STRATEGIC MANAGENENT PROJECT ON Mc Donalds

SUBMITTED TO: HIMANI SHARMA SUBMITTED BY: Jai Choraria (D-51) Rishabh Re hi (D-35) Rohit Sharma (D-32) Sajan Singh Chawla(D-31) Sidharth Jain (D-46)

McDonald s Corporation (NYSE: MCD) is the world s largest chain of hamburger fas t food restaurants, serving around 68 million customers daily in 119 countries.[ 3][4] Headquartered in the United States, the company began in 1940 as a barbecu e restaurant operated by Richard and Maurice McDonald; in 1948 they reorganized their business as a hamburger stand using production line principles. Businessma n Ray Kroc joined the company as a franchise agent in 1955. He subsequently purc hased the chain from the McDonald brothers and oversaw its worldwide growth.[5] A McDonald s restaurant is operated by either a franchisee, an affiliate, or the corporation itself. The corporation s revenues come from the rent, royalties an d fees paid by the franchisees, as well as sales in company-operated restaurants . McDonald s revenues grew 27 percent over the three years ending in 2007 to $22 .8 billion, and 9 percent growth in operating income to $3.9 billion.[6] McDonald s primarily sells hamburgers, cheeseburgers, chic en, french fries, bre a fast items, soft drin s, mil sha es and desserts. In response to changing cons umer tastes, the company has expanded its menu to include salads, wraps, smoothi es and fruit. Thin ing of the company is : 1. We place the customer experience at the core of all we do. Our customers are the reason for our existence. We demonstrate our appreciation by providing them with high quality food and superior service in a clean, welcoming environment, a t a great value. Our goal is quality, service, cleanliness and value (QSC&V) for each and every customer, each and every time. 2. We are committed to our people. We provide opportunity, nurture talent, devel op leaders and reward achievement. We believe that a team of well-trained indivi duals with diverse bac grounds and experiences, wor ing together in an environme nt that fosters respect and drives high levels of engagement, is essential to ou r continued success. 3. We believe in the McDonalds System. McDonalds business model, depicted by our th ree-legged stool of owner/operators, suppliers, and company employees, is our fou ndation, and balancing the interests of all three groups is ey. 4. We operate our business ethically. Sound ethics is good business. At McDonalds , we hold ourselves and conduct our business to high standards of fairness, hone sty, and integrity. We are individually accountable and collectively responsible .

5. We give bac to our communities. We ta e seriously the responsibilities that come with being a leader. We help our customers build better communities, suppor t Ronald McDonald House Charities, and leverage our size, scope and resources to help ma e the world a better place. 6. We grow our business profitably. McDonalds is a publicly traded company. As su ch, we wor to provide sustained profitable growth for our shareholders. This re quires a continuous focus on our customers and the health of our system. 7. We strive continually to improve. We are a learning organization that aims to anticipate and respond to changing customer, employee and system needs through constant evolution and innovation. Comparison OF Mc Donalds with KFC 1. KFC and McDonalds are both popular fast food chains in the US and in the whole world. 2. KFC and McDonalds are both questioned for animal rights if whether or not they consider better animal welfare standards. 3. KFC and McDonalds have different variation of dishes. They both are having chi c ens in their menus. 4. McDonalds main offer is hamburgers while KFCs main offer is fried chic en. 5. Mc Donalds other offers include brea fast menu, desserts, chic en sandwiches a nd French fries. KFCs other offers include chic en wraps, sandwiches, salads, roa sted and grilled chic en cuisines and desserts. 6. KFC is 10 year older than McDonalds. 7. McDonalds logo is a smiling clown while KFCs is their original creators cartoone d image. Mc Donalds was founded in the year 1940 after 10 years from birth of KFC, still M c Donalds still it is having its existence in more locations as compared to KFC w hich 33,000+ worldwide as compared to just 17,000 worldwide KFC outlets, the rev enue for Mc Donalds for the year 2011 were $ 27.006 billion which were just 3 tim es that of KFC which were $ 9.2 billion.

PRODUCT MARKET GRID FOR Mc Donalds MARKET PENETRATION STRATEGIES 1. Advertisement- Mc Donalds use variety of advertisements to promote their produ cts through television, radio, newspaper etc. which ma es their products easily acceptable by the public as soon as they are introduced in the mar et. 2. Public Relations- Another strategy of Mc Donalds that has made it popular worl dwide is its policy of localization i.e. to change their productto meet the tast es and preference of local people. 3. Through large number of restaurants in particular area they try to capture the mar et entirely. 4. Competitive Pricing MARKET EXPANSION STRATEGIES 1. Introduce new deals and offers li e happy meal and other combo meals. 2. Special Discounts 3. Opening restaurants in new areas and ma ing people of small towns and cities f amiliar to their products through advertising.

