Free Essay

Mcdonald's Strategy Match

In: Business and Management

Submitted By musyx
Words 619
Pages 3
Introduction
After going through the Illustration Capsule, it is easy to see how McDonald’s is one of the world’s most respected, admired and endearing brands on the planet. On top of existing for more than half a century, they have been able to stay relevant and operating at such a highly level that can be attributable in part to their strategic vision and their execution. Organizing and controlling such a large entity may be cumbersome but the senior leadership of McDonald’s have put together a strategy that has allowed them to make changes and recalculate their direction as if they were a small business. Their aptly named ‘Plan-to-Win’ strategy has guided them well through seemingly hard economic times and kept the company focused on ‘being better, not just bigger’.

Strategy Match
McDonald’s faces many aggressive competitors in fast food industry. From Kentucky Fried Chicken to Subway, the company faces stiff opposition from all angles. McDonalds is one of the very few companies to be in a position challenge these rivals with offerings very similar to what they currently offer. With many communities and areas who have just stepped out or are in the process of ending their recession, they are calling for cheap and healthy alternatives to what is currently available. The products that these food establishments are already at a fairly low price to the consumer and so the only real way to maintain their current growth and revenue streams is to cut costs on the backend. McDonalds, in this case, has done a masterful job of doing so while earning the title of the 2011 top performing company on the Dow Jones Stock Market Index. This hasn’t slowed down the company one bit, as the case points out, McDonald’s serves 64 million customers in a 119 countries daily.

Targeted Market Advantage
Based on the above industry challenges and consumer demands, McDonalds have done a masterful job of incorporating these aspects into their business strategy. The first is with how they run their restaurant operations. McDonald’s invests heavily in their managers and this is evident with how they groom future managers with their Leadership Institute. This dedicated learning allows the trainers to illustrate exactly what to look for, warning signs and areas of success. The second advantage they have is affordable pricing. From low priced combo meals to the Dollar Menu, McDonald’s is able to offer a variety of products at a very low cost. The third advantage is sheer amount of variety in food and beverage choices that they are able to serve at any given time. From breakfast items and coffee to salads and healthy alternatives, it is hard for any company to match them without spreading themselves thin. And lastly, they have a commitment to improve existing locations and further expand internationally. Being the first has allowed them to select prime locations to operate in and by renovating these sites, they are able to reenergize and reinvigorate the brand and the community.

Sustainable Competitive Advantage
The above clearly highlights the many competitive advantages that McDonalds enjoys. The leadership of the company have for years been mindful of how the brand is perceived and have adjusted their message and priorities accordingly. This has helped created a brand with an immense amount of name recognition that is able to serve a plethora of products catering to a variety of needs on a scale that can only be described as massive. McDonalds is truly a global company that is able to articulate their mission and their simple mission in such a way that is hard for other organizations to imitate. This has all propelled McDonalds to their lofty position as one of the most admired companies

Similar Documents

Premium Essay

Mcdonalds

...selective and critical analysis of staffing best practices covering literature from roughly 2000 to the present. Several research-practice gaps are also identified. Reference: Hussain folder staffing the 2nd page. Table of Contents Abstract: 1 1. Company Profile: 1 2. McDonald’s Organizational Behaviour 1 2.1 Diversity 1 2.2 Equal Opportunity 1 2.3 Cultural Differences 2 3 Human Resource Management 2 4. Staffing 4 4.1 Implications of Staffing 4 4.2 Staffing Models 5 4.2.1 Staffing Quantity 5 4.2.2 Staffing Quality 6 4.2.3 Staffing System Components 6 4.2.4 Staffing Organizations 7 4.3 Organizational Effectiveness 7 5. Recruitment at McDonald’s: 8 5.1 Recruiting Suitable Applicants 9 5.2 Recruitment and Selection Process 9 Step 1: Planning 10 Step 2: Selection Process 11 Step 3: Interview 11 Step 4: Reference Check 12 Step 5: Selection Decision: 12 Step 6: Physical Examination 13 Step 7: Job Offer 13 Step 8: Contract of Employment 14 Step 9: Concluding the Selection Process 14 Step 10: Evaluation of Selection Programme 14 5.3 Train and Development 14 5.3.1 Orientation Meeting 14 5.3.2 Staff Training 15 6. Recruitment Strategies 16 6.1 In-House or Internal Recruitment 16 6.2...

