Premium Essay

Opportunities and Threats of Mcdonald

In: Business and Management

Submitted By Kanokkarn
Words 271
Pages 2
McDonald’s in US

Opportunities 1. Changing customer habits and new customer groups It represents new needs that must be met by businesses. For instance, the company has been successful in introducing McCafe’, McExpress and McStop restaurants.

2. Globalization, expansion in other countries McDonalds has more than 31,000 restaurants serving in almost 120 countries. Of the 31,000 restaurants, at least 14,000 are in US. However, now, because the care of McDonalds about favors and cultures in each countries it enters, McDonalds can open more restaurant in new areas such as China or India – the countries which culture influences on people lifestyle deeply. They are very potential markets. The expansion of these areas is big opportunities For McDonalds. 3. Low cost menu is preferred by large number of customers With low cost menu, McDonalds can attract customers who just have low income. This segment makes up a fairly remarkable part, especially in the recent time, when global economic is struggling. It is not difficult for McDonalds to apply low cost menu on all restaurants.

Threats 1. Saturated fast food markets in the developed economies The fast food market in the developed countries is already overcrowded by so many fast food restaurants.

2. Trend towards healthy eating Due to government and organizations attempt to fight obesity, people are becoming more conscious of eating healthy food.

3. Currency fluctuation Since it receives a part of its income from foreign operations, the profits that are sent back to US have to be converted into dollars and may be affected by the exchange rates, especially when the dollar is appreciating against other…...

Similar Documents

Premium Essay

Mcdonalds

...McDonald’s Corporation April Hahnfeld Analyst July 18, 2010 Recommendation: HOLD Porter’s 5 Forces: • • • • • • • • • • • • • • Threat of Competition: High Threat of New Entrants: High Threat of Substitution: Low-Moderate Power of Suppliers: Low Power of Buyers: Low Pros: Ticker Exchange Industry Sector Classification Market Cap. 52 Week Price range Recent Price Current P/E Projected 2012 P/E 2009 EPS Projected 2012 EPS Dividend Yield Debt Rating Beta MCD NYSE Retailing - Foods Consumer Services Income & Capital Appreciation $71,153 M $53.88 - $71.84 $69.22 (7/9/2010) 15.59 14.27 $3.98 $ 3.33% AA0.61 Best profit margin in the industry Moderate Leverage Good dividend yield and earnings growth Attractive per-share earnings growth due to large share repurchases Significant internal exposure and shareholder focus Cons: Commodity cost risks Extremely competitive industry High food, energy, and labor cost concerns Product failures Brief Overview McDonald’s Corporation’s principal activity is to franchise and operate McDonald’s restaurants in the food service industry. These restaurants serve a varied, yet limited, valuepriced menu in more than 100 countries worldwide. All restaurants are operated either by the Company or by franchisees, including conventional franchisees under franchise arrangements, and foreign-affiliated markets and developmental licensees under license agreements. Independently-owned and operated distribution centers, approved by the......

Words: 6489 - Pages: 26

Premium Essay

Mcdonald

...assignment talks about the strategic management in context to McDonalds. Strategic management is one of the critical issues to be studied by a company in order to understand the causes and solution of the problems and hurdles in the way of the success of the business and its market growth. As we all know that it's a world of globalization and competition and therefore every company has to make certain plans and strategies in order to tackle the problems they face due to the competition in the local and global markets. Every company has to make effective strategies and plans in order to tackle the internal and the external problems faced by the company. Internal problems can be linked with any internal department or process such as HR or Pay role or machinery etc and the external challenges can be competition, changing technologies etc. Globalization on one hand gives benefits to the company to explore new markets and increase its customers in order to make more profits but it also poses different problems and challenges which the company has to tackle to continue its success in the new markets. Company has to design proper strategic plan to point out and tackle the problems curbing the success of the business. Either it's a local or a global market company always needs an efficient strategy to tackle the issues curbing its success in the market. This assignment will discuss the various strategic issues of concern for the McDonalds and plans it has designed to tackle these......

