Mac donald - past year analysis
Total Revenue for 2006-07 was $740.2 million
Estimated CAGR of 40 percent
Rs 400 crore being put in for expansion plans into Tier ll cities within three years
Doubling of turnover within three years
POLITICAL The operations of McDonalds are affected by the government policies on the regulations of fast food operation. Currently government are controlling the marketing of fast food restaurant because of health concern such as cardiovascular and cholesterol issue and obesity among the young and children in the country.
ECONOMICS As a business entity, McDonalds need to face a lot of economic variables outside its company or its macro environment. Dealing with international sourcing for its material McDonalds should be aware on the global supply and currencies exchange.
SOCIAL / CULTURAL Young urban consumers want technology in their life and facilities such as credit card payment, wireless internet, cozy and relaxing ambient place, and other attraction for their hangout and eating. All these needs should also be taken into consideration. TECHNOLOGY For a fast food restaurant, technology does not give a very high impact on the company and it is not a significant macro environment variables. However McDonalds should be looking to competitors innovation and improve itself in term of integrating technology in managing its operation.
The quick-service sandwich industry faces competitive pressures from a number of forces.
The major competitive threats originate from competing sellers in the industry as well as firms in other industries that offer substitute products. McDonald’s main competitors within the quick-service sandwich industry are continually deriving new strategies through offensive and defensive tactics in order to gain customers and market share.
One of the major issues for McDonald’s is it competitors.
Burger King is the second largest