Mcdonald Case Study

McDonald’s: On a Customer-Focused Mission More than half a century ago, Ray Kroc, a 52-year-old salesman of milk-shake-mixing machines, set out on a mission to transform the way Americans eat. Kroc bought a chain of seven stores already existing for $2. 7 million. From the start, Kroc preached a motto of QSCV—quality, service, cleanliness, and value. These goals became mainstays in McDonald’s customer-focused mission statement.Applying these values, the company perfected the fast-food concept—delivering convenient, good-quality food at affordable prices. McDonald’s grew quickly to become the world’s largest fast-feeder. The fast-food giant’s more than 32,000 restaurants worldwide now serve 60 million customers each day, racking up system-wide sales of more than $79 billion annually. In the mid-1990s, however, McDonald’s fortunes began to turn. The company appeared to fall out of touch with both its mission and its customers.Amer icans were looking for fresher, better-tasting food and more contemporary atmospheres. They were also seeking healthier eating options. In a new age of health-conscious consumers and $3 muffin and coffee at Starbucks, McDonald’s seemed a bit out of step with the times. McDonald’s was struggling to find its identity among its competitors and changing consumer tastes. The company careened from one failed idea to another. It tried to keep pace. None of these things worked.However, McDonald’s continued opening new restaurants at a ferocious pace, as many as 2,000per year. The new stores helped sales, but customer service and cleanliness declined because the company couldn’t hire and train good workers fast enough. Meanwhile, McDonald’s increasingly became a target for animal-rights activists, environmentalists, and nutritionists, who accused the chain of contributing to the nation’s obesity epidemic with â€Å"super size† French fries and sodas as well as Happy Meals that lure kids with the reward of free toys.Although McDonald’s remained the world’s most visited fast-food chain, sales growth slumped, and its market share fell by more than 3 percent between 1997 and 2003. In 2002, the company posted its first-ever quarterly loss. In early 2003, a troubled McDonald’s announced a turnaround plan—what it now calls its â€Å"Plan to Win. † At the heart of this plan was a new mission statement that refocused the company on its customers. The company’s mission was changed from â€Å"being the world’s best quick-service restaurant† to â€Å"being our customers’ favorite place and way to eat.The new plan centered on five basics of an exceptional customer experience: people, products, place, price, and promotion. Under the Plan to Win, the goal was to get â€Å"better, not just bigger. † The company invested in improving the food, the service, the atmosph ere, and marketing at existing outlets. McDonald’s redecorated its restaurants with clean, simple, more-modern interiors and amenities such as live plants, wireless Internet access, and flat-screen TVs showing cable news.Play areas in some new restaurants now feature video games and even stationary bicycles with video screens. To make the customer experience more convenient, McDonald’s stores now open earlier to extend breakfast hours and stay open longer to serve late-night diners—more than one-third of McDonald’s restaurants are now open 24 hours a day. Moreover, MacDonald added healthier options, such as Chicken McNuggets made with white meat, a line of Snack Wraps, low-fat â€Å"milk jugs,† apple slices, Premium Salads.In 2008, when the stock market lost one-third of its value—the worst loss since the Great Depression— McDonald’s stock gained nearly 6 percent. Through 2010, as the economy and the restaurant industry as a wh ole continued to struggle, McDonald’s outperformed its competitors by a notable margin. QUESTIONS 1. What are the main environmental factors that affected MacDonald marketing strategy and way of doing business? 2. How MacDonald responded to the changing environment? (How these changes affected its marketing mix? )

