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Arslan Iqbal
MS-Commerce (Advanced Strategic
Management)
12/20/2013
McDonalds
2
ACKNOWLEDGEMENT
All praise to Almighty Allah, the most merciful and compassionate, who give me
skills and abilities to complete this report successfully.
I take this opportunity to express my profound gratitude and deep regards to my
teacher Dr.Dilshad Zafar for his exemplary guidance, monitoring and constant
encouragement throughout the course of Advanced Strategic Management. The
blessing, help and guidance given by him time to time shall carry me a long way in the
journey of life on which I am about to embark.
3
EXECUTIVE SUMMARY
The following assignment deals about the strategic management in context to McDonalds.
Strategic management is one of the critical issues to be studied by a company in order to
understand its SWOT analysis, the causes and solution of the problems and hurdles in the
way of the success of the business and its market growth.
Every company has to make
effective strategies and plans in order to tackle the internal and the external problems faced
by the company. Globalization on one hand gives benefits to the company to discover new
markets and increase its customers but it also poses different problems and challenges which
the company has to tackle to continue its success in the new markets. Company has to design
effective strategic plans. This assignment will discuss the various strategic issues of concern
for the McDonalds and plans it has designed to tackle these problems.
McDonald Background:
The McDonald's Corporation is the world largest chain of hamburger fast food restaurants
and also a pioneer in fast food chain restaurants, serving approximately 69 million consumers
and customers daily in 119 countries all over the world. The business established in 1940 as a
barbecue restaurant operated by Richard and Maurice known as McDonald Brothers at San
Bernardino, California. In 1948 they reorganized their business as a hamburger stand using
production line principles with the name of "Speedee Service System". But a Speedee name
replaced with Ronald McDonald by 1967 when the company filed a U.S. trademark on a
clown shaped man having puffed out costume legs. Businessman Raymond Albert Kroc
joined the company as a franchise agent in 1954. Later on Ray purchased the chain of
restaurant from the McDonald brothers and take over its worldwide franchises.
Broad Mission Statement:
is to be their customers' favorite place and way to eat and drink
Improve their operation
focus on an exceptional customer experience People, Products, Place, Price and
Promotion
4
Broad Vision Statement:
Is to be the best and leading fast food provider around the globe
To be the world`s best quick service restaurant experience
It is committed to continuously improving their operations and enhancing their
customers' experience.
McDonald's brand mission is to be their customers' favorite place and way to eat and drink.
Their 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. They are committed to continuously improving their operations and enhancing
their customers' experience.
McDonalds Values
They place the customer experience at the core of all they do. Their customers are the reason
for their existence. They depicts their dedication by providing them high quality food and
elite service in a clean, attractive environment, with a great value. Their goal is quality,
service, cleanliness and value (QSC&V) for each and every customer, each and every time.
Commitment to People: They are committed to their people. They provide opportunity, polish talent, develop leaders
and reward achievement. They believe that a team of well -trained individuals with diverse
backgrounds and experiences, working together cause a success of organization.
Business Model: They business model, depicted by their
- their
foundation, and balancing the interests of all three groups is key factors for success.
Ethical Values: They operate their business ethically. Sound ethics is ey
hold their selves and conduct their business to high standards of fairness, honesty, and
integrity. They are individually accountable and collectively responsible.
Corporate Social Responsibility Work: They give back to their communities. They take seriously the responsibilities that come with
being a leader. They help customers build better communities, support Ronald McDonald
House Charities and also contribute in CSR activities all across the world where they are
operating their business.
Learning Experience: They are a learning from their decades experiences in organization that aims to anticipate and
respond to changing customer, employee and system needs through constant evolution and
innovation.
5
Operation
operating in 119 countries around the globe with 34480 restaurants having
approximately 1.8 million employees serving approximately 69 million customers daily.
The McDonald's business structure is based upon geographic divisions. McDonald's
distribute its operations into five major geographical divisions; United States, Europe, Asia/
Pacific / Middle East / Africa, Latin America and Canada.
earn 75% revenue from its two divisions United States and Europe. These are
star divisions (according to Boston Cognitive Matrix) here its strategic approach
is to maintain the market share.
As the operate around the globe so it has different customers who belong from
different cultures, religions, customs, taste and heritage. So every SBU (Strategic Business
Unit) of McDonald require a different strategic approach according to production, marketing
in that particular region because they have to satisfy local customer.
Sources of Income:
McDonald's restaurant is operated by either a franchisee, an affiliate, or the corporation itself.