PRODUCT DEVELOPMENT STRATEGIES Introduction of new products Mc Spicy Paneer Mc Spicy Chic en Mc Spicy Paneer Wrap Mc Spicy Chic en Wrap This year Mc Donalds has come up with whole Mexican burger, piri piri fries, dips etc. to attract more customers, they have also introduced Mc Egg. DIVERSIFICATION STRATEGIES Mc Donalds has introduced different food items li e burgers, wraps, freis, muffin s etc which caters to the needs of all customers. FUNCTIONAL STRATEGIES 1. Promotional strategy: The promotional strategy used is having a great im pact on the people, they are using all forms of media to reach maximum people li e radio, television, newspapers, hoardings etc. to ma e their products popular and acceptable. 2. Product Strategy:The strategy for product is to provide entry level prod uct so that the customer can try new items and graduate to higher rungs. 3. Pricing strategy: Value Ladder Strategy. In March 2004 introduced AAP KEZAMANE ME BAAP KE ZAMANE KEDAAM. In this section pr ices ranged from 20 to 80, which resulted high increase in sales volume. Started product bundling. Prices are stable because of well established low cost chain. 4. Place: The place mainly consists of the distribution channels. It is impor tant so that the product is available to the customer at the right place, right time and right quantity. The structure is simple for McDonald s. In India the ou tlets in north and east India are run by Connaught Plazarest pvt ltd and outl ets in westand south India are run by Hard Castle Rest. Pvt ltd.

DIRECTIONAL STRATEGIES 1. They ensure an easy user / brand focused interface giving the user a mor e informed buying experience through rich media content (where appropriate) and slic user interfaces that eliminates all conversion barriers. 2. According to them shopping solutions include digital product catalogues, online shopping bas ets, secure and seamless payment gateway integration and ba c office systems loo ing after stoc and order details. Whatever the customers requirements, Deals and you snugly integrate into your existing wor flow, saving you time and money whilst eliminating errors. 3. For those users uncomfortable with the concept of buying online, our wish list functionality allows them to shortlist products and print off a shopping li st containing info, price amongst other things

4.

Our highly experienced team wor s with the clients and customers to plan

and create a web presence that is right for them in terms of, commercially eff ective and entirely manageable 5. Deals and you gives the retailers instant access to an established and bu ying ready audience.

COMPETITIVE STRATEGIES Warfare strategies1. Offensive strategy This strategy involves overcoming the barriers of goal achievement in the compet itive environment. This strategy often requires significant capital investment and includes altering of competitive structure. But dealsandyou.com did not follow this strategy since there are many substitute companies who are already having good brand image, hence much of a adverse ris was there to exploit the changes in the competition structure. 2. Defensive strategy It involves accepting the industry competitive forces as a given and positioning your organization to best defend against them. Dealsandyou.com implemented this strategy of following the competitive environme nt since the company came after the establishment of many successful companies l i e snap deal flip art etc. hence it was safe to implement and provide same in d of services but with better quality of products and services . But dealsandyou.com failed to implement such strategy in a successful manner as it did not involve any involvement of much new products and service or with the better offers. Hence the customers stic to there earlier brands and deals and y ou failed to compete with them. It failed to involve attraction of ey customers and hence there was a need to i nvolve high loyalty mar et segments. There are many options available to implement the above defensive strategies in various ways but the company failed to follow and lac in flexibility and implic ation. The following are the defensive strategies that dealsandyou.com failed to implem ent1. Position defense This involves defense of a fortified position. It is a siege situation in which the time is on the side of attac er and as time goes by the, the defender gets w ea er while the attac er gets stronger. Hence, dealsandyou.com faced a situation li e a sitting duc i.e. wea defense s ide while companies li e snap deal etc are still successfully following the atta c ing mode 2. Mobile defense It involves flexibility in the changing of strategies from time to time. But dea lsandyou.com did not involve any of such changes. No focus on promotional strategies was there. The company did not pay much atten tion to its advertising strategies . Modifications on the existing product were also missing which had an ulterior ef fect on its customer loyalty as the customer demands flexibility in modification s and diversifications. Mar eting research s ills were lac ing in the implementation of strategies. 3. Flan defense The company did not protect itself against potential loss of mar et share in the segment.