Words: 2968 - Pages: 12

Premium Essay

Mcdonalds

...because companies will have to change their operation and ingredients in order to satisfy their customers; nevertheless there is a good side, McDonalds will reach another market that wasn’t reached before. Internal Analysis Once of the major problems faced by McDonalds and can clearly be seen in APPENDIX 3: Internal Analysis McDonalds Value Chain, is the lack of recruiters and led to a dramatic falloff in the skills of it employees. As we can see on APPENDIX 4: Competitive Advantage Building Blocks, McDonalds is very efficient. They have a systemization and duplication of all their food prep processes in every restaurant. This means that they successfully and easily adapt their global restaurants to appeal to the cultural differences. That effective system and easiness to adapt is a strong competitive advantage. Although McDonald has a strong brand recognition and a huge customer base their return on investment on 2008 decrease in comparison with 2007. (See APPENDIX 5: Internal Analysis Selected McDonalds Financial Results). Regarding the stakeholder satisfaction (APPENDIX 6: Stakeholder Satisfaction), the customers satisfaction is increasing because McDonalds made changes on their menus and customers are embracing them in a positive way. Strategic Issues for McDonalds One of the strategic issues that I identified for McDonalds is the lack of market focus. The market is rapidly changing and they need to develop or arrange their products and processes accordingly.......

Words: 6263 - Pages: 26

Premium Essay

Mcdonalds

...and best acknowledged worldwide food services vendor. It has around more than 30,000 restaurants in 121 countries. It was originated by two brothers, Richard and Maurice McDonald in 1950 by opening and running a hamburger restaurant in San Bernardino, California which later inspired Mr. Ray Kroc to convert this restaurant into the McDonald’s Corporation in 1955. The first restaurant was opened in Des Plaines, Illinois. Some of the main characteristics are as follows: 1. SWOT Analysis. 2. PESTEL Analysis. 3. Market segmentation of McDonald’s 4. Competitors. 1. SWOT analysis combines the results of the external and internal appraisal into one framework for the purpose of assessing the company’s current and future strategies. It is an analysis of the company’s strengths and weaknesses, and the opportunities and threats offered by the environment. An absolute understanding of the company’s environment and its internal capacities is essential for a coherent consideration of future strategy development. The SWOT analysis of McDonald’s is as follows: Strengths: • High Brand Quality • Quick Delivery • Cleanliness standards maintained. • Flexibility • Customer Loyalty in Pakistan • Pioneer in fast food restaurants • Market leading position • Successful marketing and advertising Opportunities: • People’s need for change and variety • Ever-increasing demand for fast food in Pakistan • People’s appeal towards promotional offers • Use of technology and......

Words: 1953 - Pages: 8

Premium Essay

Threats and Opportunities for the Fast Food Industry

...Running Head: FAST FOOD Fast Food Industry Environmental Analysis Tara Pacheco Opportunity or Threat Demographic (O) Teenagers make more affectively and less rationally motivated decisions which has important implications for both public policy makers and managers. It implies that teenagers choose what they like (e.g. delicious fat) over what seems objectively beneficial (e.g. low-calorie food) • This is an opportunity because Fast Food is certainly known for it’s delicious flavours with little to no regard of health consequences, therefore has strong support from the teenaged population (Frank, 2012, p.272, para. 3). Socio-cultural (T) Obesity and high cholesterol are crucial health problems for the consumer of fast foods (Soba & Aydin, 2011, p. 161, para. 5). • This is a threat because as a culture we are turning towards more healthy choices and focusing on our health much more than before. Unfortunately the fast food industry is still struggling to keep up with this need. (O) A significant trend among consumers is the emergence of flexible eating patterns as there is increasingly a shift from three meals a day model to slot eating into busy schedules (Askew, 2013, para. 11). • Being that Fast Food restaurants are known for their convenience, accessibility and promise of fast and efficient service, consumers will be looking to these options to fit in their time starved daily lives.......

