Mcdonalds Case Study Project Managment

Contents 1. Introduction 1. 1 History of McDonalds 1. 2Philosophy of the union 2. delegate 1 SWOT Analysis 2. 1 Strengths 2. 2 Weakness 2. 3 Opportunities 2. 4 Threats 3. toil 2 McDonalds protrude to come after dodging 3. 1 operation of key elements overb antiquated Strategies 3. 2 SWOT Analysis and mean to Win 4. Task 3 McDonalds 2003-2009 Strategy 4. 1 McDonalds alive(p) Strategy 4. 2 Strategies Comparison 5. Task 4 McDonalds Competitors 5. 1 W fireys 5. 2 turd in the encase 5. 3 transonic 6. References 7. Bibliography 1. Introduction 1. History of McDonalds The stolon McDonalds was inaugurated by the McDonalds br an an primordial(a)(prenominal)(prenominal)s in 1948, constituting itself as the commencement local in the account of the warm tide overer of regimens, in San Bernardino, California (U. S). They passinged quick f ar, soon they r to each iodineed a mel humbled level of gross sales and although the add-in was limited the success that is to phra se previously prep atomic number 18d sustenance and served to high speed. Without a doubt the imbruted of its success was in substituting the conventional china that you/they usanced the stay of eating ho practises, for the authorship bags.It was molestonisely when the supplier of the shaking machine shake, ray of light Kroc, impress by the quantity of Multi-mixers requested, it proposed the opening of impertinent eating ho wonts. This way in 1955 the offset printing local of the passel was inaugurated in charge of Ray Kroc. During the 50? s and the 60? s, Rays managerial team Kroc established the prospering philosophy of the transcription of the high society Quality, Service, clean and Value. At the moment this Franchise possesses more(prenominal) than 25. 00 establishments in 117 countries and five atomic number 18 the continents in which the Golden Arches run off with, progeny that was appendd more with the recent opening of 3. 000 local during 1999. Alt hough McDonalds asseverates its clients a threadb atomic number 18 menu in its entire local, it is common that these menus combine with special fruits that ar developed in each finis depending on the sames of the clients. Love, 1995 4 1. 2 Philosophy of the fraternity The social club brought to this naked merchandise of the quick nutritions a concept of original quick value, w present of the details is interpreted care to the maximum, to offer the consumer an splendid product.The operative philosophy of the McDonalds transcription is ground on the Quality, Service, Cleaning and Value for 44 years. The company offers a standard menu, although it develops in each culture special products that are ad secureed to the pleasure of the community. McDonalds is successful beca expend it has a system of bodily norms and individual opportunities, to each the Franchised they are merged in the like philosophy of quantifys and clear predictions. For McDonalds the employees are the intimately important thing.It is thanks to them for what the clients are choosen an incredible experience in each visit and privation to return. The principles of Quality, Service and Cleaning begin with their witness employees, McDonalds guides entirely the turningions according to organisational quantifys as work in team, to requit every(prenominal) passion for the work invariably fling the best of themselves, to be committed with the partners and with the mission of the company, to be entire in each one of the actions, to be leaders. Kroc, 1987 5McDonalds is a company that offers work eminently to unseasoned hatful over 16 years, it is for it, for what its schedules of work are enough conciliative to be subject to touch the studies, adding an singular labor experience, it lowlife tied(p) become the source amount of a enceinte professional charge in an inter dry landal company. The contentions of McDonalds is formed by in all those companies that ac t in the sector of the quick nutriments that using a very similar engine room tries to assist to the like type of clients. When McDonalds begun to give its prototypic steps eaterys of quick nutrient they didnt exist, so soon he became the leader of the sector.It was swallo assumeg from that Ray Kroc nonionised the company McDonalds System, Inc. , march 2 1955 when opposite companies were already in the problem and McDonalds it was beginning to abide its advantage in front of other companies like Burger poof, Kentucky Fried poulet or Chicken Delight. Kroc was then in one of the most war-ridden markets, that of the hamburgers. Kroc, 1987 5 McDonalds has al slipway tried to secernate its products of the rest of its competitors, and it doesnt in fact try to differentiate them by the price, scarce by means of and finished the well behaved attri neverthe slighte, the service, the originality and innovation.If for something is McDonalds characterized it is for the in novation, she has always tried to offer something different to its consumers, continually innovating with reinvigorated products, and a clear example is in the loose Mac. In the market very similar hamburgers were already sold when McDonalds finalized to deceive it, tho she except k untried how to give him the form and the in agreement coat with its cite. And as sh protest on Table 1 the market share amidst competitors throw the depart 4 years. Table 1. Burger Restruant Market Share europium (2006) Europe (2007) Europe (2009) USA McDonalds 16. 54 19. 47 66. 74 94. 06 Yum Brands 3. 25 3. 43 42. 82 58. 59 Burger causation 2. 60 2. 65 21. 45 29. 35 Subway 0. 74 0. 1 19. 79 27. 07 Starbucks 0. 77 0. 90 17. 44 23. 86 www. macdaily watchword. com McDonalds withal k bleak that the schema of provoketh was essential and when Burger magnate and Burger Chef were enlarged so much that they were around to reach him, McDonalds decided to grow even more. In 1967 Burger King had settled down as magnification chopine reaching the 100 new positions a year, equaling the rhythm of magnification of McDonalds for the first time.But the threat of Burger Chef was even bigger, since at the beginning of 1968 its weapons platform of enlargement had shortened the distances betwixt her and McDonalds reducing it to slight(prenominal) than 100 position. pic variety 1 Burger unshakable food Market Share 1 . It is perspicuous that all the competitor companies permit tried to sell products substitutes of the Big Mac, without a doubt, the good known one is the Big King of Burger King that tries to carry out the same clients with the same ingredients.While McDonalds tries to differentiate the Big Mac of the Big King offering fresh products and a hamburger of more persona, Burger King tries to highlight its product offering a hamburger a small bigger and made to the grill and thus, with different flavor. Figure 1 2. Task 1 SWOT Analysis pic 2. 