 Dealsandyou.com failed to strengthen the competitive position in this segment.Th ey failed to implement new and innovative products and services and other tactic s that was required 4. Counter defense Counter defense involves countering an attac . But dealsandyou.com was unsuccess ful in attac ing the offensive side of the segment i.e. with those companies who have already made a successful establishment li e snap deal etc. So, from the above strategies, it clearly states that dealsandyou.com failed to deliver a commendable performance in terms of facing the competitive environment . The company was not able to match up with the tactful and successful strategies that were implemented by the companies who are on the attac ing side.

CULTURAL ISSUES FOR DEALS AND YOU.COM 1. Attitude: The attitude of dealsandyou.com towards its customers seemed c ausal and this showed in recurring failed transactions, refunds and failed refun ds. 2. Morals and Values: The moral grounds of dealsandyou.com seemed questiona ble as there were complaints about inferior quality goods when good quality was promised on website. 3. Ethics: Dealsandyou.com had grey ethical side as they did not return the money to their customers who never got their products actually delivered. RESOURCES ANALYSIS OF DEASLS AND YOU.COM 1. Tangible Resources: The handling of tangible resources was not good at d ealsandyou.com which resulted in failed and late deliveries, inferior quality go ods, poor service and ultimately this led to customer dissatisfaction. 2. Intangible Resources: The intangible resources li e web space were also not used properly as we have seen many times that there has been a best deal which provides 0% saving to the customer. This is li e the most stupid thing that can h appen on a website that boasts best deals in your city. Also the website was not v ery attractive and user friendly. Their notoriety in money transactions led to l oss of goodwill too. Their brand value was affected negatively due to these shortcomings. It can be seen dealsandyou.com failed to deliver in above aspects where websites li e snapdeal.com and flip art.com have excelled. INEFFICIENT CRM Deals and you.com has an inefficient CRM system. Their customers constantly complain of: Services not provided by dealsandyou.com as per the deal finalized. Getting cheated by getting duplicate products. Delay in sending and delivering of products. No proper response for the refund requests. Product not being received at all. Cancellation of product delivery due to miscellaneous reasons.

 Non- Delivery of a Product being ordered from Online Shopping Website Dealsandyo u.com. So, it is evident from above complaints that dealsandyou.com is failing to deliv er their side of promises and they are doing very poor Customer Grievance handli ng. They have not been delivering products or services on time and sometimes the y even failed to deliver the product or service entirely. In case of mixed up fi nancial transaction, customers have not been getting refunds on time and in some cases, they have not received their refunds at all which has led to a negative brand image of dealsandyou.com. Their goodwill has been affected by such inciden ts and they have lost a lot of business. It is evident Dealsandyou.com hasn t properly supported CRM because it hasn t un derstood either its importance or its requirements. It has failed to incorporate the basic elements of CRM li e: Developing a Customer-Centric Strategy: They have failed to develop a customer c entric strategy because they are more inclined towards the sellers as their clie nts rather than customer who also are their clients. Whereas sites li e snapdeal .com have developed a customer centric strategy which has led to customer satisf action for snapdeal.com customers. Creating a Customer-Centric Culture: It was evident that they failed to have a c ustomer centric culture where customer must be treated li e an asset rather than just being a client. This led to loss of existing customers who did not get the products according to their taste. For example it is not a good idea to sell ve ry expensive products in a not so value affective-low discount deal in a country li e India where customers are very peculiar about the discounts they get on pr oducts they buy either from a flee mar et or and upscale mar et or online. Harnessing the Power of Customer Information: They had no feedbac which could c onvey the dismay and dilemma of customers to the management. There was both nega tive feedbac s did not reach the management which resulted in customer dissatisf action. Sites li e snapdeal.com have been using customer information and feedbac for better business and better CRM thereby winning its customers hearts. OTHER ISSUES IN DEALS AND YOU.COM

1. The prices of the deals are hi ed up as compared to the original price b eing offered by the retailer, and then they show it as discounted. 2. The product delivered was not as same which was ordered. 3. Non wor ing electronic devices 4. Torn pac aging of the product, not resembling exactly with the photo giv en on the website as the photo has been enhanced on website as compared to origi nal product 5. No exchange for shoes 6. Do not have toll free number, so people pay long distance (or STD in Ind ia) for giving business to them. 7. The bac ward integration is extremely poor, even after expiry of the con tractual 7 days limit, they did not now whether the supplier had shipped, or ou t of stoc or anything else. 8. No response from the customer service 9. Order cancelled and then money not received specially through electronic payment. 10. Not enough information regarding the terms and conditions http://www.scribd.com/doc/24031588/mcd-vs- fc