Words: 7931 - Pages: 32

Premium Essay

Mc Donald

...MBA 616 INTERNATIONAL MARKETING Global marketing strategy of McDonald’s is established on combination of local and global mixed elements of marketing. 1) The first element is, McDonald’s offers basic items like burgers, french fries and soft drinks in most countries. The popularity of American-style burgers, fries, and soft drinks are growing around the world. Second element of McDonald’s global marketing strategy (GMS) is a dynamic element in McDonald’s business model restaurants system which can be set up virtually anywhere in the world and the restaurants by themselves offer the consumers a chance to experience for themselves a fast food legend. McDonald’s think global and local but they also act locally. A huge amount of ingredients they use, come from local producer. This decision is also an excellent mean to give them a responsible conscience. 2) McDonald’s bring to developing countries the chance to get well trained and at the same time the company is acting locally too to enhance the agricultural industry by working together with the local producers. Additionally, life-styles are being changed all over the world; the need to save time and money is growing in countries such as China. People are more and more influenced by the Western-lifestyle, and junk food is part of this culture. Also McDonald’s is offering meal to modify their tastes, and food restrictions (ex: India with beef). 3) People : McDonald’s cares of its employees, and customers. In France, they...

Words: 546 - Pages: 3

Premium Essay

Mcdonalds Case Study

...The McDonald’s Corporation opened their first restaurant in Des Plaines, Illinois in 1955 after Ray Kroc had purchased the rights to the restaurant from the McDonald’s brothers in 1954. Since Kroc first established the company, McDonald’s has become one the world’s largest franchises and continues to grow daily. McDonald’s has undergone several management changes since it was opened by Kroc including supervision by Fred Turner, Michael Quinlan, Jack Greenberg, and Jim Skinner. Jim Skinner helped turn McDonald’s Corporation around after it experienced its first ever quarterly loss. Skinner initiated a tactical proposal called “Plan to Win” that turned around the company and steered the business to its best financial results ever and doubled its market value. Skinner’s efforts to clean up the decline that McDonald’s has experienced in recent years contained strategies that would allow McDonald’s to stay aggressive with its competition. Skinner concluded that the corporation would need to improve its image in order to maintain a top fast-food restaurant. Skinner decided to not open new restaurants, and instead focused on upgrading and remodeling current open restaurants. In the efforts to develop his strategy, Skinner also improved the customer service and created new menu options that matched their competitors. Customers were receptive of these changes and McDonald’s quickly renewed itself. The strategy implemented by Jim Skinner was something that McDonald’s did right. They...

Words: 482 - Pages: 2

Premium Essay

Task 1

...David Nygaard December 11, 2014 BUSA 300-2 The Four Ps of Marketing Before starting a business a person needs to think about many things; what are they going to sell, how their business will be structured, will they be publically owned etc. But some of the most important questions that need to be addressed come from the Four Ps of Marketing. The four Ps are: Product, Place, Price and Promotion. In simple terms it goes like this; what are you going to sell? Where are you going to sell it? How much will it cost and how will you get the word out about your product, if it were only that simple. Let’s take a look at three big companies and see how they answered these integral questions about their companies. WALMART/SAM’S CLUB Product WALMART/SAM’S CLUB has been one of the most successful companies of our day. They have been able to produce a massive company that has available everything that you might need. From car batteries to the shirt on your back, they have been able to get a foot hold in almost every market. Their product breakdown consists of: Grocery 56%, entertainment 11%, health and wellness 10%, hardlines 9%, apparel 7% and Home 7%. At their stores you can get tools to repair your care and also get dinner for the night all in one stop. Their products have successfully met the needs and wants of virtually everyone that has a need to go shopping. The reason why their products out shines their competitors is because it is the one stop shop for everyone...

Words: 3131 - Pages: 13

Premium Essay

•from the E-Activity, Evaluate the Situation of the Organization You Researched. Create a Program Outlining Steps the Organization Might Take to Build Better Public Relations.