Its operating income has two sources:
Sales made by company own restaurant
Rental from franchised resturantats.
1) Restaurants sales:
-owned restaurants. An example
Profit & Loss Statement for a restaurant is shown left and highlights how food and labor
decrease
depending ly fixed, for
example utilities and advertising, which need to be paid for even before the restaurant makes
any sales. Increasing sales and controlling costs are fundamental to ensuring the profit of
each restaurant is either maintained or increased.
2)Franchise Rental & Royalty Income:
The owner of each franchised restaurant (in all over the world where they used rental and
royalty strategy), known as the franchisee, keeps all of the profit they make through sales
ing under the brand name and rent for operating in
In 2012, McDonald's Corporation had annual revenues of $30 billion, and profits of $5.5
billion.
6
Competitive Advantage
Sustainable competitive advantage is an advantage that a firm has over its competitors,
allowing it to generate greater sales or margins and/or retains more customers than its
competition.
According to Michael Porter, there are three different way to sustain a competitive
advantage. These three different strategies are cost leadership, differentiation, and focus.
1. Cost Leadership:
in bulk and, to get lower price own to franchises
such a well known mascot McDonalds has to do much less advertising than many
other chains to maintain awareness of their brand
2. Differentiation:
afford to
introduce products without familiarizing itself with provincial preferences in food. For this
the help of franchises
who are well aware in of that works in their country. In this way it creates differentiation by
launching products according to the requirement of that country.
Brief:
These two competitive advantages comply directly with the vision of the company which is
as follows:
Being the best means providing outstanding quality, service, cleanliness, and value, so that
we make every customer in every restaurant s
7
SWOT ANALYSIS
STRENGTH:
1. Largest fast food market share in the world:
outlet operator with more than 34,000 outlets, serving 69 million consumers every
day in 119 countries with 1.8 million human resource force.
2. Brand recognition valued at $40 million:
$40 billion
3. $2 billion advertising budget:
Advertising budget of McDonald is the largest budget in the world in the field of
fast food restaurants.
4. Locally adapted food menus:
The fast food chain is operating in many countries has diversified products according
to the culture and local target market of that particular country. Thus ability to adapt
5. Strategic Alliances with best brands:
Pepsi, Nestle Yogurt, Heinz ketchup and others.
6. More than 80% of restaurants are owned by independent franchisees:
focus more on perfecting its serving system and
marketing campaigns.
7. Children targeting:
The business successfully targets very young children through offering playgrounds,
toys with its meals and advertisements.
Weaknesses:
1. Negative publicity:
strong marketing focus on very young children.
2. Unhealthy food menu:
not good to an extent to which customer become satisfied. Hence, decreases
3. McDonald Job and high employee turnover: Mac Job is a low paid and a low skilled job, which is often seen negatively by its
employees. This results in lower performance and high employee turnover, which
4. Low differentiation :
8
chains (at least not enough to gain some market share) and opts to compete by price
rather than by additional features.
Opportunities:
1. Increasing demand for healthier food:
food to their targeted customers.
2. Home meal delivery: Mc
reach to customers at their door step.
3. Full adaptation of its new practices:
introduced some new practices. In a result, remodeled restaurants have seen 8-9%
higher than average market growth.
4. Changing customer habits and new customer groups: Changing customer habits represent new needs that must be met by businesses. So far,
the company has been successful in introducing its McCaf, McExpress and McStop
restaurants to meet the changing customer habits and the needs of previously
untapped customer groups.
Threats:
1. Stagnant fast food markets in the developed economies: The fast food market in the developed countries is already overcrowded by so many
fast food restaurant chains and this provide a high competition for McDonald.
2. Trend towards healthy eating: Due to government and various organizations attempts to fight obesity, people are
becoming
offer in its menu.
3. Local fast food restaurant chains:
does a great job in adapting its own menu to local tastes, the rising number of local
4. Currency fluctuations: The business receives a part of its income from foreign operations. The profits that are
sent back to US have to be converted into dollars and may be affected by the
exchange rates, especially when the dollar is appreciating against other currencies.
This cause a huge translation risk.
5. : t quite a few lawsuits.
continues to operate more or less the same way, there is high probability for more
expensive lawsuits to come.
6. Religious and Local Factors: In some countries religious factors highly influenced the menu of McDonald like in
India, Pakistan etc. Some local factors that political and local people condemn also
affect the sale of organization.
