Class 1 – Group 4 – Case Study 15: McDonald’s Corp.

Strategic management

McDonald’s Study Case

Group Member:

1) Tống Trần Thanh Phương - 295920

2) Trần Hữu Minh Quân - 295923

3) Phạm Châu Bảo Khoa - 295916

Table of Contents

I/ Problems 1

II/ Executive Summary 1

A/ Background 2

B/ History 2

C/ Vision Statement 3

D/ Mission Statement 3

E/ Objectives 4

F/ Strategies 4

G/ Products of McDonald’s 5

H/ Service of McDonald’s 6

I/ Competitors of McDonald’s 7

J/ Market Condition 8

K/ Recommendation 9

II/ Financial Ratios 10

A/ Short-term solvency, or liquidity, ratios 15

B/ Long-term solvency, or financial leverage ratios 16

C/ Asset utilization, or turnover, ratios 17

D/ Profitability ratios 18

E/ Market value ratios 19

III/ Product life cycle 20

IV/ Current strategy of McDonald’s 20

V/ SWOT Analysis 21

A/ Strengths 22

B/ Threats 23

C/ Weaknesses 24

D/ Opportunities 25

VI/ TOWS Matrix

A/ S-O Strategies 26

B/ S-T Strategies 26

C/ W-O Strategies 26

D/ W-T Strategies 27

VII/ Competitive Profile Matrix – CPM Matrix 28

VIII/ External Factors Evaluation (EFE) Matrix 30

IX/ Internal Factors Evaluation (IFE) Matrix 32

X/ Boston Consulting Group (BCG) of McDonald’s products 34

XI/ The strategic Position and Action Evaluation (SPACE) Matrix 36

XII/ Grand Matrix 38

XIII/ Quantitative Strategic Planning Matrix (QSPM) Matrix 40

XIV/ Recommendation 45

XV/ Method 45

XVI/ Timetable 48

XVII/ Recommendations for annual objectives and policies for the company 49

XVIII/ Recommendations on procedures for strategy review and evaluation 50

XIX/ Conclusion 50

XX/ References 51

1

I/ Problems:

The fast-food industry in US market becoming more narrow and saturate, and McDonald’s

position is in decline stage. Chief Executive Don Thompson stated: “More specifically, growth

in the informal eating-out industry has been relatively flat to declining around the world and we

expect that to continue.”

The market is quickly evolving and maturing, more competitors gaining market share and started

to change their menu to be healthier. McDonald’s is facing lots of tough competitors in the

market which demand for healthier and exotic foods from Burger King, Wendy’s. In the

meantime, McDonald’s also losing market share as well as customers from Subway, Chipotle

and Taco Bell. Consequently, McDonald’s must have turnaround strategy in order to gain back

market share as well as solving these problems.

II/ Executive Summary

McDonald’s Corporation is a “Centralized, International company”, which is the largest

chain of fast food restaurants with more than 30,450 fast-food restaurants in 121 countries

worldwide. Fifty eight percent of these stores are operated by franchisees, twenty eight by the

company, and fourteen percent by affiliates.

McDonald’s expand its market into foreign countries through three primary methods,

franchising, company owned restaurants, and joint ventures which will help McDonald’s

easily to be accepted into unfamiliar markets and franchising continues to contribute heavily

to McDonald’s international success. Although its expansion rapidly, McDonald's still

manage a tight grasp on operations, cost and quality by using a centralized, international

structure. However, McDonald needs to face the risk of its change in operation strategy.

2

A/ McDonald’s Background

Founded: 1955, Franchising since: 1955

McDonald operations in over 121 countries and over 35,000 locations around the globe with

more than 1.5 million employees and become the largest fast food service and supplier in the

world which serves approximately 70 million customers per day. McDonalds earns revenue

by operating restaurants, franchising and investing in properties. However, they view

themselves primarily as a franchisor and believe that franchising is important to delivering

great customer experiences and gaining profitability. At year-end 2013, more than 80% of

McDonald’s restaurants were franchised worldwide. McDonald’s revenues gain $28.1

billion in 2013.

B/ History

• 1940 First McDonald’s

• 1952 Attempts at franchising

• 1954 Milk Shake Machine

• 1955 prototype opens in Des Plaines, IL

• 1956 14 McDonald’s

• 1961 McDonald brothers sell rights

• 1965 McDonald’s go public

• 1968 Introduction of Big Mac and shift to Network Television

• 1970 1600 restaurants

• 1980 6000 McDonald’s Restaurants

• 1990 record sales

• 1994 Kuwait City, Kuwait

• 2002 Forty seven years after

1. 30,000 locations

2. 2000 new restaurants

3. World Wide Web

4. McDonald’s a recognized Brand Name

2003 McDonald’s Plan to Win is Launched

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2005 50th Anniversary of McDonald

2006 Introducing Snack Wrap

2008 Global Packaging Redesign

2009 McCafe Goes National

2011 McDonald’s Now Operates in 119 Countries

C/ Vision Statement

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

best means providing outstanding quality, service, cleanliness, & value, so that we make

every customer in every restaurant smile."

Their mission confirms that they offering excellent quality, service, cleanliness, and value so

that they can make their customer in every restaurant smile and satisfy with their products.

They attain best value by providing top quality products at reasonable prices.

D/ Mission statement

McDonald's mission is to be our customers' favorite place and way to eat and drink by

serving core favorites such as our World Famous Fries, Big Mac, Quarter Pounder and

Chicken McNuggets with inspired people who delight each customer with unmatched

quality, service, cleanliness and value every time. We invite you to be the part of this

winning team and give yourself an opportunity to grow with the family of people striving to

create smiles on the faces of millions of people every day.

Organization’s focus is mainly towards the external and internal customers such as

consumers and employees. Furthermore, the company is committed to innovate and use the

latest technology to earn huge profits.

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E/ Objectives

With the strategy more restaurant locations are opened the more customers will be served,

and gain higher profit and this plan has been successful, both in the domestic and foreign

markets.

The Main Objectives of a Business are:

To maintain the leadership in fast food restaurant industry

To serve the customer with good food in a friendly and fun environment

Providing the quality food and value of money to the customer

Providing the shareholder a positive return on their investments

To meet the social and ethical responsibility

Aims & Objectives of McDonald’s’ – “it’s what I eat and what I do…I’m lovin’ it”

McDonalds objectives are to reverse the decline of sales, to continue staying ahead of the

competition in the fast food industry and to find new strategies that would help the restaurant

successfully compete in the a fiercely competitive market.

