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MANAGEMENT
McDonald’s Case Study
Group member:
Panisales, Naomi R.
Dolatre, Leonabel
Dagot, kristel
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Table of Contents
Problems 1
Executive Summary 1
I- McDonalds Background 2
II- Overview 1
Time Context 2
III- Vision/Mission 2
Statement of the Problem 3
General Objectives
Specific Objectives
IV- Areas of Consideration (SWOT Analysis) 3
V- Alternative Course of action 4
VI- Strategy Formulation 4
VII- Competitors of McDonald’s 5
VIII- Recommendation 5
IX- Action Plan 5
X- Potential Problems 5
XI- Contingency Plans 6
xi
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Strategic Financial Management
9:00-10:30am
I- Problems
The market is quickly evolving and maturing, more competitors gaining
market share and started to change their menu to be healthier. McDonalds is
facing a lot of competitors in the market which demand for healthier and
exotic foods from burger king, Wendy’s. McDonalds must have turned around
strategy in order to gain back market share as well as solving this problem.
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largest fast food service and supplier in the world which serves 58 million
customers each day. McDonalds earn revenue by operating restaurant and
franchising.
IV- Overview
Vice Chairman and chief Executive Officer
V- Time Context
MCD was launch in 1940 when brothers Dick and Mac McDonalds opened a
restaurant in San, Bernardo, California.
o 1979 MCD introduced Happy Meals
o 1981 MCD opened store in Spain, Denmark, and the Philippines
o 1983 MCD entered its 32nd country
o 1984 Ray Kroc Passed away
o 1987 MCD introduced fresh salads
o 1990 MCD opened a store in Moscow, Russia
o 1992 MCD opened a store in Warsaw, Poland
o 1995 MCD’s news ad was “Have You Had Your Break Today?”
o 1996 www.mcdonalds.com website introduced
o 1997 MCD’s new ads was “Did Somebody Say McDonald’s?”
o 2001 the big in N’Tasty sandwich introduced
o 2003 MCD introduced Premium Salads and “It’s Plan to Win”
strategy
o 2006 MCD introduced snack wraps
VI- Vision
McDonald’s vision is to be the world’s best quick restaurant service
experience. 2
VII- Mission
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McDonald’s mission is to be customer’s favorite place and way to eat and
drink by serving best selling favorites such as world famous fries, and Big
Mac.
Organizations focus is mainly toward the external and internal costumers
such as customers and employees. The company is committed to innovate
and use the latest technology to earn more profit.
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X- Alternative Course of action
1. Do not change anything with the current operation standards of
McDonald’s since, it has proven to be effective through the years.
2. Maintain McDonald’s current operation in fast-food business but
diversify its products and services. The following SWOT analyses of
the technological innovations of McDonald’s show recommended
actions for the company.
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Time Horizon: There is an estimated time for a plan, but as long as the
company still expands in different places in this industry, the obligation of
McDonalds will always be there to measure plans and their operations.
Resource Allocation: The specific plans available in this activities are the
other resources of the company, the management can use their excess funds
in this activities to accomplish the McDonald’s desired.
Stronger competition
Weak Demand
5
-This will happen if the economy is bouncing back, and the stock remains
frisky. And the people are spending like crazy on jewelries, watches or
other luxuries.
-When fast-food consumers in China have shifted away from their original
curiousity about western fast food, and nowadays hey are puckier and
more focused on health. (they were likely not choose fast food as option
for a healthier food.
Contingency Plan 1.
Be prepared- The first major issue that will arise amongst the customers is what is
the potential risk to them from the allegations of employees tampering with their food
orders. With all altered food products, there is a possibility that the customer might
become physically ill.
Contingency Plan 2.
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Be available- When potential risks occur, the company must be appealing to the
customers. They should let their customers feel that they are being taking care of.
Caring about the well-being of the customers and offering help and guidance is a good
strategy for the company.
Contingency Plan 3.
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