Presented By: Rafayel Ahmed Farzana Nazneen Waliul Islam Mit-131037 Mit-131016 Mit-131018

Presented By:

Rafayel Ahmed Farzana Nazneen Waliul Islam

MIT-131037 MIT-131016 MIT-131018

Business Analysis       

History Some Interesting Facts Mission, Vision Competitors Financial Facts Competitive advantage Key success Factors company name

History Started in 15th May,1940 as a barbeque drive-in restaurant by two brothers, Dick and Mac McDonald, in San Bernardino, California

Raymond Kroc, founder and builder of McDonald's Corporation was a milkshake machine salesman prior to meeting the two brothers in 1954

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History  Mr. Ray Kroc took over the rights from McDonald brothers and founded The McDonalds Corporation on 15th April,1955 in Des Plaines, Illinois.  By 1958, McDonald’s had sold its 100 millionth hamburger.

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Some Interesting Facts About McDonalds  Currently McDonald's serves around 69 million people worldwide everyday.

 It currently employs around 4,00,000 employees worldwide.

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Some Interesting Facts About McDonalds

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Some Interesting Facts About McDonalds

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McDonalds-Mission Statement

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Main Rivals

There are many competitors are eating their shares.

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McDonald's – Competitors  The main things they have to compete with each other are 1.Minimizing cost 2.Customer satisfaction 3.Healthy ingredients 4.Convenient locations company name

Financial Analysis Revenue

Net income 30,000.00 6,000.00 25,000.00 5,000.00 20,000.00 4,000.00 15,000.00 3,000.00

10,000.00 2,000.00 5,000.00 1,000.00 2009-12 2010-12 2011-12 2012-12 2013-12

2009-12 2010-12 2011-12 2012-12 2013-12

TTM

TTM

Revenue is presently at 28,106 million in 2013 compares to 22,745 million in 2009. Net income is at 5,586 million compares to 4,551 in 2009.

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Financial Analysis Profitability

2009-12

2010-12

2011-12

2012-12

2013-12

TTM

Tax Rate %

29.84

29.34

31.32

32.36

31.92

31.92

Net Margin %

20.01

20.55

20.38

19.82

19.87

19.87

0.78

0.77

0.83

0.81

0.78

0.78

15.51

15.9

16.94

15.98

15.51

15.51

Financial Leverage (Average)

2.15

2.19

2.29

2.31

2.29

2.34

Return on Equity %

33.2

34.51

37.92

36.82

35.69

35.69

Return on Invested Capital %

17.5

18.24

19.48

18.33

17.71

17.71

14.71

16.53

17.26

16.64

16.72

16.72

Asset Turnover (Average) Return on Assets %

Interest Coverage

Return on Equity is at 35.69% which is a 2.5% increase from 2009 Return on invested capital is at the same level as it was in 2009

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McDonalds-Profitability with the Retailing Industry

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McDonalds In Competitive advantage(Cost) Rank 1

Worldwide Sales ($M) 89,941

Domestic Units 14,098

International Unit Total 19,412 33,510

3 5

21,300 14,975

4,780 7,500

12,621 5,012

17,401 12,512

Pizza Hut (Yum Brands) Wendy’s

6 18

12,626 6,004

7,600 6,772

6,147 3,020

13,747 9,792

Panera Bread

33

3,421

1,538

3

1,541

Dunkin’ Donuts (Dunkin Brands) 18

6,004

6,792

3,020

9,792

Company McDonald’s KFC (Yum Brands) Burger King

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McDonald's – Competitive advantage(Differentiate)  Mc Café

Attract new market segments Variety of drinks Satisfy hunger

Modern, relaxing mood Free Wifi.

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McDonald's–Key Success Factor Customer Range A key factor in the success of McDonald’s is its ability to appeal to a wide range of customers. For example, in June 1976 McDonald’s introduced a breakfast menu to capture more customers Nutrition On the organization’s website, McDonald’s states that part of its success is due to its commitment to the wellbeing of customers. In 2004, McDonald’s established a global advisory council to provide expert guidance on nutrition and well-being.

