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Prestige Institute of Management & ResearchPresentation of Strategic Management

Submitted to: Prof Ranjana Patel

Submitted By: Anushree Bakliwal Ruchi Katare Shikha Rawat Shivani Patel Tapish Chandwaskar MBA Core Sec IV

Fast Food Industry Fast food is the term given to food that can be prepared and served very quickly. While any meal with low preparation time can be considered to be fast food, typically the term refers to food sold in a restaurant or store with preheated or precooked ingredients, and served to the customer in a packaged form for take-out/take-away. Outlets may be stands or kiosks, which may provide no shelter or seating, or fast food restaurants. Franchise operations which are part of restaurant chains have standardized foodstuffs shipped to each restaurant from central locations.

Start of Fast Food Culture The concept of fast food pops up during 1920s. The term "fast food" was recognized in a dictionary by Merriam Webster in 1951. The concept of ready-cooked food for sale is closely connected with urban development. In Ancient Rome, cities had street stands that sold bread and wine. A fixture of East Asian cities is the noodle shop.

Several factors that contributed to this explosive growth in 1950 s were: (1) America s love affair with the automobiles. (2) The construction of a major new highway system. (3) The development of sub-urban communities. (4) The baby boom subsequent to world war second. Fast-food chains initially catered to automobile owners in suburbia

Mr. Dhirubhai Ambani is said to have started the first Fast Food venture by selling "pakora (Indian fast food snack)" to pilgrims in Mount Girnar over the weekends in 1932. The fast-food giant McDonalds opened its first restaurant in India at Vasant Vihar in south Delhi on October 13, 1996 The Pizza Hut franchise also stepped into the Indian fast food market by opening a dine-in restaurant at Bangalore. Fast food is one of the world s fastest growing food types. The fast food industry in India is growing by 41% a year.

The Indian fast food market is growing at the rate of 3035% per annum. It s reached to nearly USD 6 billion in 2007. Foreign Investment holds about one-fourth of the total investments made in this sector. Reasons: Growth in nuclear families. Exposure to global media. An increasing number of working women. Customer sophistication & confidence. Double Income Group. Large Population. Relaxation in rules & regulations.

SWOT AnalysisStrengthsQuick Service Affordable Attraction Perceived quality for price Long market history and fanatic followers Employee satisfaction high 24 hours service

WeaknessesDifferent Preferences Lack of customization Unhygienic and unhealthy Limited menu

Opportunities Expansion via franchising or direct expansion. Growing nuclear families. Growing urban lifestyle.

Threats Oppositions from various organizations. Location. Ready- to-eat products Health Concerns.

1967 - First Domino s outlet in USA 1996 - First Domino s in India at New Delhi It is one of the chains under Jubilant Food Works Limited. 300 outlets in India in 22 cities with 9000 employees. The USP of Domino s is the 30 minute Delivery agenda.

Domino's is the second-largest pizza chain in the United States and has nearly 9,000 corporate and franchised stores in 60 international markets & all 50 U.S. states. The menu features pizza, pasta, oven-baked sandwiches, wings, boneless chicken, salads, breadsticks, cheese sticks, and a variety of dessert items. Domino s has introduced a new menu including Mexican wrap & Italian pasta.

Profit Margins Income for the year is about Rs420crores which around 50% more that the previous year. During inflation the price of the most items was increased by Rs 100/- to Rs 200/- on an average.

SWOT Analysis Strengths: Leading pizza delivery company in the US with more than 5,000 stores in the US Global franchise operations - more than 3,500 in over 50 countries Strong brand equity supported by heavy advertising & marketing campaigns Supply chain & distribution network Leader in online & mobile ordering Well projected campaigns

Weaknesses Slow growing and declining same-store sales Weakening bottom line High staff turnover due to lack of training and development Same and industrial flavor Same effin sauce

Opportunities Growing presence in emerging markets, particularly in India, China Leverage supply chain & distribution system to introduce new products.