...Diversification Strategies Strayer University Dr. Akpan Bus 508: Contemporary Business November 4, 2013 Diversification Strategies Companies that sell a product must have a strategy for product growth. Implementing growth strategies will improve a company’s business during challenges of consumers changing demands. Consumers behavior can and will dictate a company’s diversification strategies as well as overall success. Well planned diversification strategies are very essential for a successful company in today’s rapidly growing society. Diversification strategies help companies maintain a steady income during economic recessions. Successful companies find ways to expand using resources they already posses. They evaluate the interest of their target markets then determine what is missing within that specific marketplace. Diversification strategies can be used in 3 different aspects. Company’s can diversify in industry, by brand or going national. However, companies can do other things such as launch new products, emphasize on value, add larger variety to existing options and last but not least expand! Successful McDonald’s McDonald’s is the biggest international restaurant today. The company has managed to endure the many challenges changing demands have brought them. As of April 20, 2012 Dell reported a “big quarter with sales rising across all geographic regions due to their adaptation and innovation of adding...

Words: 1703 - Pages: 7

Premium Essay

Mcdonald’s Expands Globally While Adjusting Its Local Recipe

...------------------------------------------------- Case 1-2: McDonald’s Expands Globally While Adjusting Its Local Recipe Identify the key elements in McDonald’s global marketing strategy. In particular, how does McDonald’s approach the issue of standardization? Does McDonald’s think global and act local? Does it also think local and act global? The plan to Win initiative is built around five factors that drive McDonald’s business: people, products, place, price, and promotion. As a student of marketing, what can you say about these factors? Product | One burger, but so many variations. McDonalds, in order to answer to its clients’ needs all around the globe, worked on customized meals for each of its regions. Depending on religious beliefs, habits, taste, and other stuffs... customers are expecting different offers. | Place | In the U.S., 50% of the outlets are situated within the distance of 3 minutes. Maybe easier to find a McDonald’s restaurant than a drugstore. They place their brand everywhere, and well located in order to reach as much as people as possible (near college, train station...) | Price | Depending on the purchasing power, meal prices fixed. McDonald offers a price list: as in India, a complete meal is about $2, in France $10. This pricing strategy, locally adapted allows the brand to be the fast-food chain world leader. | Promotion | Advertising, through different channels, makes an impact. They have a global communication strategy, but values shared are the same. “I’m...

Words: 627 - Pages: 3

Premium Essay

Paper

...CASE 1 McDonald’s: Grilling Up an Empire   1. a. As a sign of changing political climate between the United States and Soviet UnionMARKET, however, was not without difficulty. According Tony Royle, “establishing such a well-known US icon in the former Soviet bloc was not a straight forward matter. It took 14 years of difficult negotiations, by highly persistent group of McDonald’s manager.”       b. With the awareness of brands and brand development; McDonald’s faced a challenge that needed some serious considerations in order to ensure its chances ofSUCCESS in international markets. To improve their chances of success, McDonald’s would need to understand the local cultures and develop a strategy that would match up with the expectations of the local customer base.   2. Board of Directors, TopMANAGERS, Middle Managers and Team Leaders exist within McDonald’sCORPORATION. Board of Directors - are supposed to make sure an organization is run right. Top Managers - guides the performances of the organization as a whole or of one of its         major parts. Middle Managers – oversee the work of large departments or divisions. Team Leader – report to middle managers and supervise non managerial workers.   3. McDonald’s can be able to develop managerial skills and competencies necessary to continue their success in the future through providing trainings to specific managerial skill to be able to enhance such.   4. McDonald’s international operation is currently up to...

Words: 271 - Pages: 2

Premium Essay

Strategy

...Confirming Pages PART 1 SA M PL E C H AP TE R Concepts and Techniques for Crafting and Executing Strategy tho29503_ch01_001-017.indd 1 12/10/12 4:52 PM Confirming Pages WHAT IS STRATEGY AND WHY IS IT IMPORTANT? AP Learning Objectives TE R CHAPTER 1 Learn what we mean by a company’s strategy. LO 2 Grasp the concept of a sustainable competitive advantage. LO 3 Develop an awareness of the four most basic strategic approaches for winning a sustainable competitive advantage. LO 4 Understand that a company’s strategy tends to evolve over time because of changing circumstances and ongoing management efforts to improve the company’s strategy. LO 5 Learn why it is important for a company to have a viable business model that outlines the company’s customer value proposition and its profit formula. LO 6 Learn the three tests of a winning strategy. M PL E C H LO 1 SA Strategy means making clear-cut choices about how to compete. Jack Welch  – Former CEO of General Electric If your firm’s strategy can be applied to any other firm, you don’t have a very good one. David J. Collis and Michael G. Rukstad  – Consultants and professors One must have strategies to execute dreams. Azim Premji  – CEO Wipro Technologies and one of the world’s richest people tho29503_ch01_001-017.indd 2 12/10/12 4:52 PM AP Many factors enter into a full explanation of a company’s performance, of course. Some come from the external environment; others are internal to the firm...

