EXECUTIVE SUMMARY (Phase 1)
McDonalds is the biggest chain in fast food Industry serving almost 58 million people in over 119 countries with over 33000 restaurants. Its global revenue as on 31 December 2009 is $22,744,700 million with an operating profit of $ 6,841000 million. But from the last 2 years and looking at last 3 quarters McDonald’s revenue is decreasing. Through the company roots in U.S.A., McDonalds today has been totally accepted by the world. With only 19% of the total restaurants are owned by company. The remaining is operated by franchisees all over the world. From the starting McDonalds follows a proper framework which includes Quality, Service, cleanliness and value propositions for their customers all over the globe. McDonalds has several competitors such as KFC, Burger King, Pizza hut which are cutting down market share of McDonalds by offering substitutes in the market. McDonalds entered in India in 1996 by joint venture with Connaught Plaza and Hard Castle Restaurants. Using different theories such as porters five force model, pest analysis and value chain model, it can be evaluated that McDonalds is facing competition in the market by entries of new competitors. McDonalds environmental Analysis represent that McDonalds follows different Political and Legal factors such as environmental certification, Tax regulation, etc. with latest Technology for preparing its products. McDonalds have made its product line according to Social cultural aspects of India such as no beef in burgers. After analyzing Porters Value chain model of McDonalds it can be concluded McDonalds has a competitive advantage which is now decreasing with entry of new competitors. But they have many opportunities in Indian market which they can grab to make maximum profits and sustainable competitive advantage using evaluation of its resources and by capturing new markets.
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