mcd's case study

-food wars, faced a crossroads in the early 1990s. Domestically, sales and revenues were flattening as competitors like Burger King, Wendy¶s, and Taco Bell encountered new challenges Sonic and Rally¶s competed using a back-to-basics approach of quickly serving up burgers, just burgers, for timeless consumers. McDonald¶s was gathering flak from environmentalists who decried all the litter and solid waste its restaurants generated each day To counter some of the criticism, McDonald¶s partnered with with the Environmental Defense Fund (EDF) to explore new ways to make its operations more friendly to the environment. Together, EDF and McDonald¶s considered its impact on a wide range of stakeholders²customers, suppliers, franchisees, and the environment. The company gave its franchisees much autonomy in finding ways to eliminate environmental blight FACTS McDonald¶s roots go back to the early 1940s when two brothers opened a burger restaurant that relied on standardized preparation to maintain quality the Speed Service System. So impressed was Ray Kroc with the brothers¶ approach that he became their national franchise agent, relying on the company¶s proven operating system to maintain quality and consistency. Over the next few decades, McDonald¶s used controlled experimentation to maintain the McDonald¶s experience, all the while expanding the menu to appeal to a broader range of consumers. For example, in June 1976, McDonald¶s introduced a breakfast menu as a way to more fully utilize the physical plant. In 1980, the company rolled out Chicken McNuggets. ««Continued d content. Solicitation of suppliers to produce corrugated boxes with with more recycled content, which had the twin effect of reducing solid waste and building a market for  recycled products. Abandonment of polystyrene clamshell containers to hold sandwiches in favor of new paper-based wraps that combined tissue, polyethylene, and paper to keep food warm and prevent leakage. its willingness to innovate, even while striving to achieve consistency in the operation of  its many outlets. For example, its breakfast menu, salads, Chicken McNuggets, and the McLean Deluxe sandwich were all examples of how the company tried to appeal to a wider range of consumers. The company has also made convenience its watchword, not only through how fast it serves customers, but also in the location of its outlets. Freestanding restaurants are positioned so that you are never more than a few minutes away by foot in the city or by car in the suburbs. Plus McDonald¶s is tucking restaurants into schools, stores, and more. opportunities. The market is well saturated, and it would difficult to achieve double-digit growth. Other concerns are a newfound emphasis on healthier eating. Most of 

McDonald¶s most popular fare probably in some small way contributes to the increasing incidence of cancer, heart disease, and diabetes among the population. McDonald¶s are everywhere, the dining experience is never special. And as Baby Boomers age and become more affluent, it is likely that they will leave behind their fast-food ways, if only to step up to moderately priced restaurants like Olive Garden, Bennigans, and Pizzeria Uno. These chains have the added advantage of serving higher-margin alcoholic drinks. McDonald¶s, meanwhile, has to continually battle Burger King and Wendy¶s, which leads to an erosion of margins for everyone. Even alliances with toy manufacturers, while popular with consumers, do little for the bottom line because the cost to run these promotions can be quite expensive. partnering with the Environmental Defense Fund was a masterstroke. It brought both respectability and valued expertise to its environmental efforts. It also provided a primetime venue for EDF to make a difference. Any successes, even if only incremental improvements, would have major ramifications because of the sheer size of  McDonald¶s operations. McDonald¶s should continue its partnership with EDF. With ecology a growing concern among consumers, it makes sense to be a good corporate citizen and get all the public relations accolades that go along with such an alliance. It also pays off in the bottom line by reducing shipping costs for supplies as well as garbage removal fees. McDonald¶s would do well to stay in the vanguard of  corporations who have become environmentally aware. If it tries to shirk its responsibilities, it can foresee a public relations nightmare in the making. But if it does manage to come up with some breakthroughs through its collaboration with EDF, it can score a tremendous amount of goodwill with the public, which may even provide a halo effect to mitigate any other PR troubles. ««.Continued public relations benefit in being seen as an environmental leader, and the collaboration with EDF goes a long way in making that happen. Still McDonald¶s has had a lot of  success in giving its franchises some latitude in developing new solutions. The line in the sand in determining how far McDonald¶s should go with its environmental efforts is determined by the cost of the initiative relative to the hard-dollar benefits and harder-toquantify public relations buzz it gets from being in the forefront on environmental issues success will be maintaining its core strengths²an unwavering focus on quality and consistency²while carefully experimenting with new options. These innovative initiatives could include launching higher-end restaurants under new brands that wouldn¶t be saddled with McDonald¶s fast-food image. The company could also look into expanding more aggressively abroad where the prospects for significant growth are greater. The company¶s environment efforts, while important, should not overshadow its marketing initiatives, which are what the company is all about. E THE REAL ISSUES IN OPERATIONS STRATEGY IN MAC? CLASSIFY THEM. The key thing that McDonald¶s operations strategy has to support is experimentation. Now somewhat long in the tooth, McDonald¶s needs a breakthrough that will provide new avenues of growth. It has a long history of such experimentation, which has resulted in some new profit centers like Chicken McNuggets and the breakfast menu. Some later turn out to be duds like the McLean Deluxe, but inevitably