Words: 737 - Pages: 3

Premium Essay

Mcdonald

...McDonald How would you define the industry to be analysed? Is the industry global? Is the organisation mentioned Australian or overseas base? What are the key product and services segments in the industry that are mentioned in the article? Are you able to identify the stage of the industry life-cycle from the facts in article? McDonald’s Corporation operates in fast food industry with a large chain of restaurants in various countries. Unlike other restaurants, McDonald’s serves fast foods including hamburgers, soft drinks, desserts, milkshakes and French fries. McDonald’s was formed by two brothers: Mac and Dick McDonalds in California. The company experienced a fast growth, expanding to all the states in the United States before moving out to other countries. Today, McDonald’s is present in more than one hundred and twenty countries, serving the world market in fast foods. This article does not give much detail information about key product and service segments in the industry. Generally speaking, the key product in Fast food industry would be Hamburger, Fries and soft drink. And the services segment is general public. The stage of the industry Industry – Fast Food industry (Globally, based in USA) 1. Key product – 2. identifying the key service segment- Geographic – US, Europe, APMEA and Other countries (119 countries) Product segment- Hamburger, 3. What type of Organisation is McDonald McDonald is the world leading global food service......

Words: 8556 - Pages: 35

Premium Essay

Mcdonald

...chicken burger available in San Francisco is same as the one available in delhi? Many of these question have been answered in the book “Mcdonald’s: behind the golden arches” written by john love. But are these standards being carried out in India as well? The golden arches of Mcdonald’s are slowly becoming an integral part of the Indian landscapes. Everyone knows mcdonald’s is big, but very few know just how significant its impact on Indian business really is. The inside of Mcdonald’s remains a mystery. Mcdonald’s india is a joint venture of Mcdonald’s corporation with Amit Jatia and Vikram Bakshi. Amit jatia handles the operation in westerns region whereas Vikram Bakshi in the northern region. Mcdonald’s india is an employer of opportunities, providing quality employment and long term careers to the indian people. The average Mcdonald’s restaurants employees more than 100 people in 25 different position-from cashiers to restaurants managers. Mcdonald’s world class-training inputs to its employees can be seen in the present close to 2000 employees currently in Mumbai and Delhi. But the most overlooked facts of Mcdonald’s india are its contribution to the food industry. Six years prior to the opening of the first mc donald’s restaurant in india, mcdonald’s and its international supplier partners together with local indian companies to develop products that meet mcdonald’s rigorous quality standards. Part of this development involves the transfer of state of the art......

Words: 16471 - Pages: 66

Premium Essay

Mcdonalds

...Contents Abstract: 1 1. Company Profile: 1 2. McDonald’s Organizational Behaviour 1 2.1 Diversity 1 2.2 Equal Opportunity 1 2.3 Cultural Differences 2 3 Human Resource Management 2 4. Staffing 4 4.1 Implications of Staffing 4 4.2 Staffing Models 5 4.2.1 Staffing Quantity 5 4.2.2 Staffing Quality 6 4.2.3 Staffing System Components 6 4.2.4 Staffing Organizations 7 4.3 Organizational Effectiveness 7 5. Recruitment at McDonald’s: 8 5.1 Recruiting Suitable Applicants 9 5.2 Recruitment and Selection Process 9 Step 1: Planning 10 Step 2: Selection Process 11 Step 3: Interview 11 Step 4: Reference Check 12 Step 5: Selection Decision: 12 Step 6: Physical Examination 13 Step 7: Job Offer 13 Step 8: Contract of Employment 14 Step 9: Concluding the Selection Process 14 Step 10: Evaluation of Selection Programme 14 5.3 Train and Development 14 5.3.1 Orientation Meeting 14 5.3.2 Staff Training 15 6. Recruitment Strategies 16 6.1 In-House or Internal Recruitment 16 6.2 External Sources 17 7. Recruitment Services 18 8. Legal Requirements 20 Conclusion 21 References 22 Appendix A: Staffing Models 23 a. Staffing Quantity: Levels 23 b. Staffing Quality: Person/Job Match 23 c. Staffing Quality: Person/Organization Match 24 d. Staffing System Components 24 Appendix B: McDonalds Organizational Structure 25 Appendix C: Training 27 Training at McDonald’s 27 Methods of......

Words: 7931 - Pages: 32

Premium Essay

To What Extent Is Globalisation Deemed to Be More of an Opportunity or Threat to Businesses?

