IDS 496 McDonald's Case Presentation

1. McDonald’s Case Report Matt Carey Brett Martycz Paras Patel Eric Rabe Sam Schuller DIGBY
2. Mission To be our customers’ favorite place and way to eat and drink “ “
3. 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
4. Goals 1. Attract more customers 2. Convince customers to purchase more often 3. Increase brand loyalty 4. Become more profitable Goals
5. 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
6. Strengths Weaknesses Opportunities Threats • Size • Brand • Experience • Resources • Training – Hamburger University
7. Strengths Weaknesses Opportunities Threats • Unstable management • Inconsistent strategies • Poor positioning • Lack of focus • Lack of commitment Strengths Weaknesses Opportunities Threats
8. Strengths Weaknesses Opportunities Threats • Millennials dine out more often • Millennials prefer quick service • Millennials interested in ethnic food • Economy improving Strengths Weaknesses Opportunities Threats
9. Strengths Weaknesses Opportunities Threats Strengths Weaknesses Opportunities Threats
10. Position • Convoluted vs. Burger King • Low quality vs. Wendy’s • Unhealthy vs. Subway • Inferior service vs. All • No man’s land Position
11. 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
12. Conclusion Conclusion