F/ Strategy

The strength of the alignment among the Company, its franchisees and suppliers (collectively

referred to as the "System") has been key to McDonald's success. By leveraging our System,

we are able to identify, implement and scale ideas that meet customers' changing needs and

preferences. In addition, our business model enables McDonald's to consistently deliver

locally-relevant restaurant experiences to customers and be an integral part of the

communities we serve.

5

McDonald's customer-focused Plan to Win ("Plan") provides a common framework that

aligns our global business and allows for local adaptation. We continue to focus on our three

global growth priorities of optimizing our menu, modernizing the customer experience, and

broadening accessibility to Brand McDonald's within the framework of our Plan. Our

initiatives support these priorities, and are executed with a focus on the Plan's five pillars -

People, Products, Place, Price and Promotion - to enhance our customers' experience and

build shareholder value over the long term. We believe these priorities align with our

customers' evolving needs, and - combined with our competitive advantages of convenience,

menu variety, geographic diversification and System alignment - will drive long-term

sustainable growth.

G/ Products of McDonald’s:

Beverages: Cold-Coffee, ice tea, hot serves, McShakes

Non-Vegetarian Menu: Filet-O-Fish, , Chicken McCurry Pan, McChicken.

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Vegetarian Menu: Crispy Chinese, McALOOtikki, Mc Veggie, Pizza McPuff,

Paneer Salsa Wrap.

H/ Service of McDonald’s:

McDonald’s fast-food chain has more than 15,000 Wi-Fi enabled restaurants around the

world. They bring to customers not only innovated but also convenient services that enhance

customer’s loyalty and customer visits. McDonald’s provides high quality Wi-Fi service with

variety of connection options: online credit card payment, subscriptions, prepaid cards, or

promotional coupons. They also support customers with the hotline number which can be

handy in their restaurant.

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I/ Competitors of McDonald’s:

As one of the largest fast-food chain in global market, McDonald’s has a lot of competitors

which all seeking a share of the market. Therefore, a big company like McDonald’s has to

differentiate their brand from other rivals with various competitive tactics which makes them

overtake the market share with more than twice Worldwide system wide sales than their

competitors such as Yum, SUBWAY, Burger King.

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McDonald’s major competitors: Burger King, YUM, WENDY, Subway, Pizza Hut.

J/ Market condition:

The demand for fast food nowadays not only focus on quick service, easy to eat and cheap.

People demand increasingly changed in 5 years ago today.

1. Healthy problem:

People increasingly want to know about the ingredients and their origins in food. By

doing that, they will know exactly if the food is good for their health or not. This is also

the top priority when people choosing between many different restaurants when they

eating out. People today pay more attention to their health and they are willing to pay a

premium for better ingredients.

2. The flavors:

In the past, we only choose to eat at fast food restaurant because of it quick service and

we tend to save our time and money; we do not pay much attention to the food quality

and its flavors. Today, along with the increased of many fast food brands, customer

demand also raised. The quality of each meal and the taste are more interested. The

diversity of restaurant menu also increases the success of the restaurant.

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3. More vegetable and fruits:

Every fast food restaurant has vegetable and fruit in their menu such as salad or French

fries, but customers expect more fresh fruits and vegetable than that. Customers tend to

choose food which is healthy for them so adding more products from vegetable will

support the success of restaurants.

4. Beverage:

Any kind of restaurants included fast food restaurants not only about the foods, but also

required good quality and innovative beverage. Fast food restaurants in the past only

served soda which is the main cause for obesity. Because of that, fruit and vegetable

juices are showing strength, fast food restaurants which served smoothies are more

welcome than other restaurants.

K/ Recommendation

More Healthy Choices to remove Obesity link with McDonald’s. McDonald should

develop menu choices that are healthy and socially acceptable to keep their position in

the market. So they need to develop new innovative, healthy foods and menus with low

cost, such as more healthy food with vegetables included in the burgers, less oil should be

added.

Using local sources decreases the time to market, and also decreases the use of fuel to

transport goods to protect the environment, involving more on social accountability, such

as employing more disabilities to work in the restaurant which can improve their brand

image.

Understand Local Tastes; provide special Local menus for each country while offering

the basic burger and fries. Increasing the presence in Asian countries: new big market to

entrance and new opportunities to expansion the scale of the organization and also

increase Drive through Branches.

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Improve quality-training course so as to improve staffs attitude on customer service and

provide more add-valued services such as Delivery Services to every Potential Customer,

Potential Segment to compete with the competitors.

II/ Financial ratios:

