Strategic Initiative Paper Fin/370

“McDonald's brand mission is to be our customers' favorite place and way to eat and drink. Our worldwide operations are aligned around a global strategy called the Plan to Win, which center on an exceptional customer experience – People, Products, Place, Price and Promotion. We are committed to continuously improving our operations and enhancing our customers' experience”. [1]

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

I, Tayneata M. Starr, decided to discuss McDonald’s for this strategy report. McDonald’s began in the 1940’s as a “mom & pop” bar-b-que diner in San Bernardino, California by Dick and Mac McDonald (“McDonald’s History,” n.d.). In December of 1948, McDonald’s was rebranded as a self-serve drive-in restaurant (“McDonald’s History,” n.d.). The original menu was comprised of nine items, with the staple product being the “15-cent hamburger” (“McDonald’s History,” n.d.). Today, McDonald’s is a publicly traded organization that operates in the United States, Europe, Asia, Africa, Canada, and Latin America (“MCD Profile,” n.d.). As of December 2015, McDonald’s has 36, 525 restaurants in operation, offering products such as soft drinks, hamburgers,

McDonald’s Corporation: A strategic approach to global growth McDonald’s Corporation (McDonald’s) is the world’s leading global foodservice retailer with more than 33 500 restaurants serving nearly 68 million people in 119 countries each day (McDonald’s 2012a). In 2011 the company generated USD 27 billion in revenue from its global operations and USD 8.5 billion of operating profit. Headquartered in the United States, McDonald’s Bar-B-Q restaurant was opened in California in 1940 by brothers Richard (Dick) and Maurice (Mac) McDonald as a

There are few business firms anywhere in the world that have been able to sustain the level of growth of McDonalds. McDonalds began by selling only hamburgers and has expanded its menu as well as its franchises on a global platform. According to Robert Hartley, McDonalds Corporation faced a decline. McDonalds Struggled to grow as a result of constantly opening new stores, the acquisition of other fast-food franchises and a few discrepancies in the McDonalds menu. (Hartley, 2014, p.75). But as I conducted further research, I have come to the understanding that the issues, which plagued McDonalds was not entirely, company wide. While McDonalds was able to thrive internationally with a few minor setbacks, their issues were with the United States market.

The fast food industry is a highly competitive environment. For a leading chain such as McDonalds they always need to be thinking ahead about the competition and how the economy affects their industry. Although McDonalds is one of the biggest fast food chains they have to be aware of new companies entering in to the market, mergers, globalization, pricing, and how to continuously sustain their profits. By being aware of these main points they stay ahead in their market. Next McDonalds must regulate themselves in regards to global

McDonald’s is the market leader in both the domestic and international markets. McDonald’s benefit from cost reduction through economies of scale because of its

McDonald’s has a very strong brand name, which is widely recognized all around the world. Currently, it has the largest market share in the fast food industry due to its continued growth in the number of international branches over the years.

McDonalds has grown via constant refinement of business practices and by knowing their customers needs. They have placed great importance on their long term relationships with suppliers and their aim is to ensure customers receive a consistent product quality.

As of March 1, 2017, McDonald’s has unveiled future plans to unlock unlimited growth potential and increase the number of customers. The focus of the growth plan will elevate the customer’s experience by digital enhancement. Shareholders can also expect a new 3-year target for return on investment, and new financial targets in earnings per share. McDonald’s CEO is optimistic that eventually McDonald’s will be reasserted as the global leader of dining. In efforts to capitalize on attracting more customers, McDonald’s has plans to retain existing customers, regain lost customers, and convert casual customers.

McDonald’s is facing various symptoms and problems making them have to decide on a set of appropriate strategies for the future. The symptoms McDonald’s is dealing with are years of profit drains, flat sales, and loss of market share. All these symptoms indicate that McDonald’s might be going in the wrong direction. This assumption can be made when looking at financial statements, changes to profitability, and market share. These symptoms are resulting in major problems making it essential they are addressed.

The industry that McDonalds Corp. operates within is the food industry, and to be more specific, the fast-food industry. For the most part, McDonalds has dominated all other fast food corporations since it’s existence. The fast food industry alone is said to have a 2.5% growth rate for the next couple years ahead. Companies operating within this industry focus on taste, price, and quality, respectively. This is why despite the bad quality hamburgers, people continue to come back for more because they enjoy the taste for an extremely affordable price. It is an explosive industry and has become more and more responsive over the years to changing consumer taste and preferences.

McDonald’s Corporation has continued to evolve in the fast-food industry, and introduced a more contemporary look and new menu items, while altering traditional favorites. The changes we see before us today, are all a part of the company’s strategic plan. However, five things still remain a priority in McDonald’s strategy; people, products, place, price, and promotion. The company depends on each of these core drivers to create opportunities for McDonald’s Corporation. During my research I have taken a look at how some of McDonald’s competitors measure up to the company. However, in this paper I will be discussing Burger King’s position compared to McDonald’s by using some of the recent articles I read about the fast-food restaurant business. Additionally, I will be summarizing McDonald’s strategies and performance in 2010, and the effectiveness of the company’s strategies. Lastly, I will discuss some recommendations that I would offer McDonald’s chief executive officer.

McDonald’s is the largest chain of hamburger restaurants in the world. The company was founded in the United States but it has other branches in various parts of the word like in the UK, Australia, and New Zealand among others. Apart from hamburgers, McDonald’s also sells breakfast items, French fries, chicken, pizza, soft drinks, cheeseburgers, milkshakes, and desserts. Recently, due to changing customer tastes, the Company has expanded its menu to include things such as salads, seasoned fries, fruits, fish, wraps, and smoothies. McDonald’s competes widely within the food industry in fast foods like hamburgers, French fries, soft drinks, and other fast foods. Being a fast food company,

For the recommendation, McDonald’s have to aware of the crisis they met fifteen years ago will come after them again since they announced that they will have more investment for expansion in 2013. McDonald’s must well prepare and training their new employees well enough before the expansion in order to prevent the consumers’ satisfaction for new restaurant will lower than the other competitors in the same area, which