It is clear that the fast food sector is advancing without brake throughout the world, where each company seeks a place in the market and Mc Donalds has its own in all parts of the world.
Curiously, the product that Mc Donalds sells is basically the same throughout the planet, without adapting the offer to the tastes of each country, so it seems that we are not so different in culture or taste. Today the "Big Mac", the company's most famous hamburger, triumphs on five continents and becomes a common point for the inhabitants of the planet.
Today we have to learn from Mc Donalds, from an American company that has made the leap and has left its original market (USA) to conquer the world with its quality. Obviously, the secret of success is to offer an unbeatable relationship between quality and price. Let us now see some important data that make this chain of hamburgers the leader in the world.
mcdonalds-business-analysisSome interesting facts:
-26000 establishments worldwide.
-14 billion meals sold per year
-Five new establishments open every day
-Sale of 145 hamburgers per second
-Million and a half employees
-The production of the product is subject to rigorous controls
-First Coca-Cola customer
-Employees who always smile at the customer
-The client is attended in a maximum of 90 seconds
-Quality monitoring by the mother house, inspecting premises
-Own burger study center.
Everyone already knows the Happy Meal, that "happy meal" that Mc Donalds has made famous among children around the world. Well, behind each box there are many hours of research to reach the ideal product.
Obviously, Mc Donalds tends perfectly in his segment.
- The company:
McDonald's is recognized worldwide, both for being a high quality commercial organization and for being one of the best franchise offer opportunities. The key to McDonald's success is having a very strong base of people: Its Franchisees. (See franchises)
McDonald's and its Franchisees constitute the most important organization in Fast Service Food Venues
In Argentina, the first McDonald's store came through Arcos Dorados SA and was opened in 1986 in the Belgrano neighborhood, in the City of Buenos Aires. Throughout all these years, going through numerous economic plans and currency exchanges, they reached 1999 with more than 164 points of sale throughout the country. Their experience in recruiting, selecting and training qualified franchisees, as well as the relationship of mutual trust that they have with each of them, have been determining factors in their sustained growth.
- Company history:
The first place in the history of fast food service was opened by the McDonald brothers in 1948, in San Bernardino, California, (USA). They gave a new direction to the business, they offered food prepared and served at high speed, since Others modernized the system of the time: they replaced the dishwasher with napkins and paper bags.
A limited menu and high sales volume characterized the success of the new restaurant. Ray Kroc, then supplier of the shake mixing machine, surprised by the number of "Multi-mixers" requested, visited the McDonald brothers in 1954. He proposed to open more places like that.
Therefore, in 1955 the first premises of the Corporation in charge of Ray Kroc were inaugurated. Between the 1950s and 1960s, visionary Ray Kroc and his management team established the successful operating philosophy of the McDonald's System: Quality, Service, Cleanliness and Value.
Currently there are more than 26,000 establishments, 126 countries in the world and five continents where the Golden Arches are located, and they also sell about 145 hamburgers per second.
Its success is huge, in fact it has been the most profitable retail business for customers in the United States for 10 years. And it is growing rapidly, opening an average of 3 to 8 stores per day in the world market.
Throughout the world, all its stores offer a standard menu, although special products are developed in each culture that are tailored to the taste of each community. For example, in some restaurants in Germany beer, wine is offered in the French. Oriental noodles are served in some of the restaurants in the Far East. In Canada, the menu includes cheese, vegetables, sausages, and pizzas.
Food is prepared according to local laws, for example, in the menus of the Arab countries, the Islamic laws of food preparation are complied with, as in Israel with the Jewish Kosher culture, in which dairy products are not served..
- McDonald's: “market leader” The latest surveys on brand image and perception published by independent media place McDonald's among the top 10 companies in the local market and the absolute leader in its category. In the ranking of “The 200 most admired brands ”Carried out by CEOP and published by the Clarín newspaper on 12/12/99, McDonald's appears in 7th place and first among brands in the fast food service category. The magazine Negocios published in its edition December an image ranking made by the consulting group Strategic Business Alberto Wilensky entitled "The 100 best companies", where McDonald's is ranked 8th and the first in its category.
# 1 in fast food service and unique among the Top 10
# 1 in General Ranking among Students
# 1 in Overall Ranking in the "Customer Service" and "Business Ethics" Categories
# 1 in fast food service and unique among the Top 10
# 1 Fast food in all Categories: Quality of products and / or services, Customer Service, Price Policy, Honesty and Transparency, Background, "My question arises from how it is possible for a combination of four elements to achieve that some canteens scattered throughout Southern California transform into a large company in less than 30 years." Ray Kroc.
1.4 THE PERSON RESPONSIBLE FOR THIS ACHIEVEMENT
Ray Kroc, an unknown ice cream shaker vendor, having gone through countless trades, one day receives a major order from a Southern California restaurant chain that he has never heard of.
Due to the importance of this order, he decides to go personally to operate with his client. It was there that he observed the crowd going in and out of that small business of the McDonald brothers, who sold hamburgers for $ 0.15. What was served there was simple and cheap: hamburgers, fries, and milk shakes. After several conversations with the successful brothers, he agreed, the "franchise" to enable new outlets. Under the agreement, Kroc was to collect 1.9% of the net proceeds from each concession, and a quarter of its proceeds would go to the McDonald brothers.
This ambitious businessman, in 1954, built his first McDonald's service near the Des Plaines highway, in a Chicago suburb. The place was full from the first moment it opened. The inhabitants of the Midwest appreciated the possibility of going to a Mc Donald's and being able to eat quickly without getting out of the car.
Encouraged by this success, it spread over the most important highways in central North America. After five years, the restaurants had a sales level close to fifty million dollars. Despite the boom in his business, Kroc was dissatisfied. He wanted to be the sole owner of a chain of fast restaurants. And that is how in 1960 he achieved his goal of US $ 2,700,000. One of the goals Kroc wanted to achieve in the 1960s and '70s was to try to increase the operations of its sales locations. And in order to increase the number of people who could be fed at the same time, he added to the foreign service of the parking lots, table and bar service. This spurred sales at stores located in cities where the number of Car Owners was relatively low.
Ray Kroc saw the need to create a training program for his employees. The managers of each of their businesses had to follow very demanding courses at McDonald's Hamburger University.
One of the keys to Kroc was cleaning in each establishment: the floor had to be always cleaner and for this it had to be washed every hour. Kroc carried out frequent inspections to ensure himself that his rules were faithfully followed. One day, in a Montana store, he discovered a piece of chewing gum stuck to the inside of a table: He knelt down and personally tore it off. A This business in less than 20 years would become the "big hamburger with a turnover of 12 Billion dollars worldwide and profits of more than four hundred million dollars.
II. Main body:
2.1 MCDONALDS ARGENTINA:
In 1984, McDonald's management began to conceive the idea of incorporating the company in Argentina. Consequently, he contacted the consulting firm Henry Martin to launch a campaign to carry out market studies and thus analyze the feasibility of installing its operations in Argentina. At the same time, he asked that an individual be found who would be able to carry out this objective.