experimentation in limited outlets offers McDonald¶s a way to retain its key strengths² 11. 2)ASSUME YOU ARE THE MANAGER OF MAC AND GIVE YOUR VIEWS / SOLUTIONS TO THE ISSUES IN MAC o Create awareness within store team members of what constitutes the true fast-food experience o Install a computer-based customer  feedback kiosk in every restaurant o Install a feedback program that makes it possible to quantify team performance o Set up the system to screen out phony feedback o Set up a similar feedback system for drive-thru customers o Encourage feedback with guaranteed anonymity and surprise rewards o Link each restaurant's feedback system to a central database TEM HAVE BEEN MOST IMPORTANT IN BUILDING ITS RECORD OF SUCCESS AND GROWTH IN THE INDUSTRY? Their uniform operating system, taste and service in every McDonald¶s outlets at every time. McDonald¶s was very particular in quality of  the raw materials they used and very concerned with their suppliers. Their concern over the franchises and make them to feel as one of their partner and to work towards prospective. THE 1990S? McDonald¶s, the long-time leader in the fast-food wars, faced a crossroads in the early 1990s. Domestically, sales and revenues were flattening as competitors like on its domain. In addition to its traditional rivals²Burger King, Wendy¶s, and Taco Bell the firm encountered new challenges. Sonic and Rally¶s competed using a back-to- basics approach of quickly serving up burgers, just burgers, for time-less consumers. On the higher end, Olive Garden and Chili¶s had become potent competitors in the quick service field, taking dollars away from McDonald¶s, which was firmly entrenched in the fast- food arena and hadn¶t done anything with its dinner  menus to accommodate families looking for a more upscale dining experience. changes in the US? Usage of eco-friendly packaging, ensuring efficient solid waste disposal Necessary changes in ambience space as per requirement Allocation of budget for research and development (R & D ) Elasticity in operational time Streamlining of menu McDonalds have to keep innovating the product Developing outstanding supplier  relationship Improving the equipment Training and monitoring the franchisees Use advance erp and data centers

The McDonald’s that we know and love, identified by those iconic Golden Arches, had humble  beginnings. The restaurant first opened as McDonald’s Bar -B-Q Restaurant in San Bernardino, Calif., in 1940, serving a simple menu of hamburgers, cheeseburgers, fries, and shakes. Over the next several years, founders Dick and Mac McDonald renovated the restaurant and highlighted their $0.15 hamburger.

In 1954, Ray Croc visited the restaurant and talked the McDonald brothers into creating a national burger chain. The first franchised McDonald’s location op ened in Des Plaines, Ill., in 1955 incorporating the very first Golden Arches, designed by architect Stanley Meston. Today, McDonald’s is the largest hamburger fast-food chain in the world, and serves more than 58 million customers daily. While McDonald’s continues to have a set staple menu throughout most

of their locations, the chain is continuously trying to invent both local, national and international menu items to bolster its offerings. For instance, specialty menu items such as the Big Mac or Chicken McNuggets have been huge commercial successes across the board. But other items have been launched, and have subsequently vanished just as quickly. Items such as the Bacon Bacon McBacon, the Chicken Parmesan Sandwich, and the Home-Fried Chicken never quite caught on with American consumers. In local markets, McDonald’s has even rolled out items like the McLobster on the East Coast, poutine in Canada, and the McCrab in parts of Maryland, Delaware, and Virginia In order to assemble our list of the top 10 McDonald’s flops, we took into account the cost of the (unsuccessful) advertising campaign, the lack of commercial success of an item, as well as the duration of which the particular product or promotion existed. So the least successful of the lot were ones that not only came and went quickly, but wasted plenty of the company’s money as well. McDonald’s continues to roll out new products all the time; some will make it big, others will vanish off the menu without a trace.

