Big Mac - Sample Essay
McDonald’s is one of the world’s most well-known and valuable brands and holds a leading share in the globally branded quick service restaurant segment of the informal eating-out market in virtually every country in which they do business. Serves the world some of its favourite’s foods – World Famous French Fries, Big Mac, Quarter Pounder, Chicken McNuggets and Egg McMuffin. McDonald serves 46 million people every day in about 30,000 restaurants in 121 countries. Here Below shows how many restaurants since 1996 in the world:
As you can see by the number of restaurants around the world since 1996 has risen dramatically and McDonald’s have invested in more Partner Brands. They now have 1,075 Partner Brand restaurants now but in 1996 they had zero amount, which shows they are a more developing company and want to expand more and grow over the years to come. In 2002, they plan to add between 1,300 and 1,400 McDonald’s restaurants, as well as open 100 to 150 new restaurants under their Partner Brands.
Suppliers play a critical role to success for McDonalds. McDonalds feeds over 45 million customers every day of the year, it is essential to find reliable quality suppliers. The suppliers in the U.S. operate over 40 distribution centres, strategically located to be accessible to more than 12,000 restaurants in the country. They provide a range of products and services for our restaurants. McDonald’s seeks to also find and develop new supplier relationships.
Mission To leverage the unique talents, strengths and assets of our diversity in order to be the World’s best quick service restaurant experience. Vision Ensure that our employees, owner operators and suppliers reflect and represent the diverse populations McDonald’s serves around the world. Harness the multi-faced qualities of our diversity – individual and group differences among our people – as a combined, complementary force to run great restaurants. Maximize investments in the quality of community life in the diverse markets we serve. Expanding the range of opportunities for all our people – employees, owner operators and suppliers – to freely invest human capital, ideas, energies, expertise and time.
This information above (Market) is taken from the site: http://www.mcdonalds.com/corporate/diversity/mission/index.html The information above shows that their Mission is to become the World’s best quick service by getting the best employment and suppliers. Also their Vision is to expand the range of opportunities for all their people including employees, owner operators and suppliers. Strategy for Growth We plan to further build our business by focusing on our three-part growth strategy: Execution, Expansion and Extension.
Execution: We intend to satisfy more customers, more often by delivering superior quality, service, cleanliness and value – what we call QSC&V. This is the foundation of our success and an imperative for capturing growth opportunities in the future. This is an immediate and ongoing priority. Expansion: In the near- and medium-term, our aim is to broaden our reach both under and beyond The Golden Arches to capture an even greater number of meals eaten away from home. This includes adding new McDonald’s and Partner Brand restaurants, plus innovating to build sales in our existing restaurants through concepts like McCafe’ and McDonald’s with the Diner Inside.
Extension: Our long-term goal is to extend our business and brand by leveraging our physical assets, retail know-how and brand strength to innovate and develop new business concepts. Information taken from http://www.mcdonalds.com/corporate/index.html This shows how they want to grow as a company and they have emphasised their 3 ways which are Execution, Expansion and Extension. The next page shows the 11-year summary of the company it shows all the financial aspects: 11-year summary (1) Includes $378 million of pretax special operating charges primarily related to the U.S. business reorganization and other global change initiatives, and the closing of 163 underperforming restaurants in international markets.
(2) Includes the $378 million of pretax special operating charges noted above and $125 million of net pretax special nonoperating income items primarily related to a gain on the initial public offering of McDonald’s Japan, for a net pretax expense of $253 million ($143 million after tax or $0.11 per share). Net income also reflects an effective tax rate of 29.8 percent, primarily due to the one-time benefit of tax law changes in certain international markets ($147 million).
(3) Includes $162 million of Made For You costs and the $160 million special charge related to the home office productivity initiative for a pretax total of $322 million ($219 million after tax or $0.16 per share). 5 year performance The type of products McDonald provides for customers is mainly food. For example, World Famous Fries, Big Mac, Quarter Pounder, Chicken McNuggets and Egg McMuffin. These Foods are well known through out the world and are known for the exquisite taste that these foods bring to us. They serve not only Non-veg customers but also vegetarian’s with the Veggie-Deluxe.
McDonald’s advertising strategy’s are they advertise on: -TV – Newspapers – Internet (With the World Wide Web) These advertising strategies help McDonalds to become more advanced and more popular with people around the globe. Also the company’s PRODUCT MIX is selling burgers as this is the best-selling item in McDonald’s at present time which makes its total PRODUCT MIX burgers. Other important parts of McDonalds product mix are French Fries, Ice Cream and Coca Cola.
Promotion in McDonalds is large; as they want to make customers aware that they are good with communication and make people aware of their foods. Also telling and explaining on advertisements about products. Also persuading them to buy it for the first time or to buy it again with offers. McDonalds has products which are strong BRANDS, this indicates that they have different products which are seen by customers to be also different e.g. McChicken Sandwich and the McNuggets.
These 2 products are nearly the same but they are differentiate in there own ways. Market segments play a large part in McDonalds as they make their products in a way which will appeal to the whole market and attract customers from all over the world. And they hope young or old, male or female, rich or poor, will want to buy something from McDonalds whether it be an ice cream or a whole meal.