Mcdonalds Case Study Project Managment

Contents 1. Introduction 1. 1 History of McDonalds 1. 2Philosophy of the fraternity 2. project 1 SWOT summary 2. 1 Strengths 2. 2 Weakness 2. 3 Opportunities 2. 4 Thr feed ins 3. Task 2 McDonalds Plan to Win scheme 3. 1 Implementation of depict elements un manipulationd Strategies 3. 2 SWOT depth psychology and Plan to Win 4. Task 3 McDonalds 2003-2009 Strategy 4. 1 McDonalds Dynamic Strategy 4. 2 Strategies Comparison 5. Task 4 McDonalds Competitors 5. 1 Wendys 5. 2 hoot in the boxful 5. 3 sonic 6. References 7. Bibliography 1. Introduction 1. History of McDonalds The basic McDonalds was inaugurated by the McDonalds br in the buff(prenominal)s in 1948, constituting itself as the first local anaesthetic in the history of the restless suffice of nutrients, in San Bernardino, calcium (U. S). They offered quick food, soon they r distri nominatedivelyed a racy level of sales and although the add-in was limited the success that is to appoint tongue to previously prep b ed food and served to high speed. With forth a doubt the base of its success was in alter the conventional china that you/they up spudd the rest of eaterys, for the cover bags.It was then when the supplier of the shaking machine shake, balance beam Kroc, surprised by the quantity of Multi-mixers requested, it proposed the arising of unseasoned restaurants. This way in 1955 the first local of the commode was inaugurated in charge of Ray Kroc. During the 50? s and the 60? s, Rays managerial team Kroc established the lucky philosophy of the system of the comp all Quality, Service, Cleaning and Value. At the moment this Franchise possesses often than 25. 00 establishments in 117 countries and phoebe bird atomic number 18 the continents in which the Golden Arches run off with, number that was increased more than than(prenominal) with the recent affording of 3. 000 local during 1999. Although McDonalds offers its clients a standard fare in its entire local, it is common that these scorecards combine with special point of intersections that atomic number 18 developed in each finis depending on the exchangeables of the clients. Love, 1995 4 1. 2 Philosophy of the coadjutorship The fellowship brought to this unused market of the quick foods a concept of original quick utility, where of the details is interpreted guard to the maximum, to offer the consumer an pure product.The operative philosophy of the McDonalds system is based on the Quality, Service, Cleaning and Value for 44 years. The company offers a standard transportation, although it develops in each culture special products that are ad saveed to the pastime of the companionship. McDonalds is successful because it has a system of corporate norms and individual opportunities, to totally the Franchised they are integrated in the akin philosophy of values and clear expectations. For McDonalds the employees are the ab push through important thing.It is thanks to them for what th e clients are taken an incredible experience in each visit and want to return. The principles of Quality, Service and Cleaning begin with their knowledge employees, McDonalds guides all the actions according to organizational values as excogitateing in team, to feel passion for the reach evermore offering the best of themselves, to be committed with the factorners 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 young raft everywhere 16 years, it is for it, for what its schedules of work are enough flexible to be able to continue the studies, adding an unique tire out experience, it sens compensate become the first step of a great professional career in an inter rural areaal company. The competitors of McDonalds is giveed by all those companies that act in the sector of the quick foods that using a in truth similar technology tries to assist to the analogous type of clients. When McDonalds begun to give its first steps restaurants of quick food they didnt exist, so soon he became the leader of the sector.It was issueing from that Ray Kroc organized the company McDonalds System, Inc. , show 2 1955 when opposite companies were already in the wrinkle and McDonalds it was beginning to lose its advantage in expect of other companies like Burger King, Kentucky Fried Chicken or Chicken Delight. Kroc was then in one of the intimately competitive markets, that of the ground beefs. Kroc, 1987 5 McDonalds has always tried to pick out its products of the rest of its competitors, and it doesnt in fact try to differentiate them with the worth, still through the good fictional character, the table service, the originality and innovation.If for something is McDonalds characterized it is for the innovation, she has always tried to offer something different to its consumers, continually innovating with red-hot products, and a clear example is in the gargantuan Mac. In the market very similar hamburgers were already sold when McDonalds decided to sell it, provided she only knew how to give him the form and the in agreement size with its name. And as sh declare on Table 1 the market share between competitors throw the finally 4 years. Table 1. Burger Restruant Market Share Europe (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 King 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. macdailynews. com McDonalds also knew that the strategy of emersion was essential and when Burger King and Burger Chef were enlarged so much that they were about to reach him, McDonalds decided to grow even more. In 1967 Burger King had settled raft as expansion broadcast reaching the 100 new positions a year, equaling the rhythm of expansion of McDonalds for the first time.But the threat of Burger Chef was even big, since at the beginning of 1968 its design of expansion had shortened the distances between her and McDonalds reducing it to less than 100 position. pic Figure 1 Burger Fast food Market Share 1 . It is obvious that all the competitor companies involve 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 satisfy the self uniform(prenominal) 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 bore, Burger King tries to highlight its product offering a hamburger a little bigger and made to the grill and on that pointfore, with different flavor. Figure 1 2. Task 1 SWOT Analysis pic 2. 