Презентація на тему «McDonald’s Corporation»

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A Strategic Management Case Studywww.mcdonalds.com/
Overview
Who We Are
What We Sell
Where We Are
History
History (cont.)
 History (cont.)
History (cont.)
History (cont.)
History (cont.)
History (cont.)
History (cont.)
History (cont.)
History (cont.)
Mission Statement
Vision Statement
Brand Strategy
http://www.youtube.com/watch?v=5fbrnj2Ki4s
Menu
 http://www.mcdonalds.com/usa/eat/mcdonalds_menu.html
Nutrition Information
http://nutrition.mcdonalds.com/nutritionexchange/nutritionexchange.do
Nutrition Information
1st restaurant to place its information in an easy-to-read graphic format on their packaging
Values 
http://www.crmcdonalds.com/publish/csr/home/about/values.html
Values Continued
http://www.crmcdonalds.com/publish/csr/home/about/values.html
McCafé 
McCafe
Features a relaxed adult atmosphere.  Offers customers a variety of specialty coffee drinks along with muffins, pastries and sandwiches.
Ray Kroc Formula for Success:
QualityServiceCleanlinessValue
Ray Kroc- Business Model
Hamburger University Facility
Hamburger University
Hamburger University cont.
Ronald McDonald House Charities
The mission of Ronald McDonald Charities is to create, find and support programs that directly improve the health and well being of children.Ronald McDonald Houses are located all around the world and provide families a way to stick together in times of need when their children are ill.  Service Provided:Home-cooked meals Private bedrooms Playrooms for childrenSpecial suites for children with suppressed immune systems Accredited education programs Recreational activities 	Non-clinical support services Sibling support services 
World Children Day
Mom Knows Best
Responsible Suppliers
Going Green
Popular Promotions
Supersize Me Scandal
http://www.youtube.com/watch?v=I1Lkyb6SU5U
Other Important Facts
2006 Objectives
Grow Market ShareCreate long-terms profitable growth for share holders.Maintain current debt-to capital levels to 35-40%Reduce the percentage of company owned units.Decrease selling, general and administration expenses.
External Assessment
Global Industry Growth
U.S Industry Growth
Global Segmentation by Type
U.S Segmentation by Type
Competitors
Trademarks are property of respective brands
External Audit- Opportunities
New Products & Services Beverage Market Growth of Franchise Restaurants Demand for Organic Products International Expansion Conservation (going green) 
External Audit-Threats
McDonalds
Burger King
Wendy's
Critical Success factors
Weights
Rating
Weighted Score
Rating
Weighted Score
Rating
Weighted Score
 
0.0 to 1.0
1 to 4
 
1 to 4
 
1 to 4
 
Market Share
0.18
4
0.72
3
0.54
2
0.36
Financial Position
0.12
4
0.48
3
0.36
3
0.36
Global Expansion
0.09
4
0.36
3
0.27
2
0.18
Customer Service
0.09
2
0.18
2
0.18
2
0.18
Advertising
0.07
4
0.28
3
0.21
2
0.14
Price Competitiveness
0.07
4
0.28
3
0.21
2
0.14
Product Innovation
0.11
2
0.22
3
0.33
3
0.33
Product Quality
0.1
1
0.1
2
0.2
4
0.4
Customer Satisfaction
0.08
3
0.24
3
0.24
4
0.32
Management
0.09
4
0.36
3
0.27
3
0.27
Totals
1
 
3.22
 
2.81
 
2.68
McDonalds Competitive Profile Matrix
Key External Factors
Weights
Rating
Weighted Score
 
0.0 to 1.0
1 to 4
 
Opportunities
 
 
 
New Products & Services
0.1
3
0.3
Beverage Market (frosties)
0.08
2
0.16
Growth of Franchise Restaurants
0.09
3
0.27
Demand for Organic Products
0.06
1
0.06
International Expansion
0.1
4
0.4
Conservation (going green)
0.07
1
0.07
 
 
 
0
 
 
 
0
 
 
 
0
 
 
 
0
Threats
 
 
0
Change in Commodity Prices
0.07
3
0.21
Food Safety and Food Borne Illness Concerns
0.07
4
0.28
Economic Slowdown
0.1
4
0.4
Growing Health Consciousness
0.08
2
0.16
Intense Competition (din-in restaurants, Wendy's)
0.09
4
0.36
Legal Challenges (McDonalds faces many lawsuits)
0.09
3
0.27
 
 
 
0
 
 
 
0
 
 
 
0
 
 
 
0
 
 
 
0
 
 
 
0
Totals
1
 
2.94
External Factor Evaluation Matrix
McDonalds
Internal Assessment
McDonald's Performance Chart 2006
http://moneycentral.msn.com/investor/charts/chartdl.aspx?iax=1&Symbol=MCD
Financial Highlights
Financial Highlights (Cont.)
Revenue Grew 9% to a record 21.6 Billion2006	21.6B2005	19.8B2004	18.6B
Three Year Compound Annual Return to ShareholdersMCD	24%S&P	10%DJIA	8%	McDonalds more than doubled its annual return to shareholders than the S&P 500 and the Dow Jones Industrial Average.
Financial Highlights (Cont.)
Dividends have increased every year since McDonalds first paid in 1976, nearly doubled since 2004.2006	$1.002005	$0.672004	$0.55
Cash returned to shareholders:2006	4.9B2005	2.1B2004	1.3B2003	0.9BTotaled more than $9B between 2003-2006 
Income Statement
Balance Statement
http://finance.yahoo.com/q/bs?s=MCD&annual
Liquidity Ratios
Current Ratio
1.76
Quick Ratio
1.72
Leverage Ratios
Debt-to-Total Assets Ratio
0.29
Debt-to-equity Ratio
0.54
Long-term debt-to-equity Ratio
0.54
Times-Interest-earned Ratio
11.36
Activity Ratios
Inventory Turns
185.90
Fixed Assets Turnover
0.70
Total Assets Turnover
0.72
Accounts Receivable Turnover
25.90
Average Collection Period
14.10
Profitability Ratios
Gross Profit margins
0.33
Operating Profit Margin
0.22
Net Profit Margin
0.17
Return on Total Assets
0.12
Return on Stockholders equity
0.23
Earning per share
2.94
Price-earnings Ratio
15.06
Growth Rations (yearly)
Sales
9.30%
Net Income
36.20%
Earnings per share
16.75%
Dividends per share
50.00%
Ratios
Growth Rates % 
Industry 
SP-500 
Sales (Qtr vs. year ago qtr)
7.5
8.3
Net Income (YTD vs. YTD)
-9.1
16
Net Income (Qtr vs. year ago qtr)
42.5
6.6
Sales (5-Year Annual Avg.)
8.89
13.34
Net Income (5-Year Annual Avg.)
13.16
20.14
Dividends (5-Year Annual Avg.)
26.63
10
Price Ratios 
 
 
Current P/E Ratio
24.8
21.9
P/E Ratio 5-Year High
30.4
25.9
P/E Ratio 5-Year Low
13
7.4
Price/Sales Ratio
2.1
2.38
Price/Book Value
3.02
3.39
Price/Cash Flow Ratio
5.4
10.6
Profit Margins 
 
 
Gross Margin
31
33.8
Pre-Tax Margin
12.1
17.5
Net Profit Margin
8.1
12.4
5Yr Gross Margin (5-Year Avg.)
30.5
33.5
5Yr Pretax Margin (5-Year Avg.)
12.3
16.8
5Yr Net Profit Margin (5-Year Avg.)
8.5
11.7
Industry Ratios
Financial Condition 
 
 
Debt/Equity Ratio
0.69
1.19
Current Ratio
0.4
0.9
Quick Ratio
0.4
0.7
Interest Coverage
13.9
43.3
Leverage Ratio
1.7
4
Book Value/Share
3.58
16.25
Investment Returns % 
 
 
Return On Equity
15.1
20.8
Return On Assets
4
5.8
Return On Capital
5.4
7.7
Return On Equity (5-Year Avg.)
11.1
14.5
Return On Assets (5-Year Avg.)
3.1
5.1
Return On Capital (5-Year Avg.)
4.3
6.8
Management Efficiency
 
 
Income/Employee
3,150
37,696
Revenue/Employee
48,925
343,930
Receivable Turnover
29.9
9.5
Inventory Turnover
34.5
5.6
Asset Turnover
0.7
0.6
Industry Ratios(Cont.)
Net Worth Analysis
1. Stockholders' Equity + Good Will = 15458.30 + 2073.6	  						                      	        $3,531.902. Net Income X 5 = 3544.20 X 5		        								                  $17,721.00 	3. Share Price = 44.33/EPS 2.44 = 18.16 X  Net Income 3544.2						   		       $64,362.67 	4. Number of Shares Outstanding X Share Price = 1204 X 44.33						         		       $53,373.32 			Method Average		        $34,747.22	
Internal Audit- Strengths
 Strong Global Presence (located in over-    100 countries)Strong Real Estate PortfolioBrand RecognitionRevenue Growth 9% (Above Industry Average of 7.5%)The Ronald McDonald House (Children Charity)Systemization and Duplication (Consistency)
Internal Audit-Weaknesses
Public Perception (perceived as a     contributor to societies obesity problem)Product InnovationAdvertising (targets young children)Customer ServiceMarket Saturation (more difficult to add new stores)Labor Turnover
Key Internal Factors
Weights
Rating
Weighted Score
 
0.0 to 1.0
1, 2, 3 or 4
 
Internal Strengths
 
3 or 4
 
Strong Global Presence (located in over 100 countries)
0.09
4
0.36
Strong Real Estate Portfolio (franchises, land, buildings)
0.09
4
0.36
Brand Recognition (Ronald McDonald is as famous as Mickey Mouse)
0.11
4
0.44
Revenue Growth 9% (Above Industry Average of 7.5%)
0.11
4
0.44
The Ronald McDonald House (Children Charity)
0.06
4
0.24
Systemization and Duplication Process (consistency)
0.09
4
0.36
 
 
 
0
 
 
 
0
 
 
 
0
 
 
 
0
Internal Weaknesses
 
1 or 2
 
Public Perception (perceived as a contributor to societies obesity problem)
0.09
1
0.09
Product Innovation
0.08
2
0.16
Advertising- targets young children (many countries ban unhealthy advertisements)
0.07
2
0.14
Customer Service
0.08
2
0.16
Market Saturation (more difficult to add new stores)
0.07
2
0.14
Labor Turnover
0.06
1
0.06
 
 
 
0
 
 
 
0
 
 
 
0
 
 
 
0
 
 
 
0
Totals
1
 
2.95
Internal Factor Evaluation Matrix
McDonald's
Strategic Formulation
SWOT Matrix
SO Strategies
WO Strategies
ST Strategies
WT Strategies
1. Develop New Products & Services For Global Markets. (S1, O1)
1. Advertise Organic Products to Older Demographic. (W3, O4, O6)
1. Launch Marketing Campaign for Ronald McDonald House to increase Brand Recognition and Customer Loyalty. (S5, S3, T3, T5)
1. Research and Develop products that quell Growing Health Concerns. (W1, T2, T4)
2. Develop Green Packaging for all Stores. (S6, O6)
2. Spend more money on Research and Development to create new products and services. (W2, O1)
2. Develop alternatives to existing menu that can be easily implemented and don't rely on more expensive commodities. (S6, T1)
   2. Increase spending on Customer Service efforts to decrease legal challenges. (W4, T6)
3. Integrate into new territories. (S1, S4, O5)
3. Create an organic menu. (W2, O1)  
 
 
FS
+6
+1
+5
+4
+3
+2
-6
-5
-4
-3
-2
-1
-6
-5
-4
-3
-2
-1
+1
+2
+3
+4
+5
+6
ES
CA
IS
Conservative
Aggressive
Defensive
Competitive
Grand Strategy Matrix
BCG Matrix
McDonalds stores compete in the same market whether they are corporate owned or franchised.No Value in producing a BCG MatrixMcDonalds would be considered a Star.
IE Matrix
Matrix Analysis
Alternative Strategies
IE
SPACE
GRAND
COUNT
Forward Integration
 
X
 
1
Backwards Integration
 
X
 
1
Horizontal Integration
 
X
 
1
Market Penetration
X
X
 
2
Market Development
 
X
 
1
Product Development
X
X
 
2
Concentric Diversification
 
X
X
2
Conglomerate Diversification
 
X
X
2
Horizontal Diversification
 
X
X
2
Joint Venture
 
 
X
2
Retrenchment
 
 
 
0
Divestiture
 
 
 
0
Liquidation
 
 
 
0
Possible Strategies
Create an Organic Menu.	A.  Market Penetration	B.  Product development & related diversificationSpend more money on research and development to create new products and services and increase the efficiency of operation.	A.  Product development & related diversification
 
 
 
 
 
Option 1
Option2
 
 
 
 
 
Create an Organic
Spend more money on R&D to create new products 
 
 
menu.
 
and services and increase the efficiency of operations
Key External Factors
 
Weight
AS
TAS
AS
TAS
Opportunities
 
 
 
1 to 4
 
1 to 4
 
New Products and Services
 
0.1
4
0.4
4
0.4
Beverage Market (frosties)
 
0.08
3
0.24
2
0.16
Growth of Franchise Restaurants
 
0.09
 
0
 
0
Demand for Organic Products
 
0.06
4
0.24
2
0.12
International Expansion
 
0.1
 
0
 
0
Conservation (Going Green)
 
0.07
4
0.28
3
0.21
Threats
 
 
 
 
 
 
 
 
Change in Commodity Prices
 
0.07
2
0.14
2
0.14
Food Safety and Food Borne Illness Concerns
0.07
 
0
 
0
Economic Slowdown
 
0.1
2
0.2
3
0.3
Growing Health Consciousness
 
0.08
4
0.32
3
0.24
Intense Competition (Dine-In Restaurants, Wendy's)
0.09
4
0.36
3
0.27
Legal Challenges (8.8million lawsuits)
 
0.09
 
0
 
0
 
 
total should be 1.0
1
 
 
 
 
Quantitative Strategic Planning Matrix-QSPM
Key Internal Factors
 
 
    Organic
Menu
  Increase $ on 
Research & Development
Strengths
 
 
 
1 to 4
 
1 to 4
 
Strong Global Presence (located in over 100 countries) 
0.09
4
0.36
4
0.36
Strong Real Estate Portfolio (land, buildings)
0.09
 
0
 
0
Brand Recognition (Ronald McDonald is as famous as Mickey Mouse)
0.11
4
0.44
4
0.44
Revenue Growth 9% (Above industry average 7.5%
0.11
 
0
 
0
The Ronald McDonald House (Children Charity)
0.06
 
0
 
0
Systemization & Duplication Process (consistency)
0.09
 
0
 
0
Weaknesses
 
 
 
 
 
 
 
Public Perception (perceived as a contributor to societies obesity problem)
0.09
4
3
0.27
Product Innovation
 
0.08
4
0.32
4
0.32
Advertising (targets young children)
 
0.07
 
0
 
0
Customer Service
 
0.08
 
0
 
0
Market Saturation (more difficult to add new stores)
0.07
 
0
 
0
Labor Turnover
 
0.06
 
0
 
0
 
 
total should be 1.0
 
1
 
 
 
 
 
 
 
 
 
 
3.3
 
3.23
QSPM (Cont.)
Future Plans
Objectives
Objectives for 2007 and the next three years are:  	 
Better restaurant operationsBranded affordabilityMenu variety and beverage choiceGrow market shareMaintain debt-to-capital levels to 35-40%Create long-term profitable growth for shareholders
Recommendations
Going Organic
Organic Food sales are anticipated to increase an average of 18 percent each year from 2007 to 2010.Organic food represents approximately 2.8% of overall food and beverage sales in 2006.  The organic sector grew 20.9% in 2006.Total US organic sales, including food and non-food products, were $17.7 billion in 2006 up 21% from 2005.
O'Naturals Organic Fast Food
Implementation
EPS/EBIT Analysis
Amount of money needed: $65,000,000Stock Price as of 12/31/06: $41.61Tax Rate: 35%Interest Rate: 7%# Shares Outstanding: 1,204,000,000# Shares needed: 1,562,124
EBS/EBIT Analysis (Cont.)
 
Common Stock Financing
Debt Financing
 
 
Recession
Normal
Boom
Recession
Normal 
Boom
 
 
EBIT
65,000,000
250,000,000
600,000,000
65,000,000
250,000,000
600,000,000
 
 
Interest
0
0
0
4,550,000
4,550,000
4,550,000
 
 
EBT
65,000,000
250,000,000
600,000,000
60,450,000
245,450,000
595,450,000
 
 
Taxes
22,750,000
87,500,000
210,000,000
21,157,500
85,907,500
208,407,500
 
 
EAT
42,250,000
162,500,000
390,000,000
39,292,500
159,542,500
387,042,500
 
 
#Shares
1,205,562,124
1,205,562,124
1,205,562,124
1,205,562,124
1,205,562,124
1,205,562,124
 
 
EPS
0.035045892
0.134791892
0.323500542
0.03259268
0.13233868
0.321047329
 
 
 
 
 
 
70 Percent Stock- 30 Percent Debt
70 Percent Debt- 30 Percent Stock
 
 
Recession
Normal
Boom
Recession
Normal
Boom
 
 
EBIT
65,000,000
250,000,000
600,000,000
65,000,000
250,000,000
600,000,000
 
 
Interest
4,550,000
4,550,000
4,550,000
3,185,000
3,185,000
3,185,000
 
 
EBT
60,450,000
245,450,000
595,450,000
61,815,000
246,815,000
596,815,000
 
 
Taxes
21,157,500
85,907,500
208,407,500
21,635,250
86,385,250
208,885,250
 
 
EAT
39,292,500
159,542,500
387,042,500
40,179,750
160,429,750
387,929,750
 
 
#Shares
1,205,093,487
1,205,093,487
1,205,093,487
1,204,468,637
1,204,468,637
1,204,468,637
 
 
EPS
0.032605354
0.132390144
0.321172178
 
0.033358901
0.133195457
0.322075427
 
Other Issues
  Labor TurnoverEmployee Retention  Cultural differences in international countries  Laws and regulations in international countries  Currency  Public Relation
Evaluation
Update-Current Strategy and Objectives 2007-2008
Our Plan to Win, with its strategic focus on "being better, not just bigger," has delivered even better restaurant experiences to customers and superior value to shareholders.We have the world's best owner/operators, suppliers, and employees united in our commitment to customers.We are leveraging greater consumer insight to deliver sustainable business results for the long-term benefit of our shareholders.
http://moneycentral.msn.com/investor/charts/chartdl.aspx?iax=1&Symbol=MCD
Bibliography