麦肯锡案例分析题和答案（英文版）.docVIP

Client Goal: Should Great Burger acquire Heavenly Donuts as part of its growth strategy? Our client is Great Burger (GB) a fast food chain that competes head–to-head with McDonalds, Wendys, Burger King, KFC, etc. Description of Great Burger GB is the fourth largest fast food chain worldwide, measured by the number of stores in operation. As most of its competitors do, GB offers food and combos for the three largest meal occasions: breakfast, lunch, and dinner. Even though GB owns some of its stores, it operates under the franchising business model with 85 percent of its stores owned by franchisees (individuals own and manage stores, pay franchise fee to GB, but major business decisions (e.g., menu, look of store) controlled by GB). McKinsey study As part of its growth strategy GB has analyzed some potential acquisition targets including Heavenly Donuts (HD), a growing doughnut producer with both a U.S. and international store presence. HD operates under the franchising business model too, though a little bit differently than GB. While GB franchises restaurants, HD franchises areas or regions in which the franchisee is required to open a certain number of stores. GBs CEO has hired McKinsey to advise him on whether they should acquire HD or not. QUESTION 1What areas would you want to explore to determine whether GB should acquire HD? ANSWER 1 Some possible areas are given below. Great job if you identified several of these and perhaps others. Stand alone value of HD Growth in market for doughnuts HDs past and projected future sales growth (break down into growth in number of stores, and growth in same store sales) Competition – are there any other major national chains that are doing better than HD in terms of growth/profit. What does this imply for future growth? Profitability/profit margin Capital required to fund growth (capital investment to open new stores, working capital) Synergies/strategic fit Brand quality similar? Would they enhanc