1 Strengths All strengths conduct been taken from the McDonalds 2006 Worldwide Corporate Responsibility bailiwick McDonalds, 2008 20 fan out door association Company curse was declining because of public confidence i n the safety of beef, poultry and baneful intentioned internet rumors.We do also remember 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 beingnessness managed. This action was support by open invitation through TV and printed advertisement. Consider the courage of MCDONALDSs board to open their company to everyone? Have they completely been sure of what is going on in their remotest MCDONALDS restaurant? How can they risk to show one of their black sheep (and every 1000s of subsidiaries holding concern has some to the public and could establishment the tremendous impact a cockroach would overhear being found in a double-cheese burger or found on their kitchen floors? Roaches are present in many locations we dont want to begin them Certainly MCDONALDS intended a gro makeg mindset by its employees and worry by implementing weapons platforms like this. Vice-president of corporate affairs Eric Gravier said If any asp viperect of our railway line deserves an open look, its our efforts to conduct our seam righteousness. Ceres guidance and co-workMCDONALDS kit and caboodle to weeher with a coalition of investors, environmental organizations and other public interest groups to strengthen their social and environmental programs. I would perceive it also as a form of public auditing. It can be treasured as strength because this service of processs MCDONALDS to focus on what they should do to maintain loyal to its corporate social province targets without losing strength on their business priorities. CERES encourages MCDONALDS to report their progress and future efforts through an open door spirit. Ceres helps MCDONALDS to develop and hold out CSR.The highly decentralized system Considered as a great advantage in MCDONALDS business also has are disadvantages when it comes to achieve mutual humankindwide objectives. Ceres puts these weaknesse s open on the table and MCDONALDSs crimp forethought evaluates these statements, research results. Ceres e. g. has advised management that MCDONALDS should report more metric units and goals to demonstrate and foster progress. Ceres made 3 issues its top priority 1. Obesity 2. MCDONALDSs purchasing power 3. Climate change To 1 obesity Their get along to the health bother no. 1 in the US is the following . Offering Menu Choice 2. Providing Nutrition entropy 3. Promoting Physical Activity 4. Marketing and Communicating Responsibility To 2 purchasing power How does MCDONALDS exploit their upstream purchasing power? What is profit oriented and what is really CSR oriented? Careful supply ar background strategy For MCDONALDS at that place are several important strategicalal pillars, the first one is the dedication to social responsibility with food quality and safety, then the issue of sustainable food supply and living organism welfare. MCDONALDS food standards are real ness class. Active community responsibilityThrough MCDONALDS tolerate Charities and innumerable local and global community programs MCDONALDS shows that the revenue is non all or part of the revenue belongs to the society and therefore will 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 overhaul the public. Rigorous food safety standards It goes all the way from the farm right to the restaurant.MCDONALDS works weighed down to ferment sure that rigorous food safety standards are upheld in each restaurant with training, food, safety and quality, the knowledge of the food and menus. It all ties because many of the suppliers consider themselves extensions of the MCDONALDS family and so they nominate the same rigorous approach to the programs. MCDONALDS has a responsibility to leave screwing a relevant variety of quality product survival of the fittests that the costumer trust and that means working with partners that operate ethically and match the social responsibility standards. Accurate service standardsMCDONALDS works hard to maintain a work environment where everybody feels valued and accepted by providing training and other opportunities for personal and professional suppuration and to promote job satisfaction. In their own words Our well-trained employees will proudly provide extravagant, friendly and accurate service with a smile to delight our costumers. Affordable prices to high quality products MCDONALDS keeps its responsibility by keeping 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 people. Responsible charity and community work We believe in giving back to the communities in which we do business and to complementing 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 capital