McDonald's Corporation Company

Table of Contents

? Executive Summary

? Introduction Industry Analysis

? Competitor Analysis

? SWOT Analysis

? Future and Recommendation

Executive Summary

McDonald's restaurant is a large chain fast food group and it has approximately thirty thousand shops in the world, the main selling is hamburgers, French fries, Fried chicken, soda, ice product, salad, fruit. After the financial crisis, most companies are experiencing a situation of fund shortage, how to get more profit has become the problem which the fast food industry must be facing with. Of course, the advantage of efficiency and convenience will be the important Opportunity to help the fast food industry to solve the problem. Now, McDonald's management is very good, but it still needs to improve in some places.

Introduction

McDonald's restaurant is a large chain fast food group and it has approximately thirty thousand shops in the world, the main selling is hamburgers, French fries, Fried chicken, soda, ice product, salad, fruit. McDonald's restaurants spread all over the world six continents in over countries. In many countries McDonald's represents of a kind of American way of life.

In 2001, the net income of McDonald shrunk 17 percent to $1.64 billion. Though McDonald’s U.S. market share remained above that of competitors, it grew more slowly. Because of the “Big Mac Attack”, McDonald accelerated plans for “New Tastes Menu” items. What’s more, McDonald’s opened McCafe in order to double sales at existing U.S. restaurants over the next decade. The gourmet coffee concept was created to be placed within or adjacent to existing McDonald’s restaurants. McDonald’s estimates that the new concept will boost sales by 15 percent.

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McDonald invested heavily in advertising its product and improving its public image. The advertising message of McDonald focused on tasty and nutritious food, friendly folks, and fun.

Industry Analysis

Nowadays, customers are tastes changing in the fast-food industry. Customers are eating out less often compared to previous years and eating habits are changing. Many younger customers are getting tired of fast food and are thinking about their health. A growing trend is the move by customers to non-hamburger sandwiches.

In allusion to these changes, McDonald’s face to profit drains and earnings declines, so they must innovate and keep their quality in the market and special promotional strategies. McDonald’s continue discounting and offering a variety of new products to attract customers, they also seek to shed their “cheap and greasy” image with new shore design. They are trying to increase the speed of drive-though delivery. McDonald’s trend is the recognition of the importance of heavy users of fast-food restaurants. Because customers do not want to sacrifice the convenience of fast food industry, they pay attention to meals that more upscale than traditional fast food, served in nicer restaurants with more comfortable surroundings, but faster than in traditional restaurants.

Competitor Analysis

1. Major competitors in the hamburger segment

McDonald’s has three major competitors in the hamburger segment. These include Burger King, Hardee’s and Wendy’s. Both Burger King and Wendy’s have had small gains in market share while Hardee’s lost share. ●Burger King Corp.

The menu overhaul is one part of a major turnaround strategy engineered by Burger King’s chairman and chief executive, John Dasburg, who joined the chain in 2000. Its ongoing effort to increase sales and market share, offered a new salad line and a permanent array of value-priced offerings, endeavors already under way at its fast-food competitors.

●Hardee’s

The chain posted year-to-year quarterly declines of 4.8 percent in company-owned same-store

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