9
PORTERS FIVE FORCES MODEL
In the prospectus of analysis of Porter five forces are:
1. Power of buyer 2. Power of supplier 3. Threat of new entrants 4. Threat of substitutes 5. Industry competitiveness
Applying porters five forces model to McDonalds-
1. Power of buyer: In this competitive environment every company is trying to produce products with
better quality and at competitive prices. Bargaining power of customers of
fast food industry d
industry is differentiated which are usually or almost always promoted by advertising
that is because of a vast competition between fast food firms. Product differentiation
quality of the product or service in the fast food industry is very important as
customers have full information of the products they buy and consume.
2. Power of supplier: The Company may have different suppliers for meat, food, dairy products etc. there
are a number of suppliers available for a same product, it becomes easy for the
companies to switch to different supplier if they are not satisfied with the one they are
dealing with. Since the fast food industry has a lot of options available to decide
which supplier to approach or not, therefore the suppliers have a very little or no
bargaining power.
3. Threat of new entrant:
easy for a new entrant to enter the market and introduce products at competitive
prices. Although quality of the product or service in the fast food industry is very
important as customers have full information of the products they buy and consume
and it will require a huge investment. So, difficult to compete with a strong brand
name like McDonalds. Hence threat of new entrant is low for McDonalds.
4. Threat of substitutes: McDonald not only faces a tuff completion from the competitors in the fast food
industry but also from the players of other industries providing substitute products to
the customers. Several factors determine if there is a threat of substitute products in an
industry. First, if the con
little of anything stopping the consumer from purchasing the substitute instead of the
substitute product is cheap at
of substitutes. Third, if substitute product is having equal or superior quality,
10
attributes, functions or performance compared to the in threat of
substitutes is very high.
5. Industry competitiveness: McDonalds face a lot of competition not only from the other competitors in the fast
food industry but also from other industries producing substitute products. Although,
restaurants serving more than 69 million
people in 117 countries each day, has a number of fast food outlet competitors across
of the industry in market capitalization with a cap of $39.31 billion.
PRODUCT LIFE CYCLE
Due to a lot of competition and presence of substitute in the markets it has become really
difficult for the McDonalds to attract more customers and grow in its business. In these
markets the saturation stage has come and for the McDonald to create new opportunities of
growth and business in these markets it needs to plan a strategy to introduce new and
different products with competitive prices in order to attract the customers and again grow in
these markets. The other option for McDonald is to expand its business in other countries to
explore new markets with a fresh start.
11
EXTERNAL ENVIRONMENT ANALYSIS macro-environment is as follows:
Political factors:
separate state put into practice by each government. So, For example, there is a hung legal
hts and
infringement of the religious laws concerning the maintenance of meal. Meat existence in
their menu in India is obviously offensive to Indian religions in the mentioned market. the
company operates the separate policy and instructions of operations.
Economic factors:
Economic factors like inflation and fluctuation in exchange rate also effect the operation and
income of McDonalds and it create a translation risk. Hence, if the privilege works in the
especially economically weak state, then their products should cost above than other existing
products in the market, these privileges should take certain regulators to support economy at
the expense of manufacture growth.
It will become the weakness of organization.
Socio-Cultural factors:
In case of
company uses concept of consumer individuality of a product of behavior and decisions on
purchase to its advantage. These strategies to anticipate current people demand wins the heart
of consumers and maintain its market position.
Technological factors:
The key tool of the company for marketing is by means of TV advertisings. To attract a
younger people McDonalds create a game zone and play area also toys in the meal offered by
the company shows their diversification in serving. It also provide a central wifi service in
Legal factors:
Legal factors also influenced the operating strategies like CSR activities requirement of the
company to generate its corporate reputation to more positive and the more socially
responsible company. For example, operations in predominantly Muslim countries demand,
that their meat corresponded to Halal requirements of the law. Other legal concepts as tax
obligations, employment standards, and requirements to a degree of quality etc these
requirements vary from country to country.
12
McDonald's - Competitor Analysis Although McDonald is the largest seller of fast food items around the globe due to
maintaining its sustainable competitive advantages but it still has threats of competitive
environment from may mulit-national, global and local competitors. Other fast food
companies that also serve hamburgers, fries, and drinks. These include, but are not limited to
KFC, Pizza Hut Wendy's, Harvey's, Burger King, and A&W.
Detail of two competitors of McDonalds are as follows:
KFC( Kentucky Fried Chicken):
Operation of McDonald is world wide so its competitors are also world wide. KFC is one of
the major competitors for McDonald in the burger segment is KFC. KFC is the second largest
seller of fast food items around the globe. It is established in 1952 at Kentucky in USA and
operating in about 80 countries of the world with more than 11000 thousand restaurants
Competitive advantage of KFC:
Improving services customizing its menu according to countries.