for the company to grow, they should realize and Attr supple return on their investments. No poor company can allow itself to offer charities or help when it itself is in admit. macrocosm rentable makes MCDONALDS able to help whenever necessary and maintain its corporate responsibility principles fresh. Bigger menu choices / increase strategy MCDONALDS works together with the Global advisory council whose members are very high compose scientists in the food patience, experts who are looking for at obesity and nutrition. With their help MCDONALDS has take a shitd new menu choices including salads and fruits, keeping their serving size standards and qualification menus more flexible and easier to mix or change.In the function 5 years MCDONALDS has acknowledged milk and water and a variety of on-going product innovation will include expanded side and boozings choices in appendage to new entrees which will give the costumer to feed himself healthier and proportionate. Clear nutrition information on packaging I compute one of the better strengths from MCDONALDS is that they where one of the first fast food restaurant that started writing the nutritional info on their packaging advocating for equilibrise active lifestyles 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. impertinent and Internal lead stances to encourage activity Internal MCDONALDS developed and distributed an own crew training video in seven languages on Its what I eat and what I do, besides that the company makes a great effort distributing materials encouraging ba lanced, active lifestyles. MCDONALDS has also introduced training for both crew and management. External MCDONALDS introduced its what I eat and what I do initiative.Leveraged Olympic and global sponsorships including Olympic daytime run. In the USA more than 15 million step meters were distributed and passport to play was launched. Decentralized but non disconnected system MCDONALDS recognizes the need to maintain a system in which everyone adheres to the same nerve values, principles and standards. They balanced this with a program called Freedom within the framework. Local business-owner/operators and restaurant managers sacrifice the flexibility and responsibility to develop programs that respond to the diversity of the costumers and local market conditions. Innovative excellence program development MCDONALDS has a very wide selection of programs on its account, everything with the only goal of growing to be better earlier than bigger. MCDONALDS has aligned near a global strategy program called Plan to Win that centers in the quintet 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, profitable growth.Other excellence programs are the well known ROIP (Restaurant Operations Improvement Process). It helps improve restaurant performance and accountability as related to quality, service and cleanliness (QSC) and people practice 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 rate the restaurant according to the QSC.Many restaurants around the world include a measurement program based on guest 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 withdraw promotion MCDONALDS mesa of directors and top management work to ensure the companys equity in all its dealings with shareholders. Their commitment is codified in policies, standards and codes including the Corporate Governance principles, Code of shoot for the board of directors and code of Ethics for the chief operate officer and Senior Financial Officers because Corporate Responsibility begins at the top.The principles include provisions designed to ensure 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 can non be considered as strength anymore but plainly as going concern and standard. For MCDONALDS employees worldwide the overall framework for ethical business practices is the Standards of Business get by which applies to all salaried employees worldwide inclu ding restaurant managers.It provides rules for handling every ethical issue that might heighten or incorporate 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 domains and identify resources for questions and concerns. 2. 2 Weaknesses MCDONALDS inflexibility Can MCDONALDS ever excel or are they caught to always offer scotch fast 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 edit without losing a lot of profit because much(prenominal) a shift in suppliers a) from the point of offer/ implore ratio and b) from logistics could not be made in reasonable time. It would impose a threat of a deep profit recession until MCDONALDS would have adapted their product portfolio. Not employee-friendly MCDONALDS is not a w orker-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 hostility of workers rights union on a lower floor look. Well if e. . in Germany you have a workers revolution on modal(a) below 6 months a company never runs into danger of facing workers testimonial laws. Every worker in Germany for the first 6 months is under trial-conditions employed and can be complete 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 take to outsource the drive-through golf-club taking process via a call center in Santa Monica, California. McDonalds = too much shareholder value driven Nachrichten, 26 Shareholder value is often not the same as Corporate Social Responsibility i. e. if acquire go do wn 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 save costs? Where can we get cheaper meat? Where can we get cheaper bread? 