Marketing Research of McDonald's -
April 7th, 2011
McDonald's Corporation (NYSE: MCD) is the world's largest chain of hamburger fast food restaurants, serving more than 58 million customers daily. In addition to its signature restaurant chain, McDonald’s Corporation held a minority interest in Pret A Manger until 2008, was a major investor in the Chipotle Mexican Grill until 2006, and owned the restaurant chain Boston Market until 2007.
A McDonald's restaurant is operated by either a franchisee, an affiliate, or the corporation itself. The corporation's revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonald's revenues grew 27% over the three years ending in 2007 to $22.8 billion, and 9% growth in operating income to $3.9 billion.
McDonald's primarily sells hamburgers, cheeseburgers, chicken products, french fries, breakfast items, soft drinks, shakes, and desserts. In response to obesity trends in Western nations and in the face of criticism over the healthiness of its products, the company has modified its menu to include alternatives considered healthier such as salads, wraps and fruit.
NUMBER OF STORES
McDonald's Corporation is the world's largest chain of fast food restaurants, serving nearly 47 million customers daily through more than 31,000 restaurants in 119 countries worldwide.
Of the 31377 McDonald’s restaurants around the world, 20505 (65%) are operated by franchisees, 3966 (13%) are operated by affiliates, and 6906 (22%) are company-operated.
NUMBER OF EMPLOYEES
1.5 million worldwide –
(398,000 company staff,1.1
million franchisee staff)
McDonald’s success lies in its utilization of technology, routinization of work, and general deskilling of labor
McDonald’s bases its worker control and efficiency on one principle: worker stupidity.
McDonald’s implements the Frederick Taylor method of installing managers and a system of predetermined activities called task management.
McDonald’s goal is to maximize its profits including all devious means
McDonald's maintains its competitive advantage by constantly creating new items to add onto its menu
McDonald's also realized the changing world we live in and the need for healthier food
Strong brand name, image and reputation.
Large market share.
Strong global presence.
Specialized training for managers known as the Hamburger University.
McDonalds Plan to Win focuses on people, products, place, price and promotion.
Strong financial performance and position.
Introduction of new products.
Customer focus (centric).
Strong performance in the global marketplace.
Unhealthy food image.
High Staff Turnover including Top management.
Customer losses due to fierce competition.
Legal actions related to health issues; use of trans fat & beef oil.
Uses HCFC-22 to make polystyrene that is contributing to ozone depletion.
Ignoring breakfast from the menu.
Growing health trends among consumers.
Globalization, expansion in other countries (especially in China & India).
Diversification and acquisition of other quick service restaurants.
Growth of the fast-food industry.
Low cost menu that will
attract the customers.
Freebies and discounts.
Health professionals and consumer activists accuse McDonald's of contributing to the country’s health issue of high cholesterol, heart attacks, diabetes, and obesity.
The relationship between corporate level McDonald's and its franchise dealers.
McDonald’s competitors threatened market share of the company both internationally and domestically.
In general terms the government policies do not affect the company much nor do the
changes in the government influence the organization of the company.
McDonald’s enjoys an added advantage in countries
where consumer protection laws are not very strong
The international operations of McDonald’s are highly influenced by the individual state policies enforced by each government
Very high target market.
Low cost and more incomes.
The rate at which the economy of that particular state grows determines the purchasing power of the consumers in that country.
As McDonalds offer Hilal food majorly so there are no religious, ethical or cultural issues associated with the operations
For the rising importance of corporate social responsibility recently McDonald's has announced that it is giving further backing to Rainforest Alliance certification by offering a cup of tea with a conscience in all of its 1,200 restaurants in the UK.
Food made with the help of machines is considered more hygienic.
However, the continuous developments in the technology sector needs McDonalds to be updated regularly.
It is natural that technology has helped McDonald and especially its employees as they have to serve quick services.
Computers and smart cashiers are used by the employees so they would not get confused and they are provided with customized database management system.
Last edited by netrashetty; April 7th, 2011 at 05:06 PM..