McDonald’s
Presented by:
Praephan Ratana-amornpin
Trevor Munro
Margaret 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
Yo Quiero
– KFC
– Taco Bell
– Etc..
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