Income Statement

Period Ending 31-Dec-13 31-Dec-12

Total Revenue 28,105,700 27,567,000

Cost of Revenue 17,203,000 16,750,700

Gross Profit 10,902,700 10,816,300

Operating Expenses

Research Development - -

Selling General and

Administrative 2,138,400 2,211,700

Non Recurring - -

Others - -

Total Operating Expenses - -

Operating Income or Loss 8,764,300 8,604,600

Income from Continuing Operations

Total Other

Income/Expenses Net -37,900 -9,000

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Earnings Before Interest

And Taxes 8,204,500 8,079,000

Interest Expense - -

Income Before Tax 8,204,500 8,079,000

Income Tax Expense 2,618,600 2,614,200

Minority Interest - -

Net Income From

Continuing Ops 5,585,900 5,464,800

Non-recurring Events

Discontinued Operations - -

Extraordinary Items - -

Effect Of Accounting

Changes - -

Other Items - -

Net Income 5,585,900 5,464,800

Preferred Stock And Other Adjustments - -

Net Income Applicable To Common Shares 5,585,900 5,464,800

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Balance sheet

Period Ending 31-Dec-13 31-Dec-12

Assets

Current Assets

Cash And Cash Equivalents 2,798,700 2,336,100

Short Term Investments - -

Net Receivables 1,319,800 1,375,300

Inventory 123,700 121,700

Other Current Assets 807,900 1,089,000

Total Current Assets 5,050,100 4,922,100

Long Term Investments 1,209,100 1,380,500

Property Plant and Equipment 25,747,300 24,677,200

Goodwill 2,872,700 2,804,000

Intangible Assets - -

Accumulated Amortization - -

Other Assets 1,747,100 1,602,700

Deferred Long Term Asset Charges - -

Total Assets 36,626,300 35,386,500

Liabilities

Current Liabilities

Accounts Payable 3,170,000 3,403,100

Short/Current Long Term Debt - -

Other Current Liabilities - -

Total Current Liabilities 3,170,000 3,403,100

Long Term Debt 14,129,800 13,632,500

Other Liabilities 1,669,100 1,526,200

Deferred Long Term Liability Charges 1,647,700 1,531,100

Minority Interest - -

Negative Goodwill - -

Total Liabilities 20,616,600 20,092,900

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Stockholders' Equity

Misc Stocks Options Warrants - -

Redeemable Preferred Stock - -

Preferred Stock - -

Common Stock 16,600 16,600

Retained Earnings 41,751,200 39,278,000

Treasury Stock -32,179,800 -30,576,300

Capital Surplus 5,994,100 5,778,900

Other Stockholder Equity 427,600 796,400

Total Stockholder Equity 16,009,700 15,293,600

Net Tangible Assets 13,137,000 12,489,600

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Cash flow

Period Ending 31-Dec-13 31-Dec-12

Net Income 5,585,900 5,464,800

Operating Activities, Cash Flows Provided By or Used In

Depreciation 1,585,100 1,488,500

Adjustments To Net

Income 141,100 135,900

Changes In Accounts

Receivables 56,200 -29,400

Changes In Liabilities -203,200 -66,500

Changes In Inventories -44,400 -27,200

Changes In Other

Operating Activities - -

Total Cash Flow From

Operating Activities 7,120,700 6,966,100

Investing Activities, Cash Flows Provided By or Used In

Capital Expenditures -2,824,700 -3,049,200

Investments - -

Other Cash flows from

Investing Activities 150,900 -118,100

Total Cash Flows From

Investing Activities -2,673,800 -3,167,300

Financing Activities, Cash Flows Provided By or Used In

Dividends Paid -3,114,600 -2,896,600

Sale Purchase of Stock -1,544,500 -2,286,500

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Net Borrowings 535,300 1,204,600

Other Cash Flows from

Financing Activities -11,800 -13,600

Total Cash Flows From

Financing Activities -4,043,000 -3,849,800

Effect Of Exchange Rate

Changes 58,700 51,400

Change In Cash and

Cash Equivalents 462,600 400

A/ Short-term solvency, or liquidity, ratios:

2012

Current ratio = current assets/current liabilities = 1.45

Quick ratio = (current assets - inventory)/current liabilities = 1.09

Cash ratio = cash/current liabilities = 0.68

2013

Current ratio = current assets/current liabilities = 1.59

Quick ratio = (current assets - inventory)/current liabilities = 1.3

Cash ratio = cash/current liabilities = 0.88

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2012 2013

Current ratio 1.45 1.59

Quick ratio 1.09 1.3

Cash ratio 0.68 0.88

Current ratio 1.59 is quite high is short-term liquidity of McDonald’s; the higher figure is the

better, but it’s also indicate an inefficient use of cash and other short-term assets

B/ Long-term solvency, or financial leverage, ratios:

2012

Total debt ratio = (Total assets - total equity)/total assets = 0.567

Debt-equity ratio = total debt/total equity = 0.891

Equity multiplier = total assets/total equity = 2.313

Times interest earned ratio = EBIT/interest = 63.9

Cash coverage ratio = (EBIT + Depreciation)/interest = 18.5

2013

Total debt ratio = (Total assets - total equity)/total assets = 0.562

Debt-equity ratio = total debt/total equity = 1.436

Equity multiplier = total assets/total equity = 2.287

Times interest earned ratio = EBIT/interest = 63.61

Cash coverage ratio = (EBIT + Depreciation)/interest = 18.7

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2012 2013

Total debt ratio 0.567 0.562

Debt-equity ratio 0.891 1.436

Equity multiplier 2.313 2.287

Times interest earned ratio 63.9 63.61

Cash coverage ratio 18.5 18.7

In this case, the total debt is high (0.562) which mean that McDonald’s has 0.562 dollar in debt

for every 1 dollar in asset but lower than in 2012 (0.567). The times interest earned ratio measure

how well McDonald’s has its interest obligations coverage. This is a high figure which mean

McDonald’s can get their profit back quickly.

C/ Asset utilization, or turnover, ratios:

2012

Inventory turnover = Cost of goods sold/Inventory = 137.64

Days’ sale in inventory = 365 days/Inventory turnover = 2.65

Receivables turnover = Sales/Accounts receivable = 20.04

Days’ sales in receivables = 365 days/Receivables turnover = 18.21

Total asset turnover = Sales/Total assets = 0.78

Capital intensity = Total assets/Sales = 1.28

2013

Inventory turnover = Cost of goods sold/Inventory = 139.07

Days’ sale in inventory = 365 days/Inventory turnover = 2.62

Receivables turnover = Sales/Accounts receivable = 21.3

Days’ sales in receivables = 365 days/Receivables turnover = 17.14

Total asset turnover = Sales/Total assets = 0.77

Capital intensity = Total assets/Sales = 1.3

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2012 2013

Inventory turnover 137.64 139.07

Days’ sale in inventory 2.65 2.62

Receivables turnover 20.04 21.3

Days’ sales in receivables 18.21 17.14

Total asset turnover 0.78 0.77

Capital intensity 1.28 1.30

The inventory turnover is 139.07 times; the higher this figure is, the more efficiently is managing

their inventory effectively. McDonald’s can know how long it took to turn it over o average.

Days’ sales inventory is 2.62 which mean on average, inventory sits 2.5 days before it is sold, it

will take about 2.5 days to work off McDonald’s current inventory.

D/ Profitability ratios:

2012

Profit margin = Net income/Sales = 0.1982

Return on assets (ROA) = net income/total assets = 15.51

Return on equity (ROE) = net income/total equity = 35.69

2013

Profit margin = Net income/Sales = 0.1987

Return on assets (ROA) = net income/total assets = 15.66

Return on equity (ROE) = net income/total equity = 35.19

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2012 2013

Profit margin 0.1982 0.1987

Return on assets 15.51 15.66

Return on equity 35.69 35.19

E/ Market value ratios:

2012

Price-earnings ratio = Price per share/Earnings per share = 20

Market-to-book ratio = Market value per share/Book value per share = 7.52

2013

Price-earnings ratio = Price per share/Earnings per share = 17.4

Market-to-book ratio = Market value per share/Book value per share = 5.9

2012 2013

Price-earnings ratio 20 17.4

Market-to-book ratio 7.52 5.9

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III/ Product life cycle:

According to our case, the company is in the market maturity stage of the product life cycle. In

this stage, the strong growth in sales by the company is diminishing. At this stage of the product

life cycle the competition may appear with similar products like Burger King is doing to

McDonalds. The primary objective that a company should focus on when at this stage of the

product life cycle is to defend its market share and try to maximize it profits. At this stage also,

the features of its products might be enhanced or the company might try to implement other

products in order to create a stiff competition for its competitors.