 NEW YORK (AP) — McDonald's Corp., the fast food chain that brought the hamburger to the world, is opening what may be its first vegetarian-only restaurants. The world's biggest hamburger chain said Tuesday that the locations in India will serve onl y vegetarian food because of customer preferences in the region. The company could not immediately say when the restaurants would open or how many there would be. A 2006 poll found that about 40 percent of Indians do not eat meat, and McDonald's is eager to tap that 500-million-strong market. Already, McDonald's said its restaurants in India do not sell beef or pork, and that the kitchens are separated into sections for cooking vegetarian and non-vegetarian food. They have menu items that cater to local tastes, such as the Maharaja Mac, which is a Big Mac made with chicken patties instead of beef. It also offers a McAloo Tikki, a burger made with a spicy breaded potato patty, red onions, tomatoes and a "special vegetable sauce." The chain offers such localized options in countries around the world. The opening of the vegetarian-only restaurants "further speaks to McDonald's efforts to cater to local tastes," the Oak Brook, Ill.-based company said. Without providing details, it said the restaurants will be in areas that are popular pilgrimage destinations. he purpose of this study is to understand the job satisfaction on customer satisfaction in McDonald’s restaurants and the factors that affect the employee’s level of j ob satisfaction in McDonald’s restaurants Navi Mumbai. Employee satisfaction is a prerequisite for the customer satisfaction. Enhanced employee

satisfaction leads to higher level of employee retention. There is a definite link between employee attitudes and customer satisfaction. If employees are unhapp y or dissatisfied, despite their best efforts; it is difficult for them to conceal this factor when interacting with customer and other staff members. One of the primary reasons for evaluating emplo yee satisfaction is to identify problems and try to resolve them before they impact on customer service. In this study to understand what the customer expects from McDonalds. What are their needs and Wants from McDonald? and they judge McDonald restaurant on following parameter price, Quality ,Quality of service, Location etc. Due to the growing competition McDonalds restaurant have to focus on each and every process specially the satisfaction of their employees because job satisfaction is a concept which emphasizes that employees are the asset of the company so they can provide best service to customer and by this make customer satisfies. therefore their satisfaction is very important McDonalds is well known brand and post liberalisation when it entered India it faced numerous challenges from the predominantly vegetarian and price sensitive society. The increasing disposable income and preference for western food b y the young Indians was the main attraction for this global fast food chain. Therefore, in an attempt to attract the Indians and increase its market share McDonalds in India modified its product offering to suit the Indian palate. The research topic therefore is,” Has the Indianization of McDonald’s Menu Helped It Become The Market Leader in the Indian market?” The topic was researched using secondary data collected from books, websites and trade  journals. The business and management tools like SWOT, Lewin’s Force Field, Porter’s Five Forces were applied to the data collected to help evaluate the strategy adopted by McDonalds in India. The research concluded that the Indianization of the menu by McDonalds was one of the main reasons for its success in the host country Westerners living in or visiting India enjoy a wonderful variety of food: dahl (a variety of spiced lentils), curried vegetables, wonderful breads baked in clay ovens, and McDonalds' fries and shakes. Yes, that's right; McDonalds in India provides westerners with a little taste of home. Just don't expect the menu to be the same as it is in the U.S. Among other differences, you won't find  beef on the menu. Diets in India are often impacted by the many different religions in India. Hindus don't eat beef, so there is no beef on the McDonalds' menu in India. Muslims don't eat pork, so the McDonalds Corporation in India is quick to point out on their website (mcdonaldsinindia.com) that not only is there no beef, there is no pork or pork byproducts in any McDonalds restaurant in India. Additionally, with the high number of vegetarians in India, about half of the menu at McDonalds in India is vegetarian, which makes it a good choice for diners who want some healthy options whether or not they are vegetarian. Fast food restaurant chain McDonalds is facing renewed legal action in the US over claims that the its food was responsible for health problems among a group of obese American children. The original complaint was thrown out last month, but US district judge Robert Sweet left the door open for further litigation.

His ruling pointed out the possibility of a case to prove that additives in fast food meant there were risks in eating it that consumers were not aware of. The original case was brought on behalf of a group of overweight teenagers in the Bronx district of New York. 'Misleading adverts' The new suit alleges that products such as Chicken McNuggets were "hazardous and detrimental" to an extent beyond what was understood by the ordinary consumer. It alleges that McDonalds promoted its Chicken McNuggets, fish and chicken sandwiches, fries and hamburgers as being healthy when researchers, and even the company's own nutritional division in France, warned otherwise. Furthermore, it says that researchers have warned that some of these foods should not be consumed more than once a week or consumers could suffer problems such as obesity, diabetes and heart disease. McDonalds has dismissed the case as "senseless" and "absurd". The National Council of Chain Restaurants (NCCR) has also condemned the new lawsuit as "ridiculous", saying it attacked "common and everyday foods and ingredients" approved by the US Food and Drug Administration, the industry's safety regulator. But the decision to renew the lawsuit is an uncomfortable development for the food industry, which fears it could become the next focus for the fee-hungry legal profession