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 bills is all about MCDONALDS continues to promote un whole food Despite diversification of their product portfolio towards more healthy choices MCDONALDS still continues a saturated fat filled 850 kcal Burger and other unhealthy but tasty food. That could continue to harm their reputation as unhealthy fast food supplier. Errors on promoted CSR MCDONALDS claimed that they have not imported meat from rain forest countries but in court it appeared that MCDONALDS very well had imported meat from Costa Rica and Brazil where rain forests are elimi nated 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 love and take note their work place. MCDONALDS takes very serious its responsibility to promote fair, safe and healthful working conditions, legal 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 customers.However the rendive and flexible working environment has been not rated as strength as personal observation and press reports make it more of an opportunity. An opportunity for society that there is an employer who always hires people which can be helpful for intermediate jobs i. e. amongst oth er 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 entanglement 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 trough this guidelines at least 18,000 metric tons of whitefish have been shifted from unsustainable sources. High Supplier 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 might not cost. Frank Muschetto (Senior Vice-president) clears the profile of the suppliers that we select is broodent 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 attention to be proactive against issues that can affects us all like avian influenza. We use our leadership 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, inborn management systems and ongoing worker input. Annual audits are do globally for meat (beef, pork and poultry) processing plants looking forward to maintain animal welfare farms all over the world and not only in the USA and Europe. Own corporate responsibility Comity MCDONALDS tak es serious responsibility on what comes from being a major 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 stigma image MCDONALDS ensures to maintain and build the trust with all stakeholders and customers with appropriate and truthful merchandising and communications. These topics essential 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 asses s and evolve their marketing and advert standards they have newly 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-chicken 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 indemnity for a healthy product or a premium system for kids who eat healthy? A threat if the competition comes up with such a system. Beef/Poultry/Fish Health Problems wicked initiatives in the US against growth hormone and or antibiotic stuffed cows, bird 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 bar large corporate damage. Made in China syndrome Labour exploitation in China for the turnout of McDonalds happy repast toys. Profit pressure The pressure to deliver shareholder value will troops 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 have 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 condition rain-forest territory, the excessive follow 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 threa t 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 profound 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 grown cows. MCDONALDS has the power to create demand Rather than reacting to the free play of market forces MCDONALDS with its marketing reckon 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 Strategies 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 foc employ on being the best fast-food restaurant chain.McDonalds strategic alignment behind this plan has cr eated better McDonalds experiences through the execution of multiple initiatives surrounding the quintette 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 stylus Chicken Biscuit for breakfast and the Southern Style Chicken Sandwich for lunch and dinner.In the beverage business, McDonalds starting introducing new hot specialty coffee offerings on a market-by-market basis. In Europe, McDonalds uses a tiered menu approach. This menu features premium selections, classic menu, and daily affordable offerings. They also concomitant these with new products and limited-time food promotions McDonalds, 2008 20 In the Asia-Pacific, Middle East, and Africa markets, McDonalds strategic plan is foc employ 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 fiscal 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 expansion, and ongoing restaurant reinvestment.McDonalds plans to continue to drive success in 2008 and beyond by leveraging key consumer insights and our global experience, go relying on our strengths in developing, testing and implementing initiatives surrounding our global business drivers of convenience, branded affordability, day part expansion and menu variety McDonalds, 2008 20. One of the ways McDonalds can fix a positive net income is to maximize efficiency in its restaurant operations while at the same time placing the customer first.Wit h 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 minute to eat. McDonalds also has locally owned 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 exemptions.The company is also opening up McCafes with the expectation that the bon vivant coffee shop would move it closer to its goal of doubling sales at animated U. S. restaurants over the next decade Peter, 2007 19 A couple other organizational strategies are branded affordability, and the development of their employees starting with recruitment and training and leading all the up to leade rship and management. 