SMOC Group Presentation Golden Arches ver 1 25Sept final version
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Transcript of SMOC Group Presentation Golden Arches ver 1 25Sept final version
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8/7/2019 SMOC Group Presentation Golden Arches ver 1 25Sept final version
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SMOC Group PresentationSMOC Group Presentation
Scenario Planning forScenario Planning for
Golden Arches RestaurantGolden Arches Restaurant
SdnSdn BhdBhd (McDonald)(McDonald)
by,by,Christine ChewChristine Chew
LamLam SienSien TziTzi
LewLew PuiPui MangMang
RustamRustam AffandiAffandi
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Objective of Study:Objective of Study:
To study the strategic planning of Golden
Arches Restaurant Sdn Bhd (GARSB)
Study was done based on Scenario Planning
(initiated by Paul Schoemaker)
Scenario Planning is a planning tool to identify
the basic trends and uncertainty of GARSB
To develop tool to forecast near-term future and
anticipation of plausible future events that might
happen which give rise to significant effect on
GARSB
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1980Dec
29Apr1982
Todate2010
License
obtainedfor McD
for Msia
1st McD
at JalanBukit
Bintang
194Restaurants
Nationwide
Important Development Milestones of Golden
Arches Restaurant Sdn Bhd (GARSB)
History in Malaysia
(Source: www.mcdonals.com.my)
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To be our customers favourite placeand way to eat
To provide Simple Easy Enjoyment toevery customer at every visit
McDonalds mission is to be our customers favourite place and way to eat with inspired people who delight each customer with unmatchedquality, service, cleanliness and value every time.
Brand
Mission
(Source: www.mcdonals.com.my)
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McDonalds 40% of quick-service
market, 72 million burgers
End of 2010 82 million burgers, 208outlets
By 2014 300 outlets, 50% market share
of quick-service, investment up to
RM530million
Source: (Ganesan, 2010).
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Time frame &
Scope of analysis:
Review Past 5 years
Anticipation for Next 5 years
External forces e.g. Govt Policies, supplies,
consumers demand, competitors, economy
situation & social
Shall GARSB develop & extend
healthy product menu?
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Source: (Kaur, 2005), (Singh 2007)
Highlights encountered in passed 5 years:i. Banned advertisement from kids health issues
such as obesity & diabetes
ii. April 2005: shortage of chicken due to HALAL
certification chicken prices 20%
iii. Encourage Bumiputra to be entrepreneur, financial
scheme, training, encourage rapid franchising
iv. Enforcement of nutrition facts labellingv. Pricing strategy
Lunch value meal RM5.95
vi. Operation hours
24 hours
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Stake-holders
Share-holders
Employees
CustomersMalaysia
Government
Suppliers
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Political-Legal Factors
Regulation and de-regulation trends :
Social & employment legislation
ax policy, trade & tariff controls
he stronger opposition parties inParliament ouse
Economic Factors
International Sourcing for raw materials
ax on Profit
Franchise fee to US Q outflow ofForex
Unemployment rate & inflation rate
Social Factors
Lifestyle changed
Cultural Factors
Environment Factors
Technological
IC advancement
Insignificant and not giving direct impactto technology
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Political-Legal Factors
Regulation and de-regulation trends :
y Government policies on the
regulation of Fast Food Operation
y Government controlling on the
marketing of Fast Food Restaurantsdue to Health issues such as obesity,
cardiovascular diseases & etc
y Government controls the licenserelease of Fast Food Restaurants
Social & employment legislation
y Seek for balance relationship to
achieve mutual benefit ofemployment
Tax policy, trade & tariff controls
y The implementation of the GST innear future
y Foreign workers policy
The stronger opposition parties inParliament House
Economic Factors
International Sourcing for raw materials
y Global supply trends
y Currency Exchange (USD vs RM)
y Import Beef & Potatoes demand >supply in local market
Tax on Profit
Franchise fee to US HQ outflow ofForex
Unemployment rate & inflation rate
Social Factors
Lifestyle changed
y Higher income
y Trend to dine out & demand for
higher food quality
y Ambient, hygiene environment
requirement
y Facilities available: wireless, online-menu, delivery service
Cultural Factors
