainstrategiesthattheystillfollowtodayisthediversificationoftheproductstheyoffer.PizzaHutisalwaysaddingsomethingnewtotheirmenu,tryingtoreachnewmarkets.Theyweretryingtooffermanydifferentfooditemsforcustomerswhodidn'tnecessarilywantpizza.AnotheropportunitythatPizzaHuthasistheirneworderingonlinesystem.AnyonewithInternetaccesscanorderwhatevertheywishandgetitdeliveredtotheirhousewithoutevenspeakingtosomeone.Lastly,PizzaHuthasalwaysvaluedcustomerserviceandsatisfaction.In1995,PizzaHutbegantwocustomersatisfactionprograms:a1-800numbercustomerhotline,andacustomercall-backprogram.Thesewereimplementedtomakesuretheircustomerswerehappy,andalwayswantedtoreturn.

KFC

KFC,alsoknownasKentuckyFriedChicken,isachainoffastfoodrestaurantsbasedinLouisville,Kentucky.KFCiscurrentlyoneofthelargestbusinessesoftheglobalfoodserviceindustryandiswidelyknownaroundtheworldasthefaceofColonelSanders.TheColonelhasspreadhisindustrycurrentlytomorethaneightycountriesglobally.Everyday,nearlyeightmillioncustomersareservedaroundtheworld.KFC'smenuincludesOriginalRecipechicken--madewiththesamegreattasteColonelHarlandSanderscreatedmorethanahalf-centuryago.KFCprimarilysellschickeninformofpieces,wraps,saladsandsandwiches.Whileitsprimaryfocusisfriedchicken,KFCalsooffersalineofroastedchickenproducts,sidedishesanddesserts.OutsideNorthAmerica,KFCoffersbeefbasedproductssuchashamburgersorkebabs,porkbasedproductssuchasribsandotherregionalfare.

●Tacobell

TacoBellistheNo.1Mexicanfast-foodchainintheU.S,withmorethan5,600locations,anditservesmorethan36.8millionconsumerseachweek.InChina,onlyShanghaiandShenzhenhavesuchkindofrestaurant.Ithassomeuniquefoodthatotherfastfoodrestaurantsdon’thave.Thinflatbreadfilledwithmeat,cheese,particularrawvegetablesandhotspicysauce.AtypeofMexicanfoodmadebyfoldingathinroundpieceofbreadandputtingmeat,beansandcheeseinsideit.Smallpiecesofthindrybreadmadefromcornflourandeatenwithmeltedcheeseandaspicysaucethatusuallycontainsbeans.Becauseofitsunique,thepriceofitsfoodisusuallyhigh.

SWOTAnalysisMcDonald's

Strengths

Theysuccessfullyandeasilyadapttheirglobalrestaurantstoappealtotheculturaldifferences.Forexample,theyservelambburgersinIndiaandintheMiddleEast,theyprovideseparateentrancesforfamiliesandsinglewomen.

Theyhaveanefficient,assemblylinestyleoffoodpreparation.Inadditiontheyhaveasystemizationandduplicationofalltheirfoodprepprocessesineveryrestaurant.

McDonald'stakesfoodsafetyveryseriously.Morethan2000inspectionschecksareperformedateverystageofthefoodprocess.McDonaldsarerequiredtorunthrough72safetyprotocolseverydaytoensurethefoodismaintainedinacleancontaminatefreeenvironment.

McDonald'swasthefirstrestaurantofitstypetoprovideconsumerswithnutritioninformation.NutritioninformationisprintedonallpackagingandmorerecentlyaddedtotheMcDonald'sInternetsite.McDonaldsofferssalads,fruit,roastedchicken,bottledwaterandotherlowfatandcalorieconsciousalternatives.

Weaknesses

Theirtestmarketingforpizzafailedtoyieldasubstantialproduct.Leavingthemmuchlessabletocompetewithfastfoodpizzachains.

Highemployeeturnoverintheirrestaurantsleadstomoremoneybeingspentontraining.

Theyhaveyettocapitalizeonthetrendtowardsorganicfoods.

McDonald'shaveproblemswithfluctuationsinoperatingandnetprofitswhichultimatelyimpactinvestorrelations.Operatingprofitwas$3,984million(2005)$4,433million(2006)and$3,879million(2007).Netprofitswere$2,602million(2005),$3,544million(2006)and$2,395million(2007).

Opportunities

Theyhaveindustrial,Formicarestaurantsettings;theycouldprovidemoreupscalerestaurantsettings,liketheonetheyhaveinNewYorkCityonBroadway,toappealtoamoreupscaletargetmarket.

Provideoptionalallergenfreefooditems,suchasglutenfreeandpeanutfree.

In2008thebusinessdirectedeffortsatthebreakfast,chicken,beverageandconveniencecategories.Forexample,hotspecialistcoffeesnotonlysecuresales,butalsomeanthatrestaurantsgetincreasingnumbersofcustomervisits.In2009McDonald'ssawthefullbenefitsofaventureintobeverages.

Threats

Theyhavebeensuedmultipletimesforhaving"unhealthy"food,allegedlywithaddictiveadditives,contributingtotheobesityepidemicinAmerica.In2004,MichaelSpulockfilmedthedocumentarySuperSizeMe,wherehewentonanallMcDonalds’dietfor30daysandwoundupgettingcirrhosisoftheliver.ThisdocumentarywasadirectattackontheQSRindustryasawholeandblamedthemforAmerica'sobesityepidemic.Dueinparttothedocumentary,McDonaldsnolongerpushesthesupersizeoptionatthedivethruwindow.

Anycontaminationofthefoodsupply,especiallye-coli.

Majorcompetitors,likePizzaHut,TacoBell,Wendy's,KFCandanymid-rangesit-downr