Mcdonald's Business and Corporate Startegies Essays

Every company has their own way to promote their products; McDonald’s is no different. The promotion strategy of McDonald’s could be classified into two aspects, which are the advertising promotion and sales promotion.

The vision and mission of McDonalds Is,” To feed the nation and be our consumer’s first choice by being their favourite place and way to eat and drink. “

Since Richard and Maurice McDonald founded in 1948, McDonald's has grown from a small restaurant in California into one of the most recognized brands in the world with a chain of outlets that spans the globe. For over 50 years, McDonald's defined the fast food industry while indelibly etching its golden arches logo on the face of both American and global culture through such icons as character Ronald McDonald and the Big Mac sandwich. Millions of people started their very first jobs at McDonalds while even more began to have their eating habits redefined by the chain. Concepts like the drive-thru window were introduced along with the Happy Meal for children in order to provide a fast, affordable, and enjoyable dining. Ray Kroc, saleman

• Discussing the two forces of competition, which are threat of new entrants and threat of substitutes, and identifying the most significant of those forces for McDonald’s Corporation.

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

Price- McDonald targets every single people in every country but especially they targeted USA and they sell this burger at $4.90 only.

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.

McDonald's marketing targets everyone in every age,gender,races and does not have a select audience. The company claims that their restaurants offer meals for youngsters, a serene place to relax with free wi-fi for adults, and a quick delicious breakfast for those in a hurry in the morning.

Headquartered in United States of America (USA), McDonalds is known as the emblem to globalization with their successful worldwide franchises. McDonalds are a leader in the fast food industry. They have served over 68 million customers daily (Burger Business, 2012). McDonalds have around 35 000 restaurants worldwide, with 1.9 million employees working under their majestic corporation. Furthermore, 80% of their restaurants are franchised (McDonalds, 2014). Forbes (2013), ranked McDonalds #6 in the world’s most valuable brands. With a brand value of US$39.4 billion and US$88.3 billion of revenue, McDonalds topped the restaurant industry in the list. Now, how did McDonalds came about this success? Entrepreneur Ray Kroc bought over McDonalds in 1954 from the McDonalds brothers that saw the growth of the successful business (McDonalds, 2014). Ever since then, McDonalds had been the name on everyone’s lips when talked about scrumptious, tender, mouth-watering foods. McDonalds stated, “By 1958, McDonald’s had sold its 100 millionth hamburger.”. It was a success like no other. McDonalds were one of the first to bring the concept of fast-food in the food industry at the early era of 50s. It catered to its most famous menus – Filet O Fish, Big Mac and Egg McMuffin.

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.

From Ray developing the strategy of his unique business model, to controlling it through organizational design of franchising to developing unique global strategies for competing on a global scale. This is a wonderful example of having a carefully thought out plan and executing such a plan that has enabled McDonald’s to gain and sustain competitive advantage for the past decades. All the aforementioned strategies have contributed to their rapid growth and high profits placing them at number one for the most successful fast food restaurant and franchisees in the world ahead of its top three competitors: Doctor’s Associates Inc., Yum Brand, Inc. and Burger King Worldwide, Inc. (Hoovers & Business Insider). McDonald’s has been able to differentiate itself as the burger giant serving its signature Big Mac hamburger and as an affordable fast food restaurant despite the emergence of several hamburger restaurants. For these aforementioned strategic decisions, McDonald’s continues to reap the reward of the retail industry and separates itself from its competitors including those who try to substitute its products. What this company has done is truly remarkable. Ray saw a unique business opportunity that had never been previously attempted. Not only did Ray Kroc had a genius idea, but a carefully

If Mcdonald’s products are disproportionate and unhealthy for children, then why rely on Mcdonald’s for children meals? Mcdonald’s fast food restaurant that serves internationally, from the United States of America to China. They serve burgers, smoothies, soft drinks, kid’s meals, french fries, salads, breakfast, and more. Mcdonald’s promotes unhealthy food to children ages 4-11 with enticing toys aggressively internationally.

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.

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.