IV/ Current strategy of McDonald's:

According to McDonald's situation, they already have a low-cost strategy that used for compete

with other famous brands such as Burger King, KFC. However, this strategy is no longer

effective in fast food industry because almost every famous brands has their own low-price menu

which target low-income customers. So they need a new strategy which is more suitable for the

current situation and will attract more customers.

New strategy: McDonald's need a new strategy to adapt to current trend. So, we come up with

many strategy to help McDonald's overcome present problems and increase the revenue such as

provide new healthy menu to match customers demand about healthy issues or provide new

services. In the previous years, they had faced with lots of problems related to health problems

that their foods included bad ingredients causing obesity for consumers. Therefore, they must

focus on to create new menu with nutritious ingredients such as salad and more vegetable in their

menu.

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V/ SWOT Analysis

Strengths Weaknesses

The most recognized brand

Strong global presence

McDonald’s Plan to Win

Strong financial performance and

position

Operating in many diverse cultures

Offering many popular brands

Success in target very young children

Low-cost leader

Good socially responsible and

community oriented

Convenient

Negative publicity

Unhealthy food menu

High employee turnover

Low differentiation

Legal action

Use of HCFC-22

Lacking breakfast menu

Social trend

Threats Opportunities

Competition

Healthy issue

Law issue

Saturated in fast-food industry

Economic recession

Increasing demand for healthier food

Growth of the fast food industry

Globalization

Low cost menu is preferred by larger

number of customers

Appearance of freebies and discounts

Diverse tastes and needs of customers

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A/ Strengths:

1. McDonalds brand is the most recognized brand in fast food industry and have large

market share which have more than 34,000 outlets, serving 70 million consumers every

day in 121 countries.

2. Strong global presence and located itself in major airports, cities, highways, tourist

locations, theme parks.

3. “McDonalds Plan to Win” focuses on people, products, place, price and promotion.

McDonald’s spends a lot on R&D and advertising about 2$ billion on advertising

budget.

4. Strong financial performance and position, revenue in 2013 reach $28.11 billion growth

2%.

5. McDonalds operate in many diverse cultures where is the tastes in food are extremely

different than US. They focused on customer’s comfort by making different zones for

different customers. Thus, ability to adapt to local tastes and standardized quality

products are McDonald’s strengths

6. McDonald’s offers only most popular brands as their com in its restaurants, such as:

Coca Cola, Dannon Yogurt, Heinz ketchup and others.

7. Business successfully targets very young children through offering playgrounds, toys

with its meals and advertisements.

8. Value based pricing and large number of loyal customer

9. Good socially responsible and community oriented firm. They own an active children’s

charity by the name The Ronald McDonald House. They provide products which

comply with the upgraded health standards deemed necessary by the USDA and

provide the customers about nutrition facts.

10. Convenient and extended hours

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B/ Threats:

1. Competition: In many developed countries are overcrowded by so many fast food

restaurant chains and many famous brands in fast food industry and threatened to

McDonald’s growth. For example Yum!Brands, Wendy’s or Burger King. They market

share are lower than McDonald (McDonald’s has 19% market share, compared to 13% of

3 other competitors) but they try to gain more and more customers.

2. Healthy issue: The amount of obesity cases in Americans is increase significantly;

people nowadays become more conscious of eating healthy food. McDonald’s menu is

not exactly healthy for people, for example Supersized Meal, no fruit or yogurt, slim

salad selection. People tend to choose other restaurant rather than having meals in

McDonald.

3. Law issue: In America, there are many lawsuits again McDonald about unhealthy foods.

Those lawsuits are cost so much time and money of McDonald and if McDonald refuses

to change, more and more lawsuits will probably come.

4. Saturated in fast-food industry: The fast-food market in the developed countries is

already overcrowded by so many fast-food restaurant chains and this already proves to be

a threat to McDonald’s as it barely grew through 2012.

5. Economic recession: The Company’s revenue streams are diversified, but depending on

the length of this recession, they will inevitably be negatively impacted by trickledown

effect.

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C/ Weaknesses:

1. Negative publicity. McDonald’s is sued for many time by offering unhealthy food to

their customers and using lots of marketing aim at children, especially young age kids.

2. Unhealthy food menu. McDonald’s has given lots of affords to bring healthier fast food

to customers, however, their menu still contain unhealthy meals and drinks that provides

more calories than nutrition.

3. High employee turnover. McDonald’s has low paid and skilled job, which result in high

turnover of their employees with 150% of turnover rate, even their top managers,

consequently, it increases cost of training and overall cost of McDonald.

4. Low differentiation: Old menu leads to the fact that McDonald brand nowadays cannot

differentiate themselves from other fast food chains.

5. Legal action McDonalds’s food contain huge amount of Trans which is fat and beef oil

which has bad effects on customer’s health and cause cancer. As a result, customers quit

eating at McDonald’s restaurants to protect their health which makes the revenue of

McDonald fall down.

6. Uses of HCFC-22. According to University of Michigan Corporate Environmental

Management Program. McDonald uses HCFC-22 to make polystyrene that affect the

ozone layer

7. Lacking of breakfast menu

8. Social Trend. McDonald’s cannot catch up with the trend of organic food.

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D/ Opportunities:

1. Increasing demand for healthier food. As a demand for healthy food increases

significantly, McDonald’s could produce more alternatives healthier choice in their menu

such as fresh burger or vegetable dessert. Change of human lifestyle; people consume

more fast food products. This is a great opportunity for McDonald’s to increases revenue.

2. Globalization, expansion in other countries McDonalds has more than 31,000

restaurants serving in almost 120 countries. Of the 31,000 restaurants, at least 14,000 are

in US. China and India are 2 of the most potential market in the world so that it’s a good

opportunity for McDonald’s to expand their brand at these 2 markets.

3. Low cost menu is preferred by large number of customers McDonald’s can attract

low income people by applying Extra value meals menu in the period of economic

struggle. This is a potential market segment which can bring huge profit to McDonald’s.

4. Appearance of freebies and discounts

5. Diverse tastes and needs of customers Customer’s tastes is becoming more diverse. As

a result, they want new menu and service in order to satisfy them. McDonalds with new

menu and service such as McCafé can attract huge number of customers.