...through trade, investment, migration, capital flows and spread of technology. One reason why globalisation can be deemed to be more of an opportunity is that the one outcome of globalisation is that the business can become more cost efficient. With increased competition the business can react to the change in market conditions by becoming more competitive themselves through being more efficient. Increased efficiency can be a result of the business reducing sales and increasing output in order to achieve economies of scale. This will allow the business to produce more products allowing sales to increase if there is demand available for the products whilst reducing the average costs per products. Another way in which the business may become more efficient is that there is an increased level of innovation within the business. Large business can be differentiated from their competitors through the innovation displayed by their products and product range demonstrating the ideas of the business, also with innovation increasing the quality of the workforce will increase as they employees will try to perform to their best standards in order to become more competitive this will allow waste to decrease reducing the costs of the business which in turn will help improve profits. Another reason why globalisation is more of an opportunity than a threat is that there is ease of movement and advancement of technology. Due to this businesses having taking the initiative to more......

Words: 1009 - Pages: 5

Premium Essay

Mcdonald

...I. Case: McDonald’s “Fast-Food” Restaurant - 35% - discuss thoroughly. Mary Marino manages a McDonald’s restaurant. She has noticed that senior citizens have become not just regular patrons – but patrons who come for breakfast and stay on until 3:00 p.m. Many of these older customers were attracted initially by a monthly breakfast special for people aged 55 and older. The meal costs $.99 and refills of coffee are free. Every fourth Monday, 100 to 150 seniors jam Mary’s McDonald for the special offer. But now almost as many of them are coming every day – turning the fastfood restaurant into a meeting place. They sit for hours with a cup of coffee, chatting with friends. On most days, as many as 100 will stay from one to five hours. About a year ago, as a goodwill gesture, Mary brought in a team from the American Red Cross to check her regular customers’ blood pressure – free of charge. Mary’s employees have been very friendly to the seniors, calling them by their first names and visiting with them each day. In fact, Mary’s McDonald’s is a “happy place” – and her employees develop close relationships with the seniors. Some employees have even visited customers who have been hospitalized. “You know,” Mary says, “I really get attached to the customers. They’re like my family. I really care about these people.” They are all “friends” and being friendly with the customers is part of McDonald’s corporate philosophy. These older customers are an orderly group – and very......

Words: 1269 - Pages: 6

Premium Essay

Mcdonalds

...The Effect of Changing Tastes on McDonalds There are around 40 Million American are considered obese. We live in a world, where everything is almost instant. We can go to a drive up window and receive a fast, hot meal in less than 3 minutes. Everything is about fast. That is the Mc Donald's golden years. But sometimes, going too fast is not good for us. Customers now substitute healthy food for a quick cheap meal, a healthy diet, included with healthy habits, can change our life. These changes are great for our world, but it is hurting the Mc Donald's profits. Consumer tastes and preferences are changing and the [fast-food] industry need to be able to adapt to them. There is a huge opportunity to develop new products that appeal to the health conscious customer. To be more specific, they need to develop new products that appeal to young, health conscious women. Because consumer tastes are changing there is an opportunity to develop new healthier product lines that appeal to the new tastes of consumers that satisfied their tastes. Question3: What are Mc Donald's strengths and weakness and what conclusion do you draw about it future? Strengths: - Industry's leader: McDonalds has been the leader in the fast-food industry for decades, literally changing the way Americans ate. Like every other business, McDonald's is subject to opportunities and threats in their specific and general sectors. - McDonald's financial condition seems to be fair, but on the rise and could...

Words: 858 - Pages: 4

Premium Essay

Mcdonalds

...implementation. * Defining issues or problems by taking account the purpose of study. * Relevant background information. * What information is needed? * How the information will be used in decision making. Issues and problems at McDonalds 5 May 2015 in CNBC News McDonalds can’t shake its image, McDonald has a problem of fast food (all that’s good is bad) Alan Siegel CEO of brands says the fast food behemoth has been reactive instead of proactive Mc Donald admits that tackling issues it faces is not moving faster turnaround time. McDonald changed Big Mac to McLean. 2. Statement of research objections * Creating a research plan in solving issues and problems identified * Framework or blueprint for conducting market research project * Details and procedures necessary for obtaining the required information * Purpose to design a study that will test the hypotheses of interest * Answer to possible questions to the research * Provide needed information for decision making As mentioned above McDonald is tackling the issues. 3. Designing the research project Planning research design Defining problems and deciding the objectives Framework or blueprint for coding the marketing research project McDonald has a web link www.mcdonald .com (thick) 4. Collecting information or data * Collect Information to solve issues and problems * Involves canvassing, interviews, prospecting, networking, mail intercept The......