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McDonald's–Key Success Factor Availability Restaurant locations are so prevalent in suburban towns and cities that you are never more then a few minutes away by car or by foot

Affordability

McDonald’s has weathered economic downturns because of the affordability of its menu

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Environmental Analysis  Porters Five Forces analysis  Micro Environmental analysis  Internal Environment  Strength  weakness

 External Environment  Opportunities  Theatres

 Macro Environment Analysis  PESTEL

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McDonald's –Five Forces

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McDonald's –Five Forces Threat of Competition    

HIGH

Very similar products in the Fast Food industry High Competitors Advertising Capabilities Location of outlets are close EX: KFC, Chick-fil-A, Burger King,Sturbacks.

Threat of New Entrance Moderate  Easy to enter, low setup cost  Lack of ability to compete with MCD( cost efficiency, customer awareness)

Threat of Substitutes Moderate  Substitutable food  Irreplaceable image

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McDonald's –Five Forces Power of Suppliers LOW  Worlds largest restaurant chain in sales  High bargaining power over its suppliers(volume)  Most of them owe MCD for their own existence  Low power of suppliers—Lower the cost of raw materials and High competitive price Power of Buyers LOW  Less chances of switching, high brand image through differentiation and uniqueness  Attractive price  Buyer don’t have bargaining power(Low volume)

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McDonald's –SWOT Analysis Internal Analysis Strength  Brand name  Adapts to local markets  Socially responsible with charities  Safety and quality food Weakness  Management's failure to see trends that do not fit  High employee turnovers  Price competition  Controlling quality with franchised operations

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McDonald's –SWOT Analysis External Analysis Opportunities  Upscale restaurant  Organic foods for the health conscious  Going green  Expanding to new parts of the globe Threats  Sued for unhealthy food many times  Health concerns  Competitors  Contamination risks  Geopolitical issues affect

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McDonald's –External Factor Evaluation matrix( EFE )

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McDonald's –Macro environments PESTEL Analysis Political (Mild Threat (-1)) • Government regulations over wage • Government regulation on labeling/packaging Economic (Moderate Opportunity (+2)) • Inflation, Recession • Exchange rate • U.S. housing market crash/EU financial crisis Social (Moderate Threat (-2)) • Employment opportunities • Health conscious trends • Norms , cultural practice

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McDonald's –Macro environments PESTEL Analysis Technological (Significant Opportunity (+5)) • Improvement by advanced technology, Social media outlets for consumer • Increasing comfort levels with technology Environmental (Opportunity (+3)) • Forced not to harm the environment • Lobbying for use of environmentally friendly material Legal (Major Threat (-4)) • Advertisement regulations • Health lawsuits

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Strategically Analysis     

Generic Building Block Corporate Level Strategies Business Level Strategies Functional Level Strategies Criticism and Recommendation

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McDonalds-The Generic Building Blocks of Competitive Advantage

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Corporate Level Strategies (Globalization) McDonald’s currently operates over 32000 stores worldwide in 120 countries.

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Corporate Level Strategies (Branding)

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Corporate Level Strategies (Branding)

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Business Level Strategies (Target Market)

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Business Level Strategies (Marketing) App ki jamaneme Baap ki Jamane ki Daam

$3.05

$3.50 company name

Functional Level Strategies

Efficiency, Innovation and Renovation Efficiency

New Look

Outdoor Kisds Zone

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Functional Level Strategies Norms and Cultural Practice

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Functional Level Strategies Worker, Employees and Cook

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Criticism and Recommendation -Ecological damage -Selling unhealthy food, McDonalds=junk food? -Contributing to suffering and exploitation of livestock. -Speculating Business Practice -Low Risk Mitigation strategies -New Innovative menus -Bigger ranged sectors -More diversification and Acquisition -Better service and employment (operational improvement) -Better Corporate level/management level involvement company name -More focus on subcontinent.

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