1 Strengths Al l military capabilitys spend a penny been taken from the McDonalds 2006 oecumenical corporate duty Report McDonalds, 2008 20 open(a) door Company Company assertion was declining because of public confidence in the safety of beef, poultry and bad intentioned inter realize rumors.We do as well as esteem the BSE crisis in Europe at the begin of this millennium. On March 2001 MCDONALDS decided to open its doors to everybody with desire to see how the company is organism managed. This action was supported by open invitation through TV and printed advertisement. train the courage of MCDONALDSs get on to open their company to everyone? hold in they completely been sure of what is sacking on in their remotest MCDONALDS eating house? How faeces they risk to show one of their black sheep (and every 1000s of subsidiaries retention concern has some to the public and could face the tremendous impact a cockroach would take universe found in a double-cheese burger or found on t heir kitchen floors? Roaches are present in some(prenominal) locations we wear downt want to view as them Certainly MCDONALDS intended a growing mindset by its employees and prudence by implementing anatomys like this. Vice-president of corporal affairs Eric Gravier said If any asp viperect of our melody deserves an open look, its our efforts to conduct our line of descent indebtedness. wrap up focus and co-workMCDONALDS works unneurotic with a coalition of investors, environmental organizations and other public interest groups to tone their social and environmental programs. I would perceive it overly as a form of public auditing. It can be valued as strength because this alleviates MCDONALDS to focus on what they should do to put forrad loyal to its corporate social responsibility targets without losing strength on their business priorities. CERES raises MCDONALDS to report their progress and future efforts through an open door spirit. wrap up helps MCDONALDS t o develop and live CSR.The highly decentralized system Considered as a great advantage in MCDONALDS business excessively has are disadvantages when it comes to reach out mutual global objectives. Ceres puts these weaknesses open on the table and MCDONALDSs straighten out focus evaluates these statements, research results. Ceres e. g. has advised management that MCDONALDS should report more metrics and destructions to leaven and foster progress. Ceres made 3 issues its top priority 1. obesity 2. MCDONALDSs purchasing power 3. Climate change To 1 obesity Their approach to the health problem no. 1 in the US is the following . Offering Menu Choice 2. Providing Nutrition randomness 3. Promoting Physical Activity 4. Marketing and Communicating Responsibility To 2 purchasing power How does MCDONALDS influence their upstream purchasing power? What is clams oriented and what is really CSR oriented? Careful supply chain dodge For MCDONALDS thither are several important strategi calal pillars, the first one is the commitment to social responsibility with food quality and safety, then the issue of take holdable food supply and animal welfare. MCDONALDS food standards are universe class. Active community responsibilityThrough MCDONALDS House Charities and innumerable local and global community programs MCDONALDS shows that the taxation is not all or part of the revenue be languishs to the edict and therefore allow for be given back. It shall demonstrate that MCDONALDS recognized that through society they can do business and prosper. This consciousness also reflects itself in the attitude of employees and management in a way that they feel more responsible in what they are doing as it is as serving the public. pixilated food safety standards It goes all the way from the farm right to the eating house.MCDONALDS works hard to dupe sure that rigorous food safety standards are upheld in each eatery with planning, food, safety and quality, the schooling of the food and menus. It all ties because galore( dapplenominal) of the suppliers fence themselves extensions of the MCDONALDS family and so they have the same rigorous approach to the programs. MCDONALDS has a responsibility to volunteer a relevant variety of quality product creams that the followumier trust and that means working with partners that operate ethically and meet the social responsibility standards. Accurate service standardsMCDONALDS works hard to swear a work environment where everybody feels valued and accepted by providing grooming and other opportunities for in the flesh(predicate) and professional growth and to invoke job delight. In their own words Our well-trained employees forget proudly return loyal, friendly and accurate service with a smile to delight our costumers. Affordable prices to high quality products MCDONALDS keeps its responsibility by guardianship values and high standards as they provide food that is affordable to a wide range of costumers and that means being the most efficient provider and offer the best value to the most muckle. Responsible charity and community work We believe in freehanded back to the communities in which we do business and to Supporting Ronald McDonald House Charities and other charities that promote the health and well being of children. Gould, 1996 9 Profitability MCDONALDS is committed to growing their business on behalf of the shareholders who Provide the necessary jacket for the company to grow, they should realize and Attractive return on their investments. No misfortunate company can allow itself to offer charities or help when it itself is in need.Being rentable makes MCDONALDS able to help whe neer necessary and maintain its corporate responsibility principles fresh. Bigger menu choices / Product strategy MCDONALDS works together with the Global advisory council whose members are very high profile scientists in the food industry, experts who are flavour at obesity a nd nutrition. With their help MCDONALDS has created new menu choices including salads and fruits, keeping their serving size of it standards and making menus more flexible and easier to mix or change.In the last 5 years MCDONALDS has included milk and water and a variety of on-going product innovation ordain include spread out side and beverages choices in accession to new entrees which volition give the costumer to feed himself healthier and proportionate. Clear nutrition acceptive informationrmation on advancement I think one of the better strengths from MCDONALDS is that they where one of the first immobile food restaurant that started writing the nutritional info on their packaging advocating for balanced active life styluss and healthier clear nutrition values.MCDONALDS has been a terrific leader on their work to explore new ways to deliver nutrition and balanced active lifestyle info to the costumers. External and Internal lead stances to encourage activity Inte rnal MCDONALDS developed and distri moreovered an own crew training video in seven languages on Its what I eat and what I do, in any case that the company makes a great effort distri just nowing materials encouraging balanced, active lifestyles. MCDONALDS has also introduced training for twain crew and management. External MCDONALDS introduced its what I eat and what I do initiative.Leveraged exceeding and global sponsorships including Olympic day run. In the USA more than 15 million step meters were distributed and passport to mulct was launched. Decentralized but not disconnected system MCDONALDS recognizes the need to maintain a system in