Presentation of McDonalds. Case study

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Universite de la Mediterrane Aix-Marseille II Master 2 profesionelle Guliyev Ilkin Introduction The business began in 1940, with a restaurant opened by brothers Dick and Mac McDonald in San Bernardino, California. Their introduction of the "Speedy Service System" in 1948 established the principles of the modern fast-food restaurant. The original mascot of McDonald's was a man with a chef's hat on top of a hamburger shaped head whose name was "Speedy." Speedy was eventually replaced with Ronald McDonald in 1963       The present corporation dates its founding to the opening of a franchised restaurant by Ray Kroc in 1954. Kroc later purchased the McDonald brothers' equity in the company and led its worldwide expansion and the company became listed on

the public stock markets in 1965. Today McDonalds is one of the largest fast food chain restaurants with 31,000 local restaurants serving 58 million people in 118 countries in the world. This company holds quarter of the US market share. More than 75 % of McDonald’s restaurants that are 25,465 owned and operated by local persons. Main market of McDonald divided in following countries. France, Germany and the United Kingdom (U.K.), collectively, account for approximately 55% of Europe’s revenues; and Australia, China and Japan (a 50%-owned affiliate accounted for under the equity method), collectively, account for over 50% of APMEA’s revenues. These six markets along with the U.S. and Canada are referred to as “major markets” throughout this report

and comprise over 70% of total revenues.   Introduction: 6 years summary of McDonald                   Company’s Systemwide sales increased 3% in 2008. But 2007 and 2006 this number was 9 %. Company operated sales decreased 1 % in 2008. In generally if we look at curve there is not sharp increase in chart.  This situation implies that not only fast-food market but also McDonald’s market is going to be saturated. It is also related with high competition in fast food market. Next slides indicate the market share of McDonald in USA fast food market.                 Market share of McDonald is 24 percent in US market. Subway, Burger King, Starbuck capture 9%,8%,8% respectively.

  From one small hamburger to Global corporation (corporate strategy) How McDonalds became from small hamburger to Global corporation? What is the philosophy that McDonald runs.  This philosophy, established by a founder, Raymond Kroc, is often described as a three-legged stool. One of the legs is McDonald's, a second leg is franchisee partners and the third leg is supplier partners. The stool is only as strong as its three legs. Franchisee - As I mentioned before McDonalds restaurants operated by franchisees is 75%. McDonald SWOT analyze of McDonald Strong -S1.This strong brand recognition- creates significant opportunities for the company. MacDonald’s is able to generate more sales because of its brand recognition. Through aggressive market planning,

MacDonald’s has been able to recapture its youth market once again. -S2.Strong global precence -with its nearest domestic competitor being only half its size, McDonald’s is the market leader in both the domestic and international markets. MacDonald’s benefit from cost reduction through economies of scale because of its enormous size and its huge global presence allows it to diversify risk involved with the economic performance of specific countries. In international markets, MacDonald’s is well placed to expand and take advantage of long-term economic growth. -S3.Supplier- McDonald made horizontal alliances with their supplier which can contribute fast delivery system for chain. In term of this chain Mc Donald serve 58 mln customer per day.