NYSE:KKD, A Case Study of Krispy Kreme Doughnuts Inc. Financial Statements

Krispy Kreme Doughnuts was formed in 1933 when Vernon Carver Rudolph bought a doughnut shop in Kentucky. By 1937 the business had branched into a wholesale operation, supplying local grocery stores. Today, the business is owned by Krispy Kreme franchises and there are approximately 449 factory stores throughout the world.Krispy Kreme first floated on the NASDAQ in 2000 and, with a share price of $40.64, immediately gained a market capitalization of $500 million.   A year later they switched to the NYSE where they now trade under the ticker symbol KKD.In order to perform a financial analysis of Krispy Kreme we will utilize three main financial statements; the income statement, the statement of cash flow and the balance statement.The Income Statement, or profit and loss statement, will allow us to observe how much profit has been generated by KKD and will allow us to observe how profitable the business is.   Whereas the income statement reports the results from operating the busine ss over a given period of time, the balance sheet provides a picture of the firm’s value at a snapshot period in time by presenting details of its assets, liability and owner equity.Whilst an income statement reports a company’s profits this is not actually the same as their cash flows.   It is therefore important that we also look at this when analyzing the financial health and wellbeing of a company.   By looking at the free cash flows we are able to observe how much cash is available to the company after they have paid for their investments in operating capital and fixed assets.   The free cash will be the amount that is available to redistribute to the owners and creditors.The financial reports for Krispy Kreme between the years 2005 and 2007 can be found in Appendix A.   At first glance it is evident that a has been made over the last three years since their 2005 filing.   This could be potentially attributed to their rapid growth and extension that has necessitated large investments in property, plant, equipment and investments in equity method franchises.   The losses, however, have reduced from $7.2 million in 3rd quarter 2006 to $798 in the 3rd quarter of 2007 that could indicate an improvement.The operating income, excluding the $21.05 million in depreciation, of Krispy Kreme at the end of the 3rd quarter 2007 was $22.11. The company has reported an investment of 12.63 that their annual report (www.krisykreme.com) attributed to the sale of property and the reacquisition of some of the franchises.   In addition to this KKD retired some of their long debt leading to a net loss of $15.48 in financing activities.The statement of cash flows reveal a net credit to impairment and lease termination of $268,000 in the 3rd quarter of 2007, a huge shift from the charge of $5.4million of 3rd quarter 2006.   Clearly in the latter stages of 2006 a number of stores were closed or the franchises were terminated.   The third quarter 20 07 balance sheet shows that KKD had cash of $23 million and a debt of $88 million.In order to fully understand KKD’s position in the market we need to understand the data in relative terms, i.e. how is KKD performing in comparison to their competitors or similar companies. An analysis of KKD’s financial rations provides us with further insight into their operations and can allow us to better highlight their strengths and weaknesses.   The debt ratio indicates how much debt KKD are using to finance their assets.   KKD’s debt ratio discloses that the company has a debt level that matches their level of assets.   This is clearly bad news.Furthermore they have negative earnings per share ratio of -5.45.   This EPS ratio is significantly below the industry average of -2.75 will entail that it will be extremely difficult to attract new investors as they are unable to offer earnings on the investment, at the moment they are offering a loss.   In addition to t his, if the company financials do not pick up and they are forced to default there will be no return for the investors at all.The Return on Sales ratio is currently at .39.   This is also below the industry average.   Such a low ratio indicates that the sales are not equivalent to the company’s current operating expenses.However, on a positive note, the Current Ratio (an indication of the firm’s liquidity as measured by its liquid assets) of 1.71 shows some recovery and demonstrated that KKD have the resources to meet short-term obligations.One potential source of this could be cash generated by financing activities that can help to offset the unrewarded investments in finance acquisitions.   However, this is a short-term option and will not significantly offset investors concerns.KKD currently has a quick inventory turnover and averages 20 days.   This indicates that the company is managing their inventory well and is running an efficient operation with minima l waste.   In addition to this the turnover in receivable is 8 – 11 days which is much lower than one of their major competitors; Starbucks.   Their accounts payable turnover is also high relative to Satrbucks but this is probably a direct outcome of their franchise model.KKD as an investment has received a great deal of negative publicity recently and this will undoubtedly have impacted their share price.   Accusations relating to their accounting practices and the potential over inflation of profit levels will undoubtedly have lowered investor’s confidence in the company and has also triggered a number of lawsuits.Through analyzing their current financial status and taking into consideration their ongoing issues with the SEC, I would not invest in this company.Reference PageKrispy Kreme Doughnuts Inc KKD (NYSE) Full Description. Retrieved April 3, 2008, from Reuters FundamentalsWeb site: http://stocks.us.reuters.com/stocks/fullDescription.asp?symbol=KKDKrispy K reme History. Retrieved April 3, 2008, from Krispy KremeWeb site: http://www.krispykreme.com/history.htmlKrispy Kreme Quarterly Financial Report. (2007). Retrieved March 3, 2008, from Krispy KremeWeb site: http://www.krispykreme.com/investorrelations.html   

