1. Theme: GLOBAL RECESSION
WINNING STRATEGIES FOR
INDIAN COMPANIES
Title: WINNING STRATEGIES FOR
INDIAN INC-LESSONS FROM
McDONALD’S AND WALMART
Presented by :
Shahiba Shamshad & Santhosh Kumar.K
MBA Students,
Department of Management Studies,
09/10/12 Srinivasa Institute of Engg. & Tech. 1
2. WINNING
STRATEGIES FOR
INDIAN COMPANIES-
LESSONS FROM
MCDONALD’S AND
WALMART
09/10/12 2
3. Introduction
Recession is a general slowdown
in economic activity in a country
over a sustained period of time, or
a Business cycle contraction.
As the global economy slowly
slides into recession, organizations
face new challenges and
opportunities. contd
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4. The goal of strategy in a downturn
is to help you end up on the right
side of the mortality tables
To build that strategy, you need to
know exactly how you plan to win,
and how you will mobilize the
organization to implement the
strategy.
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5. The Indian companies can learn from
those companies which have
implemented a strategy which inturn
helped them to end up on the right side.
Here we present two organizations such
as McDonald’s and WalMart , where they
have implemented a strategy which
inturn helped them to be relaxed during
recession.
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7. McDonald’s
McDonald’s Corp. has been one of
the world's most successful
companies during this recession.
McDonald's has been on a roll since
2003, when, to get out of a slump, it
halted rapid expansion and instead
focused on improving the food,
service, atmosphere and marketing
at its existing outlets.
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8. McDonald’s during
Recession
In February, McDonald's same-store sales
world-wide increased 5.4%, after stripping
out a calendar shift from last year's leap
year. By that measure, U.S. same-store
sales rose 6.8%, while sales in Europe
increased 4% and rose 4.1% in the region
that includes Asia Pacific, the Middle East
and Africa. Strong U.K. sales were partially
offset by Germany, while gains in Australia
and Japan were somewhat offset by
China. contd
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9. In India, McDonald’s vow that the
slowdown is not bothering them the
least. Instead same stores sales have
raised 20% y.o.y in January 2009. It is
also the secret knowledge that revenues
from India are likely to go up soon, than
the present 5% to the company’s global
revenues. After all, McDonald’s is all set
to raise the prices over the next three
years, simultaneously marking a shift in
its Indian strategy in tune with the times.
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10. WINNING STRATEGIES
OF McDonalds
1.Its effective supply chain management.
2.The change in their menu, image and more importantly
their thinking- which is serving them well in these bad
times.
3.Not only did the burger company do away super size
burgers and include healthy meals to their menu, they also
improved their efficiencies. Increasing number of outlets.
4.Creating and marketing lower priced items, adjusting
price based on customer demand, added the McCafe and
McTreat chains in their portfolio and launched the I’m
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lovin’ it campaign.
12. WALMART
1.WalMart is one of the largest retailer in
the world.
2.Walmart has always dwarfed many of
its competitors.
3. Wal-Mart isn't just some massive
outlet that peddles cheap wares; it has
focused on food for a long time, and is
really hitting a stride during the
recession.
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13. WALMART DURING
RECESSION
The biggest retailer in the world are
loving life as the economy sinks.
At a time when companies are cutting
costs and jobs to tackle the economic
downturn, global retail chain major Wal-
Mart has doled out $933.6 million in
bonuses to its workers.
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14. WALMART DURING
RECESSION
Wal-Mart reported $401.2 billion in net
sales for its most recent fiscal year,
which ended on January 31, a gain of
7.2 per cent from the prior year.
Earnings per share rose six per cent to
$3.35
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15. WALMART DURING
RECESSION
Wal-Mart has doubled its share of the
industry’s sales to 16% this year, while
increasing its average sale from $489
two years ago to $660.
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16. WINNING STRATEGIES
OF WALMART
"Wal-Mart sells what you need to
have, as opposed to what you
want to have“
The main thrust of Wal-Mart’s
strategy is what we call as “win,
play, or show.”
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17. WINNING STRATEGIES
OF WALMART
“Win” categories are those where
Wal-Mart can outmaneuver rivals
with low prices on hot products
such as flat-screen TVs, including
higher-end models.
“Play” applies to areas like apparel
where Wal-Mart can be a player
but is unlikely to dominate.
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18. WINNING STRATEGIES
OF WALMART
Show” are the one-stop-shopping
essentials such as hardware,
which are necessary to compete
with the likes of Lowe’s (LOW) and
Home Depot (HD).
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19. WHY ONLY WALMART AND
McDonald’s
These companies are the only two
in the Dow Jones industrial
average whose share price rose in
2008 when the stock market lost a
third of its value.
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20. CONCLUSION
In the world of globalization where
the economies are integrated we
cannot say that a strategies
followed by a company in The US
is of no use to Indian firms. On the
contrary these two companies
provide much valuable lessons to
Indian companies who are feeling
the pain of recession
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