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Comprehensive Written Analysis

of

McDonalds Corporation

Existing Mission, Objective, and Strategies

Mission Statement: "McDonald's vision is to be the world's best quick service restaurant experience. Being the best

means providing outstanding quality, service, cleanliness, and value, so that we make everycustomer in every restaurant smile."

Objectives Profitability

McDonald's is a large corporation, and, therefore, must remain profitable to stay inbusiness. To remain profitable, McDonald's offers quality products at a price that meets itsconsumers' demands. Ironically, McDonald's has remained profitable, even during globalrecessions, by offering a cheap alternative to sit-down meals.

Quality Service McDonald's aims to offer quick, efficient products at a reasonable price. McDonald's strives

to expand and increase awareness of nutritious menu items. For example, McDonald's hasexpanded food and beverages containing fruit and vegetables across the menu, and hasincreased awareness of fruit, vegetable and dairy options available for children on themenu. Their fast, convenient meals won't result in an unsatisfactory product.

Customer Satisfaction Customer loyalty is an important objective of McDonald's. Without customer loyalty, therewould be a decrease in customers meaning less positive word of mouth from customers to

friends and family members. Customer satisfaction involves marketing, as McDonald'sidentifies the needs and requirements of its consumers in a better way than itscompetitors. Many consumers choose McDonald's because of its friendly, invitingatmosphere. Restaurants offer comfortable seating, televisions and playgrounds forchildren. Convenience is also important, as customers want their food produced in a fast,efficient manner.

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Reputable Image McDonald's opened its first restaurant in 1954. As of 2011, McDonald's operates more

than 32,000 restaurants serving more than 60 million people in more than 100 countriesevery day. McDonald's strives for uniformity. If you are in Paris, you can find many similarproducts on the menu as you would in New York City. McDonald's seeks to continuallyimprove its image as a pathway to a career, rather than a provider of "minimum-wage,dead-end, burger flipping jobs."

Community Outreach McDonald's strives to increase its financial and volunteer support to Ronald McDonald

House Charities through communication outreach. It is involved in many schools,community organizations and nonprofit organizations that benefit citizen in communities all

over the world.

Strategies

McDonald's Brand Positioning and Messaging One of the greatest attributes ofMcDonald's is its "everyday affordability" message that

drives customers to McDonald's restaurants. Think of your children - they know

McDonald's by the time they are two years old. Chanting "Mickey D's", you can't possiblydrive by a 'golden arches' without having to stop.

Flanked by great integrated campaigns centered around such initiatives as the Olympics,the Kung Fu Panda film and fresh "I'm Lovin' it" ads, McDonald's continues to keep theirmarketing edge (and brand) ahead of the pack (its sales are three times that of No. 2burger chain Burger King).

Ongoing Innovation and Knowing When to Make Changes ForMcDonald's it will continue to be a year of innovation. According to CMO Mary Dillon:

"We are the kind of business and brand that is never happy with yesterday. We are alwayslooking to tomorrow and how do we get better?" This type of thinking and marketingphilosophy has always kept the fast-food giant in the black.

http://www.mcdonalds.com/http://www.mcdonalds.com/usa/rest_locator.htmlhttp://www.mcdonalds.com/http://www.mcdonalds.com/http://www.mcdonalds.com/http://www.brandweek.com/bw/news/spotlight/article_display.jsp?vnu_content_id=1003798142http://www.brandweek.com/bw/news/spotlight/article_display.jsp?vnu_content_id=1003798142http://www.mcdonalds.com/http://www.mcdonalds.com/http://www.mcdonalds.com/http://www.mcdonalds.com/usa/rest_locator.htmlhttp://www.mcdonalds.com/

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Global Reach By combining fundamentally sound operational practices with innovative marketing

strategies, Ray Kroc (McDonald's originator) laid the foundation for McDonald's global

success. Today, McDonald's values transcend borders and cultures. Each and every day,47 million consumers worldwide visit McDonald's because they know and love the GoldenArches, Ronald McDonald and Big Mac sandwiches.

