History, SWOT & PEST analysis, Culture.... etc......

1. Group Members:
International Business
Management
(Presentation)

3. Introduction of McDonald’s:
 McDonald's is an American fast food
company, founded in 1940 as a restaurant
operated by Richard and Maurice McDonald,
in San Bernardino, California, United States.
 CEO: Stephen J. Easterbrook
 Headquarters: Chicago, IL
 Founder(s): Ray Kroc, Richard and Maurice McDonald
 Employees: 235,000

4. Fun Facts about McDonald’s:
 McDonald opens a new restaurant every 4.5 hrs.
 McDonald's restaurants feed 68 million people
every day. That's more than the entire population
of the U.K.
 McDonald's is the world's largest distributor of
toys.
 McDonald's is not the world's largest restaurant
chain. Subway is.
 McDonald's makes about US$75 million per day.
 McDonald's used to sell pizza in the 70s.
 McDonald's drive-thru staff won't serve people if
they come on horseback.
 Over 80,000 people graduated from
McDonald's Hamburger University with a

5. Revolution of McDonald’s Logo:

6. Vision Statement:
 To move with velocity to drive profitable growth and
become an even better McDonald’s serving more
customers delicious food each day around the
world.”(2017)

7. Mission Statement:
 To be our customers’
favorite place and way
to eat and drink.

8. Core Values:
 Teamwork
 Respect
 Accountability
 Integrity
 Innovation
 Diversity
 Employees
 Stockholders
 Community

9. McDonald’s

10. Politics
 Increasing international trade agreements
(opportunity)
 Governmental guidelines for diet and health (threat
and opportunity)
 Evolving public health policies (threat and opportunity)

11. Economic
 Slow but stable growth of developed countries
(opportunity)
 Slowdown of the Chinese economy (threat)
 Rapid growth of developing countries (opportunity)

12. Sociocultural
 Rising disposable incomes (opportunity)
 Busy lifestyles in urban environments (opportunity)
 Increasing cultural diversity (threat and opportunity)
 Healthy lifestyle trend (threat & opportunity)

13. Technological
 Moderate R&D activity in the industry (opportunity)
 Increasing business automation (opportunity)
 Increasing sales through mobile devices (opportunity)

14. Legal
 Increasing health regulations in workplaces and
schools (threat)
 Increasing animal welfare regulations (threat &
opportunity)
 Rising legal minimum wages (threat)

15. Environment
 Rising interest for corporate environmental programs
(opportunity)
 Increasing emphasis on sustainable business
strategies (opportunity)
 Changes in climate conditions in some regions
(threat)

16. Top Level Executives
Like every other big business organization in the
world, McDonalds too has several top level or C-
level executives who are responsible for decision
making, goal setting, finances, operations and
ensuring smooth functioning.
 CEO
 Chairman of board
 Directors
 CFO
 Chief restaurant officer
 COO
 Senior marketing manager
 Senior sales manager

17. Finance Department
The finance department of McDonalds is the
department which handles the finance, accounting
and money matters of the business. It is
responsible for ensuring proper flow of money, right
investment and proper handling of the funds. Each
country and area has a separate set of finance and
accounting managers to handle the finances of that
division.
 Finance country head
 Finance city/state head
 Finance manager
 Accounts manager

18. Marketing Department
The Marketing Department Hierarchy takes care of the
marketing and advertising needs and matters. It
ensures that the business gets the right exposure and
maintains its brand image effectively. Each country or
area has a separate marketing department to handle
the advertising and marketing of that area.
 Marketing country head
 Marketing city/state head
 Marketing manager
 Marketing executives

19. Sales Department
 The sales department is set to ensure that all sales
related duties and tasks are properly handled and
run effectively. Every country has a separate sales
head and other sales employees to ensure the
smooth running of the sales department of that
country.
Sales country head
 Sales city head
 Sales executives
 Sales men