A Henry Martin consultant, Stewart Pryor, was appointed, who along with Woods Staton, who had spearheaded the project to open the chain in Colombia, but since the government did not allow them to settle, joined Pryor to direct the Argentine Project.
They were installed in 1986 after having successfully entered the Central American markets, and in Brazil.
Here in Argentina when they wanted to advance inland after the classic market studies, they had serious mishaps. Success eluded them. They collided with the siesta, with the demands of a captive, demanding market. But carnivorous, with the regional empanada.
So forceful was the result, that they were slow to come.
They do it first with a local in Cabildo and Mendoza, the full Belgrano neighborhood and another later in San Isidro. Both locations with the capacity to serve 4,000 and 5,000 people per day respectively, and to employ more than 500 people together. The two men have opened independent chains through two joint ventures with the parent company, where they control 51% of the shares: This is the classic scheme by which McDonald's is installed abroad. (see franchise regime)
Before opening the premises, a team of experts was sent to the country to take samples from all kinds of suppliers:from refrigerators to dairy and plastic packers. In Chicago, tests were carried out to analyze the quality and production capacity of these Argentine suppliers in order to maintain the universal standard required by the company. But sometimes problems arise. Such is the case of an Argentine supplier that sold raw materials for one of its main products: French fries; So McDonald's sent them a shipment of "Russet Idaho Potatoes" seeds from the US for the man to grow in his fields in Balcarce. The Frigorífico Río de la Plata dedicates 10% of its hamburger production to them today. And the directors of the company assure that there will be a day when they will only sell hamburgers to McDonald's. For other providers the advantages are obvious. (see Suppliers)
The opening in November 1987 of the restaurant on Florida Street, which with more than 570 seats and an investment of three and a half million dollars could be the largest fast food place in the world. Currently, with 172 stores, McDonald's has already settled in the provinces of Buenos Aires (including strategic places such as La Plata and Mar del Plata), Mendoza, Córdoba, Santa Fé, Tucumán, Neuquen and Entre Ríos (Paraná.
Seeking to always be where its customers are, McDonald's opened its premises, in April 1999, in a historic building located in front of the Obelisk, symbol of the city of Buenos Aires.
This place pays tribute to the Argentine culture, recovering one of the most mythical corners of Buenos Aires.
It is not a fundamental requirement to work at McDonald's to have an excellent academic background. Much less than half of executives in the US have a college education. The company prioritizes other values, starting with loyalty, dedication and service, which means that, far from having a conventional structure, employees behave like parts of the same family.
When the directors of the company say that they keep "doors open" it is not false. According to Pryor, “In headquarters there are no doors. One can reach the threshold of the President's office and see if he is working. If he is not Busy, he will surely invite him to come in ». He also adds: »… The trio that makes up the head of McDonald's, the president, the general manager and the operations manager, call their offices" the hairdresser ", because they are always ready to chat…"
Along with the help of their managers, Pryor and Staton, they have endeavored to reproduce this culture in Argentina and although they have suffered abandonment by more experienced men and women, in general the morale of the employees is very good. Many of the local employees are university students. For most, this is their first job and they can only keep it thanks to the employment policy, which allows them to work only the hours they need.
Another key of Pryor and Staton is to promote good communication: at McDonald's there is a mailbox of good ideas, the possibility of writing a confidential letter to the presidents of the company, there are anonymous surveys and every three months they hold meetings with the groups to pose and seek solutions to problems.
Mac Donalds had rapid growth. A company with all its trained personnel, with its own university, with its own advertising teams, with a unique food research center, with high technology, adapting to the changing taste of people. With an excellent service, occupying the young university students.
At first it was feared that young Argentines would feel belittled by working with their hands, cooking hamburgers, and carrying garbage cans. Martín Reynal, 26, manager of the Belgrano store, says: »… when the boys saw us fixing tables and cleaning bathrooms, they felt no prejudice for going ahead and doing the same for their client. The main task of a manager is to know how to motivate his team, and the best way is to know what the frustrations of his employees are. If our employee is happy, he will know how to convey his satisfaction to the consumer. The Argentine consumer is eager for good service. Our attitude towards them is to say 'thank you for coming' ……
Despite this informal context, McDonald's employs an extremely rigid operating system. There are specific rules for doing everything from setting the distance from the wall to the refrigerator and the exact temperature at which potatoes should be fried. All these methods are detailed in special manuals. While the system is strict, employees work in a comfortable environment, where innovation and creativity are rewarded. For example: in addition to serving the typical North American apple cakes, in Argentina they also come with quince jelly. In Thailand, in addition to chocolate and vanilla milk shakes, McDonald's also come prepared, with fruit. But it is not always so easy to innovate in this way. Staton states:«… The possibility of introducing fish fillets using hake has been studied. But there is no supplier that manages to produce them according to the strict specifications of the company. ” (See ENDOMARKETING).
"The Burger took over our culture":
Some eat them because it is cheaper, others for practicality, and there are also fans who prefer them completely. Reality tells us that little by little the hamburger became, along with the pizza, the bills and the roast, a symbol of our culture. Something is changing, we are going to tell you why.
Many of us were born eating at Pumper Nic, like forgetting those birthdays with the delicious burgers (until now they were delicious, considering that they were the only ones) with the classic Freny's. But one day a certain Mc Donald's arrived in Argentina and he had not only one type of hamburger, but different varieties, there was also an exclusive space for the boys to play accompanied by the "Happy Box" and it generated a huge change in our culture. And yes, it is rich, it is fast, it is cheap and we are served quite well. But what should be noted is that Ronald and his friends did not forget that we are ARGENTINOS: First we had Croissants at breakfast, then pancakes with dulce de leche, Milanesa with a hamburger taste and now they have Mc Lomito. And even when the Light wave arrived, the "cheff" and its salads appeared.
But Ronald was not going to be alone when Pumper Nic failed to compete with Mc. Burger King came first and then Wendy's. Burger, slowly with his Whopper began to attract our stomachs and wanted to differentiate himself by explaining that the hamburgers "are grilled". Then he challenged the "traditional" combos by offering us onion rings instead of fries. While the Wendy's people didn't have a very good idea: they wanted to sell us the same thing that Ronald and Burger used to sell to 30% more expensive.
And everyone wanted to enjoy this success of the "American dream" in our country. First came the ancient Hard Rock chain, beyond that its first location was in London, it has the American style. Promising us a pleasant atmosphere, quite loud music (sometimes live bands) and a typically American menu (hamburgers, pork ribs, nachos and others).
Then came TGI Fridays settling in Puerto Madero with the same successful formula as in the United States: music + well-yankee menu: hamburgers, pork ribs, Mexican food, etc.
But little by little others entered offering Burgers but not so "fast" or so cheap. Endless combinations came: World Sport Café, Henry J. Beans, Spell Café, Kansas and many more restaurants with this vibe. Today we are no longer surprised when we finish having a Cheese Burguer with French Fries at any of these places on a Saturday night. And why not end up having a few drinks or a few beers among friends?
