McDonalds Corporation McDonald’s is the undisputed king of burgers. This has been the trend in the fast-food industry from their creation in the 1960’s to their massive growth in the 70’s, 80’s, 90’s, and now the new millennium. Over the past forty years, McDonald’s has fully taken advantage of their strengths but because of maturity in the fast food industry, more focus will have to be put on opportunities, weaknesses, and threats. Strengths. The first strength of McDonald’s has been their product strategy.
McDonald's is now the largest and best-known foodservice retailer and one of the two best-known and powerful brands in the market. With more than 24,500 restaurants in 115 countries, some of those operated by the company, some by franchisees or by affiliates operating under joint-venture agreements. The global market potential is still huge: yet on any day, even as the market leader, McDonald's serves less than one percent of the world's population. The restaurant chain plans to expand their leadership position through convenience, superior value and excellent operations. The effort to increase market share, profita!
What is behind McDonalds success? McDonalds – one of well-known brands in the world that revolutionize the industry they compete in. McDonalds’ founding fathers could never have imagined the unbelievable growth that their company would have over the many years. Many believe that the success of McDonalds relies in totally on the brand mission that is to “be the customers’ favorite place and way to eat and drink. The mission also emphasizes the importance of a “must” exceptional customer experience”.
The constant evolution of the marketing mix has enabled McDonalds to remain a dominant feature throughout the fast food industry. The use of celebrity endorsement is one key factor which has lead to McDonald's marketing strategy being so successful, this helps distinguish themselves from competitors such as Burger King and KFC and remain the market leader in the fast food retail industry. Dibb, S., Simkin, L., Pride, W.M. & Ferrell, O.C., 2001, Marketing Concepts & Strategies, Houghton Mifflin, Boston, New York Lines, D, Marcouse, I & Martin, B, 2003, A-Z of Business Studies, GreenGate Publishing Services http://www.mcdonalds.co.uk/?f=y [accessed 16th November, 2004] www.supersizeme.com [accessed 6th November, 2004] www.supersizeme-thedebate.co.uk [accessed 6th November, 2004] www.rmcc.org.my [accessed 5th December 2004
Ray Kroc, who built the McDonald's Corporation, and his belief that there was equal beauty in the expanding restaurant business, definitely envisioned the future of the fast food industry most accurately. INDUSTRY CHARACTERISTICS The restauran... ... middle of paper ... ...ine-month period ending September 26, 1999, as compared to same period ending September 27, 1998, has been highlighted in Table 5 for Balance Sheet accounts and Chart 6 highlights Revenues, Selected Expenses and Net Income on the following page. Expressed in Thousands of $$ - TABLE 5 ---------------------------------------------------------------------------- 9 MONTHS 9 MONTHS % OF ENDED ENDED INCREASE/ 9/26/99 9/27/98 (DECREASE) BALANCE SHEET ---------------------------------------------------------------------------- Current Assets $ 79,474 $ 68,023 16.8% ----------------------------------------------------------------------------
[4] They have also been sued multiple times for having "unhealthy" food, allegedly with addictive additives, contributing to the obesity epidemic in America. McDonalds is a strong company that has been around a long time and is ingrained into the memories of many people. They have indisputably strong brand recognition and loyalty. However, it may be time for McDonalds to undergo a makeover, especially in the areas of quality and their link to health concerns. It is pretty clear that McDonalds isn’t going bankrupt anytime soon.
Since 2009 the company has showed to increase its current ratio where it recorded an all-time high of 2.15 assets per 1 current liability. This was a significant point in the company, the high ratio showed the companies conservative strategy where majority of the cash was held back to fund acquisitions and fund its growth. The company remains to have a relatively high current ratio intact, as their main goal right now is to acquire and build new stores and make the whole foods brand more accessible all around the world. Taking all this information into consideration, it is clear that whole foods inc. has a well standing financial background. The high profit margins and increasing sales revenue and net income have shown a positive future for the company.
I. Introduction McDonalds has always been a leader in the fast food industry. Through its dynamic market expansion, new products and special promotional strategies, it has succeeded in making a name for itself in the minds of the target customers. However, McDonald’s earnings has declined in the late 1990’s and 2000s. This is mainly due to a fiercely competitive industry and variety in customer tastes and preferences.
They now own over 1,500 stores and have corporate revenues of $1.8 billion. Some of them include the ability to differentiate from competitors, market research, and quality dining. Panera prides themselves at being a top notch “best cost provider.” Panera provides quality foods in a quality dining area for an affordable price. This allows them to compete in a highly competitive North American food industry. Weaknesses The team had a hard time seei... ... middle of paper ... ...es.
Business Case: Panera Bread Company The main challenge is to determine how Panera Bread can continue to achieve high growth rates in the future. Panera Bread is operating in an extremely high competitive restaurant market which forces the company to improve and to grow steadily for staying profitable. The company’s mission statement of putting “a loaf of bread in every arm” is just underlying Panera’s commitment for growing. They are now in a good financial situation and facing growth rates of up to 20% per year in a niche market that has a great growth potential. In the next 7 years the fast-casual market is expected to grow by 500% in sales to a total of $30 billion.