Words: 7702 - Pages: 31

Premium Essay

Macdonalds

...MacDonald’s Corporation History: McDonald’s Corporation is an American based world’s leading company in the fast food industry. Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by Richard and Maurice. McDonald in 1948 they reorganized their business as a hamburger stand using production line principles. Ray Kroc joined the company in 1955 as a franchise. A McDonald's restaurant is operated by either a franchisee, an affiliate or the corporation itself. McDonald's Corporation revenues come from the rent, royalties, and fees paid by the franchisees, as well as sales in company-operated restaurants.  In 2012, McDonald's Corporation had annual revenues of $27.5 billion, and profits of $5.5 billion. Products: Macdonald’s primarily sells hamburgers, cheeseburgers, chicken burgers, French fries, breakfast items, soft drinks, milkshakes and deserts including ice-creams. Currently restaurant also expanded its menu to include salads, fish, wraps, smoothies and fruits in order to change the taste of the consumers. Company also serve soup in the Asian countries. The menu of the company differs according to the serving countries like prawn burger in Singapore. In Germany and western European countries MacDonald’s serve beer also. Operating countries: Macdonald’s corporation is one of the largest fast food selling company. It have 31,800 flagship restaurants serving nearly 68 million people in each day among the 119 countries worldwide...

Words: 7568 - Pages: 31

Premium Essay

Food Fight: Mcdonalds

...| Food Fight: The Day McDonald's BlinkedCase Study Analysis | Sullivan UniversityMGT 510 | | Kris Lutgring | | Executive Summary While McDonald’s and Burger King have fought over a percentage of the same market share, each company has a unique strategy with which they’ve approached the market. McDonald’s aims to deliver an inexpensive, standard, quality meal with high level of uniformity both in burger structure and in delivery times. Burger King also strives for an inexpensive, quality meal, but focuses on allowing the customer a degree of flexibility in the menu – a goal reflected in their long-time slogan, “Have it your way.” This difference results in distinct objectives for each restaurant that resonate throughout their respective operations structure, affecting the cooking process, approach to customization, equipment and technology, staffing, order processing and pricing. Background: McDonald’s versus Burger King In the quick-serve restaurant industry, no two brands have waged war over customer loyalty as publicly as McDonald's and Burger King. The rivalry dates back to the mid-20th century as both companies emerged on the national scene, battling for territory and franchisees. Similarities in menu, resturant decor, and locations all set the scene for a story only America could create. Both McDonald's and Burger King exploded onto the American palette in the 1950's. McDonald's set out to change their menu operations by investing in their food...

Words: 2457 - Pages: 10

Free Essay

International Strategies

...International Operations Strategy Analysis Coca-Cola Coca-Cola Nokia Nokia McDonald’s McDonald’s Dow Chemical Dow Chemical IBM IBM US Steel US Steel Procter & Gamble Procter & Gamble Four Basic International Operations Strategies International enterprises who by definition have to have a presence in more than one market must endure both pressures for cost reductions and for local responsiveness. The biggest challenge for these companies is to find the right balance between the two approaches because these place conflicting demands on business operations. Practically all multinational firm use the above strategies or some variation of them when it comes to international operations. For example, Coca-Cola is well known for using relatively standard brands, formulations, packaging, positioning and distribution channels in its global markets (Vogt, 2015). Similarly, research shows that even though McDonald’s has tried to customize their offering to match local consumer preferences. However, the company’s philosophy remains loyal to the idea that the customer would experience a standardized service and quality regardless of geographical location or McDonald’s restaurant (Loukakou, 2012). Companies such as IBM and P&G face relatively different scenarios when attempting to have a presence in global markets. These companies have the luxury of not facing very high cost reduction or local responsiveness pressures. Consequently, these companies...

