CASE STUDY

MCDONALD’S – Serving Fast Food

Around The World
Group No. 10
Ø Punit Agarwal
Ø Anand Nagori
Ø Honey Agarwal
Ø Sarfaraj Rahman
Ø Kailashnath Menon
Ø Rahul ghosh
 McDonald's Introduction
Ray Kroc opened the first McDonald’s restaurant in 1955.
Initially offered limited menu of high quality and moderately
priced food.
Maintained QSC&V ( Quality, Service, Cleanliness, Value )
In 1967 first restaurant outside US in Canada
By 1983, >6000 restaurants in the US
By 1995, >18000 restaurants in 89 countries
By 2001, >29000 restaurant in 121 countries
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International Presence
Till 1995 80 % International Operation in Canada, Japan,
Germany, Australia, France and England (Big Six Countries)
Only 62 McDonald’s restaurants in China (Population 1.2
billion).
14 Years of planning for opening restaurant in Moscow
In 1995 first McDonald restaurant in Jerusalem
Every day >33 million people eat at McDonald’s around the
world with 18 million in US
McDonald’s vision is to be the major player in food service
around the world.
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Marketing and Business strategy
Marketing strategy was same in every country
Be first in market
Establish the brand as quickly as possible
Advertising heavily
Advertisements based on local themes and reflect different
environment.
Open restaurant with a bang to grab maximum attention
from people
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Cont…..
Local taste kept in mind
Burger and Fries were accepted by people with diverse dining
habit
In Germany, McDonald’s serves chicken, sausage and salads, in
Uruguay hamburger with poached egg and In Norway grilled
salmon sandwich
McDonald introduced the Japanese to French fries
In Canada the menu includes cheese, vegetables, pepperoni and
deluxe pizza
Some far eastern McDonald’s restaurants offer oriental noodles.
McDonald corporation operates about 21 percent of restaurant.
Price Variation for the Big Mac
Quality Control
Quality Assurance Centers in US, Europe, Asia
Ensures consistent products by controlling every stage of
distribution.
Stays in close contact with customers
Products, handling, cooking procedures and kitchen layout
are standardized and strictly monitored.
First French franchise revoked as it failed to meet standards
for fast service and cleanliness
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Training and Skill Development
Owners and Managers trained at Hamburger University
and other places
Learned how to run McDonald’s restaurant and maintain
OSC&V
in US, Germany, England, Japan and Australia
22 Languages used for training for complete customer
satisfaction
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Competitors
Burger King, Wendy’s, KFC and Pizza Hut
Fast food also sold in reheatable containers in
supermarkets, convenience stores and gas stations
Aggressive strategy of competitors such as Burger King
for Asia
Customer satisfaction level below Wendy’s and Burger
King
In China KFC more popular
McDonalds expanded too fast but competitors have
tastier meals
SWOT Analysis
Strengths
 QSCV Principle
 Customer satisfaction and Quality Assurance
 Training and Skill imparted
 Standardization
 Competitive Strategy (Aggressive)
Weaknesses
 Current surveys reveal more focus on expansion than quality
 Limited Menus
 Contd……
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Contd…….
Opportunities
In 1995, 99% population were not McDonald’s customers
Increase in demand for fast food worldwide
Innovation
Threats
Competitors rising quickly
Customer satisfaction level below competitors
Different variants of fast food coming
Junk food is considered bad for health.
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THANK YOU