which everyone adheres to the same bone marrow values, principles and standards. They balanced this with a program called Freedom within the framework. Local business-owner/operators and restaurant managers have the flexibility and responsibility to develop programs that move to the diversity of the costumers and local market condition s. Innovative excellence program suppuration MCDONALDS has a very wide selection of programs on its account, everything with the only goal of growing to be better rather than bigger. MCDONALDS has aline around a global strategy program called Plan to Win that centers in the five basic Ps, people, products, place, price and promotion. Each P has its own vision, specific objectives and key performance measures. This reflects and approach to long-tern sustainable, serviceable growth. opposite excellence programs are the well known ROIP (Restaurant Operations Improvement Process). It helps reform restaurant performance and accountability as related to quality, service and cleanliness (QSC) and people example standards. Those standards have been broken down into specific procedures and are organized into 12 systems that deliver the experience the costumers expect. An excellent program is the Mystery shopper program where unannounced and anonymous inspectors visit as costumers and ra te the restaurant according to the QSC.Many restaurants around the creation include a measurement program based on client comment that can provide its feedback via toll-number and they also take input from their own staff by an annual employee satisfaction survey. Ethical Conduct promotion MCDONALDS Board of directors and top management work to break the companys integrity in all its dealings with shareholders. Their commitment is codified in policies, standards and codes including the Corporate Governance principles, economy of Conduct for the board of directors and code of Ethics for the CEO and Senior monetary Officers because Corporate Responsibility begins at the top.The principles include provisions designed to figure independent oversight of the companys assets and business affairs. This strengths could be as well be left out as today all public concerns do need to have these policies and if all are having them they cannot be considered as strength anymore but patent ly as going concern and standard. For MCDONALDS employees worldwide the overall framework for ethical business practices is the Standards of Business Conduct which applies to all salaried employees worldwide including restaurant managers.It provides rules for discussion every ethical issue that might arise or mix all laws and policies that apply to the worldwide business. The standards establish a foundation on their core values, provide an orientation to ethical business conduct, offer guidance in a wide range of issue areas and identify resources for questions and concerns. 2. 2 Weaknesses MCDONALDS inflexibility Can MCDONALDS ever excel or are they caught to always offer economic stiff food? MCDONALDS is weak in reacting fast to markets changes. If more and more nodes go onto eating BIO or ECO-food e. g. eat MCDONALDS could not follow this trend without losing a lot of profit because such(prenominal) a shift in suppliers a) from the sharpen of offer/ conduct ratio and b) f rom logistics could not be made in fairish time. It would impose a threat of a doubtful profit recession until MCDONALDS would have adapted their product portfolio. Not employee-friendly MCDONALDS is not a worker-friendly environment in the sense that it offers medium to long term working relationships. In the article3 Company before Nation McDonald claims that it has the antipathy of workers rights union under control. Well if e. . in Germany you have a workers rotation on fair(a) below 6 months a company never runs into danger of facing workers protection laws. Every worker in Germany for the first 6 months is under trial-conditions employed and can be discharged at any time without any obligations and cost. In an article4 of the Billings Gazette it has been recognized that MCDONALDS has a hard time in finding and retaining good workers. Gylette, Wyoming reports a weired case that a MCDONALDS manager needs to outsource the drive-through regulate taking process via a call center in Santa Monica, California. McDonalds = unreasonablely much shareholder value driven Nachrichten, 26 Shareholder value is often not the same as Corporate Social Responsibility i. e. if profits go down and down, stocks go down often more than they actually should and drastic corporate measures have to fix the problem. The levers are not too many and are well known Where can we deliver cost? Where can we get cheaper affectionateness? Where can we get cheaper ice lolly? Where can we release workers and run a MCDONALDS restaurant with less people? As anyone can imagine some of these actions cannot be socially or environmentally responsible that is not what money is all most MCDONALDS continues to promote un sizeable food Despite diversification of their product portfolio towards more healthy choices MCDONALDS still continues a saturated plunk down filled 850 kcal Burger and other unhealthy but tasty food. That could continue to harm their reputation as unhealthy fast f ood supplier. Errors on promoted CSR MCDONALDS claimed that they have not imported meat from rain forest countries but in court it started that MCDONALDS very well had imported meat from Costa Rica and Brazil where rain forests are eliminated to get more green-fields for cows. Weekly, 1994 27 2. 3 Opportunities Attractive and flexible work environment MCDONALDS offers many job opportunities. External recognition about how MCDONALDS is a great place to work has become something that dispels myths that are out there. Programs like MC flexibility make their 1. 5 million employees around the world to extol and respect their work place. MCDONALDS takes very serious its responsibility to promote fair, safe and healthful working conditions, effective management policies, diversity and inclusiveness in all restaurants. MCDONALDS is pride to say that 42% of their world top management started with MCDONALDS careers serving guests.However the attractive and flexible working environment ha s been not rated as strength as personal ceremony and press reports make it more of an hazard. An opportunity for society that there is an employer who always hires people which can be helpful for intermediate jobs i. e. amongst other advantages keeping jobless-rates lower. Strong environmental work Also this CSR issue has been characterized within the 2006 Worldwide Corporate Social Responsibility Report more as a strength as an opportunity. The web however has contradictory essays and reports and therefore it is rated here as an opportunity.MCDONALDS restaurants are committed to manage their business by integrating environmental considerations into daily operations and by constantly seeking ways to add value to the community. For example maintaining the restaurants and drive thrums clean. MCDONALDS continues the refinement and implementation of the environmental guidelines on fish sourcing and money