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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.
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
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
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
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……
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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