Corporate Review

McDonalds
PRESENTED BY :
GURUPRASAD DASH
18BSP3501
 Introduction:
• McDonald's – originally owned by
Dick and Mac McDonald.

• Ray Kroc - signs a franchise

agreement in 1954.

• Current CEO – STEVE

EASTERBROOK

• McDonald’s entered the Indian

market in 1996.
 Business Strategies :
 Product Mix:
McDonald’s provides mainly food and beverage products like hamburgers,
sandwiches, salad, fries, coffee, nuggets etc.
 Place Mix:
McDonald’s restaurants are the most prominent places where the company’s
products are distributed. Some places are restaurants, kiosks, website and
McDonald’s mobile app
 Promotional Mix:
McDonald’s uses the following tactics in its promotional mix like advertising, sales
promotions, public relations, direct selling
 Pricing:
McDonald’s pricing strategy involves price bundling combined with psychological
pricing. Affordable.
 Swot analysis :
Strength Weakness
 Strong brand image  Limited process flexibility

 Moderate market  Low product

diversification diversification

 Standardized processes  Vulnerability to Western

market decline
 Swot analysis :
Opportunity Threat

 Expansion in developing  Aggressive competition

countries
 Product diversification  Healthy lifestyles trend

 More franchise – less risk.  Safety trends and regulations

`
 Financial summary :
Parameter F.Y. 2017 F.Y. 2018
Revenue $22.82 B $21.20 B
Net Income $5.19 B $5.20 B
Earnings Per Share (EPS) $1.47 $2.10
Current Ratio (CA/CL) 1.28 1.53
Quick Ratio 1.13 1.52

 Consolidated revenues decreased 9.81%

 Consolidated operating income increased

4.37%