box this guidelines at least 18,000 metric tons of whitefish have been shifte d from unsustainable sources. High provider profile Setting the highest quality standards possible makes suppliers to jump the hurdle. They have to be able to deliver what we ask for.We look at taste and quality first not power not cost. Frank Muschetto (Senior Vice-president) clears the profile of the suppliers that we select is consistent with several attributes that we identified years ago that we felt support what MCDONALDS is about. One of them is their commitment to corporate responsibility if they dont have it, forget it. We try to pull together with many other companies and in several cases with the whole industry to be proactive against issues that can affects us all like avian influenza. We use our lead as a tool to participate with the United Nations on the common goal of stopping the sickness.MCDONALDS participates in a program called Kaleidoscope to test ways to sustain compliance based on dynamic, familiar management systems and ongoing worker input. yearbook audit s are done globally for meat (beef, porc and poultry) processing plants looking forward to maintain animal welfare farms all over the world and not only in the USA and Europe. birth corporate responsibility Comity MCDONALDS takes serious responsibility on what comes from being a study player in the global food industry and thats why the Board of Directors has a standing Corporate Responsibility Committee.It acts in an advisory capacity to the board and to management on policies and strategies. At the global management level, several groups provide leadership on particular types of corporate responsibility issues, for example Worldwide Corporate relations council who aligns all communications and external affairs for MCDONALDS globally oversees and advises on the corporate responsibility efforts. Truthful grime name MCDONALDS ensures to maintain and build the trust with all stakeholders and customers with appropriate and truthful merchandising and communications. These topics must also be relevant to costumers and consistent with the brand.Being real makes the people believe in our corporation and give support in our many community and global charity programs. MCDONALDS continuously works to tax and evolve their merchandising and advertising standards they have fresh introduced additional training and accountability for those whose work involves brand related communications and or use of MCDONALDS trademarks. 2. 4 Threats Scepticism In recent years we have seen e-mails and information on the web that MCDONALDS is using monster- yellow Not healthy enough for children For children the product choice still is not healthy enough. What else besides beef and chicken or fish?What about a soy burger, vegetable burger or fibre containing Deserts or simple deep frozen, quick steamed vegetable bowl (containing at least 80% of the vitamins and enzymes). What about offering small gifts or special packages as a support for a healthy product or a premium system for kids who eat healthy? A threat if the controversy comes up with such a system. Beef/Poultry/Fish Health Problems undecomposed initiatives in the US against growth hormone and or antibiotic stuffed cows, raspberry bush flu epidemics in the US and Europe, high contents of heavy metals in fish could cause sales slumps and cause profits and stocks to fall.MCDONALDS as a giant in the fast food business could act to slow to avoid large corporate damage. Made in mainland China syndrome Labour exploitation in China for the production of McDonalds happy meal toys. Profit pressure The pressure to deliver shareholder value give force MCDONALDS to not follow up the one or other CSR issue. No MCDONALDS CEO will risk his post at the cost for the implementation of a CSR if it would not at the same time create immediate value for shareholders. MCDONALDS a major contributor in global warming MCDONALDS is considered to be the largest consumer of beef.Examples that MCDONALDS cattle are being fed on former rain-forest territory, the excessive amount of cattle which produce huge quantities of methane, heavy use of chemicals, fertilizers and pesticides just to keep cattle breeding and MCDONALDS burgers profitable could develop a future threat of conscious consumer choices to visit a MCDONALDS restaurant or not. Local fast food restaurants Local fast food restaurants that are dont have such purchasing power and are less environmental threatening as giants such as McDonalds enjoy better quality reputation, because they buy from local butcheries, or use products e. . made in Austria i. e. free running chickens, approved Austrian grownup cows. MCDONALDS has the power to create demand Rather than reacting to the free play of market forces MCDONALDS with its marketing budget of 1bn USD is able to create demand Phil Lyon, 2007 28. That can be a threat for a society and its culture. 3. Task 2 McDonalds Plan to Win Strategy 3. 1 Implementation of key elements new Strategie s McDonalds overall strategic plan is called Plan to Win. Their focus is not so much on being the biggest fast-food restaurant chain, rather it is more focuse on being the best fast-food restaurant chain.McDonalds strategic alignment behind this plan has created better McDonalds experiences through the execution of multiple initiatives surrounding the five factors of exceptional customer experiences people, products, place, price and promotion. McDonalds, 2008 20 McDonalds also incorporates geographical strategic plans. In the U. S. , McDonalds strategic plan continues to focus on breakfast, chicken, beverages and convenience. These are the core areas in the United States. McDonalds has launched the Southern Style Chicken Biscuit for breakfast and the Southern Style Chicken Sandwich for luncheon and dinner.In the beverage business, McDonalds starting introducing new hot forcefulness coffee offerings on a market-by-market basis. In Europe, McDonalds uses a tiered menu approach. Thi s menu features premium selections, classic menu, and nonchalant affordable offerings. They also complement these with new products and limited-time food promotions McDonalds, 2008 20 In the Asia-Pacific, Middle atomic number 99, and Africa markets, McDonalds strategic plan is focused around convenience, breakfast, core menu extensions and value.With McDonalds overall strategic plan and its geographical strategic plan, the company should start to see more positive pecuniary results. McDonalds incorporates several organizational strategies. Some of the organizational strategies consist of better restaurant operations, placing the customer first, menu variety and beverage choice, convenience and day part elaboration, and ongoing restaurant reinvestment.McDonalds plans to continue to drive success in 2008 and beyond by leveraging key consumer insights and our global experience, while relying on our strengths in growing, examination and implementing initiatives surrounding our globa l business drivers of convenience, branded affordability, day part expansion and menu variety McDonalds, 2008 20. One of the ways McDonalds can obtain a positive net income