Mcdonalds Anaylesing According to Porter's Five Market Forces

Topics: McDonald's, Fast food restaurant, Burger King Pages: 14 (3841 words) Published: May 4, 2010


McDonald’s is the runway market leader in quick service restaurants. McDonald’s is operating in the UK since 1974, and now it has 1,200 restaurants nationwide in the UK, including 700 drive-thru outlets. Around 60% of these restaurants are running by franchises. Restaurants are located where they are most convenient to its customers including on the high street, drive-thrus and a range of sites at shopping centres, airports and leisure parks. McDonald’s UK employ over 75,000 staff, the majority them paid hourly or work part-time. They serve more than two million customers each day. The UK Company owned subsidiary of the McDonald’s corporation, with 3100 restaurants worldwide.

Based on independent research CRF instate, McDonald’s has been certified as one of the Britain’s Top Employer 2010. The research shows that they offer you excellent working condition.

McDonald’s has a perfect vision and working accordingly. On 14 October, McDonald’s UK held its 2009 Annual General Meeting, where the Executive Team presented the strategy for the year ahead to department heads, franchisees and suppliers. Many of you will have already heard the highlights of this event from your franchisees, operations hierarchy or at your regional cascade meetings.

I thought it would be helpful to summarise these highlights in one place and recap on what the drivers of success will be, for our business and brand, in 2010. I hope you find it easy and useful read and that you share it with your management teams.

According to him they are in the final stages of completing an outstanding year for McDonald’s in 2009. Their operations improvements marketing plan and plan enablers are delivering record sales, changing perceptions and meeting the increasing demands of customers. If he could sum up how he feels about their business in one word, it would be confidence-in their brand, in their momentum, in our people and in our future. And their Business Managers have never been better placed to take advantage of what their investor has in their restaurants.

So what are their plans for 2009? They are currently operating in an economic downturn-a time when people become more discerning, not less. Their customers look more carefully at value and quality and are less willing to overpay. This is when they can at their best, offering a great value, quality service in a simple and engaging way. To support this, we will continue to focus on QAC, invest in re-imaging our restaurants, in developing leadership marketing campaigns, in food innovation and in creating opportunities for our people.

They have proven themselves to be one of the best businesses on the high street. But they are also operating in a time of uncertainty, so they need to act nimbly if they are to continue to press home our advantage. I am looking for you and your teams to address 2009 with the flexibility, enthusiasm and resolve that has transformed their performance over the last three years.

McDonald’s Strategy for 2010

Lauran Cody (Vice president for BS&I)

“The McDonald’s experience has got even better, through improved restaurants operations, a great marketing plan and strong food stories, focused Plan Enablers and continued investment in our people”

The key messages for 2010 were communicated under three main strategies- Upgrading the Employee, Brand Transparency and Local Relevance, Customer Experience.

The economic slowdown has seen a ‘flight to value’ across the UK, explained Chief Financial Officer Brian Mullens, and although general retail footfall has gone down, the number of people going to McDonalds has gone up.

This is because the whole McDonald’s experience has got even better, through improved restaurants operations, a great marketing plan, strong food stories, new premium food, focused plan enablers and continued investment in their...
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