Case Study : Strategic Management Of Mcdonald 's

The key elements of strategy were setting the standards for the operation of McDonalds’ stores,

McDonald’s Corporation are the most successful and popular fast food brand in the world, holding the largest fast food market share and being the leading fast food restaurant chain in terms of world sales (8%). They are the second greatest outlet operator with more than 34,000 outlets, serving worldwide to 69 million customers daily, across 119 countries. Their brand is the seventh most valuable and

About everyone at some age, at some point or another, and in some country has gotten a sample of American's symbol for fast food through the golden arches of McDonald's. This report will attempt to analyze the external and internal sectors that affect the company's success. The external analysis will provide opportunities and threats while the internal analysis will show indicators of strength and weakness. It will then follow up with critical issues, strategic alternatives, recommendations and implementation. The case studied is found in Appendix 2 of Mary Coulter's "Strategic Management in Action" book.

McDonald’s has been in business since 1955. Through many years of great strategic and financial planning, it has become one of the most successful food chains in the world. In order to continue its great success, McDonald’s must continue to adapt to change. In this paper we will discuss the strategic and financial planning that would be necessary to keep McDonald’s on top of the food chain.

Answer: McDonald’s business strategy is a specialization strategy. The organization is built on a foundation that gives it a competitive advantage and a business strategy that is consistent, flexible, and specialized. McDonald’s niche market is people. According to the case study, people are the company’s most important asset and its success depends on the satisfaction of its customers which begins with workers who have the attitudes and abilities required to work

McDonald is a fast food franchise based in the United States and has various food outlets in other countries like India, United Kingdom, China, Japan, Canada and Australia. McDonald has been termed as the ‘World`s Local Restaurant’ because of its affordable take-out and sit down meals. The economic recession in the US in 2010 greatly affected businesses especially fast food restaurants whereby most small restaurants had to temporarily close their businesses. However, McDonalds remained afloat amidst tough economic times in the American market because of specific strategies which will be discussed.

I, Tayneata M. Starr, decided to discuss McDonald’s for this strategy report. McDonald’s began in the 1940’s as a “mom & pop” bar-b-que diner in San Bernardino, California by Dick and Mac McDonald (“McDonald’s History,” n.d.). In December of 1948, McDonald’s was rebranded as a self-serve drive-in restaurant (“McDonald’s History,” n.d.). The original menu was comprised of nine items, with the staple product being the “15-cent hamburger” (“McDonald’s History,” n.d.). Today, McDonald’s is a publicly traded organization that operates in the United States, Europe, Asia, Africa, Canada, and Latin America (“MCD Profile,” n.d.). As of December 2015, McDonald’s has 36, 525 restaurants in operation, offering products such as soft drinks, hamburgers,

McDonalds has been around since 1940, when it was created by Nick and Mac McDonald in Bernardino, California. Since then McDonalds has only grown around the world in popularity and business. There are currently more than 33 thousand restaurants around the world in 119 countries. The chain has remarkably gone form offering just a few items on its menu to a wide range of over a 145 diverse items on its menu. Needless to say McDonalds has embedded itself within the world’s society. The way McDonalds runs its business has many different components. These different items include geography of a location, Weber’s model, development, and mass consumption.

From drive-through restaurants, to Chicken Mc-nuggets to a hamburger joint, McDonald?s has come a long way. It?s the leading chain of fast food restaurants in the world that serves more than 55 million clients on the daily basis. In 1940, the corporation was established by two brothers from California, Maurice and Richard McDonald. However, directed by Ray Kroc, the current McDonald?s business times its establishment to the inaugural of a licensed restaurant on 1955, in Illinois. Later, the McDonalds expanded globally after Kroc bought the brothers? capital in the company. Today, McDonald?s runs about 32,000 restaurants globally, in about 115 countries (Eric, 2001). The restaurant provides its clients with great tasting and cheap food; dealers with a mutual obligation to deliver the highest quality products and ingredients; and franchisee and staff with opportunities for growth. Through its growth into numerous worldwide markets, the company has become a figure of globalization and a great supporter of how Americans live. It has become a common public debate topic about consumer responsibility, company ethics, and obesity, due to its fame (Eric, 2001).

McDonald’s is the biggest chain of fast food restaurants in the world. In 2015, company has 36,525 outlets worldwide in 119 countries (MCD Annual Report

McDonald’s Corporation: A strategic approach to global growth McDonald’s Corporation (McDonald’s) is the world’s leading global foodservice retailer with more than 33 500 restaurants serving nearly 68 million people in 119 countries each day (McDonald’s 2012a). In 2011 the company generated USD 27 billion in revenue from its global operations and USD 8.5 billion of operating profit. Headquartered in the United States, McDonald’s Bar-B-Q restaurant was opened in California in 1940 by brothers Richard (Dick) and Maurice (Mac) McDonald as a

McDonald’s Corporation: A strategic approach to global growth McDonald’s Corporation (McDonald’s) is the world’s leading global foodservice retailer with more than 33 500 restaurants serving nearly 68 million people in 119 countries each day (McDonald’s 2012a). In 2011 the company generated USD 27 billion in revenue from its global operations and USD 8.5 billion of operating profit. Headquartered in the United States, McDonald’s Bar-B-Q restaurant was opened in California in 1940 by brothers Richard (Dick) and Maurice (Mac)

The fast food industry is a highly competitive environment. For a leading chain such as McDonalds they always need to be thinking ahead about the competition and how the economy affects their industry. Although McDonalds is one of the biggest fast food chains they have to be aware of new companies entering in to the market, mergers, globalization, pricing, and how to continuously sustain their profits. By being aware of these main points they stay ahead in their market. Next McDonalds must regulate themselves in regards to global

Since McDonald’s is the most well know fast food chain in the world with a market cap of 69.35 billion, brand recognition is their biggest strength. The secret of McDonald’s success is its willingness to innovate and maintain consistency in the operation of its many outlets. In recent years McDonald’s has introduced Premium Salads, Snack Wraps, fresh Apple Dippers in the United States, and Corn Cups in China. Also, McDonald 's products are priced so low that economic conditions are almost insignificant.

The main problem from McDonald's case, McDonald's Polishing the Golden Arches, is how to classify McDonald's strategy through Plan to Win into one of the five generic competitive strategies. Before we solve this main problem, we should determine the chief economic and business characteristics, the five forces analysis, and also the driving forces of the fast-food industry. After that we identify the strengths, weaknesses, opportunities, and threats by using SWOT analysis. Finally, we classify McDonald's strategy into one of the five generic competitive strategies.