is to maximize efficiency in its restaurant operations while at the same time placing the customer first.With strategic focus on menu variety and beverage choice, McDonalds is hoping for increased sales and guest counts. With their convenience and day part expansion initiative, McDonalds is hoping to increase efficiency in its drive-thru pick up window, and the company is staying open later for those late-nighters who want a quick bite to eat. McDonalds also has topically possess and operated restaurants which are at the core of their competitive advantage and makes them not just a global brand but a locally relevant one McDonalds, 2008 20. They are in the process of remodeling and upgrading its claims.The company is also opening up McCafes with the expectation that the gourmet coffee shop would move it closer to its goal of double sales at existing U. S. restaurants over the next decade Peter, 2007 19 A couple other organizational strategies are branded affordability, and the phylogenesis of their employees starting with recruitment and training and leading all the up to leadership and management. 3. 2 SWOT Analysis and Plan to Win McDonalds strategic plan is influencing their marketing efforts by mental synthesis better brand transparency.They want their image to be recognized globally. They are enhancing the customers experience. crossways their markets, they are making is easier for customers to enjoy a great McDonalds experience. They are introducing drive-thrus to the increasely mobile populations in China and Russia, while in the U. S. and Canada, great drive-thru efficiency and double drive-thru lanes enable them to serve even more customers readily (McDonalds, 2008, 13). In Germany, McDonalds has a reimaging program that includes adding about 100 McCafes.They are also insta lling new kitchen direct systems so that they can continue to deliver high food quality. McDonalds has already renovated about 10,000 restaurants world wide. They want their restaurants to be an expression of their brand. The company is also delivering greater value to the customer with new menu selections. By serving a locally relevant balance of new products, premium salads and sandwiches, classic menu favorites and everyday affordable offerings around the world, they create value for customers and satisfy their demand for choice and variety McDonalds, 2008 20.Types of marketing mix that McDonalds use to achieve their marketing goals are durable operating hours, everyday value meals, and optimizing efficiency in the drive-thru. McDonalds also uses marketing campaigns. In 2007, McDonalds used the Shrek movie to give children a choice between milk, fruit, or vegetables as part of their Happy Meal. In addition to their commitment with children, McDonalds is building their brand ima ge with innovated marketing transporting stems across b companionships and using Im lovin it to deepen their participation with customers who love their food and the unique McDonalds experience (McDonalds, 2008, 17).In the 2008 Olympics held in Beijing, McDonalds offered the Beijing Burger, Carmel and Banana Sundae, and Rice Sticks. They featured nine Olympic and Paralympic athletes on their packaging. In Australia, McDonalds held a marketing campaign where the people could decide what make believe to give its new hamburger. The name that won was Backyard Burger. With marketing campaigns like these, McDonalds is trying to create a better brand image. opposite organizational and marketing strategies are creating stronger bonds of trust by being get-at-able and maintaining an open dialogue with customers and key stakeholders McDonalds, 2008 20.The company is reinvesting approximately $1. 9 billion into their restaurants primarily to reimage existing restaurants and build new ones . McDonalds is also moving towards a more heavily certifyd, less capital-intensive business model. Although in some countries, such as China, this is not permissible due to political laws. With McDonalds growing global brand image and its emphasis on the five factors of exceptional customer service, this should help them increase sales and net income.With the initiative of remodeling and upgrading existing immunitys, this will give the customer a more pleasant and friendly place to dine out at. With McDonalds marketing campaign for the 2008 Olympics, they were an integral part of the games and this only enhanced McDonalds brand image in a positive way. With the recruitment and training initiatives for accepted employees or future prospects, this will allow McDonalds to achieve less of an already high turnover ratio. 4. Task 3 McDonalds 2003-2009 Strategy 4. McDonalds Dynamic Strategy With an established brand, visible leadership and solid monetary performance in its own sector , McDonalds has the foundations and options for future expansions. As stated previously, the group sees expanding markets/culture/economies as their future growth areas. One possible strategy for expansion would be to increase the local branding of menus within these markets. There is an opportunity to not only increase the numbers of cities, but to make the McDonalds name more recognizable as a restaurateur abroad.This would require the company to manage more outlets, rather than encouraging franchisee, which requires a committed financial expansion. Increasing its market share or at least profile would heighten the brand awareness, Kotler, 2005 18. The costs associated with a strategy to increase partnerships would be far less than if they attempted to expand to more developing countries and cities on their own. McDonalds is currently aligned with a limited number of political sympathies partnerships- China, Vietnam, Thomm, 1996 21.The risks are much lower but there is a risk to brand dilution with regard to consistency of the services provided and perfected by the McDonalds familiarization, management processes and manufacturing and production specifications. McDonald uses existing marketing communication methods such as TV, press, magazines, outdoor posters and taxi sides, all featuring the distinctive logo. Advertising is used to encourage people to try the food items, Kotler, 2008 17 and to raise awareness of new product developments and new openings.Nonetheless the marketing department could try increasing and adapting new marketing tactics. Also 18 percent of turnover is spent on advertising for comparison, the industry standard is five to seven percent. Kotler, 2008 17. The budget must be focused. To further capture the developing markets through local promotions, local endorsements and local menu planning would lead to pregnant decreases in advertising costs but an increase in the appropriateness of the message to the consumers in the target mar kets.Using Ronald McDonalds as a marketing tool has certain problems with the younger generation. The customal iconic figure has less in common with the youth culture, Sch goinger, 2002 22 and the more reference based figure is more suitable, such as Justin Timberlake. Consumers have a personal affinity with him, Kotler, 2005 18. This must be exploited further. This loyalty could be captured to increase the