Mc Donald's Value Chain Analysis

Only available on StudyMode
  • Download(s) : 408
  • Published : April 11, 2011
Open Document
Text Preview
McDonald’s Logistical & Value Chain Strategies
1.0 Introduction
McDonald’s is the world’s largest multinational restaurant chain that serves hamburger fast food. As one of the leading food service retailers, there are more than 32,000 restaurants across the world serving more than 60 million people in more than 100 countries every day. Around 85% of the restaurants are run by franchises or affiliates. (McDonald’s History, 2010)

1.1 History
In 1937, Dick and McDonald opened McDonalds Bar-B-Que restaurant in San Bernardino which was a typical drive-in featuring a large menu and car hop service. In 1948, the brothers shut down their restaurant and developed a new idea of self-service drive-in restaurant. They reduced the menu consisting only cheeseburgers, hamburgers, French fries and drinks. The birth of McDonalds began with Raymond Albert Kroc whom was the distributor of a milk shake maker called the Multimixer in 1954. Ray Kroc discovered that the McDonald brothers were doing well using his Multimixers to serve their customers. He met up with them and managed to talk his way into running the franchising operation. Finally in April 1955, Ray Kroc established the McDonald’s Corporation and opened the first restaurant in Des Plaines, Illinois. He bought out the brothers in 1961. (McDonald’s History,2010)

2.0 McDonald’s Overseas Operations
McDonald’s business structure is mainly based upon a geographic structure which is divided into various geographical segments. These segments include the United States, Europe, Asia/Pacific, Middle East and Africa (APMEA). (McDonald’s Global Sales Advantages, 2008) It is crucial for McDonald’s to maintain its major leading markets and at the same time expand the business into other emerging markets. McDonald’s produces and markets different types of products with different prices in different geographical areas. Nevertheless, their food quality, service, cleanliness &values are the same for everywhere.

2.1 Mc Donald’s in United States
In United States, the company continued to contribute results by sustaining its promise to high quality food at relatively inexpensive price. The United States operating income grew 7% (Newsy Stocks, 2010) for the second quarter. McDonald’s United States constantly intensifies the core menu varieties and value offerings. It also aggressively promotes new growth opportunities in beverages, breakfast, chicken, dessert and snacking options. The brand experience is also raised by modernizing technology with a new point of sale system.

2.2 McDonald’s in Europe
For McDonald’s in Europe, they achieve a strong operating income by increase of 14%. (Newsy Stocks, 2010) Europe’s main key drive of growth is attentiveness on modernizing and elevating the customer experience by providing a fashionable and relevant environment to the customers. Europe’s strategic priorities include emphasizing signature menu options and unique marketing promotions. In order to increase the customers’ satisfactions, they also continually enhance their drive-thru service and order accuracy.

2.3 McDonald’s in Asia Pacific, Middle East and Africa (APMEA) McDonald’s Asia Pacific Middle East and Africa or APMEA reveals broad-based strength with strong comparable sales increases in various markets, led by Japan, China and Australia. (The Financial, 2010) The customers demand increased mainly due to the compelling value, development of different food and unique limited-time offerings. APMEA will continually accomplish initiatives that best support the goal to be customers’ first choice for eating out which are convenience, core menu, branded affordability, improved operations and reimaging.

3.0 Definition of Logistics
Logistics involves the process of planning, implementing and controlling the efficient, effective flow and storage of raw materials, in-process inventory, finished goods and related information for the purpose of conforming to customer...
tracking img