McDonald's
member: Jung,Gul
Ro Kang
Ro,Kang
Jo JungHwa
O Yung il
Jo Lyong Chul
Professor: 김한수
1
History
y
The business began in 1940,with a
p
by
y siblings
g Dick
restaurant opened
and McDonald in California.
With the successful expansion of
McDonald’s into many international
markets.
European Conference on Injury Prevention and Safety Promotion, Vienna, 25 – 27 June 2006
McDonald’s world locations
European Conference on Injury Prevention and Safety Promotion, Vienna, 25 – 27 June 2006
In USA Market
European Conference on Injury Prevention and Safety Promotion, Vienna, 25 – 27 June 2006
5
Vision
To be the world's best quick service
p
Being
g the best
restaurant experience.
means providing outstanding quality,
service cleanliness,
service,
cleanliness and value
value, so that
we make every customer in every
restaurant smile
smile.""
European Conference on Injury Prevention and Safety Promotion, Vienna, 25 – 27 June 2006
Mcdonald’s and Burger King
M D
McDonalds:
ld 9453
B
Burger
Ki
King: 3972
None off th
N
the above:
b
5837
I don't eat this type
off food:
f d 731
European Conference on Injury Prevention and Safety Promotion, Vienna, 25 – 27 June 2006
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Funds of McDonald’s and Burger King
European Conference on Injury Prevention and Safety Promotion, Vienna, 25 – 27 June 2006
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Mcdonald and Burger King’s Satisfication
European Conference on Injury Prevention and Safety Promotion, Vienna, 25 – 27 June 2006
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Operations Strategy
- Marketing Strategy
McDonald’s
Focus on service and creating an
image
Burger King
Focus on quality and the best
tasting meal
QSC&V
V
V
V
V
Quality-Using the high quality
material
Service-Quickly, kind and correct
service
Cleanliness-Always
Cleanliness
Always keep cleaning
Value-High quality product and
satisfaction
V
V
Depends on quality of operation,
good site location and local
market conditions
Maintain fast, accurate service,
positive guest relations, and
ensuring products
European Conference on Injury Prevention and Safety Promotion, Vienna, 25 – 27 June 2006
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Operations Strategy-
Marketing Strategy
McDonald’s
Focus on service and creating an
image
Burger King
Focus on quality and the best
tasting meal
Marketing
V
V
V
V
V
People
Product
Place
Price
Promotion
Marketing
V
V
V
people
Product
Location
Sports marketing –support the
Olympics Game and World Cup
European Conference on Injury Prevention and Safety Promotion, Vienna, 25 – 27 June 2006
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Operations Strategy-
Marketing Strategy
McDonald’s
Focus on service and creating an
image
Burger King
Focus on quality and the best
tasting meal
Advertising
V
Appease the mothers who bring
their children into the goldengolden
arched restaurants
Advertising
V
Developing a unique creative
approach in fast food
European Conference on Injury Prevention and Safety Promotion, Vienna, 25 – 27 June 2006
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Operations Strategy-
Marketing Strategy
McDonald’s
Focus on service and creating an
image
Burger King
Focus on quality and the best
tasting meal
Customers
V
Market to kids
--Kids get happy meals with toys
Customers
V
Market to Adult
--Swim teen audience, and has
continued with the "Creepy King"
European Conference on Injury Prevention and Safety Promotion, Vienna, 25 – 27 June 2006
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Operations Strategy-
Quality management strategy
McDonald’s
Focus on service and creating an
image
Burger King
Focus on quality and the best
tasting meal
V
V
Using the best raw material
--Observe the system of HACCP
and GMP’ request
q
-- Researching and developing
for more or less10 years
--“Quality Assurance Center”
V
V
Food Safety System
Be strict with collaborator in
quality management
Control the store with high
quality standardization
--Thermometers to keep the
products fresh
European Conference on Injury Prevention and Safety Promotion, Vienna, 25 – 27 June 2006
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Firm supply chain
Kraft
Tyson
Foods
Quaker
Oats
Coca
Cola
Distribution
Centers
Keebler
European Conference on Injury Prevention and Safety Promotion, Vienna, 25 – 27 June 2006
15
Industry Supply Chain of McDonald’s
Foodstuffs
Suppliers
Distributors
Establishments
European Conference on Injury Prevention and Safety Promotion, Vienna, 25 – 27 June 2006
Consumers
16
Waiting lines
2 minutes 51 seconds
2 minutes 47 seconds
Enter
McDonald’s-M/M/1
Burgerking -M/M/S
European Conference on Injury Prevention and Safety Promotion, Vienna, 25 – 27 June 2006
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European Conference on Injury Prevention and Safety Promotion, Vienna, 25 – 27 June 2006
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Operations Strategy–
Supply chain strategy
McDonald’s
Focus on service and creating an
image
“We do it all for you”
V
Build-to-Stock
Burger King
Focus on quality and the best
tasting meal
“Have it your way”
V
Build-to-Order
European Conference on Injury Prevention and Safety Promotion, Vienna, 25 – 27 June 2006
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Conclusion
S
Supply
l chain
h i competition
titi
McDonald’s
McDonald
s
Burger King
Focus on service and creating an
image
Focus on quality and the best
tasting meal
V Best relationship with
suppliers
V
V
V Use BTS model reduce
the order time
V
V
Chain broiler system in
product process
use BTO
O model
ode to reduce
educe
inventory
M/M/1 model for reducing
the waiting time
SAS
European Conference on Injury Prevention and Safety Promotion, Vienna, 25 – 27 June 2006
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Competitive Performance
Mcdonald’s
Burger King
Inventory Turns
4 2days
4.2days
7 days
Service Levels
(%orders met on time)
Customer Rating
(Satisfaction, quality)
2.51%(the rate of wait time)
69 (on an index of 1 to 100)
Quality:4.44%
5.26% (the rate of wait time)
71 (on an index of 1 to 100)
Quality:2.81%
COGS as % Sales
39.5067%
38.6769%
Revenue growth
7.6%
23,230.7$million
9.1%
2,234.0$million
Market Share
45%
14%
market value
63,893.2$ million
3,710.8$ million
Avg.Sales per
Restaurant
$ 1.8 million
& 1.2 million
European Conference on Injury Prevention and Safety Promotion, Vienna, 25 – 27 June 2006
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Conclusion
Although McDonald’s SCM is not better than Burger King’s, McDonald’s
mixed promotion strategy is good enough to attract more customers and
get more customers and get more profitability than Burger King
King.
European Conference on Injury Prevention and Safety Promotion, Vienna, 25 – 27 June 2006
22
Thank you for your attention!
European Conference on Injury Prevention and Safety Promotion, Vienna, 25 – 27 June 2006
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Q&A
European Conference on Injury Prevention and Safety Promotion, Vienna, 25 – 27 June 2006
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