market share of the Brand. The perception of American quality is prevalent to many multinational businesses and exploited the world over.This can be seen in education, engineering and law. McDonald could emphasize the quality and superiority of service provided by the Americans through its advertising in other countries. Nonetheless, Schlosser, 2002 22 states that the traditional American style that once gave them its unique status is now its disadvantage. International markets no longer lust for the novelty of eating out in an American dinner, so McDonalds need to change this a nd meet the needs of specific markets rather than using a uniform approach.The company should increase advertising in its new target markets, and stress the quality and affordability of service in all promotions. Also, consider alternative marketing strategies such as a credit plug-in rewards program, corporate sponsorship of events, and well-publicized donations to charity. The optimal solution for McDonalds is to expand their service by offering to more cities, offering services in the expanding markets and increasing their promotion. During traditionally low seasons, tactical promotions and price advertising could also used to maximise restaurant capacity, commonly known s yield management, Kotler, 2005 18. McDonalds has the capability to sustain itself as one of the leaders in the worldwide food retail industry, Thomm, 1996 21. With careful planning and effective marketing, they can achieve this. In addition to communication to consumers, they must utilise their community datab ase, partnerships, retailers and community sponsors, who are the primary influences of the target market and who can familiarise all consumers with the products, benefits, and associated benefits, the core and peripheral attributes of the McDonald brand and the products/services. 4. Strategies Comparison McDonalds has many competitors to compete with in the fast food industry for example Burger King, Wendys, and Arbys see Chart 1. Burger King is McDonalds biggest competitor with their hamburgers being fire grilled rather than fried some(prenominal) have the kids meals with the dwarfish toys to attract the younger children and combo meals for the young adults. McDonalds and Burger King both have prepaid cards whereas Wendys and Arbys do not have these cards. Wendys offer not only hamburgers, but they have taken it to their loaded broil potato, chili, and the frost, and compete with the childrens meals.Arbys also has a nice menu besides the average hamburgers, they also have chicken salad sandwiches, roast beef sandwiches, and a kids meal that includes a healthy meal such as fruit mix, washout and ham sandwiches without the crust, with no toys included. Burger King, Wendys, Arbys are just a few of McDonalds competitors that McDonalds would have to compete with depending were you are located. There may be more or less competitors but at this time McDonalds, Burger King, Wendys, and Arbys all offer the hamburgers, fries, chicken sandwiches and the kids meal, they also have sweepstakes that you can enter to win prizes.McDonalds competitive beautify for our product, the McDonalds Reward brainpower, that we have presented would attract McDonalds target consumers between the ages of 18 and 25, will surely bring a higher profit for the McDonalds corporation. The McDonalds Reward Card will offer the opportunity for our customers to earn points which they will be able to purchase not only food, but to purchase the entertainment that they enjoy, there is no contest t hat they have to enter and wait for a force to win a prize.When they purchase at McDonalds they earn points, it is a win situation, McDonalds rewards their customers for selecting McDonalds to feed them with the variety of great fast food. Kotler, 2009 23 Chart 1 McDonalds Competitors pic 5. Task 4 McDonalds Competitors Performing a competitor analysis will enable McDonalds to understand the industries and market in which it operates. The use of Porters Five Forces will help them to analyses the dynamics of the market and understand the critical success factors in order to understand its position. Four types of competition Kotler, 2005 18 Brand competition Industry competition Form competition Generic competition Burger King Restaurants Supermarkets Trends clothing, music, Dominos Pizza, Inc. Non-fast food outlets Food market stalls fashion Independent fast food outlets e. g. Cafes Eating at home Consumer durables fish and chips, shish kebab places Coffee shops Similar priced products Papa Johns International, Inc. Subway Wendys International, Inc. Yum Brands KFC, Pizza Hut 5. 1 Wendys The first Wendys restaurant opened in Columbus, Ohio on November 15, 1969 at 257 East Broad driveway by Dave Thomas (Wendys. om). In 1972, the first franchise outside of Ohio was opened in Indianapolis, Indiana. Wendys is known as the home of the old fashioned hamburger, and is the Number 3 hamburger chain by sales. Its sales trail only McDonalds and Burger King. There are almost 6,700 Wendys restaurants worldwide about 78% of them are franchised (Hoovers fact sheet). Wendys offers high quality in customer service and allows customers to have their hamburger made the way they want it done. Wendys is on the New York Stock Exchange under the symbol of WEN.Dave Thomas when he started Wendys new the secret to success was to offer quality to customers and to the Franchisees that would own Wendys restaurants. Wendys in the early 90s developed a four part strate gy that world guide the company to refocus on what they do best, and grow the business into the next millennium. The first strategy is operating restaurants that exceed customer expectations on each visit. This is racy in todays competitive fast food business, due to the vast amount of choices consumers have, and one bad experience can lose a customer for life.This concept is easily done on paper, but with shrinking margins and lack of ability to attract highly skilled employees this strategy is difficult to implement. Although, Wendys seems to have instilled these beliefs into management and has seen considerable success practicing these beliefs. This strategy is the most important compared to the other three, because if you dont have any customers it does not matter how good your food is, you wont stay in business. Many companies forget that customer service is vital in staying in business and to growing the market.Fast food restaurants are one area that customer service is vital for survival. The reciprocal ohm strategy is accelerating new repositing openings and strengthening the quality of other Wendys locations. This is vital for Wendys to keep its competitive advantage is the ability to keep origins clean and modern. This strategy is being implemented and seems to be quite successful in percentage older Wendys become profitable again. Wendys philosophy is not to be the cheapest, but to be the best. With this philosophy Wendys has to offer newly designed restaurants with modern design to attract the cliental that will pay extra for fast food.Wendys seems to be doing an excellent job in creating an atmosphere that is