As a result; McDonald’s has been criticized and pressurized b y Governments around the world as it represents the largest proportion of Fast Food Market. The evaluation of McDonald’s approach to solve the problem from persisting it any further was to introduce campaign of  ‘Changes’ which aimed to promote healthier food menu with smaller portions and active lifestyle. The idea was to remove perceived view in consumers about McDonald’s as one to be  blamed for and bad publicity emerged from the release of the movie ‘Super Size Me’, but to create ‘All New Healthy Eating McDonald’s Food’. However, there was no intention removing the Burgers and Fries, but only focus on Healthy additions How McDonald’s manages to keep its prices down?  – Fast-food chains face a tough time  balancing between margin pressures and hiking prices which can hurt volumes. Consequently, the chains have to increase rates or rework their strategies. Affordability has been the cornerstone of McDonald’s global strategy. Some of its measures to achieve this include –  Bulk  buying, long-term vendor contracts, and manu facturing efficiencies

MFY (Made for You) food preparation platform  – MFY is a unique concept (cooking method) where the food is prepared as the customer places its order. All new upcoming McDonald’s restaurants are based on MFY. This cooking method has helped McDonald’s further  strengthen its food safety, hygiene and qualit y standards. McDonald’s has around 10 MFY restaurants in its portfolio Food Industry in India  – In India, food industry and particularly informal eating out market is very small. In India, over quarter of a million customers visit McDonald’s family restaurants every day. The Indian fast food market is valued at $1-billion (Rs 4,547 crore) aprrox.

Don Thompson, CEO of McDonald's Corp., found himself on the grill after a 9-year-old girl accused the fast food giant of trying to "trick kids into eating food that isn't good for them." Hannah Robertson, 9, flew in with her mom from Kelowna, British Columbia, to attend McDonald's annual shareholder meeting Thursday in Oak Brook, Ill., the company's headquarters. "Something that I don't think is fair is when big companies try to trick kids into eating food that isn't good for them by using toys and cartoon characters," Robertson read during the question and answer part of the meeting. "If parents haven't taught their kids about healthy eating then the kids probably believe that junk food is good for them because it might taste good." Her mother, Kia, attended the meeting as a member of advocacy group Corporate Accountability International, headquartered in Boston and with offices around the world. Kia Robertson, 36, started "Today I Ate a Rainbow" in 2009, described as an "interactive nutritional game," and is a nutrition blogger. "It would be nice if you stopped trying to trick kids into wanting to eat your food all the time," Robertson, who is in the fourth grade, went on to say. "I make cooking videos with my mom that show kids that eating healthy can be fun and yummy. We teach them that eating a rainbow of  fruits and veggies makes kids healthier, smarter and happier because that is the truth." Thompson thanked her for her question but also refuted Hannah's accusations after her closing question, "Mr. Thompson, don't you want kids to be healthy so they can live a long and happy life?" "First off, we don't sell junk food, Hannah," Thompson said. "My kids also eat McDonald's. When they were about your size, to my son who is with us today, who was a little bit bigger, he was a football player, and also they cook with me at home. I love to cook. We cook a lot of fruits and veggies at home." Thompson pointed out that McDonald's serves fruits and vegetables, including apples in its Happy Meals and salads for $1, and is hoping to "sell even more". A spokeswoman for McDonald's declined to elaborate to ABC News on Thompson's response to the girl.

Juliana Shulman, senior organizer at Corporate Accountability International, which started about 35 years ago, said Kia Robertson started working with the organization earlier this month for its campaign, "Moms Are Not Lovin' It" just before Mothers' Day. The campaign aimed to stop what it called McDonald's "predatory marketing to kids." "They were really excited to partner with us and come with us to the shareholders' meeting yesterday," Shulman said of the Robertsons, adding that they returned home to Canada early on Friday. Hannah's mom broached the issue of childhood obesity in her question to Thompson. "As a corporation you might not "have to" think about the effects of your marketing...but as  parents and grandparents there must be a part of you that knows it's just not right," Kia Robertson said to Thompson at the meeting. "You are a leader in your industry, so you know very well that the fast food industry is changing - in order to keep up maybe it's time for some genuine change at McDonald's. "CEO Thompson, don't you think a good place to start would be to leave our children alone and let us parents decide what's best for them?" she asked. Shulman said her organization has 100,000 members and works with tens of thousands of health  professionals as part of its campaign to help families eat healthier. The organization also brought mothers representing communities of color to the shareholder meeting, ho ping to stop McDonald's from targeting them. "Yesterday was a unique chance to bring together these key constituencies who have concerns," Shulman said. Shulman said Corporate Accountability International is not a shareholder of McDonald's. Some members of the organization own one share of the company and lent out their proxies. "Our main goal is to protect people from irresponsible and dangerous actions around the world," Shulman said, advocating for actions against Nestle, General Electric, a nd Philip Morris.