Threats Changing consumer habits towards healthier food choices Franchise operations affected by currency exchange fluctuations Intensive competition from a fragmented number of small competitors

ETOP ANALYSISImpact Political Economical 8 8 Importance 6 5 5 5 6 20 Opportunities Threats 48 40 30

Socio-cultural 6 Technological 4 Legal 7

Pizza Hut: History Pizza Hut (corporately known as Pizza Hut, Inc.) is an American restaurant chain and international franchise that offers different styles of pizza along with side dishes including pasta, buffalo wings, breadsticks, and garlic bread. Pizza Hut is a subsidiary of Yum! Brands, Inc. (the world's largest restaurant company) It has approximately 34,000 restaurants, delivery/carryout locations, and kiosks in 100 countries The chain was founded as a pizzeria in 1958 by the Carney brothers - Dan and Frank.


SWOT AnalysisStrengthsPart of the largest restaurant chain in the world Over 20,000 franchises around the world Brand leader in the UK Innovative range of pizzas under one roof Famous television advertising Food attracts people of various ranges from young to old. Sound financial situation and international turnover. 100% owned by yum! Pizza Hut sits on top of global full-service restaurant tree

Weaknesses Loyal customers are feeling that the satisfaction of the pizzas is declining. While Novak said Pizza Hut s expansion into China is going exceedingly well, there is battling problems in New Zealand and Australia. There are complex computer systems and internal conflicts from franchisees. There is a lack of an organic pizzas, which will limit the target market Threat Rising competition undermines Pizza Hut as consumers go for greater convenience Rising cheese costs threaten margins Threat from Dominos pizza, also from Mc Donald s who have tried to introduce a new meal that is a Pizza called: McPizza.

OpportunitiesNew Pizzas with different crust sizes and flavours. Pizza Hut expands Indian market menu and looks to old favourite to bolster sales in the US Pizza Hut targets upscale products and a downscale consumer base

ETOP ANALYSISImpact Political Economical Socio-cultural Technological Legal Competitors 7 8 9 5 7 7 Importance 8 5 9 8 6 7 81 40 42 49 Opportunities 56 40 Threats

Kentucky Fried ChickenHistory FounderColonel Harland Sanders

Beginning Developments Change of Ownership Harland Sanders Jack Massey

John Young Brown Jr.

Major Fast-Food Segments Six Major business segments Sandwich Chains Dinner Houses Grilled Buffet Chains Family Restaurants Pizza Chains Chicken Chains

SWOT AnalysisStrengthsKFC s secret recipe Name recognition and reputation International expansion and expansion through franchising Co-Branding Neighbourhood Program

Weaknesses Many sales of KFC Limited menu offerings Inability to quickly bring new products to market PepsiCo s poor relationship with franchises Failure to penetrate in some foreign markets

Opportunities The Mexican market Peso devaluation Dual branding New franchise laws in Mexico Australian opportunity New distribution channels Threats Saturation of the U.S. market Increasing competition and rising sales of substitute products Changing preferences of consumers Obstacles associated with expansion in Mexico

ETOP ANALYSISImpact Political Economical Socio-cultural Technological Legal 7 8 9 5 7 Importance 8 5 5 7 6 40 42 Opportunities 56 40 45 Threats


INTRODUCTION..Industry Restaurants May 15, 1940 in San Bernardino, California; McDonald's Corporation, April 15, 1955 in Des Plaines, Illinois Richard and Maurice McDonald McDonald's restaurant concept; Ray Kroc, McDonald's Corporation founder. Oak Brook, Illinois, U.S. 32,000+ worldwide



Headquarters Number of locations

Key people

James A. Skinner (Chairman & CEO) Worldwide Fast food (hamburgers chicken french fries soft drinks coffee milkshakes salads desserts breakfast) 400,000 (2010)

Area served


Employees Website

HISTORY..The business began in 1940, with a restaurant opened by brothers Richard and Maurice McDonald in San Bernardino, California. Their introduction of the "Speedee Service System" in 1948 established the principles of the modern fast-food restaurant.

McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving more than 58 million customers daily.

A McDonald's restaurant is operated by either a franchisee, an affiliate, or the corporation itself.

McDonald's has opened its door in India in October 1996.

McDonald's primarily sells hamburgers, cheeseburgers, chicken products, french fries, breakfast items, soft drinks, shakes, and desserts. In response to obesity trends in Western nations and in the face of criticism over the healthiness of its products, the company has modified its menu to include alternatives considered healthier such as salads, wraps and fruit.

ABOUT.. Approximately 85% of McDonald's restaurant businesses world-wide are owned and operated by franchisees. All franchisees are indep