Moscato, pizza and fainá? That was before. The hamburger, little by little, became a symbol of young people and stopped being just a meatball with minced meat and ingredients, becoming a synonym for encounters, friends and fun. Who would have said this 20 years ago ??? !!!!!!
- Competitive keys to success: Defining your business:
They are a limited menu of fast food, good taste and consistent quality, fast and accurate service, great value, exceptional customer service, convenient locations, and global market coverage.
- Mission :
Quickly serve a limited menu of appetizing hot food in a nice clean restaurant for a good price.
Business vision:
- Dominate the global food service industry, through customer satisfaction. Be recognized by employees, customers, competitors, suppliers, investors and the general public. Promote innovation and creativity. Anticipate market changes and potential problems that can be generated.
Corporate objective:
Achieve 100% of total customer satisfaction every day in every restaurant.
- Corporate goals: Increase market share and benefits. Contribute socially and economically with countries, to achieve 100% customer satisfaction.
Mc Donald´s positioning map:
STRATEGIES USED:
- Strategies for "global domination":
McDonald in his 1995 annual report proudly announces his "strategies for global domination." He says that "McDonald's vision is to dominate the global food service industry. Global dominance means setting the bar for customer satisfaction while increasing market share and profits with your convenience, value and execution strategies.
- Generic competitive strategies used:
Total Leadership in Differentiation: "more for the same wreck". The company tries to differentiate its products and services by creating characteristics perceived as unique and important by consumers.
Its market share and profits grew due to convenience, value and execution strategies.
McDonald´s also performs value activities in the most efficient way possible in order to reduce operating costs, thus increasing its benefits.
- Alternative strategies used by McDonald´s:
- Integration strategies:
- Forward integration: as they exercise control over their franchises worldwide. Backward integration : integrates value chains with that of its suppliers, thus coordinating their activities and achieving both benefits from it.
- Intensive strategies:
- Market penetration: since strategies are developed to increase sales, such as promotional activities, etc. Development of new products:
- Strategies for growth:
- Execution: its plans are based on the total satisfaction of its consumers, trying to offer more than normal, this is achieved by delivering superior quality, good service, and constant cleaning.
This is the foundation of your growth, and it is an imperative to capture new opportunities in the future.
- Expansion: The company constantly expands its products from the conventional line of hamburgers, introducing what it wants, and discarding what it dislikes. Extension: In the long term, we want the business to continue growing, so we are constantly looking for innovation and new business development.
Total quality management:
McDonald's top priority is the safety of its customers, they only use products and raw materials that meet the strictest quality and safety standards that are tested and approved by the competent government authorities, such as SENASA (National Health Service and Agri-food quality).
- Growth and Investment in Argentina:
With the opening of its first 2 stores, McDonald's began its activities in the country in 1986. Today it has more than 210 stores and 11,000 employees who share the same responsibility of delivering quality, safety and flavor to customers through all products.
Currently, McDonald's is present in the City of Buenos Aires, suburbs and in several Argentine cities such as Bahía Blanca, La Plata, Salta, Mar del Plata, Córdoba, Mendoza, Neuquen, Paraná, Rosario, Santa Fe and Tucumán.
Year after year, McDonald's Argentina has concentrated significant investments that consolidate its commitment to the country and the communities in which it operates.
McDonald's is one of the leading employers in the country. Likewise, through the production and marketing of its products, a large number of indirect jobs are generated throughout the national economy.
With the opening of each new McDonald's location, new jobs are created, new opportunities for the local industry, stimulating the growth of organizations that work with it.
- Company location:
Mc Donald´s needs to be located in places with a large number of passing customers, so it will take them a long time to see locals in sparsely populated areas; even so, establishments with a design adapted to the architecture of the area are appearing.
- ANALYSIS OF COMPETITIVE FORCES:
McDonald's will only be effective to the extent that it succeeds in establishing a partnership with its employees (EndoMarketing), franchisees, suppliers, to provide exceptionally high customer value.
- Suppliers:
McDonald's policy with respect to its suppliers is to develop long-term and mutually beneficial relationships that allow the company's quality standards to be maintained. In 1998 McDonald's purchased goods and services for more than $ 100 million, mostly provided by national companies.
McDonald's makes its contribution to the growth of the field, consuming annually a large quantity of Argentine food products, including 8,000 tons of beef, 100 million breads, 900 tons of tomato, 1,000 tons of lettuce, 4.5 million liters of ice cream and 8,200 tons of potatoes.
87% of the staples on the McDonald's menu - meat, potatoes, bread, lettuce, and ice cream - are purchased from Argentine companies. This data not only confirms the confidence of the company in the national industry, but also reaffirms its vocation to promote its growth and expansion.
From raw materials and throughout the production process (value chain), McDonald's is committed to always providing the highest quality, safety, freshness and flavor in all its products.
Organization of supplying fast food outlets in Argentina
The Mc Donalds company, with its expansion in 1995-96, produced a great change in its supply system, particularly due to the installation of supplier companies that follow their client in their international expansion process, as part of the globalization process of markets. The implementation of a potato processing company and another that supplies it with hamburgers and provides the logistics service, with a distribution center that receives the merchandise from the suppliers and delivers it to the locals. This works in much the same way as the just-in-time production system, the locals place the order 48 hours in advance to receive all the merchandise they combine and then market.
McDonald´s sets precise requirements for quality, quantity and delivery time.
| Before fast food | With fast foods |
| Small family farms | Large agricultural companies |
| Pricing in open markets | Prices established in a contract |
| Production under a supply logic | Production under a demand logic |
| Multiple markets | Fewer but more specific markets |
| Current products | Special products |
| Limited technological dependence | High technological dependence |
| Low producer-industry ties | Important producer-industry links |
McDonald's is committed to providing products with the highest standards of quality, hygiene and food safety. For this reason, it requires its suppliers to comply with strict quality control requirements such as Good Manufacturing Practices, Pest Control, HACCP Plan (Control of Risks and Critical Points), Microbiology Controls and Sensory Evaluations.
Once the products pass all these controls, they are sent to the Distribution center where the reception control is carried out through a quality inspection program. There it is verified that the delivery of each product meets the quality and safety requirements.
On the other hand, the Distribution Center must meet the same requirements to which suppliers are subjected, guaranteeing the quality of raw materials until they reach the premises.
In Argentina, McDonald's buys all its ingredients and raw materials from the leading manufacturers in the local market, including Cabrales, CALSA (Cía. Argentina de Levaduras), Coca Cola, Fargo, Gelato, Lácteos de Poblet, McCain, McKey, Food Products, Putruele and Ilolay.
Ø FRANCHISING:
They have ambitious plans to expand their franchising program, with which they provide full support to the franchisee for its consolidation, and to maintain the standards required by McDonald.
