Mcdonald's Strategic Prospects Essay examples

740 Words3 Pages
Unit III Case Study
Business Policy and Strategy

Competitive Profile Matrix | McDonald’s | Burger King Holdings | Yum! Brands Inc | Critical Success Factors | Weight | Rating | Score | Rating | Score | Rating | Score | Advertising | .15 | 4 | .6 | 2 | .3 | 3 | .45 | Product Quality | .15 | 2 | .3 | 1 | .15 | 3 | .45 | Price Competitiveness | .10 | 3 | .3 | 2 | .2 | 4 | .4 | Management | .10 | 3 | .3 | 1 | .1 | 2 | .2 | Financial Position | .15 | 4 | .6 | 2 | .3 | 3 | .45 | Customer Loyalty | .15 | 3 | .45 | 2 | .3 | 4 | .6 | Global Reach | .15 | 4 | .6 | 3 | .45 | 2 | .3 | Market Share | .05 | 3 | .15 | 1 | .05 | 2 | .1 | Total | 1.0 | | 3.3 | | 1.85 | | 2.95 |

With more than 31,000 restaurants in 118
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The ability of Yum to appeal to such a diverse group of people ensures that they are able to keep customers coming back. Two of the companies, KFC and Pizza Hut, offer buffets at many of their locations and most of Yum’s restaurants offer a value menu making it easy and affordable for families to dine (David, 2011). McDonald’s has a strong advertising presence in the fast-food industry. The golden arches are recognized around the world it is nearly impossible to watch television or drive down the road without encountering a commercial or billboard for the company. MCD has also always done an excellent job at obtaining celebrity endorsements. The company has had over 40 different celebrities appear in their ads over the years. It’s a list that includes sports superstars such as Michael Jordan and popular music artists like Britney Spears (Wolf, 2013). This doesn’t come cheap however and that is evident by the fact that McDonald’s spent $782.6 million on television, radio, and print advertising in 2008 (Nelson, 2010).

The external threats to McDonalds forces, or enables, them to continuously re-evaluate and give a face-lift to their menu options. The United States is becoming more health conscious as to and consumers are seeking healthier choices, which for many means stay away from McDonald’s. MCD has attempted to counter this by expanding their menu to include more salads, grilled
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