Expanding into non traditional facilities.
Strong financial background.
Environmental friendliness
Pizza Hut: Pizza Hut is a global fast food chain restaurant founded in Kansas, USA in 1958. Its
operation in about 91 countries of the world.
Competitive advantage:
Satisfy customers by offering them
Focus strategy
Cleanliness , hospitality, accuracy, mountainous, product quality and speed
(CHAMPS)
3F (fun, family and friendly)
Quickest quality services
Pizza innovation leader
Just in time delivery service
Local Competitors:
In every country local competitors are biggest local forces who are competition with
McDonald. They competitive advantage of their local cultural traits to handle the customer.
13
McDonalds Strategies
Business Model:
These are owner/operator, suppliers and employees. So all three legs of stool are needed to be
providing an equal support the weight. So all three ingredients of business model are equally
important in order to get sustainable competitive advantage.
Investment Strategy of McDonald:
arket
more consolidated approach by focusing on fewer restaurant openings and instead investing
in the re-imaging of its current estate. This investment strategy is intended to maintain the
company and enable them to upgrade the
customer experience and maintain market share in an ever-increasing competitive
environment.
Profit using Strategy: It is the responsibility of
company in order to generate future cash flows and returns for the shareholders. Whether this
is done by building new restaurants, reinvesting in existing restaurants, paying off debt to
reduce financing costs or paying a dividend to shareholders, their decisions will be based on
financial appraisals criteria by focusing all financial tools. McDonald also use a Blue Ocean
strategy(in which companies abounding to compete with current market competitors and
instead inventing a new industry or discovering a new market segments where competitors
are not approach). So, McDonald discovery a new market segments in order to boost the sale
and outcompeting its competitors.
Business Strategy: Per McDonald's CEO, James Skinner, the company's business strategy is Plan to Win. The
organization focuses on the five P's: People, Products, Place, Price, and Promotions. By the
company focusing on these factors the business continues to thrive even in a struggling
economy.
Broad Departmentation:
McDonalds broad departmentation is based on geographic areas. The McDonald's business
structure is based upon a geographic structure. McDonald's divided its operations into five
14
geographical divisions; United States, Europe, Asia/ Pacific / Middle East / Africa, Latin
America and Canada...75% of McDonald's revenue are generated in the United States and
Europe. So to McDonald's, USA and Europe its star segment(according to Boston Cognitive
Matrix) the most important strategic approach for maintaining its leading edge is to keep their
major markets at the same time expanding their business into the emerging markets.
However, different customer groups in different countries may have different tastes and/or
requirements. So each functional geographic unit of McDonald' was required to wholly
response for producing and marketing its product in that region. Through this regional
structure, McDonald's could not only satisfy the local consumers' needs in different
geographical areas but also pursuing 'maximum local development'. Actually they produce
and market slightly different types of products in different areas, and they even have different
prices. McDonald's philosophy of quality services cleanliness, quality product and value is
same for everywhere. And McDonald's targets the similar consumer segments that need fast
service, affordable price and good standard hygiene. So their main products are similar in
most countries, where they provide service, including beef, chicken, bread, potatoes and milk.
Country wise operation Strategy: As the consumers in different countries having different foods requirements, different culture,
religion etc. McDonald's keep launching new products for their regional consumers. China,
India, Pakistan and France are some good examples that will discussed below.
China: China is a big eater of chicken in Asian region. Therefore, McDonald's business strategy is to
try to adapt more Chinese tastes by adding more chicken meals into their menu to attract
more customers.
India: In India McDonald does not introduced a beef burger because of cultural and religious factor
of India. So, they first time introduced there a Vege-Burger. By doing that McDonald's have
successfully responded to the preferences of the local area while increasing their sales.
Pakistan: According to Pakistan, here religion is Islam. Islam prohibit the meet of pig so after a survey
before launching their business in Pakistan McDonalds researchers realized that thing and
does not introduced such burger.
15
France: In France, McDonald's has boosted it sales by remodeling restaurants, i.e. hardwood floors,
wood-beam ceilings, comfortable armchairs. Also by adding new menu items such as
espresso, brioche and more upscale sandwiches. In addition, the Tours, France McDonald's
has added self-service kiosk, which allows the customers to either control their kids or
control their orders. By doing that McDonald's have successfully responded to the
preferences of the local area while increasing their sales.