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VI/ TOWS Matrix:

A/ S-O STRATEGIES

Introducing new menus with nutritious ingredients (S1,S2,S3,S4,S8,O1)

Expanding to new markets by Acquisition and Mergers. (S1, S2, O1, O2).

Using Brand name to increase charitable work and create “ Green” campaign (

S8,O1,O3)

Focusing on Plan to win to attract customers and gain more profit

(S2,S3,S5,S7,S8,O4,O6)

Providing news products with low cost and diverse tastes (S3,S5,S8,O2,O4,O6)

B/ S-T STRATEGIES

Using plan and brands name and many popular brands to attract more customers. (S1, S2,

S3, S5, S6, S7, T1)

Using charity and give back to community in order to gain back community trust. (S9,

T3)

Providing new products focus on healthy foods to gain more customers and create new

image of fast food good for health. (S3, S5,S9,T2)

C/ W-O STRATEGIES

Minimizing the negative publicity by providing low cost menu combine with appearance

of freebies and discounts to gain the trust of customers. ( W1, O4, O5)

Increasing differentiation by applying new healthy menu to match with customer demand

about healthy food and diverse tastes which can attract more customer segment ( W4, O1,

O6)

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D/ W-T STRATEGIES

Minimizing the uses of Trans fat in all menu of McDonald’s ( W2 ,W5, W8, O1)

Transferring the uses of HCFC-22 into HFC which avoid damage to ozone layer (T3.

W6)

Increasing the salary and have more training for their employees in order to compete

more effectively in the world market. ( T1, W3)

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VII/ Competitive Profile Matrix – CPM Matrix

Once a company’s external and internal factors have been properly assessed, one can easily

compare the company to its competitors in the industry. By doing this matrix will provide the

firm some ideas and important strategic information to create new strategies.

McDonald's Burger King Yum Brands Wendy's

Critical

Competitive

Factors

Weight Rating Score Rating Score Rating Score Rating Score

Product Quality 0.15 4 0.6 3 0.45 4 0.6 2 0.3

Financial 0.15 4 0.6 1 0.15 3 0.45 2 0.3

Safety 0.12 3 0.36 3 0.36 3 0.36 2 0.24

Consumer

Loyalty

0.08 4 0.32 4 0.32 3 0.24 2 0.16

Value based on

Pricing.

0.12 4 0.48 3 0.36 3 0.36 3 0.36

Innovation and

Process

Technologies

0.1 3 0.3 3 0.3 2 0.2 2 0.2

Global

Expansion

0.1 4 0.4 2 0.2 3 0.3 1 0.1

Market Share 0.1 4 0.4 3 0.3 3 0.3 2 0.2

Promotions 0.08 4 0.32 4 0.32 3 0.24 3 0.24

Total 1 3.78 2.76 3.05 2.1

29

The CPM matrix above show that the total weighted score of McDonald’s is quite high 3.78

above the average of 2.5 and also higher its main competitors which shows that the company is

responding quite well to its critical factors. The company has a strong position in the fast-food

industry and may need to make some minor changes to improve its. In general, the company

seems to be a leader in this industry and will continue to keep this role if it focuses on these

above critical competitive factors. McDonald’s is almost took major strengths on these factors

such as the high quality of product, net competitive advantage, pricing competitive, strong global

presence and largest market share in fast-food industry. McDonald’s has more than 80% of

McDonald's restaurants worldwide and total revenue in 2013 is more than 28 billion USD which

is strongly greater than Yum Brand’s 13 billion USD and Burger King 1.15 billion USD.

Moreover, McDonald’s is also kept the role as the leader in market share, nearly 50% of

Hamburger QSR market. It is also providing the low price menu to compare with other

competitors McDonalds prices might seem a little cheaper than Burger King’s.

30

VIII/ External Factors Evaluation (EFE) Matrix:

Key External Factors Weight Rating Weighted

Score

Opportunities

Low-Price Menu that will attract low-income consumers 0.15 3 0.45

Demand for healthier and more creative products 0.05 3 0.15

Competitors lack of McCafe service 0.15 4 0.6

Expansion in other countries ( China, India) 0.07 2 0.14

Brand loyalty 0.05 2 0.1

Demand for free Wi-Fi versus competitor charges 0.09 3 0.27

Demand for more salad choices on menu 0.09 3 0.27

Weaknesses

Having negative heath issues for consumers such as obesity

and heart attack

0.06 3 0.18

Having negative attention from media because of

marketing toward children.

0.04 2 0.08

Price wars between competitors will cause McDonald lose

customers.

0.07 2 0.14

High turnover rate 0.03 2 0.06

Rising costs 0.06 2 0.12

Calorie counts & nutritional value posted 0.09 2 0.18

Total 1 2.74

31

The total weighted score of McDonald’s external factors is 2.74 and according to the table,

McDonald’s has 2 important opportunity factors that they need to create a strategy in order to

capitalize it and they has 1 biggest issue that need to be resolved. Low price menu (1$ each item)

and the demand for McCafé are still the greatest opportunity for McDonald’s to increase sells.

According to Vanessa Wong, in 2002, McDonald’s has launched Dollar Menu and it has grown

to about 13% of sales for McDonald’s and now low price menu can continue to attract more

customers if they create more diversified menu with low price. McCafé is also a competitive

advantage and opportunity of McDonald’s to compare with other competitors. According to

Leslie Patton, McDonald’s hopes to increase their sales in coffee market from 2014 to 2016.

McCafé competes not only with other fast-food company such as Yum; Burger King, it also

competes with Starbucks in order to gain more market share.

McDonald’s biggest weakness is they confront negative reputation about unhealthy products that

can cause obesity and heart attack for customers. According to Candice Choi, lots of American

people boycott McDonald’s due to their junk food image, consequently, sales of McDonald’s go

down. They need to find solution to erase their bad image and to increase sales.

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IX/ Internal Factor Evaluation (IFE) Matrix

Key Internal Factors Weight Rating Weighted Score

Strengths

Strong brand name, image and

reputation.

0.12 4 0.48

Strong global presence. 0.12 3 0.36

Specialized training for managers

known as the Hamburger University.

0.10 3 0.30

McDonalds Plan to Win focuses on

people, products, place, price and

promotion

0.12 4 0.48

Introduction of new products 0.06 4 0.24

Customer focus 0.06 4 0.24

Strong performance in the global

marketplace.

