CASE STUDY

1. Q no 1
Ans no 1:
The opportunity that McDonald’s had was it had monopoly in fast food restaurant for
quite a while. Along with that there is still 97% of market to capture. And since it has
increased gigantically its stands very little competition from the rest of its competitors.
For example in 1996 McDonald’s had 1860 outlets in Japan as compared to only 13 of
burger king.
The key threats to McDonald’s domestically are the lack of growth 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.
But I feel the key threat to McDonald’s continued success is its very ubiquity. Because
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,
Benignant, 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.
.
Q no 2
Ans no 2
The main reason for success was using essentially the same competitive strategy in every
country: be the first in market and establish its brand as rapidly as possible by advertising
very heavily. New restaurants are opened with a bang. Thus strategy has helped
McDonald’s develop a strong market share in fast food market in Europe region. And
secondly the additions it made to its menu. For example in Europe it sold pizza and in
Germany beer is served and like wise I a grilled salmon sandwich in Norway. It was also
the first restaurant in Europe to welcome people with children. Where as in Asia for e.g.
Japan the burger size has been reduced because they have it as snacks. And in the Muslim
countries its cooking complies completely with Islamic food preparation laws.
Q no 3
Ans no 3:
McDonald’s basic Philosophy is to provide food with strictly following Quality, service,
cleanliness and value. (QSC&V). To attain quality it has set up quality assurance centers
in USA Europe and Asia. In addition, training plays an important part in customer
services. Besides day to day coaching, hamburger universities in the USA, Germany,

2. Japan and Australia teach the necessary skills in 22 different languages with the aim of
providing 100% Customer satisfaction.
Q no 4
Ans no 4:
I think that if they try to bring the so called “DESI TOUCH” it will not work for them as
far as they consider Pakistan. Because we already have so many desi restaurants
available. A person going to McDonald’s expects western taste and style. As far as
addition to the menu is concerned there should be salads and deserts offered along with
some new variety of sauces.
Q no 5
Ans no 5:
Some main reasons for its success are as follows:
McDonald’s has provided good and faster service consistently has also offered clean
ambiance with good taste
Its has also taken into consideration the different tastes and has changed its menu and
size from one country to another.
The secret of McDonald’s success is 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.
For example in European countries McDonald’s offers pizza, sandwiches and noodles.
Basically it has adjusted its self according to the rapidly changing markets and therefore
even with a tough competition has a lion’s share in the market.