McDonald's Corp.'s coffee tastes better and costs less than brew from Starbucks Corp., Burger  King Holdings Inc. and Dunkin' Donuts, Consumer Reports magazine said. "We compared the rivals with Starbucks, all in basic black--no flavors, milk, or sugar--and you know what? McDonald's beat the rest," Consumer Reports said in its March issue.

Subway beats McDonald's to become top restaurant chain  NEW YORK (CNNMoney) -- Move over, Mickey D's, and bring Ronald McDonald with you -there's a new fast food king in town. Subway has surpassed McDonald's to become the world's largest restaurant chain in terms of  units, the sandwich company confirmed Monday. .Subway had 33,749 restaurants around the globe at the end of 2010, said company spokesman Les Winograd. McDonald's had 32,737 at year end, according to a February regulatory filing from the burger giant. "Last year was actually pretty average for us, growth-wise," Winograd said. "We aim to open  between 1,000 and 2,000 locations globally each year." A McDonald's (MCD, Fortune 500) spokeswoman said in a prepared statement that her company "continues to be focused on our business, and serving our customers. Our business continues to  be strong and we are growing by being better, not just bigger." As of Monday, Subway has 34,218 locations globally -- all of which are owned by franchisees. About half of the company's unit growth is overseas, Winograd said. Subway now has more than 1,000 locations in Asia, and it just opened its first store in Vietnam. Other high-growth nations include Brazil, Mexico, India, China, Russia and France. "A lot of our growth has been in non-traditional spaces that our competitors might not touch ," Winograd said. "We have really unique ones, like on a riverboat in Germany, a church in Buffalo, car dealers, bowling alleys and casinos. We're not just in strip malls." Fast food as a whole has gotten a boost from the recession -- even in unexpected demographics. Last month, an American Express survey showed quick service restaurants saw a bigger rise in spending by ultra-affluent consumers than any other restaurant type last year. "It's a feeling of accomplishment, for sure," Winograd said. "But we didn't set out to surpass anyone in particular."

How Burger King Went From McDonald's Greatest Rival To Total Train Wre Read more: http://www.businessinsider.com/how-burger-king-went-from-mcdonalds-greatest-rival-tototal-train-wreck-2012-4?op=1#ixzz2YwinHYMP

How Burger King Went From McDonald's Greatest Rival To Total Train Wreck 

After Justice Holdings acquired Burger King this month, it announced a major rebranding and image change, updating its menus and adding to its management ranks.

The chain has struggled with a decline in sales since 2008. It lost its No. 2 spot to Wendy's in March.

The new branding is supposed to be a fresh start. But just as things were looking up, a spot featuring Mary J. Blige outraged consumers with its racial stereotypes. Most brands can move past controversies like this with a heartfelt apology and a donation to charity. For Burger King, however, this is just the latest is a string of marketing blunders it's committed over the past four years. Coupled with the recession and the growing success of  McDonald's and Wendy's, Burger King couldn't be in more trouble

The Future Of McDonald's Depends On This New Menu Item Read more: http://www.businessinsider.com/future-of-mcdonalds-depends-on-mcwrap-20137#ixzz2Ywli3zrd

McDonald's is depending on its new McWrap to connect with the next generation of customers. The menu item is the fast food giant's answer to competition from beloved millennial brands like Chipotle, Five Guys, and Subway The wraps have grilled or crispy chicken with mixed greens, cucumbers, tomatoes, and cheddar  cheese. They're topped with ranch, sweet chili, or garlic dressing.

McDonald's has had trouble connecting with millennials because of the perception that it sells  junk food, according to Businessweek . The fast food chain spent two years perfecting the McWrap with the intention of taking down competition. In March, AdWeek reported that McDonald's called the McWrap the "Subway crusher" in an internal menu.

The memo also calls the item the "perfect food offering" to connect with millennials. McDonald's doesn't even rank in the top 10 favorite brands for that generation.