Mcdonalds Organizational Structure

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.

How should this market be segmented? Identify the key segmentation variables that are relevant for this market.

McDonalds is a corporation that has great success because of good strategy and planning. In the next five years, McDonalds needs to keep up with the changes of the consumer and social

McDonald’s has been a staple in the restaurant business for as long as most of us can remember. It has achieve around the globe, but not without overcoming a fair amount of challenges in its pursuit of the title “King of Fast Food”.

•In the recent times McDonalds has been blamed for the high fat content in its products and many consumers perceive that the food served at their outlets is not healthy. Also, the consumers are becoming increasingly health conscious these days. McDonalds

Organizations usually employ market segmentation in competitive markets for appropriate targeting of customers. This paper provides an analysis of how market segmentation can be utilized for competitive advantage as well as the need for ensuring diversification for sustainable growth.

In the third quarter of 2014 McDonalds had a 30% reduction in earning. Analysis believes that the drop in sales was a result of the mistrust millennials had towards the fast food industry (Jankowska,2015). The change in demand has influenced the fast food industry to developed new menu items and to create new strategies to change the consumers' perception.

In the article “The Franchisees Are Not Lovin’ It,” the authors, Gruley and Patton, discuss the difficulties of the McDonalds franchise, the struggles of the franchisees, and the inability to solve these problems. The article goes on to talk about how McDonalds needs to get back to basics, just as they say themselves. Yet, they continue to make the menu more complex by the constant introduction of new foods. They are getting away from their identity as a burger joint. As a result they are closing restaurants and are continuing to experience declining revenue. McDonalds isn’t what they used to be and something needs to be done to improve the well-being of the company, the franchisees, the employees, and most importantly the customers.

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.

The weaknesses of McDonalds include competitors and nutrition concerns. McDonalds failed attempt at pizza limited their ability to compete with fast food pizza franchise. Price competition with the competitors is also resulting in lower revenue for McDonalds. McDonalds also lacks variation in seasonal products that they offer. Another weakness, which has actually stemmed from McDonalds large size, is a lack of personal touch or connections. McDonalds has a very high turnover rate which in the end elevates the cost of training staff. There are also concerns that franchised operations negatively affect the food quality. McDonalds has also had a lack of innovation.

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.

Based on the explanation above, we can identify some opportunities and threats of fast-food industry. As we can read from this case, we know that the fast-food chains were recognizing the saturation of the industry in U.S. This condition can become a threat, but it can be an opportunity if the companies in the industry try to do international expansion throughout U.S. because growth in other countries was expected to be one of the only sources of growth for many of the top hamburger

1. Competitors – As there are many other restaurants who are trying very hard to compete with McDonalds like KFC, Burger King, and Burger Fuel etc. They are also serving people with same kind of services like McDonalds and burger king is really giving a tough competition to McDonalds at the moment.

While, McDonalds is the world largest fast food chain that does not come without problems, the more knowledge that people have the more power they have, McDonalds has in recent years made many adjustments to preparation of certain food items, adjustments to the size food items as well as increased nutritional value to certain food items. Many