0.12 4 0.48

Weaknesses

Unhealthy food image

0.08 1 0.08

High Staff Turnover including Top

management

0.04 1 0.04

Sued multiple times for serving

unhealthy food

0.04 2 0.08

Weak in analyzing the needs of

customers

0.04 2 0.08

Ignoring breakfast from the menu. 0.06 1 0.06

McDonald's uses HCFC-22 to make

polystyrene that is contributing to

ozone depletion

0.04

1 0.04

Total 1.00 2.96

33

The total weighted score of McDonald’s is 2.96, which means that McDonald’s performing well

on its strength and suppressed its weaknesses. Brand name and reputation is the biggest strengths

for McDonald’s. In 2013, the average revenue of McDonald's restaurant versus Burger King

Restaurant is $2.6 million vs. $1.12 million, in US market. They become the icon of fast-food

and expand their influence to the world through many franchising store in many countries, more

than 23,500 restaurants around the world, showing the strong global presence. Although

McDonald’s have a very good background, they keep trying to develop more in the fast-food

market, by established the Hamburger University, McDonald’s express their care to customers

and improving McDonald’s services. In the recent years, to catch the current market trends,

McDonald’s concentrate on create many plans and change their menu. Introduce many new

products and McDonalds Plan to Win are only a small fraction in their big plan, McDonald’s try

to change their image, to become healthier and gain back their marketplace from many strong

competitors, those plans are another important strengths for McDonald’s.

McDonald’s was established since 1955, at that time the consumers are not aware of their health

much. However, nowadays health is one important issue to consumers and it became one of the

key weaknesses of McDonald’s. McDonald’s not only famous as a most success fast-food

restaurants in the world, but also famous for selling unhealthy food. That lead to the fact that

McDonald’s had been sued for multiple times and affect their image. Using HCFC-22 is one of

the factors why they create unhealthy food and they try to change it in the future. High staff

turnover and ignoring breakfast also consider as important internal weaknesses of McDonald’s.

This lead to the company has to invest money for training of new employees again and again.

34

X/ Boston Consulting Group (BCG) of McDonald's products:

1: McCafé

2: Big Mac

3: The Premium McWrap

4: McLean Deluxe

Star Question Mark

Cash Cow

Dog

High

Relatively Market Share High Low

Market

Growth

Rate McCafe

3

4

1 The Premium McWrap

Big Mac

2

McLean Deluxe

Low

35

McCafé: McDonald’s beverage platform featuring coffee drinks and smoothies, has

added about $125,000 in sales per store and is the company’s biggest launch in 35 years.

In addition, McDonald’s also add two more products to their McCafé, McCafe Cherry

Berry Chiller and Blueberry Banana Nut Oatmeal, to its U.S. menu. Adding new menu

items has certainly helped McDonald’s keep its menu fresh and maintain its dominance

in the breakfast segment. The new items are based on fruit products that have a feel-good

factor and are part of the company’s long-term strategy of providing consumers more

options of healthier products. Focus on breakfast items has helped McDonald’s attract a

greater number of footfalls to its outlets. This has helped the company maintain

profitability.

Big Mac: McDonald's sells 550 million Big Macs each year in the United States alone.

But the sandwich has global popularity. It is available in more than 100 countries and is

consumed 900 million times a year around the world.

The Premium McWrap: The Premium McWrap, which has three iterations—Chicken

& Bacon, Chicken & Ranch, and Sweet Chili Chicken—may hold the most significance

to McDonald’s 2013 brand evolution, as the product involves a more complex build and

more ingredients than most other items on the menu, going so far as to add cucumbers to

McDonald’s mix for the first time. The McWrap also signals McDonald’s attempt to grab

more market share from the Millennial demographic and to provide an alternative to

sandwich chains like Subway.

McLean Deluxe: McLean Deluxe he first problem with this burger was that men were

turned off it (much like Diet Coke which lead to Coke Zero). The next problem was its

taste. In the advert above you see that McDonald’s was marketing it as “low fat but tastes

great” – but it didn’t. The fat that was removed was replaced with water – but to make the

water stay in the meat, it was mixed with carrageenan – seaweed to you and me. The

burger tasted awful, had a limited market, and failed dismally which is really no surprise.

36

XI/ The Strategic Position and Action Evaluation (SPACE) Matrix

The SPACE matrix is broken down to four quadrants where each quadrant suggests a different

type of a nature of a strategy:

Aggressive

Conservative

Defensive

Competitive

The SPACE Matrix analysis functions upon 2 internal and 2 External Strategic dimensions. It

based on 4 areas of analysis:

Internal strategic dimensions:

Financial strength (FS) range from +1 to +6

Competitive advantage (CA) can range from -1 to -6

External strategic dimensions:

Environmental stability (ES) values can take -1 to -6

Industry Strength (IS) values can take +1 to +6

Rating each factor and take average score of ES and FS as Y point and CA and IS as X point

FS of McDonalds is high rating because of strong financial competitive advantages

Competitive advantage is average based on the CPM matrix we analyze before

Environmental stability and Industry Strength are also about average because fast-food

industry is slightly increase or may be remain in these recent years. The external factor

affect to the company also quite high.

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Financial Strength Rating Environmental

Stability Rating

Return on

investment. 3 Rate of inflation -3

Leverage 4 Demand Changes -3

Net Income 3 Price Elasticity of

demand -1

EPS 3 Competitive

pressure -3

ROE 2 Barriers to entry

new markets -3

Cash Flow 4 Risk involved in

business -2

Average 3.17 Average -2.5

Y-axis 0.67

Competitive

Advantage Rating

Industry

Strength Rating

Market share -4 Growth potential 3

Product Quality -4 Financial stability 5

Customer Loyalty -2 Ease of entry new

markets 4

Control over other

parties -2

Resources

utilization 4

Profit potential 2

Demand

variability 3

Average -3 Average 3.5

X-axis 0.5

38

Directional vector point is :( 0.67, 0.5)

SPACE Matrix shows that McDonalds should aggressively go for:

Forward integration (joint ventures with retailers)

Product development (launch new innovative products such as sandwiches with healthier

ingredients.

XII/ Grand Matrix

Dimension How measure/assess/evaluate? Result

Competitive

Position

Market Share & Market Capitalization Strong Competitive Position

Market Growth Acquisitions & New Products Slow Market Growth

Conservative Aggressive

Competitive Defensive

FS

IS

CA

ES

0.67

0.5

39

Quadrant II Quadrant I

Quadrant IV Quadrant III

Rapid Market Growth

Strong

Competitive

Position

Weak

Competitive

Position

Slow Market Growth

40

The Grand Strategy Matrix is a popular tool which is using for formulating strategies. In the

Grand Strategy Matrix, McDonald’s was positioned in Quadrant IV because of its high market

share of 49.6% in 2011 in the US Burger market share but the slowly in the growth of the Fast-

food industry itself. Thus, McDonald’s must be create new strategic. For the firms in Quadrant

IV market penetration, market expansion and product development are appropriate strategies.

