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McDonald's
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FAST FOOD INDUSTRY
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INDUSTRY ANALYSIS
The Global Fast Food Restaurants industry has managed to grow over the
past five years despite being battered by a weakened global economy and
society's increasing awareness of the health risks associated with a diet
high in fat, salt and sugar.
The industry experienced steady and growing demand from emerging
economies
The industry's attempts to respond to changes in
consumer preferences have also supported revenue
growth.
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Contd..
Over the five years to 2013, revenue is expected to grow at an
average rate of 2.5% per year.
Industry revenue declined 2.6% in 2009, but bounced back
4.4% in 2010 and continued growing through 2011 and 2012.
In 2013, revenue is expected to grow an
additional 3.6% to total
$526.2 billion.
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INDUSTRY SHARE
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GROWING FIRMS
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COMPANY PROFILE
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FOUNDED & FOUNDER
May 15, 1940 in San Bernardino, California McDonald's
Corporation, April 15, 1955 in Des Plaines, Illinois.
Richard and Maurice McDonald, McDonald's restaurant
concept
Ray Kroc, McDonald's Corporation founder.
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BASIC INFORMATION
Number of locations 34,000+ worldwideRevenue US$ 27.56 billion (2012)Operating income US$ 8.60 billion (2012)Net income US$ 5.46 billion (2012)Total assets US$ 35.39 billion (2012Total equity US$ 15.29 billion (2012)Employees 1,800,000 (2013)
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OBJECTIVE & METHODOLOGY USED
OBJECTIVE : To do a GAP analysis of McDonald’s.
METHODOLOGY : We took the responses from 50 customer
and 4 store supervisor employees also personally visited the
restaurant and took the “Restaurant Tour” and tried to
understand the mantra for their quality control and fast service
abilities.
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FOR CUSTOMERS
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No of male and Female
53%48%
MALE
FEMALE
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AGE GROUP OF RESPONDENTS
3%
73%
18%
8%10 to 20
21-30
31-40
Above 40
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DOES MCDONALD’S COLLECT INFORMATION ABOUT YOUR TASTES AND PREFERENCES ?
35%
65%YES
NO
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How often does McDonald’s informs you about its new product & services through mail and other sources ?
18%
53%
30%WEEKLY
MONTHLY
NEVER
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How much are you satisfied with the counter ordering & delivery system in McDonald’s on scale of 1 to 10 ?
1 2 3 4 5 6 7 8 9 100
2
4
6
8
10
12
14
16
0 01
0
3
6
8
14
8
0
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ARE YOU SATISFIED WITH THE NEW PRODUCTS AND INFORMATION AVAILABLE ABOUT PRODUCTS.
4%
47%
49%
EXCELENT
GOOD
SATISFACTORY
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HOW WELL IS MCDONALD’S STORE LAYOUT DESIGNED AND OTHER
EQUIPMENT'S PLACED ?
13%
61%
26%EXCELENT
GOOD
SATISFACTORY
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How is the service delivery in terms of
consistency
7%
65%
28%EXCELENT
GOOD
SATISFACTORY
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HOW MCDONALD’S EMPLOYEES GREETS YOU
DURING THE TIME OF SERVICE DELIVERY?
90%
3%
8%
WITH SMILE
WITH HAND SHAKE
WITH AN CLUMSY LOOK
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How Do You Rate Service Delivery During Peak Hours On Scale Of 1 To 10?
1 2 3 4 5 6 7 8 9 100
2
4
6
8
10
12
0 0 0
2
10
6
8
9
8
9
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How effective is the promotional ads of McDonald’s in conveying information about its products?
53%
47%INFORMATIVE
NEEDS IM-PROVEMENT
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How do you feel regarding prices of McDonald's products?
15%
85%
HIGH PRICED
MEDIUM
LOW
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Do You Think You Are Delivered A Quality Product For The Prices Charged?
25%
75%
TO GREATER EXTENT
TO SMALL EXTENT
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Does McDonald’s provides what was promised to you ?
93%
8%
yes
no
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Gap Analysis Within The Organisation
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How Often Do Employees And Managers Interact And Have Meetings Regarding Customer Expectations
50%50%
Monthly
Quarterly
Weekly
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Service Delivery Employees Or Contact Employees Are They Given Preference To Share Their Views ?
25%
75%
Yes
No
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How well does company plan to recover from service failures?
Nice, When we call
Interacting with customers
Interact customer and take their feedback
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Are Employees Given Training And Information On New Products?
100%
Yes No
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How effectively does the company recruit, hire, train, compensate, and empower employees on scale of 1 to 10 ?
1 2 3 40
1
2
3
4
5
6
7
8
9
10
9 86 6
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Do customers fulfill their roles ?
Yes to an extent 50%
To lesser extent25%
No, not at all 25%Yes to an extent
To lesser extent
No, not at all
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Does the company avoid overpromising and overselling?
100%
Yes We Do
No We Dont
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Does the company price in line with customer perceptions of value?
100%Yes
No
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FINDINGS
During the survey it was found that most of the customers where of aged
between 15 to 30 & the sex ratio was relatively equal.
Mc Donald's was focused and interested in collecting information from
both customers and their employees.
Mc Donald's informed most of its customer on regular basis about its new
products and large group of customers where also happy with new
products offerings.
Large group of sample customers where happy with the Mc Donald's store
layout and its maintenance.
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Contd..
Customers where happy with Mc Donald's service delivery during normal
time but during peak hours service delivery consistency reduced.
The surprising factors which came out during survey was customers were
not happy with Mc Donald's promotional tools as they were less
informative but the good sign was the large group of customers were happy
with what was promised and delivered to them in ads.
Most of the customers said that the pricing was in medium range and 50%
of customers felt they weren’t delivered a quality products for prices
charged.
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FINDINGS
Employees and top management interacted monthly and weekly based on
requirement and lower level employees not involved in meetings.
Mc Donald's store supervisors said the recruitment process were
effectively conducted and employees were also given training.
Employees responded that most of the customers do fulfill their roles to
an extent.
Employees also responded that they wont do over promising and over
selling and they also price with customers perception in line
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Suggestions
Mc Donald's should focus on informing customers about new products
through mails and other sources and also provide information products in
details.
Mc Donald's should focus on service delivery during the peak hours
especially with more counters and also focus on maintaining their six sigma
status delivering to avoid mis match.
Mc Donald's should focus on using effective promotional ads and informative
ads. They can go with product catalouges, & handbills, Mobile apps, faster
home delivery .
Company should focus on pricing issues with certain products, also increase
products for breakfast timing.
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Contd..
Mc Donald's should focus on maintaining their combo product strategies
like
Aap ke Jamane Main Baap ke Jamane ke Daam…..!!!”
“Happy Meal” ,“Kite Meal”, “Shrek Meal”
Company should involve service delivery employees in team meetings and
collect their reviews since they have direct contact with customers.
Company should focus reducing channel conflicts in communicating in
order to avoid conflicts.
Company should focus on treating employees as an asset to organization to
reduce attrition rate.
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SHASHI KUMAR M . R
MBA
NEW HORIZON COLLEGE OF MANAGEMENT STUDIES