Internal Environmental Analysis Of Mcdonalds

As in Australia, consumers become more conscious about health issues, Yoplait Lite has been positioned as a low-fat product in order to capture this opportunity. Yoplait is success in this area as it has more comparative advantages, it not only provide 90% fat-free yogurt, but also a creamy taste with lots of fruit yogurt and has active bacteria cultures for digestive health (Chaosstalker, n.d.). This is called the product differentiation strategy that it can provide superior value to selected target markets (Kotler, et al., 2010). Porter (1980) report that differentiation lets consumers have unique comparison with other brands. The difference create the competitive advantages of distinctive which offer unique functions in more distinctive way.

McDonald a re-known restaurant chain originated in 1954 in California, USA. Its franchisees operate McDonald restaurant which offers variety of services including coffee, soft drink, beverages and other food. In accordance to conducted survey 31st Dec 2009, company operates or runs 32,489 restaurants in 118 countries.

McDonald's has successfully created a brand/name for itself as the leading fast food retailer in the world. It is somewhat of impossibility for one to not come across a McDonald's with over 30,000 local restaurants in over 100 countries (McDonald's, 2011). Those restaurants are owned either by a franchise owner or a corporation; a percentage of all the earnings from a franchise owner, including a percentage from their annual revenue go to McDonald's.

American based food industries and American brands are becoming increasingly popular within Australia. Businesses such as McDonald’s are more common within Australia compared to places like the UK as the amount of McDonald’s is significantly less. Although McDonalds is an American company they include Australian produce such as meats to make it seem Australian. Many typical Australian food brands are actually owned by other American companies, such as vegemite originally owned by Kraft but is now currently owned by a US Confectionary company. Due to the change in ownership the once know

Secondary research shows that McDonald’s has made past attempts to reinvent a healthy menu option in the United Kingdom. The research shows that McDonald’s as hired a third-party advertising agency, TBWA/London to handle the initiative to promote a healthier menu and options at the restaurant (“TBWA\London wins McDonald's health brief,”2006). Research also shows that the company made a change to their famous French Fry in the year 2002. When they took this action it had mixed reviews. Although an increase to the health factor for those dining at the establishment, there were also numerous complaints at the downslide in taste (Arthur Page Society, 2008). The secondary research shows that the hypothesis of McDonald’s needing to move toward a healthier menu in the Europe is, in fact, true. The secondary research can be used to help validate primary research conducted.

The focused differentiation strategy largely depends on a buyer segment that seeks special product attributes (i.e. healthier food, lower comparative cost, quick service) and on the company's ability to stand apart from its rivals (Thompson et. al, 153). In its uniqueness, Zoës Kitchen has the ability to be different and had no national rivals emulating its format or menu.

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

Macdonald’s offers a strict, but mutually beneficial franchising and licensing agreements that have a term of 20 years (McDonald’s, 2014). Before an individual obtains a franchise or a licensing opportunity, a careful scrutiny of the restaurant location must conform to expectation of future growth of the business. The scrutiny ensures long-term profitability of the restaurant. The process of setting up a restaurant is very thorough. The franchising and licensing agreement allows the corporation to have enough cash for further expansion. Expansion creates dominance and goes a long way to stamp authority as a

McDonald’s supply chain is unique. The company’s model is based on a culture of partnership and collaboration which makes it possible for us to serve consistently safe and high quality food. In an average year, Mcdonald’s spends more than $650 million on Australian produce to supply customers with quality meat, vegetables and bread and drinks. Mcdonald’s are assisting the Australian farmers in purchasing

McDonald’s has combined Taylor’s, Weber’s, and Fayol’s theories picking out some of the components that best fit their mission. These components include Taylor’s supervision practices, emphasis on efficient specific tasks, and employee placement practices, which represent the mechanistic organization theory. Weber’s hierarchical authority structure, merit based promotion principles, and impersonal management practices. In addition to, Fayol’s bureaucratic management style that stresses planning, organizing and coordinating. Common principles among these three theories like the shared belief in the division of labor, order, and extensive policies are part of McDonald’s management style. In essence, McDonald’s has gathered the components it believed would allow them to accomplish

McDonalds focuses of four major pricing strategies: product line, promotional, penetration, and value pricing. Product line pricing is a unique pricing strategy that falls solely on their many product lines (McDonald’s Pricing Strategies). Economic conditions may change rapidly, thus warranting change in the product or the product line. During the Asian currency crisis, McDonald’s replaced french-fries with rice in its Indonesian restaurants due to the cost considerations. With the collapse of the local rupiah, potatoes, the only ingredient McDonald’s imports to Indonesia, quintupled in price. In addition, a new rice and egg dish was introduced to maintain as many customers as possible the economic hardship (International Marketing. 9th edition pg.335). In order to appeal to the local demographic, international marketers must make sure products do not contain ingredients that might be in violation of legal requirements or religious or social customs. Since Indonesia is in a Muslim country, McDonalds “Maharaja Mac” is made with non-beef products (International Marketing. 9th edition pg. 336).

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

McDonald’s is facing numerous problems such as, increase of major competitors in hamburger and non-hamburger segment, increase of substitutes, and change in eating habitats. The fast-food industry is a mature market making it necessary for companies like McDonald’s, Burger King, and Wendy’s to find new marketing strategies to stay competitive and maintain market share. Fast- food chains have multiple competitors, which have many similarities and differences causing bargaining power of buyers to be very high. This makes it crucial for McDonald’s to acquire resources and develop capabilities in order to develop a competitive advantage. In addition, they need to make trade-offs on what strategies they see more effective to help keep this competitive advantage and long-term profits.

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.

Key stakeholders include customers, suppliers, and the employees of McDonalds. The stakeholder most affected is the public-whether one buys from McDonalds or not. Those who do purchase from McDonalds are directly affected by the unhealthy food provided. There have been various experiences, such as Morgan Spurlock, where fast-food consumption led increase of obesity and type 2 diabetes (Trecroci, 2005). To keep a corporation like McDonalds running, it takes a huge toll on society financially and economically. This impact includes the draining of aquifers, contamination of waterways, strip-mined soils, dangerous working conditions, greenhouse methane gas emitted by the millions of hamburger cows in feedlots, their $2 billion advertising and promotional