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McDonald’s Assignment Essay

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Question No 1: What opportunities and threats did McDonalds face? How did it handle them? What alternative could it have chosen?

1. He offered a limited menu of high-quality, moderately-priced food served fast in spotless surroundings. McDonald’s “QSC&V” (quality, service, cleanliness, and value) was a hit. 2. Food is prepared in accordance with local laws. For example, the menus in Arab countries comply with Islamic food preparation laws. 3. The opportunities for expanding the market are great when one realizes that 99 percent of the world population is not yet McDonald’s customers. For example, in China, with a population of 1.2 billion people, there are only 62 McDonald’s restaurants in1995. McDonald’s vision is to be the major player in food services around the world.

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1. Many competitors for same costumer – Subway – Burger King – KFC – Taco Bell HOW DID McDONALD HANDLE THEM: McDonalds handle these threats by by these possible steps: * By delivering superior value to customers then competitors. * By decreasing health problem.

* For better performance in Europe McDonald has to do a lot of work by providing the taste and dishes which have high demand in European market. WHAT ALTERNATIVE COULD IT HAVE CHOSEN:

Question No 2: Before McDonalds entered the European market, few people believed that fast food could be successful in Europe. Why do you think McDonalds has succeeded? What strategies did it follow? How did these differ from its strategies in Asia? Answer:

I think that they have succeeded because they provide good food at a good price, and they give people what they expect when they go to a McDonald’s. Their food is nice and cheap….so many people would like to go there for their meals…….and when you enter the store…….you can immediately smell the fragrance of the food and you will be attracted to eat the food………. By capturing the kiddies with playgrounds, a clown and free toys. Kids go there and eat one bite then hit the play area. McDonalds selling fast food that mean don’t need to wait too much for the order also it’s cheap and tasty because that it’s successful. STRATEGIES:

Question No 3: What is McDonald’s basic philosophy? How does it enforce this philosophy and adapt to different environments?
Our basic philosophy at McDonalds is to develop a collaborative approach with our suppliers. We are committed to sharing best practice with all our suppliers including the beef farmers who benefit from this commitment because it helps improve quality and increase value.’ David Thomas, Senior Agricultural Assurance Manager, McDonald’s

Question No 4: Should McDonalds expand its menu? If you say no, then why not? If you say yes, what kinds of products should it add?

Question No 5: Why is McDonalds successful in many countries around the world?
McDonald’s Corporation (NYSE: MCD) is the world’s largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries.[3][4] Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald; in 1948 they reorganized their business as a hamburger stand using production line principles. Businessman Ray Kroc joined the company as a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth.

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