Analysis Grand Matrix Strategy

1. Forward integration (joint ventures with retailers)

2. Product development (launch new innovative products such as healthier ingredients)

3. Market penetration through advertising, healthier products and diverse local taste.

XIII/ Quantitative Strategic Planning Matrix:

PROBLEMS:

The US market share of McDonalds is going down; also their product life cycle is on Decline

stage due to many competitors in fast food industry. They cannot growth more market share so

they must come up with new strategy for US market. There are two alternative strategies for

McDonalds either expanding their brand in Asia market for specifically in China and India or

trying to offer healthier menu.

The first strategy: Focus on China and India market; those are potential market for fast-food

industry with large market share. According to McDonald’s annual report, the revenue in Asia

Pacific keeps increase 50% in 4 years compare to other regions such as US, Europe, America.

The second strategy: The trend of consuming healthy food is concerned by lots of people, if

McDonald’s can create new menu with more nutrition items, they can increase sales

significantly. Healthier food should not only come in the form of vegetable, it should also

provide differentiate McDonald’s from other competitors. Healthy menu can include fruity iced

41

drinks, different types of desserts, salads. This can enhance the company’s strong position in the

market.

We use the EFE matrix and IFE matrix to identify key strategic factors for the QSPM matrix.

Then, we can formulate the type of strategy we would like to pursue base on others above matrix

such as SWOT analysis, CPM matrix, SPACE matrix and BCG matrix

We choose 2 main strategies:

Expand further in India and China market

Providing diverse menu include nutrition foods.

42

Strategy 1 Strategy 2

Expand further in

Asia market.

Providing diverse

menu include

nutrition foods.

Key Internal Factors Weight AS TAS AS TAS

Strengths

Strong brand name, image and reputation 0.12 4 0.48 1 0.12

Strong global presence. 0.12 4 0.48 1 0.12

Specialized training for managers known as

the Hamburger University. 0.1 2 0.2 2 0.2

McDonalds Plan to Win focuses on people,

products, place, price and promotion. 0.12 2 0.24 4 0.48

Introduction of new products 0.06 4 0.24 4 0.24

Customer focus 0.06 3 0.18 2 0.12

Strong performance in the global

marketplace. 0.12 4 0.48 1 0.12

Weaknesses

Unhealthy food image 0.08 2 0.16 4 0.32

High Staff Turnover including Top

management 0.04 1 0.04 1 0.04

Sued multiple times for serving unhealthy

food 0.04 3 0.12 4 0.16

Weak in analyzing the needs of customers 0.04 2 0.08 4 0.16

Ignoring breakfast from the menu. 0.06 1 0.06 2 0.12

McDonald's uses HCFC-22 to make

polystyrene that is contributing to ozone

depletion

0.04 3 0.12 4 0.16

Opportunities

Low-Price Menu that will attract low-income

consumers 0.15 4 0.6 4 0.6

43

Attractiveness Score how each factor is important or attractive to each alternative strategy.

1= Not acceptable; 2= possibly acceptable; 3= probably acceptable; 4= most acceptable; 0= not

relevant.

Demand for healthier and more creative

products 0.05 1 0.05 4 0.2

Competitors lack of McCabe service 0.15 1 0.15 1 0.15

Expansion in other countries ( Developing

countries) 0.07 4 0.28 1 0.07

Brand loyalty 0.05 4 0.2 2 0.1

Demand for free Wi-Fi versus competitor

charges 0.09 1 0.09 2 0.18

Demand for more salad choices on menu 0.09 2 0.18 4 0.36

Threats

Having negative heath issues for consumers

such as obesity and heart attack 0.06 2 0.12 4 0.24

Having negative attention from media

because of marketing toward children. 0.04 1 0.04 2 0.08

Price wars between competitors will cause

McDonald lose customers. 0.07 3 0.21 2 0.14

High turnover rate 0.03 1 0.03 1 0.03

Rising costs 0.06 2 0.12 1 0.06

Calories counts & nutritional value posted 0.09 1 0.09 4 0.36

SUM TOTAL ATTRACTIVENESS SCORE 5.04 4.93

44

For the first strategy:

We point 4 score for a strong brand name, image, reputation and widely global presence because

these factors will absolutely related to successful in expansion of the company. Moreover, the

expanding in new markets will deeply relevant to introduction of new diverse menu and price of

its products. Low price will attractive more customers so that support for the feasibility of the

strategy.

For the second strategy:

We focus on providing diverse menu include nutrition foods. Thus, we give the 4 points for these

factors such as: demand for healthier and more creative products which is strongly related to this

strategy and ”McDonalds Plan to Win” focuses on people, products, place, price and promotion.

News menu and products must be having the new 4Ps marketing mix and analyze the needs of

customers. Moreover, their new menus should avoid unhealthy food image such as obesity, harm

for customer health, heart attack. They must be including Calories counts & nutritional value;

focus on HCFC-22 to make polystyrene that is contributing to ozone depletion.

Analyzing QSPM Matrix result:

The strategy 1 has 5.04 score which is higher than strategy 2 and have more opportunity to

success. So, we choose the expansion to Asia market, especially China and India as a main

strategy because they have the highest potential market growth and suitable for our company

long-term strategy.

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XIV/ Recommendation:

Long-term strategy:

The most important strategy McDonald’s must have immediately is expanding their influence

and presence in Asia market especially potential markets. Through a strategy study of

McDonald's development in China, India focused on long-term and specific strategy; we

would like to have some suggestions for McDonald’s if they desire to expand their

business in Chinese and Indian market.

Specific strategy:

Having a plan to open at least 1 restaurant per day in China.

Having diversity menu in India that is suitable for local taste.

Receiving as much as possible feedbacks from the new market in order to adapt.

Running more outlets is main way at this stage.

The franchise chain will be an inevitable road to business expansion.

Competitive strategy:

Providing featured service and health products.

Achieving standardization in each process and areas of service.

Establishing a brand image that penetrates into the essence of every detail.

Setting target market with clear personalized positioning.