Strategy about Logo:
The McDonalds logo is widely regarded as one of the most popular and instantly
recognizable logos in history. The logo is closely related to American culture and some
in the McDonalds logo for the first
time in 1968. This was the first logo of McDonald.
The logo of McDonald changed from time to time according to the need of business
environment and change in vision of the organization.
In 2003, logo of McDonalds introduced when the standard color of the mansard roof for their
restaurants was changed from brown to red and appears on the McDonald's commercials that
aired in2003 with slogan "We love to see you smile" and "We Love to See You Smile".
2003 present
http://static3.wikia.nocookie.net/__cb20091130091727/logopedia/images/8/8f/McDonald's.svg16
(Michael Porter)
create value for buyers in
the product and services.
Primary Activities :
Primary activities are basic and foremost activities in the value chain model in creating value
for customers. In McDonalds value chain model following are primary activities.
1. Supply Chain:\ For making an effective supply chain
materials from its fixed, pre- defined suppliers only, therefore by increasing capital and labor,
their production will increase proportionately. It wills strength its in maintaining competitive
advantage.
McDonald also make a vertical integration for two reasons one to reduce cost and other to
ensure that the quality of raw material should be maintained by himself and mass production
causes economies of scale for organization.
2. Operations: Backgrounds for Operation Management.
Brothers changed the design of restaurant kitchen. Instead of having lots of
different equipment and stations for preparing a wide of variety food, the Speede kitchen had:
A very large grill where one person could cook lots of burgers simultaneously A dressing station where people added the same condiments to every burgers A fryer where one person can made French fries A soda fountain and milkshake machine for desserts and beverages A counter where customers placed and received their orders.
3. Distribution:
great value, in a clean and welcoming environment.
packaging, and waste management. They are dedicated improving their distribution system at
counter sell, restaurants and home delivery. They are modernize the customer experience, and
broaden accessibility to their brand, so that consumers will always enjoy the maximum
McDo
17
4. Marketing and Sales:
58 million customers each day. Now McDonald is spending 2 billion on advertising in order
to boost its sale and
Secondary Activities: These are supporting activities to primary activities. In McDonalds value chain model
following are secondary activities.
1. Human Resource Management :
option. turnover at operational level is too much high that may become a
weakness of McDonalds. High employee turnover increase the training cost of organization.
from simple, direct and bureaucratic style of leadership. In addition, young managers who
offers of promotion and career development. HRM depart of McDonalds really provide some
effective training to its team.
2. Technological Development:
on modernizing restaurants by providing e services, Wifi services, customer service, just in
time delivery system create a huge value addition in competitive advantage of McDonald.
18
e-Commerce Business Model: The e-commerce that McDonald's use is Business to Consumer (B2C)...for example when a
customer makes a purchase from a business they use cash or credit and they get a product or
service in this case it will be McDonald's fast food products.
The type of Internet business models that are used are:
1. McDonald's systematize their business, which as a result gives consistency for customer experience across the world via the Internet. With free Wi-Fi at more than
11,500 participating restaurants, customers can access the Internet using their laptops
or PDAs at no charge.
2. Also, by duplicating and documenting the way the business is running can be sold as an eBook that can help people understand how to successfully run a McDonald's
franchise.
3. McDonald's provides free WI-FI service to their customers so that they can grab a burger etc...And conduct business all at the same time.
4. The POS (Point-Of-Sale) at all McDonald's stores are touch screen, in addition, in some restaurants their are self service devices.
5. The Arch Card is a pre-paid card that gives customers a quick and convenient way to
BCG Matrix Boston Cognitive Matrix has four segments. Analysis of position depicts the
McDonalds position are as follows:
1. Stars: (High growth and High market share) Current situation of McDonalds in an American and European region depicts Star position.
2.Cash Cows: (Low growth and High market share): Current situation of McDonalds in region depicts Cash Cow position. Like Canadian region
3.Dogs:( Low growth and Low market share) These are the position has to expand on advertising expenses of withdraw from the industry
or to create a differentiation feature. McDonalds African region and some middle east regions
face this type of difficulty.
4. Question Mark: (High growth and Low market share) good market share but firm faces a huge
difficulty for survival. In this case firm has to withdraw from the market. In this situation
some Middle East and Indian region fall.
19
McDonalds Pakistan history
Launching in Pakistan: and best known global food services retailer, so it also operated in
house in Pakistan.
Pakistan in September 1998 in
Lahore. This launch was met with unprecedented enthusiasm from the citizens of Lahore, all
are known that Lahories are famous for their love of food, vigor, enthusiasm for quality food.
