Mcdonald's: Polishing the Golden Arches

1199 WordsOct 9, 20055 Pages
PROBLEM IDENTIFICATION 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. ANALYSIS The chief economic and business characteristics of the fast-food industry In 2003 sales for the U.S. consumer food-service market…show more content…
The strengths are a well-known and well-respected brand name and brand image ("I'm lovin' it"), clever advertising (advertising featuring music from leading recording artist), high labor productivity (Hamburger University training program), big market share (through franchises), a lot of franchises (easy requirements), leader in social responsibility, distinctively local flavor in its menu items in foreign countries, and variety product innovations. While the weaknesses are poor customer service ranking including slow service at the drive-through window, high employee turnover rate, and also poor order accuracy. After we identify all elements of SWOT analysis (strengths, weaknesses, opportunities, and threats), now we can formulate McDonald's strategy. In this term, we do not formulate new strategy for McDonald, but we use existed McDonald's strategy that's called Plan to Win because our point of view is not to formulate strategy but to analyze how well does this strategy work and try to classify McDonald's strategy into one of the five generic competitive strategies. Until now, McDonald still use Plan to Win strategy and performance improvements in some areas became readily apparent. For example, by January 5, 2005, the company's stock price had reached a price of $32.08, increased from $24.79 in January 2004, although it was still well below the $40.00 per share price the stock was bringing in the late 1990s and early 2000s.

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