46

XV/ Method:

For long-term goal:

1. We continue to focusing on our three priorities of optimizing our menu, modernizing the

customer experience, and broadening accessibility to Brand McDonald's within the

framework for our long-term goal, These priorities align with our customers' evolving

needs, and - combined with our competitive advantages such as convenience, menu

variety, geographic diversification and System alignment - will drive long-term

sustainable goals successful.

2. The business is managed as distinct geographic segments that include:

• U.S.

• Europe

• Asia/Pacific, Middle East and Africa (APMEA)

• Other Countries & Corporate (OCC) including Canada, Latin America and

Corporate

3. We view ourselves primarily as a franchisor and believe franchising is important to

delivering great customer experiences and gaining profitability. At year end 2013, more

than 80% of McDonald’s restaurants were franchised. Of the total McDonald’s

restaurants worldwide:

• Over 57% are conventional franchisees

• Nearly 24% are licensed to foreign affiliates or developmental licensees

• 19% are Company-operated

• Innovations have included the Big Mac, Fillet-o-Fish, and Egg McDuffie

• Operate Hamburger University.

47

For strategy expansion to Asia market:

Continuing to operate franchise restaurants at Asia market. For example, from 2011 to

2013, McDonald's plans to open one restaurant every day in China

Local outlets at foreign markets can be autonomy adapt to local tastes and preferences.

So, they have done the product development and marketing at a local level and develop

its own products to address unique tastes that their consumers.

They allow some flexibility changes in international restaurants. Each country able to

complete the marketing research, develop new menu items and freedom to add to the

menu and promote their products how they wish. However, McDonald’s still keep the

consistency of its products and taste around the world and would not allow complete

autonomy.

In addition, they have to do marketing overseas which must be focus on cultural

differences, customer target differences.

48

XVI/ Time table:

Expanding in Asia market

PLAN PLAN ACTUAL ACTUAL PERCENT

ACTIVITY START DURATION START DURATION COMPLETE

1 Customer survey 1 10 1 6 0%

2 Analyze data 5 6 7 6 0%

3 Identify market needs, segments 10 8 10 8 0%

4 Determine potential customers 17 6 17 6 0%

5 Align with marketing department for new products 22 3 22 4

0%

6 Legal permission in foreign country 1 3 1 3 0%

7 Prepare infrastructures 22 8 22 7 0%

8 Find suppliers for beef and fresh vegetables 3 5 3 5 0%

9 Innovate and cooperate with community 3 4 3 4 0%

10 Sustain the profit level of products

then expand to new market 30 10 29 15 0%

49

XVII/ Recommendations for annual objectives and policies for the

company:

Our main strategy is expanding our influence and market share to Asia market, focusing on India

and China because the fast-food in US market is becoming saturated and cannot expand more.

When expanding to new market, we must survey and invent new recipes that appropriate for the

local tastes, along with using local ingredients. Quick services also one of the most important

things in fast-food restaurant and we must improve it whenever we can. Feedbacks are our helper

to help us develop more and gain more potential customers. Avoiding using ingredients that bad

for people health is the key to gain trust in community and will help us gain market share from

competitors.

After adapted to new foreign market, we will open many restaurant in many different potential

places, enhanced presence of McDonald’s in new market as much as possible. Asia market is the

potential market for fast-food industry so we must be the first to spread the influence and

presence of McDonald’s company before our competitors.

50

XVIII/ Recommendations on procedures for strategy review and

evaluation:

The evaluation implementation of the strategic planning should be completed with three key

steps. Firstly, McDonald’s would need to define the key parameters to be measure such as the

number of the new outlets to be open within a certain period of time and the brand ranking in the

surveys. For example, they must set time for opening 1 new outlets in China in 1 month.

Secondly, measurement should be conducted timely and regularly; thirdly, the company need to

measure the results to the set targets which could be broken into one year or even one month

small targets. For example, as mentioned above, the company is targeting at doubling the number

of the McDonald’s outlets within the coming three years to reach 300 new outlets, it cannot

simply make this target and check the results in the end of the next three years’ time and it has

the break up the target to each year target of around 900 new outlets to be established each year.

XIX/ Conclusion:

McDonald’s have a good performance in fast-food industry for a long time. McDonald’s has a

long reputation for strong marketing campaigns. However, the market demand have changed

over the recent years, McDonald’s must adapt to new environment in order to maintain its

position. After adopts all of the recommendations above, McDonald’s should hold its position

and maintain their reputation.

51

XX/ References:

http://www.fool.com/investing/general/2014/04/03/mcdonalds-brand-strength-still-dominates-

its-peers.aspx

http://en.wikipedia.org/wiki/List_of_countries_with_McDonald's_restaurants

http://www.aboutmcdonalds.com/mcd/corporate_careers/training_and_development/hamburger_

university.html

http://www.zacks.com/stock/news/135189/McDonalds-Plan-to-Win-Strategy-on-Track

http://money.msn.com/now/post.aspx?post=cfd065e4-be9a-4271-972e-2b461187b339

http://www.bloomberg.com/news/2011-07-22/mcdonald-s-second-quarter-profit-gains-15-as-

mccafe-beverages-boost-sales.html

http://www.qsrmagazine.com/competition/what-s-going

https://sites.google.com/site/mcdonaldsfranchisestrategy/home/mcdonald-s-competitive-

advantage

https://sites.google.com/site/mcdonaldsfranchisestrategy/home/mcdonald-s- industry

http://www.aboutmcdonalds.com/mcd/investors/company_profile.html

http://www.interbrand.com/en/best-global-brands/2012/Best-Global-Brands-2012.aspx

http://finance.yahoo.com/q/is?s=MCD&annual

https://finance.yahoo.com/q/is?s=YUM+Income+Statement&annual

https://finance.yahoo.com/q/is?s=BKW+Income+Statement&annual

http://www.fastfoodmenuprices.com/mcdonalds-vs-burger-king/

http://www.businessweek.com/articles/2013-10-23/mcdonald-s-new-dollar-menu-goes-up-to-5

http://www.bloomberg.com/news/2014-01-29/mcdonald-s-seeks-to-out- latte-starbucks-amid-

coffee-wars.html

http://www.gainesville.com/article/20140820/GUARDIAN/140829960/-

1/news10?Title=McDonald-8217-s-confronts-negative-reputation&tc=ar

http://abcnews.go.com/WNT/story?id=129992

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http://www.qsrmagazine.com/denise- lee-yohn/discount-or-not-discount

http://corporationsandhealth.org/2009/01/01/is-mcdonalds-lovin-the-economic-crisis-hard-times-

fast-food-and-health/