Before MC Donald

What opportunities and threats did McDonald’s face? How did it overcome them?
What
alternatives could it have chosen?
Opportunities
- Growth of franchisees - was streed by the motto QSC&V
- Franchisees were allowed to make experiments on their menu - adjusted more to the local
market resulting in popularity
- The taste for fast food, American style is growing more rapidly abroad
- McDonald's has maintained an extensive advertising campaign for decades. For

popularity they use media (television, radio, and newspaper), the company makes
significant use of billboards and signage, sponsors sporting events from ranging from
Little League to the Olympic Games
Threats
- Addition of new products may affect the existing operations
- Emerging of semi-cooked fast food packs available at supermarket and convenience

stores
- People are more conscious towards their health and started to avoid junk food
How did it overcome them?
- By decreasing health problem.
- By delivering superior value to customers then competitors.
What alternatives could it have chosen:
McDonald’s can use following alternative to increase his value:

- McDonald’s should stop the product where it's not doing well and take corrective action and
check the quality.
- McDonald’s should open new restaurant in that area where fast food has important part in the
culture of that area.
- McDonald’s has to choose that management which can easily understand the demand of all
customers.
- McDonald’s should decrease its prices in that country where per capita is very low.
- McDonald’s should make his manuals which include traditional dishes of that area.
Before Mc Donald’s entered the European market, few people believed that fast food could
be successful in Europe, Why do you think Mc Donald’s succeeded? What strategies did it
follow? How did these differ from its strategies in Asia?
McDonald's Corporation is the world's largest chain of fast food restaurants It was opened by
Ray croc in 1955 with the motto to provide high quality, better service ,clean environment and
high value to its customers. It expanded into every state in the nation. By 1983 it had over 6000
restaurant in United States.
In 1967 it had started its chain affiliations from Canada to Europe and Japan and many more
countries. By now it serves more than 40 countries with more than 18 million customers daily.
The reason for the success of MC Donald’s in Europe is
 Fast ,family oriented service, its motto to provide high quality, better service ,clean
environment and high value to its customers is the major reason for the company’s
success
 Mc Donald was one of the first restaurants in Europe to welcome families with children.
 Children’s were welcomed more warmly. Further they were entertained with crayons and
paper.
 Mc Donald’s play land or even Ronal McDonald which can speak twenty languages was
able to attract more children’s towards it.
 Mc Donald’s standardized products, handling and cooking procedure and kitchen layout
and its control techniques are also the factor for Mc Donald’s success.
Strategies of Mc Donald’s
 Establishing of play land to grab the attention of children so that they visit the
restaurant again and again
 Providing family oriented services.
 Establishing its brand name by advertising very heavily.
 Advertising campaigns based on local themes that reflect the different environment.
 Adapting to the local culture and facilitating variety of menu according to the dining
habits.
The strategies that are adopted in Europe differ from Asia in the way the cultures that are
followed in different countries. In Asia Mc Donald menu is according to Asian culture and
traditional dishes and in Europe according to their culture. For e.g. Mc Donald’s don’t sell
regular hamburgers in India. They sell only chicken burgers. They had to adapt to the Hindu
culture.
What is Mc Donald’s basic philosophy? How does it enforce this philosophy and adapt to
different environments?
Mc Donald’s basic philosophy is “QSC & V”, providing quality food, fast services ,clean
environment and greater value to its customers.
Quality: Mc Donald’s always concentrated on quality of food. They believe that better quality
will increase customer satisfaction which results in higher profit.
Services: the Mc Donald’s provided fast services and better services to its customers. Like
welcoming families with children, entertaining children with crayons and paper etc.
Cleanliness environment; they sell product in healthy environment. Further they have
participated d in different environmental projects like McDonald's is making continuous effort to
reduce solid waste by designing more efficient packaging and by promoting the use of recycled-
content materials.
Value to its customers: Mc Donald facilitates variety of dining habits. In Asian country like India
Mc Donald’s don’t sell regular hamburgers in India. They sell only chicken burgers. They had to
adapt to the Hindu culture.

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What opportunities and threats did McDonald’s face? How did it overcome them?

- Growth of franchisees - was streed by the motto QSC&V

- McDonald's has maintained an extensive advertising campaign for decades. For

- Addition of new products may affect the existing operations

- Emerging of semi-cooked fast food packs available at supermarket and convenience

How did it overcome them?

- By decreasing health problem.

- By delivering superior value to customers then competitors.

What alternatives could it have chosen:

McDonald’s can use following alternative to increase his value:

The reason for the success of MC Donald’s in Europe is

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