McDonald’s

Presented by: Praephan Ratana-amornpin

Trevor MunroMargaret Hill-Skinner

Introduction

• Largest fast food chain in the world• Our focus:

– McDonald’s America– McDonald’s Thailand

Mission Statement

• QSC&V– Quality– Service– Cleanliness– Value

Company Profile

• Founded in 1940 in San Bernardino, CA by Dick and Mac McDonald

• Began franchising in 1955 with implementation of “speedee service system”

• Currently found in 120 countries and serve 54 million people daily

• Over 30,000 stores worldwide

Company Profile

• Is the largest fast-food chain in the world

• Typically owns the property it’s restaurants are on, and collects rent from franchisee’s

• Reported worldwide revenue of $20.46 billion in 2005

• Constantly altering menu or adding new items

Target Market

• Low to Mid income

• Busy people – anyone on the go!– Families (Happy

Meal)– Teenagers– College students

Franchising

• Franchises require a down payment of 40% (of total cost) for new restaurants, and 25% for existing

• This must be non-borrowed money, and is a minimum of $200,000

• Must pay a service fee of ~4% of sales per month, and monthly rental for the land

• Required to attend Hamburger University in Oak Brook, Illinois

Location – Store Based• Central Business Districts

– Downtown Portland, other city-centers• Secondary Business Districts

– Bridgeport Village• Shopping centers

– Valley River Center and Salem Center• Free-Standing

– 9th Street in Corvallis• Inside many Wal-Mart’s

SWOT Analysis

Strengths• Very strong brand name• Recognizable characters• Large target group• New stores almost 100% guaranteed to

succeed• Ability to adapt when faced with

criticism• Play Area for children

SWOT Analysis

Weaknesses• Many other similar competitors• Until recently, had very few options

for eating healthy• Negative image due to “Fast Food

Nation” and other media sources

SWOT Analysis

Opportunities• “Going green” – energy

management, improving packaging efficiency, environmentally friendly refrigerants, and partnering with Greenpeace for rainforest protection

• New store looks/styles – McCafe coffee shop, and “forever young” redesign

SWOT Analysis

Opportunities (cont.)• Charity – The Ronald McDonald

House provides a cheap or free place to stay for parents of sick children. Over 250 worldwide in 48 countries. Funded primarily by donations and Joan Kroc (founder Ray Kroc’s wife)

SWOT Analysis

Threats • Many competitors

for same costumer– Subway– Burger King– KFC– Taco Bell– Etc..

Yo Quiero

SWOT Analysis

Threats (cont.) • Criticism –

contribute to obesity, and other health problems

McDonald’s Thailand

McDonald’s In Many Countries

McDonald’s Thailand Profile

– McThai President had an opportunity to study aboard at USA and thought that that McDonald’s has cool ideas.

– Over a decade later, in 1981, during one of his visits to the USA, he happened to pass by an impressive-looking building in Oak Brook, Illinois and it was the McDonald's Worldwide Headquarters

– Mr.Bulsuk and his friend wrote to McDonald's Headquarters to see if they would be interested in expanding into Thailand.

McDonald’s Thailand Profile

– The site at Amarin Plaza was chosen for the first McDonald's restaurant in Thailand which make Thailand is the 35th country.

– Opened on March 16, 1985 with 50 million bath of investment

– The amarin plaza restaurant has space for over 200 seats, including a special McParty Room for family & group gethering

Foods and Deserts

• Burgers– Claypot– Rice & Chicken– Mc Nuggets

Seaweed shake shake

– Double Teriyaki Pork– Burger Gai Hit

• Pies– Pineapple pie– Corn pie– Taro pie

Similarity and Differences

• Have almost the same product line as USA and also adapt to Thai tastes– Examples:

• Claypot• Chicken & Rice• McNugget Seaweed

Shake Shake• Chicken menu

• McDonald’s in Thailand have different foods and desserts – Doesn’t have Snack

Wrap– But have pineapple

pie, taro pie, and corn pie

Target Market

• Thailand Overview– Minimum wage is

50 cents an hour– Start monthly

income of 200 dollars

– Regular meal cost about 50 – 75 cents

• McDonald’s Target– Teenagers and

young kids– Medium to High

Income– Average monthly

income of 250-300 dollars

– Each meal cost at least one dollar

Site Selection

• Central Business District– Downtown Bangkok which is capital of

Thailand

• Shopping center• Free-Standing

SWOT Analysis

• Strengths– Varieties of Product line

• Burgers– Chicken, Fish, Beef, Pork, and Rice Burgers

• Salad– Fruits salad and vegetables salad

• Deserts– Pies and ice-cream

• Drinks– Soda, milkshake, coffee, and tea

SWOT Analysis

• Weaknesses– Prices

• Minimum wage is 50 cents an hour…..• Average cost of food is 50-75 cents…..

• …..But it cost at lest a dollar to eat there with a promotion menu like dollar menu. Regular menu cost at least 2 dollars including drink

SWOT Analysis

• Opportunities– Happy Meal with all sort of toys– Delivery – Play house – “Party Room” for kids to have party

such as birthday

SWOT Analysis• Opportunities

– Happy Meal

SWOT Analysis

• Threats– Examples:

• Fast Food – Thai food in general• Subway• Burger King• KFC• Etc..

Sources

• www.Wikipedia.org• McThailand.co.th• www.mcdonalds.com• www.rmhc.org/rmhc/index.html