Words: 1558 - Pages: 7

Premium Essay

Mcdonalds

...McDonald’s (in 2013): How to Win Again? McDonald is (in 2013): How to Win Again? The fast food industry seems to be a relatively easy market to compete in with the demand of easy, fast food accommodations. However, the largest of the industry, McDonalds, has experienced some very impactful setbacks. As competition, rises in the quick-service industry McDonalds has had to make several adjustments to stay on the leading competitive edge. As society becomes more aware of health issues and economic opportunities, the restaurant industry has been severely impacted which, has forced menu adjustments with better food at competitive prices. Below we will address how McDonalds strategy through analysis, formulation, and implementation. Analysis: Focus on External and/or Internal Environments Maintaining a competitive advantage is the most important factor for a business to be successful. Although McDonalds has been in business since 1940 and has formulated the market for the fast food industry, it has come under heavy pressure of competitors. At first, McDonalds focused on burgers, drinks, and fires. However, new entries into the quick-service industry have affected them with more expanded and different menus. This has forced McDonalds to restructure their entire business strategy over time to stay on top of customer demands placing focus on the PESTEL model. External Environments There are several trends that affect McDonald’s ability to sustain a competitive...

Words: 1559 - Pages: 7

Premium Essay

Mcdonalds

...McDonalds: Operating in the Best Interests of Society or its own Profits? Marc Nettekoven Florida Atlantic University Professor Brenda Richey MAN 6937 December 7, 2011 Table of Contents Introduction 3 Company Changes 3 Competition 7 Consumer Protection & Regulation 8 Corporate Social Responsibility 10 Conclusion 11 Appendix 12 References 13 McDonalds: Operating in the Best Interests of Society or its own Profits? Today, there are numerous other fast food chains and similar alternatives for consumers to choose from beyond the option of McDonalds. Due to increasing levels of competition, rising concerns of food quality and increasing concern of obesity; operating in today’s globalized fast food society can deem to be a difficult task. McDonalds needs to broaden its narrow-minded focus on generating profits (expanding its location base) and adding more locations. The company needs to increase market share while building a good reputation by operating in, and contributing to, the best interest of society. When referring to society, it includes all stakeholders in the company, ranging from customers to suppliers. To realign its strategy and focus on ethicality and its responsibility as a corporation, McDonalds must involve all levels within the company, from top management to suppliers to franchise employees. Although operating in such a manner would require large levels of capital, the benefits to society as a whole would inevitably bring......

Words: 3107 - Pages: 13

Premium Essay

Mcdonalds'

...and Maurice McDonalds opened a small drive-in restaurant east of Pasadena, California. They served hotdogs and shakes. This led to the creation of a bigger drive-in which operated successfully and by 1948, the brothers had a made a fortune they never expected. The brothers realized that hamburgers comprised of 80 percent of their sales and closed their doors to re-evaluate their business model. The same year, in 1948 the model was about affordable dining for family who wanted to eat out. The “Speedy Service System” was also implemented that included an assembly line of sorts, a nine-item menu, and an all male staff. The operations were proven successful in 1952 ad the first franchise was sold to Neil Fox who opened a restaurant in Phoenix, Arizona and created the well-known golden arches of McDonalds. Fox had huge success with the store and the brothers were reluctant at first to begin a national franchise system, but soon realized that too many copycats were creeping up and they needed an advantage and a head start. Ray Croc joined the team as the exclusive franchise agent in the United States. Some of the problems and challenges facing the company is the increase in competition, poor management, bad marketing, and lack of response to the changes in the needs of franchises and customers. This resulted in the strategic issues that needed to be implemented to continue growing success for the company. Going global is critical in the expansion of McDonalds. Over the......

Words: 6520 - Pages: 27

Rechargeable USB Pet Collier Chien DEL clignotant lumineux de sécurité étanche | History of Economics - 2121 Words | 10m Bremsleitung Bremsrohr Stahl 4,75 mm + 10 Verschraubungen + 5 Verbinder