Mcdonalds Case Analysis

Satisfactory Essays
McDonalds Case Analysis

Business Policy /BUSN412

BUSN412
Laurel Campbell

1/23/2010

CASE ANALYSIS: MCDONALDS CORPORATION

COMPANY NAME: McDonalds Corporation
WEBSITE: www.mcdonalds.com
INDUSTRY: Fast Food
COMPANY BACKGROUND: HISTORY: McDonalds has been well known since 1940 as the standard for ultra convenient family friendly meals. According to the company’s website, the fist restaurant opened in San Bernardino, California as a barbeque restaurant but eight years later Dick and Mac McDonald restyled the restaurant and streamlined the menu to nine convenient items including their famous 15 cent hamburger. In 1954, a mixer salesman saw potential in the business and opened the first McDonalds franchise in Des Plaines, Illinois. In four short years the chain had grown to at least 100 restaurants. Today, McDonalds is an international corporation with stores in as many as 100 different countries. CEO: Jim Skinner began as the current president and CEO of McDonalds in 2004. He worked his way up from restaurant manager in 1971 without ever receiving a college degree. (McDonalds History, 2010) His “Plan to Win” strategy has increased world wide restaurant sales 41.1 percent from $50.1 billion to $70 billion in 2008, making it one of only two Dow Jones Industrial Average stocks to end the year with a gain. (Chief Executive Magazine, 2009). Today it appears resilient to the current economic downturn. McDonalds recently released its 2009 4th quarter earnings results which show that overall revenue rose 7 percent to $5.97 billion with a net income of $1.22 billion or $1.11 per share. (Berr, 2010)
SWOT ANALYSIS:
STRENGTHS: McDonalds has a large market share, strong brand name, image and reputation. CEO Jim Skinner and the previous CEO James Cantalupo quickly and efficiently enacted a strategy that allowed the company to recover from its first loss ever in 2003. (Dess, 2007) The “Plan to Win” strategy focuses on people, place, price and



References: Berr. (2010, January 22). McDonald 's Beats Expectations, Upbeat for 2010 - Daily Finance. Retrieved January 25, 2010, from http://www.dailyfinance.com/story/investing/mcdonalds-beats-expecations-is-it-enough/19327439/. Chief Executive Magazine Names McDonald 's CEO Jim Skinner "CEO of the Year" | Articles | Articles | Chief Executive - The magazine for the Chief Executive Officer. (2009, May 12). . Retrieved January 25, 2010, from http://www.chiefexecutive.net/ME2/dirmod.asp?sid=0CC7FBE04E534C16922586F98AF9AEB3&nm=Articles&type=Publishing&mod=Publications%3A%3AArticle&mid=8F3A7027421841978F18BE895F87F791&tier=4&id=DD3ED12F23814CAAAF29D37044AC2C0F. Dess, G., Lumpkin, G., & Eisner, A. (2007) Strategic Management (3rd ed.). Boston: McGraw-Hill Irwin. Jim Skinner - About McDonald 's. (n.d.). . Retrieved January 25, 2010, from http://www.aboutmcdonalds.com/mcd/our_company/bios/jim_skinner.html. McDonald 's (MCD). (n.d.). . Retrieved January 25, 2010, from http://www.wikinvest.com/stock/McDonald%27s_(MCD). McDonald 's History - About McDonald 's. (n.d.). . Retrieved January 25, 2010, from http://www.aboutmcdonalds.com/mcd/our_company/mcd_history.html.

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