Presentation of McDonalds. Case study — страница 2

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-S4.Strong  real estate profile - The company’s outlets are located in areas that are highly known for visibility, traffic volume and ease of access Weaknesses W1-Saturated food industry - as a result of this McDonalds has to deal with the prospect of looming market saturation, which could make it difficult to add new outlets for the market. W2-Perceived lower food standards due to fast food model.-People getting more aware lower standards of fast-food and trying to eat restaurants or preparing more healthiest foods. W3- People are generally tired of the same brands that they had been using over the years, so when they do not see the expected innovation they migrate to new brands. Moreover people see McDonalds every where and this over exposure might also be a reason

for abstinence. Moreover maintaining the standards of such a huge chain becomes feasible and when there is lack of quality service in one store it effects the whole brand.   Opportunities O1- International expansion- McDonald seeks to expand its business across the world. Average restaurants number are 500 for the year. O2- Economic downturn may force people to opt for less expensive "fast food", rather then restaurant quality. O3- Entry into the breakfast category- It is new product that McDonald offers for customers to earn profit. Threats T1-Nutritional issues. People are becoming more aware of the quality of the food they eat, and more people are looking for "organic", natural and vegetarian alternatives. T2- Increasing  competition There is also an increasing

competition driven by too many competitors, which reduces the company’s ability to increase revenue. Nevertheless, the swift of the company’s focus from a value menu to a more diverse one has recently limited the negative effect of the intense price competition that was traditionally taking place among the industry leaders.   T3. Fast food menu links with obesity- People deviates to buy fast foods because of obesity fear. Customers associate fast food with obesity they think fatten problem. All of those problems are the main obstacle of McDonalds to solve. McDonald administration bears in mind those problems and created strategy for 2010 to pass over those problems and solve this hindrances. Strategies and objectives of McDonalds for 2010   Strategies

Product penetration 1. Company will reimage McDonalds restaurants for 2010. As we mentioned before McDonalds trouble with perceived lower food standard and customer trends that is customer tired to see same brand. Considering this, certain strategy is successful for break this stereotips. 2. Menu innovation is priority for 2010 for the W1 saturated food industry, W3 customer trends, O3 entry to the breakfast category, T2 increased competition especially for the T3-obesity   Market development The Company continually reviews its restaurant ownership structures to optimize cash flow and returns and to enhance local relevance. The Company expects to refranchise 1,000 to 1,500 Company-operated restaurants between 2008 and 2010, primarily in its major markets, and by continuing

to utilize its developmental license strategy. In 2008, the Company refranchised about 675 restaurants, primarily in its major markets. McDonald will also aggressively continue to open new restaurants in China and McDonald will further build its breakfast business in APMEA by increasing the number of locations where it is served, utilizing innovative marketing support and launching new products.   Objectives According to meeting in 12 November 2009 investors of McDonalds defined company’s objectives for 2010 as following: ¢      Annual growth in sales 3-5 % ¢      Annual operating income growth 6-7 % ¢      Increase market share (open 1000 new restaurant)