Words: 913 - Pages: 4

Premium Essay

Defining Marketing

...marketing department has greatly influenced American culture when the images of Santa Claus first appeared on the classic red cans in the 1930s. The image of St. Nick still continues to appear on the cans every winter (Coca-Cola, 2011). In 1971, Coca-Cola launched a song titled “I’d Like to Teach the World to Sing” that quickly became a world wide hit. The classic Coca-Cola bottle has a very distinctive design that many people are able to recognize without its label. The most current marketing campaign for Coca-Cola is the Coca-Cola Arctic Home campaign. This campaign raises the awareness of the vanishing home for polar bears. Coca-Cola gives consumers the opportunity to donate through them to the World Wildlife Fund and have the company match...

Words: 671 - Pages: 3

Premium Essay

The Electoral College

...Dan Fried BUS 317 Dr. Mundorf 20 June 2013 From Arches to the O-zone: McDonald’s Going Green Sweden is a Scandinavian country located in Northern Europe. Sweden lies west of the Baltic Sea and Gulf of Bothnia and forms the eastern part of the Scandinavian Peninsula. Sweden is predominantly agricultural, with increasing forest coverage as you move northward within the country. To emphasize it’s natural beauty, 65% of Sweden's total land area is covered with forests (Ministry of Environment). Thus, in regards to the natural environment of the country, it is only fitting that people strive to protect the country’s natural environment by going “green”. The EU is the only international organization that has the power to adopt extensive environmental regulations that are binding on its member countries. It is thus important for Sweden that the environmental requirements in the EU match up to an ambitious environmental policy. Sweden is also working to ensure that their country is a driving force to protect their environment and secure sustainable development within the country (Ministry of Environment). In terms of environmental policies within the country, Sweden has worked to set ambition goals for greenhouse gas reduction and to strengthen the position of the EU in global climate negotiations. They have suffered severely through the issue of acid rain, which is directly attributable to the gas emissions of companies within the country. This acid rain is not only hinders the...

Words: 1637 - Pages: 7

Premium Essay

Mcdonalds Case Analysis

...Abstract This paper analyzes the various aspects of marketing strategies used by McDonald’s Corporation. The paper begins with a brief overview of the company, its history and operations, and analyzes the internal and external environments that it currently operates in. With a Competitive Profile, External and Internal Factor Matrixes, this paper examines the relative strengths, weaknesses opportunities, and threats in McDonald’s’ mass business operations. The paper also examines Corporate Social Responsibility (CSR) and business ethics, and the steps and initiatives McDonald’s takes in regards to consumer satisfaction. Lastly, the paper concludes that the strategy used by McDonald’s is a cost leadership approach, and provides methods in which the business strategy could be used to capitalize on the strengths and opportunities and eliminate the weaknesses and threats. McDonald’s- The Corporation McDonald's is the globes largest chain of fast-food restaurants, serving more than 58 million customers daily in over 119 countries. It first opened its doors in 1940 by brothers Richard and Maurice McDonald in San Bernardino, California, and their creation of the "Speedee Service System" in 1948 created the blueprint of the present day fast-food restaurant. In 1955, McDonald's Corporation credits its true founding to the opening and operations of a franchised restaurant by Ray Kroc, in Des Plaines, Illinois. Kroc later purchased the McDonald brothers' equity in the company...

Words: 2183 - Pages: 9

Free Essay

Mcdonald's Case Study

...Dick and Mac McDonald in San Bernardino, California. Soon after, Mr. Kroc opened his first restaurant in Des Plaines, Illinois, and the McDonald’s corporation was created. The new franchise began to grow rapidly as a result of its success. It wasn’t long before the 100th McDonald’s restaurant opened in Chicago in 1961. Less than ten years after the opening of Ray Kroc’s restaurant the company began to expand all over the United States. Ray Kroc bought all rights to the McDonald’s concept from the McDonald’s brothers for “2.7 million in 1961.” McDonald’s continued to have enormous growth during the 1960’s. In 1963 alone, McDonald’s sold their one billionth hamburgers, opened their 500th restaurant, “Ronald McDonald” made his big debut, and McDonald’s net income exceeded $1 million. In 1966 McDonald’s was first listed on the New York Stock Exchange, and in 1967 McDonald’s went global. The company kept expanding with the introduction of the “Big Mac” and the opening of its 1,000th restaurant, which was where it all started- in Des Plaines, Illinois. McDonald’s began to mature as a successful global business toward the beginning of the 70’s. By 1970, there was at least one McDonald’s restaurant in every U.S. state, and several in different countries around the world. Countries including France, Japan, Germany, and even Guam all had McDonald’s. And in 1972...

Words: 948 - Pages: 4