McDonald's is successful because it has a system of corporate standards and individual opportunities and the Franchisee is integrated into it with clear and shared values and expectations.
McDonald´s conceives the Franchise system as a true association between an independent entrepreneur and the Company, whose prestige and experience are recognized worldwide. 66% of its restaurants are franchises.
McDonald´s has two types of contract with its franchisees: Conventional and BFL
1.- Conventional Franchise
Total investment: Between $ 450,000 and $ 540,000
Required capital: approximately $ 200,000
Franchise Rights: $ 45,000
Security Deposit: $ 10,818
Royalty: 5% on sales
Advertising: 4% on sales
- McDonald's seeks the location and real estate investment and in construction of the restaurant.
- The franchisee invests approximately $ 200,000, free of financing, in personal property (kitchen equipment, decoration, signs and furniture itself).
- 20 year contract.
2.- BFL Franchise -Business Facility Lease
For candidates who, despite having an excellent qualification, lack the financial resources necessary for a conventional franchise.
If in the conventional franchise the franchisee buys the kitchen equipment, decoration, signs, etc., in the "Business Facility Lease" (BFL) formula McDonald's assumes the cost of this equipment and leases it to the franchisee. This contract grants the franchisee a purchase option on said equipment, and having 3 years to exercise it.
Once the purchase option is exercised, the duration of the contract is extended for a total of 20 years. The initial investment of a BFL franchisee is a minimum of $ 51,000, which must come from own resources.
- Competition:
McDonald's also faces stiff competition from many fast food restaurant chains. Such is the case of Taco Bell, Wendy´s, Burguer King, Lomiton, Kentucky Freíd Chicken, Pizza Hut, among others, which lowered their prices while trying to take advantage of the attractive menu and the fast service of McDonald´s. These chains are distinguished for providing consumers with homogeneous quality products, always available in a network of stores managed mainly in the form of franchises, guaranteeing the same type of service in establishments characterized by cleanliness, a standard menu and fast service.. In this sense, one of the axes of its success was the development of a network of dealers and one of suppliers with a sophisticated supply infrastructure,the link with the processing industry through rigid specifications, always trying to reduce the cost of raw materials. The products of agricultural origin, constitute one of the main inputs and therefore these chains have caused a strong impact in the food industry and in primary production.
E l growth in number of premises of this type of business in the MERCOSUR, mainly in Argentina and Brazil, was the trigger for the entry and growth of foreign direct investment in industries engaged in the supply of fast food chains at the regional level.
In addition, fast food is now sold in reheatable containers in supermarkets, warehouses, and even at service stations.
Expansion of fast food chains
McDonalds is a paradigmatic example of this expansion, in 1975 sales outside the USA reached 8%, in 1985 they were 20% and in 1999 they exceeded 50%. After 20 years of its beginning it begins to expand to Canada and the Caribbean, Europe, Asia-Pacific and in the eighties to South America. In 1999, the major North American chains operated approximately 38,000 locations, of which half were outside the United States.
Table Nº1: Evolution in the number of locations of the main multinational fast food firms. 1986-1999.
| Firm | 1986 | 1999 | ||
| World | USA | World | USA | |
| McDonalds | 9000 | 78% | 26800 | 47% |
| Burger King | 4750 | 92% | 10900 | 75% |
In the case of MERCOSUR, in 1993 the Mc Donalds firm owned 17 stores in Argentina and 100 in Brazil, and in 1999 they reached 205 and 920 units respectively.
Burguer King increased its presence in Europe by 84% in the last 2 years. Great Britain, with 245 establishments, remains its main market, while in Spain, it had 91 at the end of last year. Other important markets of the main competitor are Germany and France.
Even so, Mc Donald's leads the fast food industry, although its leading position is undisputed, the 43 million customers it serves every day represent only 1% of the world's population. For this reason, the Corporation's growth plans are vast. One thing is for sure: McDonald's will continue to strive to 100% meet the needs of its customers throughout the world in a comprehensive way.
- Potential competitors:
McDonald´s Being the market leader, and owning most of it, it is highly unlikely that a competitor with sufficient human, technological or financial resources will enter to face this business model such as McDonald´s.
- Clients (Company target):
It is mainly made up of young people between 14 and 25 years old and young parents with a child between 2 and 8 years old. These seek an entertaining place to feed.
Given the average aging of the population, Mc Donald´s holds particular interest in the adult market.
On the other hand, and in a smaller number, we also find in his clientele the executive who comes at noon in search of quality, variety and speed. These types of customers are not in the "vibe" of Mc Donald's strategy in which they want it to be a happy and fun place and not just a place where they can eat.
- Consumer behavior:
Another condition is that, as he became more concerned with health, the consumption of beef has been reduced.
Michael Quinlan, the head of McDonald´s, maintains that customers "are more interested in taste, comfort and value… We are giving customers what they want. "
Each member of the organization puts all their passion to serve clients so that they always feel as comfortable as possible.
For this, high quality ingredients are used, premises with strict hygiene standards, superior customer service and a family atmosphere where children, youth and adults have their own space
McDonald's has a loyal customer base of more than 40 million people per day around the world.
When children are accompanied by their parents, the purchase decision rests with the children themselves and the purchase itself is made by the parents. However, when children and young people go alone, the purchase and purchase decision is made within the group.
Most of the clients go to this type of establishment in the afternoon, whether to celebrate birthdays, meet friends or as alternatives to other types of entertainment. The average stay in the establishment is approximately 40 minutes.
- McDonald's VALUE CHAIN:
McDonald's monitors product and service quality through ongoing customer surveys and dedicates a lot of effort to improving hamburger production methods to simplify operations, lower costs, accelerate service, and deliver greater value to customers..
McDonald's employs an extremely rigid operating system. There are specific rules for doing everything from setting the distance from the wall to the refrigerator and the exact temperature at which potatoes should be fried. All these methods are detailed in special manuals.
The company brought to this new market an original fast service concept, where the details are carefully taken care of to provide the consumer with an excellent product.
McDonald´s managed to differentiate itself from its competitors through the integration of its value chain with that of its suppliers and buyers, thus forming a whole interrelated system that allows it to achieve maximum benefits.
- SWOT Analysis of Mc Donald´s:
- STRONG POINTS AND WEAK POINTS (internal factors):
- Strengths:
- Corporate image Profitability Infrastructure Trained personnel Leading company in the fast food sector. High quality of "management" Excellent Technology and designs. Very good quality of food, without the need for the consumer to worry about their health. Wide variety of menus for the consumer. fast food service with the "ready-to-eat" system. This system provides hot food at its exact cooking point, in just 60 seconds. Good distribution system.
- Strengths:
The company says that the environment becomes a market with many possibilities, being able to offer the product to all kinds of consumers.
- Weak points:
- Its dominant position could be questioned. A market study reveals that the consumer prefers restaurant food, since they have the feeling that it is healthier. Delays in attention at peak times.
