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M c D o n a l d's C o r p o r a t i o n C o m p a n y

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 $ billion. Though McDonald’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 . 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.

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 fastfood 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 percent in company-owned same-store sales. The effort to reverse

slowing but continuing sales erosion at Hardee’s, the industry’s burger chain, had dominated management’s attention in its

conversion of Hardee’s to a format called “Star Hardee’s.”The company attempted to reverse sliding sales by introducing

new items on the menu and joining

the price-promotion burger wars. The company tested individual item discounts at most of Hardee’s company-owned units.

●Wendy’s international

Wendy’s has had the strongest same-sales gains of the major

burger chains in recent years. Chain officials and Wall Street

analysts attributed at least part of the growth to Wendy’s line of four upscale salads called “Garden Sensations.” The nation’s

burger chain holds an enviable position—analysts consistently rank it ahead of chief rival in quality, customer satisfaction,