1. McDonald’s Against Anti-McDonalism 200314190 Young-ho Lee
Sang-sup Woo
Sang-uk Ju
Jung-hyun Back

2. Contents Introducing 1 Analysis 2 3 How!? 4 Problems 5
Alternative strategies

3. 1.Introducing
(1) History

4. 1.Introducing
(1) History

5. 1.Introducing
(1) History

6. and serve 58 million customers each day.
1.Introducing
(2) Overview
McDonald's restaurants are found in 119 countries and territories around the world
and serve 58 million customers each day.
McDonald's operates over 31,000 restaurants worldwide, employing more than 1.5 million people.

7. 1.Introducing Total assets US$29.2 billion
(2) Overview
Products fast food
Revenue US$22.6 billion
Operating US$6.51 billion
Income
Net income US$4.31 billion
Total assets US$29.2 billion
Total equity US$13.2 billion

8. 1.Introducing
(2) Overview
Beef
Big mac · Big N' Tasty · Kiwiburger · Lean Beef Burger · Quarter Pounder · SuperBeef · Deluxe line · Arch Deluxe
Chicken
Chicken McNuggets · McChicken
Other
Happy Meal · McRib · Filet-O-Fish · McMuffin · McGriddles · Premium line

9. Mc business model 1.Introducing an investor in properties
(2) Overview
an investor in properties
Mc business model
a franchiser of restaurants
an operator of restaurants

10. 2.Analysis 1. Rivalry within industry:
(1) Competitive forces(Michel Porter)
1. Rivalry within industry:
Burger King, Wendy’s, In & Out etc.
Brands - Big Mac, Filet o’ Fish, Ronald McDonald House
Innovation - McGriddle, celebrity endorsements, monopoly
Online presence - company info, links to charity works
2. Threat of new entrants:
McDonald’s has market dominance (over 30,000 restaurants world-wide)
constant growth -Franchising
3. Threat of substitutes:
Any other food industry – high-class restaurants to hot dog stands
Healthier alternatives (Newman’s Own), unique products

11. 2.Analysis 4. Bargaining power of buyers:
(1) Competitive forces(Michel Porter)
4. Bargaining power of buyers:
Pay attention to customer demands and trends
Offer specialty products for certain segments
First mover- removal of super size option, salads, cooking oil
5. Bargaining power of suppliers:
McDonald’s relies on strong supplier and distributor relationships
Help suppliers lower costs
Develop new supplier base to reflect customer diversity
Suppliers include: Coca-Cola, Heinz, Newman’s Own

12. Differentiation strategy Cost Leadership Strategy
2.Analysis
(2) Mc’s Competitive Strategy 1
Differentiation strategy
Gold Standard 2
Signature Favorites
Big Mac and McNuggets 3
Cost Leadership Strategy
Items are very competitively priced

13. McDonald’s or Burger King for lunch today, which one would you pick?
3.How Mc is number one?
If you could eat at
McDonald’s or Burger King
for lunch today, which one would you pick?
94% responded
“MCDONALDS” with thunderous cheers
6% responded
“Burger King” without much enthusiasm.

14. 3.How Mc is number one? McD Forecasting Being their own boss
Benefit from
national marketing
Selling a well established,
high quality product
Dynamic innovation
Intensive initial training
& Continuous support

15. 3.How Mc is number one? Business model Franchising Licensing
(1) Being their own boss
Business
model
Franchising
Licensing

16. 3.How Mc is number one? Strategy Economies Standardization of scale
(2) Selling a well established, high quality product
Strategy
Economies
of scale
Standardization

17. 3.How Mc is number one? Training Franchisee training Human resource
(3) Intensive initial training & support
Training
Franchisee
training
Human resource
management

18. 3.How Mc is number one?
(4) Benefit from national marketing

19. Many creative items on menu
3.How Mc is number one?
(5) Forecasting & Innovation
Many creative items on menu

20. Globalization negotiating input prices.
Bigmac Index-Purchasing Power Parity
Introduced in The Economist in
September 1986 by Pam Woodall
-Predicting exchange rate movements is
that the rate between two currencies.
-McDonald's franchisees at least in theory
have significant responsibility for
negotiating input prices.

21. Globalization Bigmac Index-Purchasing Power Parity QUESTION !!!
The price of a Big Mac was $3.57 in the United States (Varies by store)
The price of a Big Mac was £2.29 in the United Kingdom (Britain)(Varies by region)
The implied purchasing power parity was $1.56 to £1, that is $3.57/£2.29 = 1.56
This compares with an actual exchange rate of $2.00 to £1 at the time
[( )/1.56]*100= ?%
The pound was thus overvalued against the dollar by ?%
But the Big Mac (and virtually all sandwiches) vary from country to country with differing nutritional values, weights and even nominal size differences.

22. 4.Problems Cultural antagonism Regulations Health issue Anti-
Americanism
Health issue
Cultural
antagonism
Regulations

23. 4.Problems
(1)Cultural antagonism

24. 4.Problems
(2)Anti-Americanism

25. 4.Problems
(3)Health issue

26. 4.Problems
(4)Regulations

27. 5.Alternative strategies
Global
Integration
Local Responsiveness

28. 5.Alternative strategies
(1) Localization
Thailand

29. 5.Alternative strategies
(1) Localization
China

30. 5.Alternative strategies
(1) Localization
Peru

31. 5.Alternative strategies
(2) Diversity on menu

32. 5.Alternative strategies
(3) Hamburger University 32

33. 5.Alternative strategies
(3) Hamburger University
In 1961, Fred Turner, McDonald’s former senior chairman and Ray Kroc’s first grillman, founded Hamburger University in the basement of a McDonald’s restaurant in Elk Grove Village, Illinois
February 24, 1961, Hamburger University's first class of 14 students graduated. 
Today, more than 5,000 students attend Hamburger University each year. 
The first restaurant company to develop a global training center.

34. 5.Alternative strategies
(3) Hamburger University
quality
service
Company’s
Global
center
procedures
operations

35. 5.Alternative strategies
(3) Hamburger University
Standardization
Discussion
R & D
Diversification

36. Thank You !