- Threats:
- Entry of new competitors, There is the possibility that someone creates a new company of the same type and with more economic power, being able to welcome our company as an example to improve and not make any possible mistakes that may be made in the course of consumer penetration. Substitute Products - Complaints
- Opportunities:
- Acquire new technologies, qualified human resources, open new branches, introduce new products.
- Opportunities:
- Entry of new competitors, There is the possibility that someone creates a new company of the same type and with more economic power, being able to welcome our company as an example to improve and not make any possible mistakes that may be made in the course of consumer penetration. Substitute Products - Complaints
2.5 DEVELOPMENT AND MARKETING OF PRODUCTS:
They constantly seek to add value to the McDonald brand and enhance their reputation among their customers. This includes the development of new products, such as pizza, to meet the test and demands of its customers, and to provide a greater number of options while meeting the requirements of a balanced diet.
2.6 Pricing policy at Mc Donald´s:
Pricing methods used:
- Affordable pricing: promotions offer a high-quality product at a relatively low price. Pricing according to the value perceived by customers
Promotional pricing technique used:
- Psychological discounts: a relatively high artificial price is set. With its corresponding discount, which represents a significant psychological saving for the client. Example: Big Mc Before: $ 7, Now: $ 5; Savings: $ 2
2.7 Promotion policy at Mc Donald´s:
- ADVERTISING
McDonald's spends well over $ 2 trillion a year worldwide on advertising and promotional campaigns, in an attempt to cultivate the image of being a 'green' and 'careful' company that is also fun to eat. The children enter seduced (dragging their parents) with the promise of dolls and other gadgets. These ads bombard his principal: children.
McDonald argues that their advertising is no worse than anyone and that they adhere to all advertising codes in every country. But others argue it still amounts to cynical exploitation of children - some consumer organizations are calling for a ban on advertising to children.
Oppositional point of view:
| McDonald's uses an advertising strategy that takes advantage of children.
McDonald's advertising techniques are carefully geared towards the easily impressionable children's audience, with their eye-catching colors and circus vibe prompting children to enter, putting enormous pressure on parents, pressure that McDonald's relies on to ensure Your profits. In this way children are used as innocent accomplices of this industry. |
| PROMOTION OF INSANE FOOD :McDonald's touts its food as 'nutritious', but it's really just junk food: high in fat, sugar and salt, and low in fiber and vitamins. Such a diet is associated with an increased risk of coronary heart disease, cancer, diabetes, and other diseases. Also, their food contains many chemical additives, some of which are the cause of poor health and hyperactivity in children. Nor should it be forgotten that meat is the cause of most food poisoning incidents. In 1991 McDonald's was responsible for a food poisoning outbreak in Britain, in which people suffered from severe liver problems. With modern intensive farming and ranching methods,Other diseases - associated with chemical residues and artificial practices - have also become a danger to humans (such as BSE). |
Social responsibility (Social marketing of the company):
- Social commitment: McDonald's responsibility is a continuous attitude for its clients, transformed into constant concern for quality, innovation and commitment to the communities in which it participates.
For McDonald's, offering its customers the highest levels of quality and safety is their highest priority, as well as their vocation for continuous improvement.
Thus, being the best implies always exceeding the expectations of its customers, offering growth opportunities in the career of each of its employees, engaging with the realities of the communities and giving solidarity responses.
Community
Oppositional point of view:
Many organizations maintain that every time a person enters a Mc Donald's, it is destroying their health, since going to Mc Donald's maintains a diet high in fat, sugar, animal products and salt (sodium) and low in fiber, vitamins and minerals. Promoted as "fast food". In reality it is «junk food«, designed to go, eat and come back quickly in a consumerist ritual that tries to hide the terrible quality of the food served. Burgers are 48% water and the lettuces they serve are treated with 11 different types of chemicals to keep them green and crisp longer. Of all incidents of food contamination, 70% corresponds to meat. In slaughterhouses, meat can be contaminated with visceral contents, manure and urine, causing bacterial infections.To counter that possibility, huge doses of antibiotics are injected into the animals, which, along with the use of growth hormones, pose a serious threat to regular meat consumers.
(More information in the annexes section)
NUTRITION
Nutritionists, for example, argue that the type of fat, low fiber diet promoted by McDonald is linked to serious diseases such as cancer, heart disease, obesity, and diabetes. The kind of diseases that are now responsible for almost three-quarters of premature deaths in the western world. McDonald responds that the scientific evidence is inconclusive and that its food may be a valuable part of a balanced diet.
The company's argument is that "if people want to buy it is because of their decision."
- Endomarketing (Internal Marketing of the company):
McDonald´s USA and the Enviromental Defense Fund celebrated the tenth anniversary of their alliance by announcing important achievements in solving environmental problems.
Ecological Achievements :
- the reduction of 150,000 tons of packaging due to the redesign and the reduction of the material used in napkins, glasses, potato chips containers, sandwich wrappers, etc. the purchase of products made from recycled materials for more than 3,000 million dollars, both for the operation such as the construction of the McDonald's premises. The recycling of more than 2 million tons of corrugated cardboard, the material most used to transport McDonald's products to the 12,500 stores in the chain in the US. In the USA, thus reducing waste from the premises by 30%.
Ecologists point of view:
Vegetarians and champions of animal welfare aren't too keen on McDonald's - for obvious reasons. As the world's largest user of beef they are responsible for the slaughter of hundreds of thousands of cows per year. In Europe they only use half a million chickens every week, all of them factory-windowless. All such animals suffer great cruelty during their short, painful, artificial lives, many being kept indoors without access to fresh air and sunshine, and no freedom of movement - how can such cruelty be measured? Is it acceptable for the food industry to exploit animals at all? Once again McDonald's discusses sticking to the letter of the law and whether there are any problems is a matter for the government. They also claim to be concerned with animal welfare.
VII FINANCES of the company:
- McDONALD Global Results:
| Until September 30 | 2002 | 2001 |
| Total sales | $ 31,036.5 | $ 30,517.7 |
| Operating income | 2,316.3 | 2,214.3 |
| Net income | 1,237.3 | 1,364.7 |
SALES IN MILLIONS OF DOLLARS:
| SALES AS OF SEPTEMBER 30 | 2002 | 2001 |
| US | $ 15,249.0 | $ 15,071.6 |
| Europe | 7,707.5 | 6,969.6 |
| Africa | 5,085.3 | 5,344.9 |
| Latin America | 1,107.7 | 1,318.4 |
| Canada | 1,098.5 | 1,094.5 |
| Others | 788.5 | 718.7 |
| TOTAL SALES | $ 31,036.5 | $ 30,517.7 |
Report:
When a company has a steady decline in sales for a decade, there is a problem. McDonalds sales have declined dramatically since 1991. This is a major problem that needs to be addressed quickly, very effectively and efficiently.
National and global competition will be able to take advantage of this problem, so the company must recognize that they have a serious problem, which will lead them to look for a solution to solve it, before the competition takes over.
Reasons that have lowered sales:
In Europe, cow disease has been rampant across countries and has been negatively affecting all meat-based companies, including McDonalds.