Free Essays on Guerilla Marketing

Guerilla Marketing According to Jay Conrad Levinson, writer of Guerrilla Marketing for The 21st Century, â€Å"Guerrilla marketing is needed because it gives small businesses a delightfully unfair advantage: certainty in an uncertain world, economy in a high-priced world, and simplicity in a complicated world, marketing awareness in a clueless world† Therefore, a small business must be concerned with all the factors of Guerilla Marketing. Our service is a day care center at Ave Maria College. We must consider all the ten P’s in Guerilla Marketing in order to achieve success. Guerilla Marketing is defined as unconventional marketing intended to maximize results form minimal resources. Thus, a small business must use original, and unusual marketing sequentially to attract their customers. First of all we must conduct a survey in order to segment our target market. Better yet, to find out if there is a demand for a day care center at Ave Maria. We must seek an opportunity in an untouched market, in order to attack potential customers. Next, we have to find out if there is a need for a day care center at Ave Maria College, in order to segment our market. Who are our potential customers? Single parents? Students or faculty with younger brothers or sisters? People who have no one to take care of their children while they’re at work? By carrying out a survey we then must divide the market, and then create a plan for the introduction of the day care center. In the plan we must consider the positioning of the product in the customers minds. We must find a niche in the market where we can enter, and create a need for the day care center. We must teach our customers that they day care center will make their lives easier, and it will be a solution rather than a problem. The price of our service has to include discounts; such as if a person is inscribing more than two kids in the day care center, they may get a lower price... Free Essays on Guerilla Marketing Free Essays on Guerilla Marketing Guerilla Marketing According to Jay Conrad Levinson, writer of Guerrilla Marketing for The 21st Century, â€Å"Guerrilla marketing is needed because it gives small businesses a delightfully unfair advantage: certainty in an uncertain world, economy in a high-priced world, and simplicity in a complicated world, marketing awareness in a clueless world† Therefore, a small business must be concerned with all the factors of Guerilla Marketing. Our service is a day care center at Ave Maria College. We must consider all the ten P’s in Guerilla Marketing in order to achieve success. Guerilla Marketing is defined as unconventional marketing intended to maximize results form minimal resources. Thus, a small business must use original, and unusual marketing sequentially to attract their customers. First of all we must conduct a survey in order to segment our target market. Better yet, to find out if there is a demand for a day care center at Ave Maria. We must seek an opportunity in an untouched market, in order to attack potential customers. Next, we have to find out if there is a need for a day care center at Ave Maria College, in order to segment our market. Who are our potential customers? Single parents? Students or faculty with younger brothers or sisters? People who have no one to take care of their children while they’re at work? By carrying out a survey we then must divide the market, and then create a plan for the introduction of the day care center. In the plan we must consider the positioning of the product in the customers minds. We must find a niche in the market where we can enter, and create a need for the day care center. We must teach our customers that they day care center will make their lives easier, and it will be a solution rather than a problem. The price of our service has to include discounts; such as if a person is inscribing more than two kids in the day care center, they may get a lower price...

