Saturday, January 27, 2007

McDonald's case study


McD is the largest resturant chain in the world. Like all 800# gorillas on the top (Starbucks, Walmart, Microsoft) they will come under intense scrutiny and be far more popular for criticism. Why does McDonalds get more scrutiny than Wendy's, Burger King, Pizza Hut, Sonic, KFC, or Taco Bell? According to the statistics reported on the movie "Supersize Me," McDonalds captures 40% of the fast food market and enrages consumers because of the alleged focus to lure children and addict them early. Its the only one with a playground, happy meals, toys, characters, and a $1.4B advertising budget that are meant to attract children for life.

It is interesting to look at their globalization challenges and achievements : how about their entrance to Russia?


  • first attempted to franchise in Russia in 1976

  • 14 years later, they opened a store in Russia in 1990

  • 27,000 applications for 605 positions

  • 17,000 russians now work in 127 stores

  • $40M McComplex was built to help with centralized food processing and distribution

  • 80,000 more jobs created through independent suppliers (local cattle and vegtable farmers)
Now, McD is 30,000 stores in 120 countries!
Fortune 500 ranking = 108
Annual Sales = $21B
Employees = 460,000
If you don't want a Big Mac, you might buy the stock : MCD
Recently, I spoke with a friend, Sultan Yousufzai, now an Information Systems and Assurance guru. Mr. Yousufzai had been a food safety inspector for McDonalds and described an impressive audit system. Random visits would ensure that certified food handlers were on staff and that best practices were being performed. Even food samples were collected for laboratory analysis of bacteria. Even more impressive was the corporate commitment to food safety above all other metrics and accountability. Manager's were given a three strikes and you're out with regards to food safety violations.
Not meant to be the healthiest food, patrons can be assured that McDonalds is among the safest food!

6 comments:

Anonymous said...

Thanks for your international perspective.
I've opened three stores in Illinois. Each one was a terrific and smooth experience with decades of logistics behind it.
Who hasn't worked for McDonald's even for a summer?
J.P. Tacoma, WA

Anonymous said...

OMG, its a McKid!
I laughed, but I hate it.

McDonald's lawsuit against using the suffix 'MC' to describe over-sized, mediocre indulgences is outrageous.

From your bullets, it appears they have enough money to burn and I hope that is all they can do. What's next, force people with the name of McDonald to change their name?

Anonymous said...

http://www.museumofhoaxes.com/pranks/mcdonalds.html

Anonymous said...

Why is McDonald's getting so much international attention?
What have they done recently?

Anonymous said...

Watch the movie "Super-size Me" and what happens when a volunteer eats only MCDonalds for every meal for a month!

Anonymous said...

McD gets the bad rap over its identical comrades (Wendy's, BurgerKing, Taco Bell, Pizza Hut, Sonic, KFC, etc.) because it owns 40% of the market and focuses its marketing on luring children with happy meals, chicken nuggets, toys, and the playground.

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