Australia and Latin America are having problems with sales, because the purchasing power of customers is weakening in those countries.
Why is this a problem?
One of the reasons sales declined is the typical consumer attitude. With all the advances in health and medical fields, people have opened their eyes to the importance of a well-balanced diet. An average McDonald's meal often contains more than half the sodium, cholesterol, and suggested calories for your daily intake.
McDonald's has been unsuccessful in recent attempts to overcome the health problem. Salads are still in most restaurants, but their preparation contains 20 grams of fat, and most people have never said they are ready to eat a McDonald's salad.
Although healthy food has never been a McDonald's main concern, she has always prided herself on the speed of her service. To continue this speed, they have experienced the pervasive problem of lack of variety. Now that the restaurant has been around for over 35 years, customers can begin to grow tired of the same options. Although, they do a good job making what they currently serve, a larger variety could play a very important role in attracting a larger consumer base. Until now, they have only had bombs when they tried new products, such as fajitas, pizza, and corn on the cob.
The above problems seem to have a solution in the near future, but the main problem is the one that is causing McDonald's sales to drop.
In the United States, its main market, they have already reached a saturation point. In most areas, if they added more locations, they would cost more than they are worth. In other words, the real cost of building the premises and paying the employees would be higher than the amount of benefit available in that area.
The solution:
In order for McDonald's to increase its sales and profits, it is obvious that they must make a number of improvements to their service and operations. One of the most effective ways to achieve this is by using the globalization method. Expanding to foreign countries, McDonald's will has a larger market in a broader range of areas. Since there are not many fast food restaurants outside of the United States, competition in these foreign countries will be much lower than in the USA. Also, McDonalds has already acted on this idea by opening a limited number of stores in countries such as China and Germany. There, they quickly took hold and have been absolutely successful. In countries such as China, McDonalds created a customized menu.
In addition to the idea of globalization, McDonalds could introduce new alternatives to its menu. For example, they could create new types of burgers, onion rings, etc. Also, McDonald's could have a larger variety of existing products. Instead of two flavors of ice cream they could have four. By adding new alternatives to a menu, a fast food restaurant will be able to attract many consumers.
A negative to this idea is that it would require the addition of new resources and applications. Employees would need to be trained in how to make a new hamburger or sandwich. Despite this, the idea is generally helpful. If a new product is put on the market and becomes good business, it will stay on the menu, and McDonalds will make many more millions of dollars. If the product fails, they can remove it from their premises with minimal loss. McDonalds has dealt with numerous products in the past. For example, they tried a McPizza. Although it sounds like a good idea, it failed and hasn't been seen once more on the menu since.
Health has recently become a top priority for Americans within the past decade. Because of this, McDonalds lost a noticeable amount of business when its customers went to healthier restaurants. To get these lost customers back, McDonalds started with salads and preparing low-calorie products. In addition to this, they changed their frying and cooking methods so that potato chips have less oil and fewer calories. These movements helped to attract some more clients, but I think they need to do more. For example, it would be beneficial to add an entire low-calorie section to your menu. It is possible to cook burgers and chicken sandwiches without having to purchase new equipment or teach / learn new skills to staff.
While millions of people gather at McDonalds weekly, there is still enough room for improvement. Simple steps could be taken to ensure a more profitable franchise such as low calorie alternatives, globalization, and new menu options.
LOCALS IN THE WORLD AS OF 9/30/02:
| 2002 | 2001 | |
| USES | 13,337 | 12,953 |
| Europe United KingdomGermanyFranceSpainItalySwedenNetherlandsPolandAustriaOther | ||
| 1,208 | 1,150 | |
| 1,181 | 1,114 | |
| 945 | 884 | |
| 328 | 294 | |
| 326 | 303 | |
| 243 | 2. 3. 4 | |
| 212 | 207 | |
| 193 | 185 | |
| 156 | 155 | |
| 1169 | 1096 | |
| Total Europe | 5,961 | 5,622 |
| JapanAustraliaChinaSouth KoreaTaiwanPhilippinesHong KongOther | 3,876 | 3,718 |
| 720 | 711 | |
| 523 | 392 | |
| 360 | 289 | |
| 359 | 341 | |
| 237 | 231 | |
| 212 | 185 | |
| 1240 | 1188 | |
| Total APMEA | 7527 | 7055 |
| Latin America BrazilMexicoArgentinaOther | ||
| 577 | 556 | |
| 250 | 218 | |
| 204 | 214 | |
| 586 | 558 | |
| Total Latin America | 1617 | 1546 |
| Canada | 1264 | 1181 |
| TOTAL PREMISES | 30783 | 29417 |
| COUNTRIES | 121 | 121 |
Graphic n ° 1: MCDONALDS source
Table 2: Mc Donalds Fountain
Data table:
| YEAR | Sales | local | Net income | Shareholder equity | YEAR | ROI | ROI |
| 1990 | 18759 | 10147 | 802 | 4182 | 1990 | 19% | 19% |
| 1991 | 19928 | 12418 | 860 | 4835 | 1991 | 18% | 18% |
| 1992 | 21885 | 13093 | 959 | 5892 | 1992 | 16% | 16% |
| 1993 | 23587 | 14127 | 1083 | 6274 | 1993 | 17% | 17% |
| 1994 | 25987 | 15899 | 1224 | 6885 | 1994 | 18% | 18% |
| nineteen ninety five | 29914 | 18299 | 1427 | 7861 | nineteen ninety five | 18% | 18% |
| nineteen ninety six | 31812 | 20884 | 1573 | 8718 | nineteen ninety six | 18% | 18% |
| 1997 | 33638 | 22928 | 1642 | 8852 | 1997 | 19% | 19% |
| 1998 | 35979 | 24513 | 1550 | 9465 | 1998 | 16% | 16% |
| 1999 | 38491 | 26309 | 1948 | 9639 | 1999 | twenty% | twenty% |
| 2000 | 40181 | 28707 | 1977 | 9204 | 2000 | twenty-one% | twenty-one% |
| 2001 | 30518 | 30093 | 1365 | 9308 | 2001 | fifteen% | fifteen% |
| 2002 | 31037 | 30783 | 1237 | 9395 | 2002 | 13% | 13% |
| 2003 | 29586 | 31383 | 1300 | 9408 | 2003 | 14% | 14% |
Table 3: Mc Donalds Fountain VIII MARKETING AND SALES PLAN
Additional plans to optimize the business and to accentuate the growth of sales in the existing premises in 2003:
- Restructuring in four countries and closure of three countries: In Argentina, Uruguay and other markets in Latin America and the Middle East, economies have weakened significantly in recent years. McDonald said this controls 200 restaurants in the seven critical countries for exit or restructuring, signaling that this is unlikely to draw from major Latin American markets such as Brazil and Argentina, where currencies fell and have hurt expected results.
At the end of September, McDonald's had a total of 1,617 stores in Latin America. The company does not have a primary presence in the Middle East.
