Cost Leadership Strategy Of Mcdonalds

McDonald’s Corporation operates in the food service industry. The company has its restaurants in more than 100 countries of the world. McDonald’s, the world’s largest food chain is headquartered in U.S. having an employee population of 390000 (About McDonald's..., 2008).

It is known that most products go through a ‘product life cycle’, which sees all kinds of product will eventually go to the ‘decline’ stage. The marketing research discussed in the pervious part is vitally important to understand the changing wants and needs of customers. McDonald's constantly works to satisfy customers by developing new products to appeal them. For example, McDonald's introduced a variety of salads to appeal to the healthier conscious customers (Yahoo! Contributor Network, 2005), and recently, McDonald’s added a new product line named ‘great taste of America’ so as to attract young customers. (UK McDonald’s, 2012)

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

The oligopolistic market structure proves to be very efficient for the franchise in making its pricing decisions and developing and executing its own strategies. Actually, the structure enables McDonalds to know its rivals well and keenly examine their strategies and

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

Products and Services: McDonald has to continuously evolve its menu to meet the emerging customers need and to attract new customers. Currently, nutritional value has become very important for customers.

The product concept allows McDonalds products to be on limited edition to test customer satisfaction, so if customers are not satisfied with the new product McDonalds would simply get rid of the product and it will avoid them from making a loss as well. However the product concept is rarely used at McDonalds because they sell similar products like their competitors, however they always bring in new products to increase its customer base and being ahead of

McDonald's is the world’s leading food service retailer with more than 30,000 local restaurants in 121 countries serving 45 million customers each day.

By creating unique brand products, such as: chicken McNuggets, Big Mac, and McFlurry. McDonald’s is setting itself apart from its competitors. The “innovation strategy is used to create new and unique products like, chicken tenders and Newman’s own salads” (Skenazy, Lenore). As well as special celebrity endorsements (athletes, actors/actresses), partnerships/sponsorships (music, Olympics, special movie toys), charities (Ronald McDonald House), games/promotions (monopoly game), which allow McDonald’s to develop their unique corporate image that sets them apart from their rivals.

Throughout its restaurants across the globe, McDonald's Corporation consists of various operations that are associated with the overall strategy of the company. Some of

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.

On the other hand, buyers were more increasingly focusing on value and healthy foods. This condition can force McDonald and its competitor to offer product innovation that can attract the buyers and match with the buyers' requirements.

Organizational structure and design also has a direct impact on a company’s success, no one does this better than McDonalds. “4 key forces shaping today 's organizations—buyer power, variety, change, and speed—and shows how to design a state-of-the-art organization that responds effectively and rapidly to customer demands”. (Galbraith, J. R. (1995). McDonalds has buying power due to its sheer size. Variety is definitely a tool used by McDonalds as there are many menu items to choose from. Meeting customers’ demands, is also something that McDonald’s adapts to easily, when something sales they provide when it does not they remove the item from the menu item, the speed in which they do this would not allow you to believe that this was a mechanistic company structure.

McDonald as being ninth most valuable brand in the world which has replaced the US army as the Nation’s largest job training organization &Controls the market share of more than 3 food chains taken together in America started in 1940. McDonald 's