Proposed Mission StatementIt is our mission to be the worlds best quick service restaurant (2). Being the best means providing

outstanding quality, service, cleanliness and value, so that we make every customer (1) in everyrestaurant smile (5, 6). To achieve our mission we must be the best employer (9) for our people in each

community (8) around the world (3), deliver excellence to our customers in each of our restaurants andachieve profitable growth by expanding the brand McDonalds through innovation and technology (4).

1. Customer2. Products or services3. Markets

4. Technology

5. Concern for survival, profitability, growth

6. Philosophy

7. Self-concept

8. Concern for public image

9. Concern for employees

External AnalysisOpportunities

1. Rising population in China.2. Chinese consider drive-throughs a novelty where car ownership is growing rapidly.3. Burger Kings market share among quick service sandwich chains dropped by 10.95 percent in2006.

4. Developing a Healthy Lifestyle program to attract health conscious consumers.5. Hispanic population has recently increased by 14 percent in the U.S.6. Krispy Kreme Doughnuts- possibility of going bankrupt.7. 6 percent increase in social shopping areas (i.e. malls, plazas).

http://www.mcdonalds.ca/en/aboutus/history.aspxhttp://www.mcdonalds.ca/en/aboutus/history.aspx

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Threats1. Increased expansion of traditional rivals.

2. Yum Brands are the leading quick service chains in China.3. McDonalds Europe sales dropped by 1.9 percent.4. Burger Kings sales growth is an estimated 18.2 percent compared toMcDonalds 11.2 percent.5. Yum Brands variety of food and wide range of prices for selections.6. Wendys Frescata product line increased sales by 3.2 percent.7. According to National Restaurant Association (NRA) average menu price increased by 3.2percent.8. Growing public awareness of fast food being unhealthy.

Competitive Profile MatrixWendys McDonalds Burger King

Critical SuccessFactors

Weight Rating WeightedScore

Rating WeightedScore

Rating Weighted Sco

Market ShareAdvertising

Global ExpansionProduct VarietyProduct QualityCompany ImagePrice CompetitionManagementExperienceCustomer ServicePhilanthropyCustomer LoyaltyFinancial Position

0.150.13

0.120.100.080.070.040.060.070.050.080.05

22

1412323223

0.300.26

0.120.400.080.140.120.120.210.100.160.15

43

4333332433

0.600.39

0.480.300.240.210.120.180.140.200.240.15

23

2322322122

0.300.39

0.240.300.160.140.120.120.140.050.160.10

TOTAL 1.00 2.16 3.25 2.22

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EFE MATRIXKey External Factors Weight Rating Weighted ScoreOpportunities

1. Rise in population for theChinese market.

0.05 4 0.20

2. Chinese consider drive-thrus anovelty where car ownership isgrowing rapidly.

0.05 4 0.20

3. Burger Kings market shareamong quick service sandwichchains dropped 10.95 percent in2006.

0.08 3 0.24

4. Developing a HealthyLifestyle program to attracthealth conscious consumers.

0.15 2 0.30

5. Hispanic population hasrecently increased 14 percent inthe U.S.

0.05 3 0.15

6. Krispy Kreme Doughnutspossibility of going bankrupt.

0.02 1 0.02

7. 6 percent increase in social

shopping areas (i.e. malls,plazas).

0.05 2 0.10

Threats

1. Increased expansion oftraditional rivals.

0.15 3 0.45

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2. Yum Brands are the leadingquick service chains in China.

0.05 3 0.15

3. McDonalds Europe salesdropped 1.9 percent.

0.02 4 0.08

4. Burger Kings sales growth isan estimated 18.2 percentcompared to McDonalds 11.2percent.

0.05 3 0.15

5. Yum Brands variety of food

and wide range of prices forselections.