20. Restaurant Level Executives
 Besides the owners, directors and other chief executives, each branch of McDonalds
in the world is run by a core team the members of which are known as restaurant
level executives. The following are the main executives working at this level for the
smooth management of each branch.
 General Manager
 Restaurant manager
 1st assistant manager
 2nd assistant manager
 Staff training crew
 Shift running manager
 Floor manager
 Crew members
 Support staff
 Cleaners
 Servers
 Cooks
 bakers

21. Distribution Channel
 The most prominent place McDonald’s products
can be found are at its restaurants. Other places
where the company uses to sell its products are:
 Kiosks
 Postmates website and app
 McDonald’s mobile app
 Hence, the company is using the selective
distribution channel maintaining a push-and-pull
marketing communication (Meyer 2015).

22. SWOT AND CHALLENGES

23.  STRENGTHS
 Ranks very high on the
Fortune Magazine food
service companies that are
most admired list.
 Food safety guidelines are
strictly adhered to.
 Cultural diversity in the
foods that are provided based
on location of the restaurant
 Efficient operating
guidelines in the assembly
line.
 Excellent locations in theme
parks, airports, wall-mart
stores, and along well
travelled roads.
 WEAKNESSES
 Training cost are
elevated due to high
turnover.
 Not much variation in
the seasonal product that
is offered.
 Focuses on burgers and
grease fried foods and
not healthier options for
their customers.
 High employee turnover.

24.  OPPORTUNITIES
 Upgrading menu and product
line.
 Corporate social responsibility
activities.
 Expanding globally (119
countries)
 McDonald is ranked 3rd in
donation to Charity.
 Animal Health and Welfare.
 Participating in climate pledge.
 THREATS
 Competition (KFC, Burger
King, Subway)
 Health conscious
consumers.
 Changing demographics.
 Threat from local
competitors in different
countries.
 Changing consumer
demands.

25. CHALLENGES
 Win back customers who have fallen out of love
with McDonalds: Once loyal customers have had
their heads turned by more upmarket rivals such as
Shake Shack, Five Guys and Chipotle. Easterbrook
will have to work out a way to reignite the
customer's love affair with the Big Mac.
 Take on Burger King for low-income customers:
At the other end of the spectrum, McDonald's needs
to make sure it can still attract low-income
customers, rather than losing out to its traditional
rival Burger King.

26.  Tackle the bad PR by paying staff more:
McDonald's has a reputation for paying its staff poorly. The
company has been hit by protests from workers, many of
whom earn the minimum wage despite having been with the
company for years.
 Sort out China, where it has been rocked by food
safety scandals:
Easterbrook will need to make a concerted effort to
clean up McDonald's reputation on food safety, which
has taken a battering following scandals in China. Last
summer, a supplier to the chain's restaurants in China
was accused of supplying rotting meat and falsifying
meat expiry dates.

27.  Slim down the menu:
In a bid to be all things to all men and offer healthier
alternatives to burgers and fries, some argue the menu
has got too complicated. Bigger menus have made
kitchen operations more complex, giving some
customers a longer wait for their fast food fix.
 Read the history books:
Jim Cantalupo,(1965) the then chairman and chief
executive, said at the time: "The world has changed.
Our customers have changed. We have to change,
too." That time, the management did turn the company
around. Will history repeat itself?

28. LICENSING

29. Licensing
 Independent businesses own and operate
many restaurants
 All franchisees are independent, full time
operators
 not responsible for the operation of most
restaurants
 responsible for its legal and regulatory
compliance
 85% franchised restaurant

30.  Ownership and Licenses for the online
services
 Any and all rights in the online services are and
shall remain the exclusive property of McDonald's
or its licensors
 You may not take any action to threaten, limit or
interfere with McDonald's or its licensors' rights

31.  The online services are licensed, not sold
 "online services" includes any and all content on
the online services, such as, but not limited to,
text, images, graphics, logos, page headers,
button icons, images, audio clips, digital
downloads, data compilations, software,
trademarks, service marks, trade dress, audio,
video, data and other materials