CASE ANALYSIS McDonald’s, Inc. COMPANY NAME: McDonald’s, Inc. INDUSTRY: Food Service COMPANY WEBSITE: www.mcdonalds.com COMPANY BACKGROUND: As a company, McDonald’s was first introduced in Des Plaines, Illinois in 1955. This was the very first McDonald’s restaurant, which all started in San Bernardino, California in 1954 when Ray Kroc approached the McDonald brothers with a business proposition to start a new company. In 1965 McDonald’s went public and was later, in 1985 added to the Dow Jones Industrial Average. (www.mcdonalds.com) The company has gone through quite a few changes with its changing CEO’s over the years, but the company seems to be on track with CEO Jim Skinner, named in 2004. Skinner was named the new CEO just …show more content…
BARGAINING POWER OF BUYERS: Consumers have more power over buying McDonald’s products because they can demand what type of products they want to see from them. Today, consumers are demanding healthier food and beverage choices from fast-food restaurants such as McDonald’s. After the documentary film “Supersize Me” by Morgan Spurlock came out in 2004, McDonald’s had to reclaim its name by showing America that their company cares about the health of their customers and cut out their “supersize” program. SUBSTITUTE PRODUCTS/SERVICES: In the fast-food industry, including McDonald’s, the threat of substitutes is greater now more than ever with the convenience food industry growing. More convenience food stores are offering similar products as the fast-food restaurants. The convenience store / gas station, Quik Trip, sells many food items such as hot dogs, egg rolls, pizza stuffed breadsticks, and countless beverage choices. (Siehoyono 2005) COMPETITIVE RIVALRY: According to Siehoyono (2005), “fast casual” food chains such as Subway are tougher competition to the fast-food chains in both the U.S. and international industries. Some franchisers were also complaining that McDonald’s was granting too many franchisees too close to each other and actually stealing business away from each other. STRATEGY USED: McDonald’s has tried both cost leadership and differentiation as
Senior Management of PepsiCo is evaluating the potential acquisition of two companies – Carts of Colorado and California Pizza Kitchen – in order to expand the company’s restaurant business. If indeed PepsiCo decides to pursue the acquisition of one or both, they must decide how to align each of these business units in its historically decentralized management approach and how to forge relationships between the acquired business units and existing business units. In their evaluation, Senior Management is faced with the question of whether the necessary capital investment in order to purchase one or both of the businesses can be profitable for each of the acquired business units, but must
About everyone at some age, at some point or another, and in some country has gotten a sample of American's symbol for fast food through the golden arches of McDonald's. This report will attempt to analyze the external and internal sectors that affect the company's success. The external analysis will provide opportunities and threats while the internal analysis will show indicators of strength and weakness. It will then follow up with critical issues, strategic alternatives, recommendations and implementation. The case studied is found in Appendix 2 of Mary Coulter's "Strategic Management in Action" book.
Since Richard and Maurice McDonald founded in 1948, McDonald's has grown from a small restaurant in California into one of the most recognized brands in the world with a chain of outlets that spans the globe. For over 50 years, McDonald's defined the fast food industry while indelibly etching its golden arches logo on the face of both American and global culture through such icons as character Ronald McDonald and the Big Mac sandwich. Millions of people started their very first jobs at McDonalds while even more began to have their eating habits redefined by the chain. Concepts like the drive-thru window were introduced along with the Happy Meal for children in order to provide a fast, affordable, and enjoyable dining. Ray Kroc, saleman
On Friday, October 13, at around 11:00 pm, RA Gabriella McDonald and RA Tyler Shaw were writing an incident report for a violation of quiet hours in room 216. While entering the names of the Otterbein students, they noticed that neither Resident Isabel Sentle nor Resident Sydney Young were present at the time of the incident. RA McDonald and RA Shaw contacted SHD Steve Palombo, who informed them that the two residents would need to be documented as well, despite not being present. RA McDonald went upstairs to see if they were in the room yet and to explain the situation, but the room was empty when she arrived. She slipped the red cards underneath the door. While writing the incident report, Resident Sentle stopped by the RA office to ask RAs
The corporation I chose to discuss is McDonald’s. McDonald’s is a publicly traded corporation that includes the following domestic companies, McDonald’s, Chipotle Mexican Grill, and Boston Market. This paper will discuss the following:
Your Honor. Ladies and Gentlemen of the jury. We are here to today to finally decide the outcome of this case between Mr.Brown and the fast food chain Mcdonald's. Mr.Brown was having a nice quiet day, when he decided to go to Mcdonald’s. During that time, Mr. Brown suffered physically and emotionally due to the irresponsibility of Mcdonald’s. As a result of the plastic molded chair’s inability to hold Mr. Brown, he injured his hand and suffered massive humiliation. The only reason that this happened was due to Mcdonald’s incompetence. The manufacturer who makes these chairs says that the average load that the chair could bear is 330 pounds. The company also states that the chairs have a standard deviation of 8 pounds. The standard deviation
In this case the plaintiff asserts that on April 28, 2014, she purchased a cup of coffee at the McDonald’s Restaurant in Ishpeming, Michigan. After she left the restaurant, while drinking the coffee she detected a sharp object in her mouth which became lodged in her throat and caused her to choke. The plaintiff claims that she pulled her car over to the side of the road and removed the object from her throat and mouth.