Experience in Lahore market is very successful. So, they opened an outlet at Karachi opened
its first restaurant a week after Lahore.
Ever since they opened the doors of our restaurants both in Karachi & Lahore, they have been
proud to provide our customers the same great taste, outstanding value and superior service
that is synonymous with the Golden Arches all over the world.
There are now about 32 restaurants in 8 major cities of Pakistan. (11 in Karachi, 1 in
Hyderabad, 10 in Lahore and 1 in Faisalabad, 1 in Kala Shah Kaku, 1 in Sialkot, 1 in
Islamabad & 1 in Rawalpindi and others)
Trust of Pakistani: - trusting the company
to provide them with food of a very high standard, quick service and value for money. So
next time you walk into o
here now, to put a smile on your face, each and every time you visit us.
McDonald s also contributes in development of Pakistan through its Corporate Social
Responsibility. Their contributions are discussed later in this report.
Corporate Social Responsibility work :
Green Park in Islamabad green park garden located in the beautiful F-9 Sector in Islamabad has been designed and maintain by McDonald for public.
M has taken steps to create awareness about this environment, especially
among kids, with regular visits to the beach where they clean it with their own hands.
On 20th November, day McDonald collect the charity and submitted it to Darl-ul-Sukoon.
-seater van to the Rising Sun School for blind learners.
the International Handicapped Day
Hospital and Al-Shifa Hospital for financial assistance of Lahore-based patients.
20
STRATEGIC ISSUES, PROBLEMS AND CHALLENGES FOR McDonalds
We know that McDonald is one of the largest selling fast food brand and market
leaders in the fast food industry around the world. McDonald has grown day by day
globally which has created some problems and challenges in the path of McDonald's
success and future progress. Since from being a local fast food player of America to a
global company McDonald has grown a lot and so are its responsibilities. With the
time many more fast food companies have made there place and provide Cut-Throat
competition to McDonalds. In this busy world no body has the time to cook and thus
people preference and likeness towards the fast food industry has grown a lot in the
past years. People though prefer to eat fast food but also prefer to eat a healthy diet
with less calories and fat. All of these issues revolve around one major issue of
of other players which are providing the similar products like McDonalds thus in
order to compete with them McDonald have to develop more differentiated and
healthy food products keeping in mind the taste and preferences of its customers.
Description for the strategic issues for McDonalds is as follows:
1. COMPETITION: One of the major issues of strategic concern for the McDonalds is the Cut-Throat
competition by its competitors. The other strong players in the fast food industry are
burger king, Pizza Hut, KFC, Wendy's, Hardees and sonic. These competitors provide
a lot of different options to the people who enjoy fast food thus posing a stiff
competition to McDonald. They provide different unique and healthy products to the
customers.
2. HEALTH FACTOR: All fast food companies work really hard to cater the changing needs and preferences
of people because Noting is permanent but the change is permanent. People now days
want a healthy diet. Thus it has become an issue of major concern for all the
McDonald to introduce healthy products like salads or sandwiches in their menus in
order to entertain the needs of their customers and hence retain them. It also focus on
not to compromise the items in the original menu.
3. DIVERSIFICATION: In order to control the above problems like competition or health factor McDonald is
working hard on the diversification of its products in order to develop new
differentiated and healthy food product in order to cater the changing needs and
preferences of its customers.
21
Conclusion:
in 119 countries around the world and serve 69 million
customers each day.] rldwide, employing
more than 1.8 million people.
Because McDonald's has taken hard work to maintain its sustainable competitive advantage
stock management, Restaurant Managers are able to spend more time focusing on delivering
McDonald's high standards of Quality, Service and Cleanliness. Customers are happy
because they can be sure the item they want is on the menu that day. Efficient strategic
implementation on management is essential to any business. It enables the business to operate
in a responsible way.
As the market leader and as a pioneer of the Quick Service Restaurant concept, McDonald's
has to respond to a changing business environment. It is well placed to do so. It has listened
to its customers, and anticipates their emerging demands. Based on its research, it has
launched McCaf, McStop and McExpress - new products conceived and designed to
complement and extend what it already offers and to keep the company 'ahead of the game' in
an increasingly competitive market place.
EXECUTIVE SUMMARYWeaknesses:Opportunities:Threats:PORTERS FIVE FORCES MODELPRODUCT LIFE CYCLEMcDonald's - Competitor AnalysisBusiness Strategy:2003presentMcDonalds Pakistan historyDescription for the strategic issues for McDonalds is as follows: