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Mc Donalds exiting Icelanddue to currency collapse.

Hina Malik 07-0403

Ayesha Yaqoob 08-0576

Mc Donalds

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Outline

History Mission statement

Product

McDonalds in Iceland

Pulling up stakes from Iceland

Financial crisis

Value of Krona Conclusion

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Mc Donalds

History The business began in 1940, witrestaurant opened by two brothersMack and Dick

In 1948 by Ray Kroc started as aburger stand.

First McDonald's Restaurant openedin Des Plaines, Illinois by

McDonald's Corporation founder,Ray Kroc, on April 15, 1955.

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Mc Donalds

History In 1965 company become listed on public

stock market.

More than 31,000 local restaurants serving58 million people in 118 countriesevery day.

More than 75% restaurants worldwide areowned and operated by independent

men and women.

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Mission statement To be our customers' favorite place and way to eat." Our worldwide

operations have been aligned around a global strategy called the Plan to Win

centering on the five basics of an exceptional customer experience

People

Products

Place

Price

Promotion

We are committed to improving our operations and enhancing our customers'

experience

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Products

Mc Donalds

Burgers

Big Mac. Quarter Pounder. Ham Burger. Big N tasty. Mc Chicken.

Desserts

Mc Flurry. Pies. Sundaes, cones.

Beverages Cold Drinks. Hot and Iced Tea. Milkshakes.

Coffee.

Other products Mc Nuggets Fries

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Pulling up stakes from Iceland

The Big Mac, long a symbol of globalization, has become the latest victim of theisland nation's overexposure to the world financial crisis.

The global chain says it is shuttering its three stores in the capital, Reykjavik,Iceland.

Citing the collapse of the local economy and the high cost of imports.

The decision to shutter the Icelandic franchise was taken in agreement withMcDonald's Inc, after a review of several months.

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Pulling up stakes from Iceland

Costs had doubled over the past year because of the fall in the krona and highimport tariffs on imported goods.

A Big Mac in Reykjavik already retails for 650 krona (3.20). But the 20 per centincrease needed to make a decent profit would have pushed that to 780 krona

(3.90).

That would have made the Icelandic version of the burger the most expensive in theworld.

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Financial crisis

The 20082009 Icelandic financial crisis is a major ongoing economic crisis inIceland that involves the collapse of all three of the country's major banksfollowing their difficulties in refinancing their short-term debt and a run on

deposits in the United Kingdom. Relative to the size of its economy. Icelands banking collapse is the largest suffered by any country in economic

history.

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Value of Krona The Icelandic krona fell in value against the US dollar

50 to 80 per dollar to about 110-115 per dollar.

by mid-November 2008 it had continued its slide to 135 to the dollar.

As of April 2, 2009, the value hovered around 119 per US dollar.

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Conclusion

The Unique operational complexity of doing business in Iceland combinedwith the very challenging economic climate in the country makes it financiallyprohibitive to continue the business, Mc Donald's tried their best to serve in Iceland

but due to fall in price of Krona it was very difficult to import materials from othercountries their imports consisted of packaging material, food etc.

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Thank you!

Mc Donalds