•In the recent times McDonalds has been blamed for the high fat content in its products and many consumers perceive that the food served at their outlets is not healthy. Also, the consumers are becoming increasingly health conscious these days. McDonalds
By examining McDonald’s 2012 commercial “Still in Awe” Angus Burger, we can see subliminal messaging through the sexual innuendo background music “Rock You like a Hurricane”, which is important because of the persuasion to the thirty year old professional white male. Throughout the beginning of the commercial there is important lyrics blocked out that many thirty year olds would most likely know without even thinking about it. As the commercial is coming to the end and is about to show the burger it states with the intense lyrics of “Here I am, Rock you like a hurricane, Here I am”.
McDonald’s originated in America around 1955 and became a global fast food chain. Many organizations in the fast food industry sell the same product as McDonalds. After reviewing the market structures, I have chosen to classify McDonald’s as a monopolistic competition. Monopolistic competition is a market structure that numerous of firms sell products that are similar but not identical. (Colander, D. C. (2013)) This market structure was chosen due to Burger King, Wendy’s, Sonic and many more are selling the same products burgers and fries just like McDonalds but, with their own unique style and taste. The monopolistic market
In 1954 Ray Kroc became the first franchisee appointed by Mac and Dick McDonald in San
On the other hand, buyers were more increasingly focusing on value and healthy foods. This condition can force McDonald and its competitor to offer product innovation that can attract the buyers and match with the buyers' requirements.
This organization began in 1940, by the brothers Richard and Maurice McDonald, in San Bernardino California. McDonald Corporation today dates its founding to the opening of a franchise restaurant by Ray Kroc, in Des Plaines Illinois, in 1955. The system of “speedy service System” in 1948 established the principals of modern fast – food restaurant.
The management situation here is that Burger King is attempting market development by expanding into Japan. However, they must first understand many aspects that influence the Japanese's market. The aspect of Japan economic environment that burger king must understand is that Japan was the third largest economy in the world, however, know they are struggling to escape deflation and that in turn is lowering living standards according to the New York times article title “Why Japan’s Economy Posted Surprisingly Strong Growth”. This aspect in the economy will force Japanese consumer to demand more value from the product for their yen for them to be satisfied. With declining living standards and deflation, Japanese consumers do not have much disposable money and therefore would make it difficult for Burger King to give them a good reason to go spend it at BK for a Whopper instead of a cheap local burger. The political aspect that they must be aware of is that burger king collaborating with Japan Tobacco which is partly owned by the ministry of finance allows them to also be a government partner. This is advantages in that the government will be supporting them financially. however, since they have relaxed restrictions on gasoline sales then it shows that Japan will likely be an even better market in a few more years. The cultural aspect that they must understand is that Japanese youth does like many American styles and are aware of the Hollywood sensations. This aspect of culture
• The phenomenal increase is facilitated by an annual 10% growth in the amount that Americans spent on meals away from home.