- Closure of approximately 175 stores in about 10 other countries. Elimination of 400 to 600 jobs, to control costs and to reallocate resources: Approximately 200 or 250 jobs are in the USA.
McDonald employs approximately 395,000 people worldwide.
- Reduction of new restaurant openings for 2003, to focus more on your financial resources. In 2003, close to 600 restaurants are expected to open, 450 fewer than this year.
During 2003, they will continue to focus restaurant openings in solid markets and will significantly reduce the amount of capital invested in Asia, Africa and Latin America, where they are experiencing weak economies.
- They plan to invest nearly $ 100 million in the US franchise restaurants. Advertising messages will be more constant, and will also be focused from a national perspective.
These actions are designed to move the US business to a higher level, to consolidate its competitiveness, and to increase restaurant sales and profits for the company and its franchisees. However, it will take time before we see the full advantage of these initiatives in your earnings.
Variables not controllable by the company: These can make the advertising effort to raise sales useless, among them are: global and local business, economic conditions; currency exchange, interest rates; food, labor and other operating expenses; political or economic instability in local markets; competition; consumer preferences, demographic trends; legislation, government regulation; and statistics policies and practices.
IX Methodology of the research used:
E ste study is part of an investigation which was carried out earlier this year. In the work methodology, secondary information has been used, mainly from the Internet and semi-open interviews with: managers, employees, and managers of the company's premises.
It is important to note that much of the information contained in this report has been generated by the company itself (primary data), as well as official reports on participation and sales in recent years.
X SOURCES CONSULTED
- Bibliographies consulted: Administration and strategy (Hermida / Kastika) Ediciones Macchi.Marketing (Kotler) Editorial Prentice may.Directorate of Marketing (Kotler) Editorial Pearson education.Fundamentals of Marketing (Stanton / Etzel / Walker) Editorial Mc Graw Hill.Business strategies in the digital age (Rodolfo Wenceslao Salas). Business strategies for an unexpected future (Rodolfo Wenceslao Salas) Edit. WinRed.ComAdministration, a global perspective (Koontz / Weihrich) Editorial Mc Graw Hill.Strategic administration. Concepts and Cases (Thompson / Strickland) Mc Graw Hill. Web pages consulted: http: //www.mcspotlight.orghttp: //www.finanzas.com/cotizacion
XI Conclusion:
At McDonald's, Quality, Service, Cleanliness and Value are the pillars of daily work, foundations that have allowed it to offer a unique experience.
The company brought to this new market an original fast service concept, where the details are carefully taken care of to provide the consumer with an excellent product.
For this, high quality ingredients are used, premises with strict hygiene standards, superior customer service and a family atmosphere where children, youth and adults have their own space.
McDonald's sparks a silent revolution by entering a new market. It immediately sets a new standard in fast food service, provides opportunities for young people, and stands out for offering a new standard in the staff training system.
The impression I had when entering various McDonald's stores was good attention, since the people they serve are trained to smile. A negative aspect to highlight is the influx of people at peak hours, an aspect that is really uncomfortable for people like me.
Finally, I believe that the marketing policies carried out by this company are in accordance with the needs of the market, for this reason Mc Donald´s is a leading company in its field, achieving constant and persistent successes.
XII ANNEXES:
Cancer risk from eating potato chips or bread
Wednesday April 24, 2002
By Peter Starck
Stockholm (Reuters) - Basic foods eaten by millions of people around the world, such as bread, crackers, and french fries (packaged or not) have alarmingly high amounts of acrylamide, a substance believed to cause cancer, Swedish scientists said this Wednesday.
The research, carried out at Stockholm University with the cooperation of experts from the Swedish National Food Administration, a government body dedicated to food safety, indicated that when heating carbohydrate-rich foods, such as potatoes, rice or cereals, acrylamide is formed, a very studied substance, classified as probable carcinogenic to humans.
The scientists felt that the research was so important that they decided, which is unusual, to make their findings public before the research officially appeared in an academic publication.
"I've been working in this area for 30 years, and I've never seen anything like this before," said Leif Busk, head of the food administration's research department.
According to the results obtained, revealed at a press conference called by said administration, a normal bag of potato chips can contain up to 500 times more of this substance than the level allowed by the World Health Organization for drinking water.
French fries sold at Swedish fast food chain franchises Mc.Donalds and Burguer King contained about 100 times more than a microgram per liter, the maximum allowed by WHO for drinking water, according to the study.
One milligram, or 0.001 grams, contains 1,000 micrograms.
KNOWN RISK:
The Environmental Protection Agency classifies acrylamide, an odorless, crystalline solid, as a probable carcinogen to humans, of intermediate risk.
According to the International Agency for Research on Cancer, acrylamide induces mutations in genes, and in animal experiments has caused benign and malignant stomach tumors.
It is also known to damage the central and peripheral nervous systems.
“The discovery of acrylamide formation during food preparation, and in high amounts, is new knowledge. Now it may be possible to explain some of the cancer cases caused by food, ”Busk said.
"Potato and cereal based products, fried and baked, may contain high levels of acrylamide," the Administration said.
"Acrylamide is formed during food preparation and is present in many meals… many of the foods analyzed are consumed in large quantities, for example, potato chips (packaged and unpackaged), cookies and bread."
Among the products analyzed are french fries produced by a Finnish company, Chip's ABP, whose shares fell 14.5%, to the lowest level in the last six months, as well as breakfast cereals manufactured by Kellogg, Quaker Oats Co, part of PepsiCo Inc., Nestlé, and Old El Paso brand tortillas.
"For us, these findings are completely new, and this has never been known in the global food industry before," Chip's ABS said in statements to the Helsinki stock market.
Stefan Eriksson, marketing manager for the Burguer King subsidiary in Sweden, told Reuters by phone: "We have received the information and are evaluating what it will mean."
Spokesmen for the other companies mentioned in the investigation were not immediately available to comment on the matter.
NO PRODUCT WITHDRAWED FROM CIRCULATION:
Margaret Tornqvist, an associate professor in the department of environmental chemistry at Stockholm University, said consuming a single potato chip can bring the amount of acrylamide to the maximum level allowed by WHO for drinking water.
However, Busk said the product analyzes, which were based on more than 100 randomly chosen samples, were not large enough for the Administration to recommend removal of any products from supermarket shelves.
"Frying at high temperatures or for a long time should be avoided," Busk said, adding: "Our recommendation to eat fewer high-fat products, such as potato chips (packaged or not), remains valid."
He stated that these findings apply to everyone, not just Sweden, since the (raw) raw material used in the analyzes did not contain acrylamide.
Swedish authorities had informed the European Commission and the EU member countries, Busk said.
“It is the first time that we have found results of this nature. We will evaluate this study and consider it, but it is important to mention that Sweden has not withdrawn any product from the market, "said European Commission spokeswoman Beate Gminder.
I add that "therefore, we will see what results our scientific evaluation and that of the scientists of the member countries".