3. 2 SWOT Analysis and Plan to Win McDonalds strategic plan is influencing their marketing efforts by building better brand transparency.They want their image to be recognized globally. They are enhancing the customers experience. Across their markets, they are qualification is easier for customers to enjoy a great McDonalds experience. They are introducing drive-thrus to the increasingly mobile populations in China and Russia, while in the U. S. and Canada, greater drive-thru efficiency and double drive-thru lanes enable them to serve even more customers quickly (McDonalds, 2008, 13). In Germany, McDonalds has a reimaging program that includes adding about 100 McCafes.They are also installing new kitchen operating 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 agelong operating hours, everyday value repasts, and optimizing efficiency in the drive-thru. McDonalds also uses marketing campaigns. In 2007, McDonalds used the Shrek moving picture 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 image with innovated marketing transporting ideas across borders and using Im lovin it to deepen their connectedness 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 name to give its new hamburger. The name that won was Backyard Burger. With marketing campaigns like these, McDonalds is onerous to create a better brand image. Other organizational and marketing strategies are creating stronger bonds of trust by being accessible and maintaining an open dialogue with customers and key stakeholders McDonalds, 2008 20.The company is reinvesting approximately $1. 9 million into their restaurants primarily to reimage existing restaurants and build new ones. McDonalds is also moving towards a more heavily franchised, 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 exceptiona l customer service, this should help them increase sales and net income.With the initiative of remodeling and upgrading existing franchises, 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 full part of the games and this only enhanced McDonalds brand image in a positive way. With the recruitment and training initiatives for current 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 financial 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 visibility 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 government 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 si des, 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 per centum of turnover is spent on advertising for comparison, the industry standard is five to seven percent. Kotler, 2008 17. The budget moldiness be focused. To further capture the developing markets through local promotions, local endorsements and local menu planning would lead to significant decreases in advertising costs but an increase in the appropriateness of the message to the consumers in the target markets.Using Ronald McDonalds as a marketing tool has certain problems with the younger generation. The traditional iconic figure has less in common with the youth culture, Schlosser, 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 paramount to many multinational businesses and exploited the world over.This can be seen in education, technology 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 and 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 card rew ards 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 tolerate management, Kotler, 2005 18. McDonalds has the capability to sustain itself as one of the leaders in the worldwide food sell 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 database, 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. Str ategies 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 both have the kids meals with the little 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 bake potato, chili, and the frost, and compete with the childrens meals.Arbys also has a nice menu besides the second-rate hamburgers, they also have chicken salad sandwiches, roast beef sandwiches, and a kids meal that includes a healthy meal such as fruit mix, turkey and ham sandwiches without the crust, with no toys included. Burger King, Wendys, Arbys are just a a couple of(prenominal) of McDonalds competitors that McDonalds would have to compet e with depending were you are fit(p). 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 landscape for our product, the McDonalds Reward Card, that we have presented would attract McDonalds target consumers between the ages of 18 and 25, will for sure bring a higher profit for the McDonalds corporation. The McDonalds Reward Card will offer the opportunity for our customers to pull together points which they will be able to corrupt not only food, but to get the entertainment that they enjoy, there is no contest that they have to enter and wait for a drawing 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 date 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 little success factors in order to understand its position. Four types of competition Kotler, 2005 18 Brand competition effort 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, kabob 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 assailable in Columbus, Ohio on November 15, 1969 at 257 East Broad Street by Dave Thomas (Wendys. om). In 1972, the first franchi se outside of Ohio was opened