0.04 2 0.08

6. Wendys Frescata product lineincreased sales by 3.2 percent.

0.04 2 0.08

7. According to NationalRestaurant Association (NRA)average menu price increased by

3.2 percent.

0.05 3 0.15

8. Growing public awareness offast food being unhealthy.

0.15 2 0.30

TOTAL 1.00 2.65

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Internal AnalysisStrengths

1. Globally recognized brand name.2. Largest U.S. restaurant chain in international markets with approximately 17,000 stores in 120countries.3. Consumption of food away from home accounted for 48.5 percent of total expenditures on food.4. Total assets of $29 billion in 2006.5. McDonalds serves nearly 54 million customers daily.6. McDonalds beat out Starbucks, Burger King and Dunkin Doughnuts in a coffee taste testaccording to the Consumer Report.7. In 2006 McDonalds return nearly $5 billion to shareholders through shares acquired anddividends paid.8. McDonalds sells fast food in Disneys theme parks around the world as well as Ocean Park in

Hong Kong.9. In 2006, revenue and operating income reached a record high of $21.6 billion and $4.4 billionrespectively.10. McDonalds increased the companys dividends by 50 percent, raising the annual $0.67 pershare to $1.00 per share totaling about $1.2 billion.

Weaknesses1. Lack of menu development2. Publics perception of quality, service, and cleanliness at McDonalds units suffered over thepast years.3. McDonalds ranked last out of 25 fast-food chains in a recent study of drive thru order accuracy.

4. McDonalds 5 year average sales are 8.14 compared to 8.89 for the industry.5. Operations loss in Islands of Jamaica, Barbados, Bermuda.6. Long-term debt remains over $8 billion.7. Low personnel productivity.8. Yum Brands return-on-assets of 13.56 compared to McDonalds 9.74.9. Website not user friendly.

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IFE MATRIXKey Internal Factors Weight Rating Weighted

Score

Strengths

1. Globally recognized brand name. 0.08 4 0.32

2. Largest U.S. restaurant chain ininternational markets with approximately17,000 stores in 120 countries.

0.15 4 0.60

3. Consumption of food away from homeaccounted for 48.5 percent of totalexpenditures on food.

0.06 4 0.24

4. Total assets of $29 billion in 2006.0.10 4 0.40

5. McDonalds serves nearly 54 millioncustomers daily.

0.02 4 0.08

6. McDonalds beat out Starbucks, BurgerKing and Dunkin Doughnuts in a coffeetaste test according to the ConsumerReport.

0.04 4 0.16

7. In 2006 McDonalds return nearly $5billion to shareholders through sharesacquired and dividends paid.

0.05 4 0.20

8. McDonalds sells fast food in Disneystheme parks around the world as well asOcean Park in Hong Kong.

0.02 4 0.08

9. In 2006, revenue and operating incomereached a record high of $21.6 billion and$4.4 billion respectively.

0.12 4 0.48

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10. McDonalds increased the companysdividends by 50 percent, raising theannual $0.67 per share to $1.00 per

share totaling about $1.2 billion.

0.04 4 0.16

Weaknesses

1. Lack of menu development0.03 2 0.06

2. Publics perception of quality, service,and cleanliness at McDonalds unitssuffered over the past years.

0.08 2 0.16

3. McDonalds ranked last out of 25 fast-food chains in a recent study of drive thruorder accuracy.

0.08 2 0.16

4. McDonalds 5 year average sales are8.14 compared to 8.89 for the industry.

0.02 2 0.04

5. Operations loss in Islands of Jamaica,

Barbados, Bermuda.

0.01 1 0.01

6. Long-term debt remains over $8 billion.0.02 2 0.04

7. Low personnel productivity.0.01 1 0.01

8. Yum Brands return-on-assets of 13.56compared to McDonalds 9.74.

0.05 2 0.10

9. Website not user friendly.0.02 1 0.02

TOTAL 1.00 3.32