War vs. Anti-war Response essays

War vs. Anti-war Response essays We all know the events of September 11th, 2001. We all know the pain of loss and the anger that was in us all. As many people, the President, parents, teachers, peers, have told us, it is how we react that matters. Do we as a nation try to coax the Taliban into giving up Osama bin Laden and other key members of his terrorist group al-Qaeda? Do we bring in our planes, tanks, and ground troops to take over Afghanistan and throw out the Taliban regime? Because the reaction we give is not just the reaction of President Bush, it is not just the reaction of our Congress; it is the reaction of our nation, every man woman and child. Negotiations with the Taliban on the exiling or giving up of Osama bin Laden were unsuccessful. The Taliban refused to extradite bin Laden and has steadfastly justified his methods of Jihad. President Bush has put together a coalition of nations to help the US fight its war on terrorism, which extends far beyond NATO. Even some of Afghanistans neighbors, Uzbekist an and China, and friends, Pakistan, have promised aid to the US. There is a disagreement, however, about how this war should be waged. Through non-military means, such as economic sanctions or negotiations, or through military means such as air strikes or all-out war. The divide over using military might or using more peaceful means is sharp but not even. The majority of Americans would approve of a manned war in Afghanistan. In a Time magazine article examining the rift in leftist thinkers on the issue of military response, it is shown that not all Democrats feel the same as those protesting any military action. Howard Zinn, a historian emeritus at Boston University, Todd Gitlin, a sociology professor at NYU, and Christopher Hitchens, a freelance journalist, are all Democrats, yet all are pro-military force in response to the terrorist attacks. This is not Vietnam, they say, ...

Analysis of India

This is a 8-page paper that analyzes the business climate of India with relations to neighboring countries. As the title says, this essay is a very factual and informative summary of a large list of national statistics. It covers population, religion, trade, politics, labor force, transport and even which fish they catch. It covers some modern internal/external political history and international trade history. A very useful essay for anyone wishing to learn about India especially regarding trade.From the Paper: Situated in the South East Asia bordering with the Arabian Sea and Bay of Bengal, the country India is a country that is linked with Burma, Pakistan and Bangladesh. Belonging to one of the oldest civilizations the Indus Civilizations, its historical setting could be traced up to 5000 years. India has also been subject to a series of conquests like the invasion of Aryans, the Dutch, Portuguese, Turkish and Arabs. They were also subjected to a series of political strife when the country was endeavoring for its independence in the 20th century. Today it has a federal republic government established on 15th August, the country has a President as the head of state, while the head of the government is the Prime Minister. The legal system is ruled by a cabinet of council of ministers who are appointed by the president at the recommendation of the Prime Minister.

Child Development Junk Food Essay Example | Topics and Well Written Essays - 750 words

Child Development Junk Food - Essay Example Increasing rate of obesity, lower IQ, excessive use of artificial flavours, and the increasing rate of heart diseases, excessive blood pressure, and diabetes and cholesterol variations among the children give warning about the dangers of junk foods and it underlines the fact that junk foods have an effect on natural growth of children and it creates barriers in development process. Excessive use of junk foods affect development process and some studies endow with evidence that a considerable rate of difference in IQ level between children who practiced fast foods and children consumed vegetables and fruits. Jenny Hope rightly remarks; â€Å"Children who eat more chips, crisps, biscuits and pizza before the age of three have a lower IQ five years later, a study showed† (Hope, 2011). Young children who followed junk foods forced to accept more fat in their body and they get few vitamins and nutrients. Consequently, their brain never develops to optimum level. Children having low er IQ level show poor academic performance in their learning activities. Sooner or later, they feel practical problems in acquiring various skills like critical thinking, problem solving, decision making, listening, speaking, reading and writing. In case of physical health, junk foods put in severe health problems such as, obesity, depression, diabetes, and heart diseases. Generally, fast foods contain excessive amount of artificial flavours, colours, preservatives and other chemicals. All the above mentioned chemicals are not useful for human body. In addition, a child’s body is not capable to handle these chemicals. Development in scientific technology provides new facilities for cooking and these technological changes often forced the people to create a new food habit. â€Å"These innovations contributed to a shift away from home-cooked meals toward processed food, thus increasing obesity† (Paxon, 2006, p.71). Healthcare officials and doctors have forced to practice improved diet through consuming fresh fruits, vegetables and grains. Obesity and related overweight problems create critical health problems in a child’s life. It negatively affects child’s academic performances as well as physical growth. A recent study reports that approximately 30 percent of North American children are obese. The report also mentions that â€Å"In general, children eat too much, and much of what they eat is unhealthy† (Health in Motion, 2008). Unlike North American children, immigrant children consume few processed foods and eat more fresh foods and vegetables. As a result, immigrant children always keep better performance in their health than other children. Another significant problem is that junk foods have been connected to cholesterol and it paves the way for high blood pressure because of excessive sodium content. High blood pressure increases the possibility of heart strokes and related heart diseases. Overwhelming use of processed fo ods creates barriers in the process of digestion and human body always forced to spend maximum energy for digestion. Discussions about the value of junk foods have acquired serious attention among the doctors as well as in media. Consumers are not aware about the quality of these processed foods and often used worst items. Producers of fast foods used high amount of sugar content which gives unusual fat in human body. The online article entitled; Eating Junk Food