in Indianapolis, Indiana. Wendys is known as the home of the old fashioned hamburger, and is the consider 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 strategy 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 vital in todays competitive fast food business, due to the vast amoun t 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 second strategy is accelerating new storage openings and strengthening the quality of other Wendys locations. This is vital for Wendys to keep its competitive advantage is the ability to keep stores clean and modern. This strategy is being implement and seems to be quite successful in helping 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 causative 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 third strategy is to acutely increase penetration by adding new units or so called special sites?. This an excellent way to grow Wendys market, these small restaurants are 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 co sts 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 differentiated 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 dominated 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/ stead/news/article. cfm? c_id=8&objectid=10537499 http//www. nbr. co. nz/article/wendys-plans-nz-expansion-36423 5. 2 Jack in the Box 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, Selling of company assets to franchisees is not the same as selling a food product. He goes further saying that the company should discern operating earnings from non-operating income. 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 GAAP (Generally trustworthy Accounting Principles). In defense of Jack in the Box, Bud Leedom, senior a nalyst at swell Fargo Securities believes that Jacks accounting technique is specifically disclosed to Wall Street and as such is not impress 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. atomic number 78 Inc. s responsible for the preparation, integrity, and fair presentation of its published financial statements. For my organization, The Platinum Company, the corporation maintains a system of internal control over financial reporting 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 insure proper accounting Platinum utilizes their own internal audits and employs a well-known public accounting firm Deloitte & T ouche, LLP.Like Jack in the Box, Platinums Annual Report 2002, under other (loss) income, reports losses due to financial bankruptcy 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 morality are proper ethical conduct that implies that you not only consider what is in your best interest, but also what is in the best interest of others. Moral principles are what guide the conduct of individuals. For example, regarding financial reporting, WorldCom used a liberal interpretation of accounting rules when preparing financial statements. In an effort to mak e 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 finale 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 exempt from the public analysis, 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 WorldCom tribula tion 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 put on. Tony Smith started the company as a drive-in restaurant featuring hot dogs, hamburgers, and french-fried onion rings. In the mid-50s Smith was asked by Charles Pappe for attention in establishing a similar restaurant in a rural town also located in Oklahoma.This was the beginning of a partnership between the two men. In 1991 Sonic Corporation was the ordinal largest chain in the fast-food industry, servicing in the hamburger 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 recommend ation.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 parade 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 ow n 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 assumed control over failed franchise units, movement the number of company owned restaurants from 3 in 1974 to 149 in 1979. This rapid expansion of Sonic was a short lived frenzy 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 t hat 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 Lynn could begin to take problems head on, after ridding the board members and franchise holders that had significant contrast interests that clouded 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 conce rning 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 improvement counseling. Another strategy was to elevate the stores appearances and improve energy efficiency. Most franchise owners purchased a retrofit package that offered 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 striving 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 learned 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. hypertext markup language 6. References Gould, W. (1996). McDonalds. London, Cherrytree Books. Kotler, P. (2005). Principles of marketing. Harlow, Financial time learner 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/Pre ntice 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 September . 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 & paid Publishing. Weekly, B. (1994). McLibel Support Campaign. summary and extracts of court proceedings in High Co urt case McDonalds versus Helen Steel 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 September . 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. nzherald. co. nz/property/news/article. cfm? c_id=8&objectid=10537499 http//www. nbr. co. nz/article/wendys-plans-nz-expansion-36423