Liliane Abramsson-Zetterberg, a toxicologist with the Swedish Food Administration, stated that "The cancer risk for acrylamide is much higher than (the levels) that are accepted for known carcinogens."
Mc Donald's is committed to eliminating GMOs from all of its products.
Buenos Aires (Nov. 16, 2000).– The most important multinational fast food chain, Mc Donald's, made a public commitment to Greenpeace to gradually eliminate genetically modified organisms from their meals. This includes the fodder used for animal feed, that is, the beef and chicken used by Mc Donalds in his burgers.
Mc Donald's stated that it guarantees that its poultry will be fed without GM cereals starting in April 2001, and aims to ensure that the food used by its supplier will soon cease to contain genetically engineered inputs.
Greenpeace welcomed the fact that Mc Donald's has taken the lead in abandoning GMOs and urged the company to extend its commitment globally.
“Now even Mc Donald's has understood that most consumers do not want genetically engineered food even in animal products such as milk and meat. Greenpeace is monitoring how fast the fast food chain is going to change its products, for those without GM ingredients, "said Emiliano Ezcurra, from Greenpeace.
Last July Greenpeace discovered that Mc Donald's fed GM chickens to their chickens, which were later sold as Chicken McNuggets and Mc Chicken Burguer to their customers.
Local Greenpeace groups protested in more than 50 German cities in front of fast food outlets with the message "Los Genos: GMO Week at Mc Donald's".
Many consumers took part in the campaign by sending postcards, emails, letters and faxes to Mc Donald's calling the company to remove the GMO ingredients from their products; and even animal feed, with which they later make their famous hamburgers.
Mc Donald's commitment came after its competitor, Burger King, has stated that from next year it will only offer GM-fed chicken in Germany. The main German chicken producers already guarantee that the soy used to feed their poultry is not transgenic.
“The demand for transgenic fodder free is growing. The governments of producer countries like ours must understand that the perspective, from the point of view of demand, is bleak for the harvest of transgenics in Europe. At least 15,000 hectares of land are planted only with soybeans intended to feed chickens for food that will be served by Mc Donald's in various European countries. This market is lost for GM producers, "added Ezcurra.
New scientific studies, released this week, show that the genetic makeup of plants used for animal feed can enter organs and meat of animals. This was recently established in chickens. Scientists consider this to be true of genetically engineered material as well.
The world in a box.Within a few years, the burguer-culture made its mark on the smallest consumers. A study by the consultancy Total Research Argentina shows that, almost matching the brand of adolescents -historical clients-, those of thirty-odd people pushed by young children are the habitats of fast food in the Creole version. McDonald's concentrates 45 percent of children's preferences, closely followed by Burguer King. It is that the historical union of the heirs of Ronald McDonald with Disney - spearhead of the chain's marketing strategy - proved its effectiveness among the boys. "For us, the alliance with Disney is very important because it associates us with a brand that builds the child's imagination and has great acceptance among parents," explains Máximo Lorenzo, Marketing Manager at McDonald's.Binomial that presents in society for these winter holidays a new promotion linked to the last film, "Atlantis, the lost empire".
FREE SPEECH
So they use their financial hit to influence the media, and legal powers to intimidate people into speaking out, directly threatening free speech. The list of media organizations that have been sued in the past is daunting, and the number of posts deleted or chipped is appalling. But what are the lessons of the successful and growing anti-McDonald's campaign for those also determined challenge those institutions that currently dominate society?
CAPITALISM
McDonald is of course simply a particularly arrogant, brilliant, and smug example of a system that values profits at the expense of anything. Even if McDonald's closed down tomorrow someone else would simply slip right into position. There is a much more fundamental problem than the bigger ones and the potato chips: capitalism. But what about counter-capitalist beliefs like socialism and anarchism? Is it possible to create a world run by ordinary people themselves, without multinationals and governments - a world based on sharing, freedom and respect for all life?
But behind the smiling face of Ronald McDonald is the reality: McDonald's is only interested in money, profits from who can and where can, like the rest of the multinationals. McDonald's annual reports speak of 'global dominance' - they want to open more and more stores around the world - and their continued expansion means nothing more than uniformity, less choice, and a undermining of local communities.
| CENSORSHIP and McLIBEL . Criticism of McDonald's comes from a huge number of people and associations related to a wide variety of topics. In the mid-1980s, Greenpeace London gathered all of those criticisms and called for an Annual Day of Action against McDonald's around the world. This day is celebrated every October 16, with pickets and demonstrations around the world.
McDonald's, which spends a fortune a year on advertising, failed to quell criticism with the threat of legal action. Many were forced to withdraw because they lacked the money to go to trial. But Helen Steel and Dave Morris, two supporters of Greenpeace London, came as defendants to a defamation trial at the Supreme Court of Great Britain. Even though all of the letters were against them, having been denied legal aid and a jury trial, Helen and Dave turned the case around and exposed the truth by putting McDonald's business practices on the table. There were some irrecusable sentences passed over McDonald's and the number of protests against a fast-food giant that pocketed $ 40 trillion a year continues to rise.It is essential not to be intimidated and defend freedom of speech. |
| Friday September 6, 2002
McDonalds is sinking due to falling consumption: The North American fast food chain McDonalds has lost almost 30% in the Stock Market in the last three months and is already near its lowest since 1998. The company plans an aggressive plan to relaunch its franchises and sharp price cuts. The fast-food chain McDonalds has suffered a strong drop in the Stock Market in the last three months, falling from $ 30 to $ 22 per share. The economic stagnation has put strong pressure on the entity, which is facing a plan to relaunch its franchises and cut prices to stimulate sales. Thus, it will renew its oldest concessions and study the launch of a menu with 10 pieces that will sell for less than a dollar. Her rival Wendy has already done the same, with the presentation of her 99-cent menu. Likewise, the executives of the multinational project to change the location of franchises that are more than 15 years old. In France the renovation of the premises has resulted in a 50% increase in profits. McDonalds sales have fallen in the past two years. The negative figures have been especially accentuated in the new centers. From the company they have not wanted to make evaluations on the cost of the proposed remodelings, but they seem urgent for Wall Street, since Wendy, the number 3 company in the sector in the US, is gaining ground by forced marches, while Burger King, the second, It has its new management team at full capacity. |
| McDonald's reduces sales and lowers profit forecast |
| McDonald's has launched an investment plan of between three and four hundred million dollars to remodel its franchised restaurants in the United States and thus relaunch its sales.
In addition, what is known as the Dollar menu has been launched across the country. It is a menu consisting of eight different menus at a price of one dollar each. Jack Greenberg, CEO of McDonald's, said in a statement that "the US market is extremely competitive and customers have numerous choices." Furthermore, he insisted that the growth plans put in place will still take some time to deliver results. The company currently has 30,500 restaurants worldwide, of which 13,223 are located in the North American market. |
Title: “Business analysis: MC DONALDS” ”
Contributed by: JUAN MANUEL DE LA COLINA - [email protected]
Download the original file
