Strategic Managment Paper for Mcdonalds Philippines

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[pic]San Beda College [pic]
638 Mendiola St. 1005 San Miguel Mendiola, Manila



McDonald’s Philippines
A Subsidiary of
Alliance Global Group Inc

Submitted by: Hiroshi A. Torobu

Executive Summary
I. Introduction

McDonald’s is the world’s largest chain of fast food restaurant serving more than 58 million customers daily. The firm has an excess of 30,000 restaurants worldwide employing 1.5 million people. The business began in 1940 with a restaurant opened by two brothers namely Richard and Maurice McDonald in San Bernardino, California and then was bought by Ray Kroc who is now the founder of the McDonald’s corporation. A McDonald's restaurant is operated by a franchisee, an affiliate, or the corporation itself. The corporation's revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonald's revenues grew 27% over the three years ending in 2007 to $22.8 billion, and 9% growth in operating income to $3.9 billion. The pioneers of the franchising countries in order are United States, Canada, Costa Rica, Panama, Japan, the Netherlands, Germany, Australia, France, El Salvador and Sweden.

Today, the Philippines is also one of the countries that has a franchise of McDonalds with 300 restaurants nationwide. As of 2005, McDonald’s Philippines is a 100% Filipino owned company which is built by George T. Yang the first golden arches in 1981 from its first restaurant along Morayta, Manila. McDonald’s Philippines is now in the pursuit of being a multi-billion peso company continuing to expand and serve the Filipinos all over the country.

McDonald’s is a customer-oriented company that strives to offer Filipinos a combination of great tasting, quality food products at value prices with excellent service.

Well loved McDonald’s products like the Big Mac, Cheeseburger, World Famous French Fries, Egg Muffin, Apple Pie, Sundae and the Happy Meal, plus local favorites like Chicken McDo, Burger McDo and McSpaghetti are products of our passion to always give what customers want. McDonald’s ensures high standards in all aspects of operations, promising customers only the best meals in every restaurant at any time. Recently, McDonald’s pioneered 24/7 restaurants and 24/7delivery service to cater to customers’ changing lifestyles. Its Mission is “To serve the Filipino community by providing great-tasting food and the most relevant customer delight experience.” And its vision “Una sa Pamilyang Pinoy! It means to be the first to respond to the fast changing needs of the Filipino family. The first choice when it comes to food and dining experience! And the first mention as the ideal employer and socially responsible company.”

McDonald’s Philippines also holds ethical practices by upholding values such as customer driven, malasakit, integrity, teamwork and excellence. QSC (Our Quality, Service, and Cleanliness) is McDonald’s Philippines standard for success building a foundation of satisfaction and repetitive visits by the customers. McDonald’s Philippines believes that taking good care of customers is the first vital step toward effective sales building. II. Research Design and Methodology

The researcher conducted further study and strategy formulation by obtaining relevant information through the internet and gathered its financial statements in the past three years to know the company’s financial position. The information’s searched are the internal and external forces that build the company and its profitability in the next coming years. The information gained by the researcher was use as basis in the analysis and formulation of the strategy.

III. External analysis

Economic Performance and Forecasts

Companies eye expansion in next wave cities over the forecast period. The robust performance of business process outsourcing (BPO) in the forecast period will be taken advantage...
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