conducive to customers spending a little more to get a lot more. Wendys has introduced salad bars, buffets, and has made the atmosphere friendlier to patrons. The trine strategy is to aggressively increase penetration by adding new units or so called special sites?. This an excellent way to grow Wendys market, these small restaurants ar e cost effective and promote the Wendys products to more families and truck drivers. Wendys is aggressively targeting the traveler in this area, which seems to be a good move to make Wendys the fast food of choice for travelers.Furthermore, these small restaurants are cheaper to develop and share the costs with gas stations they are affiliated with. The last of the domestic strategies is its marketing strategy to promote its perception of promotional items at the upper end of the price spectrum. This has been successful with the spicy chicken sandwich and pita sandwiches, which both have had considerable success. In the fast food business Wendys has distinguish itself from McDonalds and other fast food restaurants by offering high quality food items consumers are willing to pay for. In this area Wendys has reign the market and has seen considerable success.Wendys needs to keep utilizing this strength by introducing new products, and try not to go head to head with McDonalds. http// www. nzherald. co. nz/ primty/news/article. cfm? c_id=8&objectid=10537499 http//www. nbr. co. nz/article/wendys-plans-nz-expansion-36423 5. 2 mother fucker in the thump Although Jack in the Box remained strong with widely varied menu items and unique marketing strategies through the E. coli disaster of 1993, the current economic slump in the fast food industry highlights serious controversy over the companys new growth strategy and accounting practices (Bauder).In this article, analysts are challenging the accounting practices of a San Diego-based company, Jack in the Box. In their 10-k report, Jack in the Box is listing franchise sales as other revenues, which on paper triples their operation income to $9. 1 million. David N. Allen of investment banking firm Caris & Co. , questions this practice as the, sell of company assets to franchisees is not the same as selling a food product. He goes further saying that the company should separate operating earnings from non-operating inc ome. Reporting gains from asset sales to franchisees is inappropriate.Jack in the Box countered this claim by stating that other fast food chains use the same accounting practices, which is consistent with generally accepted accounting principles (Generally Accepted Accounting Principles). In defense of Jack in the Box, Bud Leedom, senior analyst at Wells Fargo Securities believes that Jacks accounting technique is specifically disclosed to Wall Street and as such is not troubled by their practices. Yet, on the other hand, David Geraty of RBC Capital Markets points out that by employing this practice the company is simply compensating softer sales with gains for other revenues. Platinum Inc. s responsible for the preparation, integrity, and fair manifestation of its published financial statements. For my organization, The Platinum Company, the corporation maintains a system of internal control over financial describe which is designed to provide reasonable assurance to management and the Board of Directors regarding the preparation of reliable published financial statements. The financial statements must follow the GAAP guidelines in preparing reports and recording transactions. To plug proper accounting Platinum utilizes their own internal audits and employs a long-familiar public accounting firm Deloitte & Touche, LLP.Like Jack in the Box, Platinums Annual Report 2002, under other (loss) income, reports losses due to financial loser in one of their investment companies and reports financial gains because of investments in unconsolidated affiliates. To make recommendations in improving the companies financial reporting would be difficult at best. Platinum extremely strict and assertive in their internal audits to ensure proper procedures are followed. The companies internal accountants work together with Deloitte & Touches accountants to preserve proper ethical conduct and moral principals are monitored.Business ethics are proper ethical conduct that impl ies that you not only consider what is in your best interest, but also what is in the best interest of others. example principles are what guide the conduct of individuals. For example, regarding financial reporting, WorldCom used a unsubtle interpretation of accounting rules when preparing financial statements. In an effort to make it appear that profits were increasing, WorldCom would write down in one quarter millions of dollars in assets it acquired while, at the same time, it included in this charge against earnings the cost of company expenses expected in the future.The result was bigger losses in the current quarter but smaller ones in future quarters, so that its profit picture would seem to be improving. Additionally, the unethical financial reporting ending that WorldCom made cost the companys reputation and most importantly the business. In my opinion, if Platinum continues to follow GAAP guidelines in their reporting practices, they should be clear from the public an alysis, Jack in the Box could not avoid. Unless there is a public build of support in order to challenge GAAP guidelines regarding listing franchise sales as other revenue, this accounting practice is just and fair.An organization must put business ethics in front of profits to ensure that they do not become another(prenominal) WorldCom tribulation http//www. marlerblog. com/2006/07/articles/legal-cases/thirteen-years-since-jack-in-the-box/ 5. 3 Sonic In 1953 Sonic Corporation was founded by Tony Smith in Shawnee, Oklahoma under a different name of the Top hat. Tony Smith started the company as a cheat restaurant featuring hot dogs, hamburgers, and french-fried onion rings. In the mid-50s Smith was asked by Charles Pappe for assistance in establishing a similar restaurant in a rural townsfolk also located in Oklahoma.This was the beginning of a partnership between the two men. In 1991 Sonic Corporation was the fifth largest chain in the fast-food industry, servicing in the hamburg er segment, behind McDonalds, Burger King, Hardees, and Wendys. Sonic has and is still carrying the tradition of being a high-quality franchise-based organization in the Sunbelt states. The following case will be broke down into five different stages beginning with early strategies, problems, new strategies, a ratio analysis, and a recommendation.Tony Smith introduced the Top Hat as a drive-in restaurant that reduced start up cost by not having eat-in space. This new restaurant featured drive-in stalls for automobiles that were equipped with a two-way intercom enabling customers to order as soon as they drove in, opposed to conventional practices of waiting for a carhop to take an order. Delivery of the fresh fast-quality products was doing to the unique design of the kitchen, and the use of carhops. Sonic Corporation preferred to do things as easy as possible and avoid