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IDS 496 McDonald's Case Presentation
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ericmrabe
December 01, 2019
Education
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IDS 496 McDonald's Case Presentation
ericmrabe
December 01, 2019
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Transcript
McDonald’s Case Report Matt Carey Brett Martycz Paras Patel Eric
Rabe Sam Schuller DIGBY
Mission To be our customers’ favorite place and way to
eat and drink “ “
Strategy 1. Cost leader 2. Rapid domestic expansion 3. Rapid
international expansion 4. Tailored menu 5. Diversification 6. Slowed expansion – focus on existing stores 7. Menu overhaul – health 8. Operational efficiency 9. Differentiation – customization Strategy
Goals 1. Attract more customers 2. Convince customers to purchase
more often 3. Increase brand loyalty 4. Become more profitable Goals
Performance • 2x Yum! Brands • Half of U.S. hamburger
market • 2012 Return: -10.75 • 2012 Sales Growth: -1.8% • 2014 Net Income: -15% • Fast-casual +10.5%, Trad. fast food +6.1% • Premium burger 10x trad. fast food • 19-21 yo visits: McD -12.9%, Fast-casual +2.3% (2011-2014) Performance
Strengths Weaknesses Opportunities Threats • Size • Brand • Experience
• Resources • Training – Hamburger University
Strengths Weaknesses Opportunities Threats • Unstable management • Inconsistent strategies
• Poor positioning • Lack of focus • Lack of commitment Strengths Weaknesses Opportunities Threats
Strengths Weaknesses Opportunities Threats • Millennials dine out more often
• Millennials prefer quick service • Millennials interested in ethnic food • Economy improving Strengths Weaknesses Opportunities Threats
Strengths Weaknesses Opportunities Threats Strengths Weaknesses Opportunities Threats
Position • Convoluted vs. Burger King • Low quality vs.
Wendy’s • Unhealthy vs. Subway • Inferior service vs. All • No man’s land Position
Recommendations • Simplify menu • Not a health food store
• Decrease dine-in investment • Increase drive-through investment • Automation • Deemphasize Happy Meal • International limited-time offers “I’m sorry, Dave. I’m afraid I can’t do that.” Recommendations
Conclusion Conclusion