y HALAL certification
y Localized menu such as Fried
Chicken, chicken porridge
Environment Factors
y Critics from environmentalists one
of the largest of potatoes, beef andchicken consumption
y Causes of Green House Effect
methane gas from cows ranch
y Use of polystyrene boxes to servefood
Technological
ICT advancement
y Leverage of Supply ChainManagement on inventory
management, ordering procedure,
payment system to suppliers etc
y Implementation of technology
promotes cost saving, improveeffectiveness and efficiency
Insignificant and not giving direct impactto technology
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Porters 5 Forces
Suppliers
Power
Mac Food (M) Sdn Bhd
near monopolyLow bargain power on price
Competitors Compete with others Fast food e.g. A&W, KFC
Compete with local restaurants e.g. Old Town Ipoh
White coffee, Secret Recipe
Customers High Power in customers many choices
Price driven, attracted by promotion e.g. value
meal at RM5.95
Substitutes Wide range of substitutesGARSB: low power
Threat of New
Entrant
Market leader in hamburger
Established & outlets in major cities/towns
Threat low towards GARSB
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Trend Perceived Trend in McDonalds
T1 Political Legal : regulation & deregulation
T2 Economy Factors : International sourcing forraw materials, inflation rate, unemployment
T3 Social : life style change
T4 Technology : ICT advancement (not givingdirect impact to technology)
T5 Fast Food Lovers
T6 Switching to Vegetarian
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Uncertainties in 5 years Possible outcomes of Uncertainties
1st Local Politics & Policies y Election in every 4-5 years interval
Political status y New Policies maybe implemented
2nd Uncertainty
Competitors
3rd Uncertainty y Decreased in sales
Health conscious y Loss market share
4th Uncertainty
Inflation rate
5th Uncertainty y Cost Effect
Raw Material supply y Quality Effect
6th Uncertainty
Withdrawal of franchise license
7th Uncertainty y Tarnish market image
Extremists to boycott Western F&B y Low Public Relation
y Increasing number of competitors to take
over the market share
y Government reduces commodity subsidies
(Eg: petrol)
y Possibility of changes in master franchise
licensing for McDonald
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Correlation Matrix U1 U2 U3 U4 U5 U6 U7
U1 - ocal Politics & Policies x + + + + +
U2 - Competitors x x ? + + 0
U3 - Health Concious x x x + + ?
U4 - nflation Rate x x x x + ? ?
U5 - Raw Material & Supply Chain x x x x x + +
U6 - Withdrawal of Franchise isence x x x x x x 0
U7 - xtremist to boycott Western Food x x x x x x x
Legend:
+ : Positive 0 : Zero
- : Negative ? : Indetermination x : access via mirror image
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Key
Drivers
Govt Policies
(regulations)
Social
(lifestyle)
Raw Materials
supply
Economy
(tax & subsidy)
Govt banned advertisement on
children
Govt may ban carbonated
beverage in fast food restaurants,
only fruits juice and plain waterpackage
Consumers are more health
conscious, avoiding high calories,
high fat & high sodium
Govt may increase higher taxon import materials & reduce
subsidy
Higher tax & reduce subsidy
higher raw material cost
Tiger
roar
Scenario
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Key
Drivers
Reinvigorate
Food by
competitors
Market Leader inInnovative and
Creative Health
Based
Health Consciousness
And Health Initiatives
Employees as
The Advocator
Healthier As
Hercules
Scenario
Specific health food providers
and lifestylesb
enefits Market leader in innovative
and creative health-food-based
promotion
Longer life expectancy
Decrease NGOs demand Range food and daily
consumptions regularly
Vigorously health initiative
Employees as advocates of
healthy lifestyles as internalchange agents
Ray Kroc once quotes,
Look after the customer and
the business will take care of
itself.
New Innovation
on Menu by
competitors(Source: www.mcdonals.com.my)
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QuestionTiger Roar
Scenario
Healthier as
Hercules
Scenario
Q1: Are the trends compatiblewithin the chosen time frame?
Yes. Yes.
Q2: Do the scenarios combine
outcomes of uncertainties that
indeed go together?
Yes. Yes
Q3: Are the Major Stakeholders
placed in positions they do not
like and can change?
No. Yes
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Govt policies promote healthy lifestyle
Consumers increasing awareness in health
management
Competitors develop low cal, low fat, low
sodium menu
GARSB: To develop & extend
healthy product menu locally
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Thank you