sophistication. Another strategy Smith implemented was a collection of franchise royalties.This was done in a way such that Sonic franchise holders were required to purchase printed bags at an additional fee that Smith arranged through a paper-goods supplier. Pyramid-type selling arrangements were formed by franchisees in money making efforts by starting other franchises through friends. This lead to original store managers having a percentage of their own store earnings and a portion of the new operation of the recruited friend manager. This idea further developed to multi-ownership of almost all Sonic operations as store managers were also part owners. This concept of pyramid-type selling carried Sonic forward with rapid growth.In the later-70s almost one new sonic store opened per day. The rapid expansion of Sonic was growing at an uncontrollable rate. With such rapid growth some stores failed. In these cases Sonic fictive control over failed franchise units, driving the number of company owned restaurants from 3 in 1974 to 149 in 1979. This rapid expansion of Sonic was a short lived frenz y which resulted in numerous failures do to lack of planning, market analysis, and requirements for unit managers. The company was forced to operate the failed franchise as company units in most cases, to protect the franchise name and reputation.A loss was posted in 1980 as Sonic began closing some operations. Reasons for the closings were that the board tighten its control which created an operation that left no services being provided to the franchise holders, including no advertising cooperations, no management training services, and no accounting services. In 1983 Smith decided to go outside the companys parameters and appointed a professional manager that had no ties to Sonic Corporation in any shape, form, or know how. Stephen Lynn was introduced to Sonic Corporation as president and chief executive officer.The new comer, Lynn, was granted the decision to form his own management team. This team was formed and implemented by mid 1984. By implementing his own management team Ly nn could begin to take problems head on, after ridding the board members and franchise holders that had significant conflicting interests that muzzy the better judgement of Sonic. In an attempt to turn the organization around, Lynn and his newly formed management team set forth on a strategy that had three key factors a. attack problems concerning franchise attitude and Sonics image b. improve purchasing c. Improve communications.A co-op program along with advertising also helped improve communication and relations between franchise owners. The companys strategies also reached out further as it offered annual conventions, provided training for managers, and training facilities with a test kitchen. The company went even further to offer help in areas of franchisees location sites and construction support to sales and profit rise counseling. Another strategy was to upgrade the stores appearances and improve energy efficiency. Most franchise owners purchased a retrofit package that o ffered the mentioned upgrade features.These new designs generated an average of 20 percent increase in unit sales in addition to the overhead savings. Sonic Corporation is an ever improving company that is endeavor for efficiency, freshness, and quality. Over the life of the company management has always been trying to increase profits and taking steps into the future. Sonic Corporation also in condition(p) that in maximizing profits one must incorporate all the ingredients from attitudes of the mangers and owners to the products they offer their customers. In looking at the ratios Sonic Corporation is looking stronger every year.I would recommend keeping management minds striving to new and better innovations that could again revolutionize the company as it had under the leadership of Mr. Lynn. In doing so the company assures itself and ever lasting life in the fast-food drive-in industry. http//www. referenceforbusiness. com/history2/39/Sonic-Corp. html 6. References Gould, W. ( 1996). McDonalds. London, Cherrytree Books. Kotler, P. (2005). Principles of marketing. Harlow, Financial multiplication Prentice Hall. Kotler, P. and G. Armstrong (2008). Principles of marketing. hurrying consign River, NJ, Pearson/Prentice Hall.Kotler, P. and K. L. Keller (2009). Marketing management. Upper Saddle River, NJ, Pearson/Prentice Hall. Kroc, R. and R. Anderson (1987). cranch it out the making of McDonalds. 218 p. , 24 pages of plates. Love, J. F. (1995). McDonalds behind the arches. New York, niggling Books. McDonalds (2008). Annual Report. Retrieved kinfolk . http//www. mcdonalds. com/corp/invest/pub/2008_annual_shareholders. html Nachrichten, F. http//www. finanznachrichten. de/nachrichten-2006-04/artikel-6317906. asp Peter, J. P. and J. H. Donnelly (2007). Marketing management knowledge and skills.Boston London, McGraw-Hill Irwin. Phil Lyon, S. T. a. S. S. (2007). The Ritzer debate continued. http//www. mcspotlight. org/media/reports/silverstone. html Sch losser, E. (2002). Fast food nation what the all-American meal is doing to the world. London, Penguin, 2007. Thomm, R. (1996). Business China a realistic insight into doing business in China. Chatswood, N. S. W. , Business & Professional Publishing. Weekly, B. (1994). McLibel Support Campaign. stocky and extracts of court proceeding in High Court case McDonalds versus Helen blade and Dave Morris. . Biblography Gould, W. (1996). McDonalds. London, Cherrytree Books. Kotler, P. (2005). Principles of marketing. Harlow, Financial Times Prentice Hall. Kotler, P. and G. Armstrong (2008). Principles of marketing. Upper Saddle River, NJ, Pearson/Prentice Hall. Kotler, P. and K. L. Keller (2009). Marketing management. Upper Saddle River, NJ, Pearson/Prentice Hall. Kroc, R. and R. Anderson (1987). Grinding it out the making of McDonalds. 218 p. , 24 pages of plates. Love, J. F. (1995). McDonalds behind the arches. New York, Bantam Books. McDonalds (2008). Annual Report. Retrieved Septe mber . http//www. mcdonalds. com/corp/invest/pub/2008_annual_shareholders. html Nachrichten, F. http//www. finanznachrichten. de/nachrichten-2006-04/artikel-6317906. asp Peter, J. P. and J. H. Donnelly (2007). Marketing management knowledge and skills. Boston London, McGraw-Hill Irwin. Phil Lyon, S. T. a. S. S. (2007). The Ritzer debate continued. http//www. mcspotlight. org/media/reports/silverstone. html Schlosser, E. (2002). Fast food nation what the all-American meal is doing to the world. London, Penguin, 2007. Thomm, R. (1996).Business China a practical insight into doing business in China. Chatswood, N. S. W. , Business & Professional Publishing. Weekly, B. (1994). McLibel Support Campaign. summary and extracts of court proceedings in High Court case McDonalds versus Helen Steel and Dave Morris. http//www. referenceforbusiness. com/history2/39/Sonic-Corp. html http//www. marlerblog. com/2006/07/articles/legal-cases/thirteen-years-since-jack-in-the-box/ http//www. nzhera ld. co. nz/property/news/article. cfm? c_id=8&objectid=10537499 http//www. nbr. co. nz/article/wendys-plans-nz-expansion-36423