Strategies within the QSR It is no accident that McDonald’s has been around since 1954. Everything decision that is made is deliberate and thoughtful. With that being said, not all decisions have turned out the way McDonalds’s had hoped. That is why it is important for them to have a competitive strategy to guide their decision-making process. Not all businesses use the same competitive strategies, however, the goal is all the same: to gain a competitive advantage and increase profits. When McDonald brothers revamped their first restaurant in 1948, they initiated their use of the competitive strategy of “best-cost provider”. The interesting part about McDonald’s is that even though they have made a countless number of changes to its menu, slogan, and appearance to their buildings; they continue to lead the QSR industry using the same strategy. Their strategy is a combination of an overall low-cost provider as well as broad differentiation (Bethel University, 2017). McDonald’s uses the buying power of ordering supplies for their massive network of nearly 37,000 locations to keep supply chain management low. Furthermore, by hiring minimum wage workers and implementing new technologies as they arise, McDonald’s is able to lower distribution and operations costs as well. The second strategy of broad differentiation is accomplished by offering multiple options at its restaurants. Instead of settling for a limited consumer base of people that want a fast hamburger, with a nine
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McDonalds is one of the biggest fast food companies in the market share today. It has been running in over 119 countries, as well as they have acquired over 31,000 restaurants in the world now. McDonald’s brand mission is to be customers’ favourite place and way to eat, they are aligned around a global strategy called the ‘Plan to Win’, they also committed to continuously improving their operations and enhancing their customers’ experience. As we all know that McDonald’s had successfully achieved their goal through out the years. (aboutmcdonald’s, 2012) Apart from this, as McDonald’s is a worldwide company, they also had the social responsibility to return the community; therefore, the ‘Ronald McDonald House Charities’ was
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.
1. Answer the questions for the case “integrating McDonald 's Business, Human Resource, and Staffing Strategies" page 49, Chapter 2. [ 15 Marks]
REFERENCES•www.mcdonalds.com, accessed on 18 July, 2008•www.mcdonldsindia.net, accessed on 18 July, 2008•en.wikipedia.org/wiki/McDonald's, accessed on 19 July, 2008•http://www.associatedcontent.com/article/263943/mcdonalds_strategic_marketing_mix.html?cat=4, accessed on 19 July, 2008•www.kfc.com, accessed on 25 August, 2008
While McDonald’s and Burger King have fought over a percentage of the same market share, each company has a unique strategy with which they’ve approached the market. McDonald’s aims to deliver an inexpensive, standard, quality meal with high level of uniformity both in burger structure and in delivery times. Burger King also strives for an inexpensive, quality meal, but focuses on allowing the customer a degree of flexibility in the menu – a goal reflected in their long-time slogan, “Have it your way.” This difference results in distinct objectives for each restaurant that resonate
In order to do this, McDonalds store must be efficient and keep everyday operations costs as low as possible. In this way, this will allow for the stores to be superior to other fast food restaurants because McDonalds can serve it food at lower prices than any other fast food company. Besides, another important competitive advantage is at McDonalds they have the speedy delivery of the food. In order to maintain this advantage over other fast food chains, McDonalds must make the process of cooking food simple for all the employees. It must be easy to learn and easy to achieve with a low failure rate to make sure the quick production and delivery of the food. These two competitive advantages obey with the vision of the company which is as follow: “McDonald’s vision is to be the world’s best quick service restaurant experience. To be the best means providing outstanding quality, service, cleanliness and value, so as to make every customer in every restaurant
When McDonald brothers revamped their first restaurant in 1948, they initiated their use of the competitive strategy of “best-cost provider”. The interesting part about McDonald’s is that even though they have made a countless number of changes to its menu, slogan, and appearance to their buildings; they continue to lead the QSR industry using the same strategy. Their strategy is a combination of an overall low-cost provider as well as broad differentiation (Bethel University, 2017).
McDonalds has many competitive strengths, not only because it is such a large and well known brand but it also adapts its services and image to fit in with current social trends, for instance adding more fruit and salads into its menus to help promote a healthier image.
“McDonald's Corporation (MCD, Trade ) today announced strong results for the second quarter ended June 30, 2011, driven by growth across all areas of the world.
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.