Language and heteronormativity Essay Example | Topics and Well Written Essays - 1000 words

Language and heteronormativity - Essay Example What naturally can be derived from this is that the stereotyped images of women are simply the â€Å"approved typifications† of our society, which are even considered as appropriate and positive. While other information and communication channels like television news or films have within them a strong parallel stream of thought trying to break free from these stereotypical images, in advertising, they are rare. This could be a phenomenon that can be attributed to the fact that at any cost, an advertiser cannot afford to fail because he/she has a product to sell. Hence conforming to society's stereotypes becomes a necessity rather than chance. The advertisement that is being discussed in this essay is the television commercial of Era laundry detergent.( http://youtu.be/Leey5GZe-Ws ). This advertisement has many layers of gender stereotyping within it and the most evident one is the broad association of laundry washing with female gender (Era laundry detergent). This is an age o ld stereotype in itself. Human culture in different civilisations has been adamently sticking to the notion that it is the job of women to wash laundry and hence all detergent advertisements show women doing the laundry in a domestic ambience. The first frame of the advertisement, in which a woman is seen standing near a washing machine in the wash area of the house, has already made the suggestion that the place of a woman is in such an ambiance (Era laundry detergent). Goffman has called visuals (photographs and television videos, especially), the â€Å"a community's ritual idiom something like what a written text is for students of its spoken language† (27). When the woman starts talking, the viewer comes to know that she is not washing her clothes alone but her husband's shirt also (Era laundry detergent). What she says is that she is able to clean even the tough stains on her husband's shirt using this detergent (Era laundry detergent). The visuals that follow are expect ed by the makers of this film to be funny and meaningful, as the viewer sees the woman shown in the beginning of the advertisement, doing household chores like toasting bread and disposing kitchen waste, as if she is the heroine of an action movie (Era laundry detergent). Along with these visuals, the viewers listen to her telling that she is busy, and she is tough and the implied meaning here is also that she enjoys her domestic work, she is proud of the way she manages it and also she has no complaints about life (Era laundry detergent). The punchline of this advertisement in the end is â€Å"tough detergent for tough moms† (Era laundry detergent). This statement asserts that the woman the viewer sees in this commercial has only one single identity- the identity of a mom (Era laundry detergent). It is as if she is born to become a mom and nothing else. Yet, the mention about the husband's shirt in the beginning of the commercial also implies that she is also a wife and when she hands over a packet of lunch to her daughter who seems to be leaving for school, the mother image is reinforced (Era laundry detergent). In this manner, this commercial limits a woman's identity to just being a wife and a mother (Era laundry detergent). The clothes of the husband shown in the commercial are white. Everyone knows that keeping white clothes clean and spotless is the most difficult laundry task. Everybody also know that because of this, a