Mcdonalds Evaluation

In: Business and Management

Submitted By wangoman
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Current Strategy Evaluation

Current Strategy
McDonald’s current strategy of “being better, not just bigger” involves delivering locally-relevant restaurant experiences, improving existing restaurants, and create new products that meet the changing needs of its customers. This strategy works towards increasing sales and guests counts while optimizing operations to increase profitability.

Much of McDonald’s strategy involves promoting new and classic menu items such as the Big Mac, McCafé and Snack Wraps while delivering the best food experience possible. The company also feels that it can grow sales with maintaining and expanding its dollar menu so that more affordable items are available. Furthermore, the company provides locally preferred menu items so that it doesn’t alienate itself from its communities (example: Restaurants in Hawaii offer pineapple instead of fries). Combined with convenient locations, optimized drive through service and longer store hours these factors should provide exceptional restaurant experiences.

The company has also allocated $2.1B towards restaurant improvements for 2009 to modernize its operations. These funds are also to help continue its specialty coffee and beverage expansion. This investment is done with the expectation of serving more customers at a faster pace (including drive-thru) as well as being able to provide its new McCafé drinks and future specialty drinks. These improvements should add to customer experience and improve profit margins by taking less time to provide food and deliver the profitable specialty coffee drinks that have been proven very successful.

McDonald’s also hopes to appeal to a larger customer base by continuing to expand its menu selection with new premium items such as the Southern Style Chicken Sandwich. Future product rollouts include smoothies, espresso drinks, frappes and some…...

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