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2011-2013 Strategic Management Group 6
Introduction-1 McDonald's Crisis: 1998-2003 Ray Kroc 1955-1973 Realized McDonald’s formula of  	self-service, paper-service,  	quick-service 1962 McDonald’s introduce the  	world famous Golden Arches logo
Introduction-2 Fred Turner 1973-1987  Management Science: established quality control measures, Turner’s manual    Training: Hamburger University Supervising franchisees: Field visit report Management style: Expanded the authority of 	 regional manager Advertising: “Ronald McDonald” McDonald’s under  attack: Franchisees’ Rights  McDonald’s under  attack: Union Rights
Introduction-3 ,[object Object]
 Customer service: McDonald’s service enhancement program
Cost Cutting: redesign restaurant, efficient construction method, Open franchisee to choose insurance company,  mini-McDonalds’ and expand small-size non-traditional site
International expansion: Joint venture with the local partners (Start with “Big six” country)
1992 open the first restaurant in Beijing, China
McDonald’s in Crisis: No new success menu,	 Shop similar hurting each customer,   	McDonald’s loosing market share
Introduction-4 ,[object Object]
Recasting the image of McDonald’s
New menu: Made for you project
Acquisition and attacks on McDonald’s: Selling unhealthy 	food, exploiting Children, mistreating worker, destroy  	rain forests and torturing animals
Introduction-5 ,[object Object]
Improving stores’ operations
Substituted healthier food choices
Launched a Balance Lifestyle (Smart eating)	and fitness program ,[object Object]
McCafes,[object Object]
External Analysis: Environment Analysis
External Analysis: Environment Analysis
External Analysis: Environment Analysis
External Analysis: Environment Analysis
External Analysis: Industry Competitiveness Analysis
External Analysis: Industry Competitiveness Analysis
External Analysis: Industry Competitiveness Analysis
External Analysis: Industry Competitiveness Analysis
External Analysis: Industry Competitiveness Analysis
External Analysis: Industry Competitiveness Analysis
External Analysis: EFAS + ICFAS
Internal Factors Analysis
Internal Factors Analysis
Internal Factors Analysis
Internal Factors Analysis
Internal Factors Analysis
Internal Factors Analysis
SWOT Analysis S – Strength ,[object Object]
Strong Brand name, Image and Reputation.
Location & No. of Branches
McDonald’s Standard
Capability of CEO
Economies of Scale
Listed Company,[object Object]
McDonald’s Standard – no innovation.
Attack from a variety of public interest groups.
 Unhealthy, fatty foods
McJob,[object Object]
Lifestyle – Fast, Work outside
World’s  Economic  Rebound
Strong Brand Loyalty,[object Object]
Many direct/indirect no. of competitors
Mad Cow Disease, H1N1, Swine flu outbreak
Tendency to have additional tax on unhealthy food,[object Object]
Mission เราจะเป็นสถานที่อันดับหนึ่งในใจของลูกค้า ด้วยการพัฒนากระบวนการและนำเสนออาหารที่ตรงกับความต้องการของลูกค้า ด้วยพันธกิจดังต่อไปนี้ ,[object Object]
พัฒนาเมนูอาหารที่หลากหลาย เพื่อตอบสนองต่อความต้องการของลูกค้าและกลมกลืนไปกับวัฒนธรรมท้องถิ่น
สร้างวัฒนธรรมองค์กร รับรู้และเข้าใจถึงปรัชญาของบริษัท QSCV,[object Object]
Corporate Goal ,[object Object]
Customer visit       2% / year
     franchise operated to be 85% of all
ROIIC >45% by 2013
Remain cost structure,[object Object]
Corporate Strategy GE McKinsey Matrix
Corporate Strategy BCG Model
Corporate Strategy ADL Portfolio-Planning Matrix
Corporate Strategy Ansoff Growth Strategy Matrix
Corporate Strategy TOWS Matrix S-O Strategies ,[object Object]
  Add Value to ProductW-O Strategies ,[object Object],[object Object]
  Strengthened MCD’s Standard
  Set up Legal TeamW-T Strategies ,[object Object]
Launch campaign that Encourage people to exercise
Sponsorship in Sport Program,[object Object]
Business Strategy SBU1:  U.S.
Business Strategy SBU2:  Europe
Business Strategy SBU3:  Asia Pacific, Middle East, Africa (APMEA)
Business Strategy China Operated in China since 1990 World’s fastest growing emerging market No. 1 growth market for McDonald's Goal by 2013 ROA      10% Sale growth      20% Sales (company & franchise)      50% Operating Cost      5% Increase to 2,000 branches
Functional Strategy
Marketing Strategy: Segmentation  Segmented by “Usage Type”   Focus on “Usage Rate” Reduce ‘coz Nutrition, Fat and Standard Menu  Time Taste Trendy
Marketing Strategy : Target Market ,[object Object],Repeat Purchase Diversify Valued-added Potential Customers
เมนูให้เลือกหลากหลาย และ Localize จำนวนสาขา ครอบคลุม Marketing Strategy : Positioning
Marketing Strategy : Product Menu Nutrition added    ex. Vitamin, calcium and selected oil New localized Menu
Marketing Strategy : Product McDonalds’ Menu
Marketing Strategy : Price More Quality, but Same Price Depend on Income per Capita
Marketing Strategy : Place Existing  Renovation New Branches Expansion Drive Thru Delivery
Marketing Strategy : Promotion Above the line (TV Ads theme) Family Time : confident Teenagers : get more Child to Parent :  Let’s try
Marketing Strategy : Promotion Below the line Localized Menu In-Store Ads. Nutrition Labels Mobile Kitchen
Marketing Strategy
Marketing Strategy:  People Service people  Training: Operation man,  	Countermen Quality Control:  	Field Service report  (service, quality, cleanliness andoverall performance) McDonald’s Best Practice: Restaurant,  Country and Region McDonald’s staff: Competency in carrier McDonald’s culture: Each of employee should have McDonald’s culture mindset
Marketing Strategy:  Process Service blueprint McDonald’s code of conduct
Marketing Strategy:  Physical Evidence Standard Restaurant
Marketing Strategy:  Physical Evidence Standard Cleanliness Standard dressing
McDonald’s  CRM Ronald Club
McDonald’s  CRM Social Network
McDonald’s  CRM Moms’ quality respondents program
McDonald’s  CRM McDonald’sRecall the good old day
McDonald’s  CSR Ronald McDonald house charities
McDonald’s  CSR Greener than ever
McDonald’s  CSR I’m lovin’ it’ I’m lovin’ China
McDonald’s  CSR McDonald’s Community
Operation Strategy Franchise Management Quality Control R&D Supply Chain Management

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