STRATEGIC MANAGEMENT PLAN FOR MCDONALDS NAME: AFFILIATION: UNIVERSITY: Strategic Management Plan for McDonalds This paper is about strategic management plan of McDonald, a chain of fast food. It has a variety of readymade food items available at its outlets…
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The two brothers were named as Dick and Mac. They started the business of fast food with a small shop in California. Their small restaurant established in California offered barbeque and small burger. For the next 14 years, McDonald continued satisfying the food needs of the local market. It was in 1954, when Ray Kroc thought of introducing McDonald in literature and wrote few lines about it. He took keen interest in the business of McDonald and acquired its first franchise license (History of McDonald’s Restaurant::About McDonalds.com, 2012). Ray Kroc also thought of business expansion and opened another McDonald outlet in Illinois near Chicago in 1955. He registered McDonald Corporation and gave it the status of a company. The first strategy of McDonald was devised in 1957. It was based on the principles of quality, service and cleanliness. Based on these fundamental principles, Ray Kroc expanded his business and the number of McDonald outlets reached up to 100 in 1959. This remarkable success enabled him to negotiate with McDonald brothers for purchase of all rights of McDonald. He succeeded in this matter as well and in 1961, he owned the McDonald Corporation. It was transformed to a Public Limited organization in 1965 which was registered at New York Stock Exchange in 1966. The journey of McDonald’s expansion went beyond national level penetration. In 1967, the first international outlet was opened in Canada. In 1974, UK market was explored for possible profitable opportunities. Major promotion was done in UK to attract a huge market. It paid well in return and by 1983, McDonald had succeeded to establish 100 branches in the UK. The expansion went on in other countries of the world as well. Current Situation of McDonald McDonald is perceived as a valuable brand in various parts of the world and people like to satisfy their self esteem needs by being its customers. With 33,000 outlets, its business is spread in more than 119 countries of the world. According to a report published in 2011, 60 million customers visit McDonald every day. In 2008, McDonald was rewarded as the top organization in the context of imparting trainings to its employees. Its standard is so high that its offered trainings qualify the employees for nationwide acceptance and are considered as a qualification (Franchise New Zealand, 2011). Among the countries of UK, McDonald enjoys the status of top 25th big company. In the later stages, the ranking elevated to 22nd. On the grounds of attracting talented manpower and retaining them on profitable relationships, McDonald was the all rounder in the industry. Strategic Posture of McDonald As mentioned earlier, the strategy of McDonald is based on the principles of quality, service and cleanliness. By quality, McDonald management means the quality of food and the service as well. Quality of food refers to the freshness of ingredients used in preparation of food and the way it is served and presented. The strategy of service is related to convenience to have the food items. McDonald places its outlets at the locations which are easy to access for students, professionals and families alike. There are the customers who want to dine in the outlet; hence comfortable sitting arrangement is made for them. The background music further adds to the beauty of the atmosphere and the visiting customer enjoys the experience of dining. There are customers, who want to take away food stuff
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McDonald's faces extremely high competition from other stores making it hard to achieve very high profits. People are concerned with their health situations, so they seem to choose healthy menu items. McDonald's has, therefore, tried to adapt healthy menu items and avoid unhealthy characters that are not in demand by everyone.
McDonald’s began as a small restaurant. Initially, the company only operated within the borders of the United States. The heads however decided to venture into other nations and regions outside the United States in 1967, and this was met with huge success. The company has since the beginning placed emphasis in technology.
Online shopping 6 3. Local merchandising 7 4. Diversification of product offerings 7 Measurement of success 7 Conclusion 8 References 9 Introduction Focal point of any business strategy is to determine key resources and capabilities of a firm and how a firm can use its resources to achieve competitive advantage.
The administrative division was founded in the year of 1927. The municipality was one of the oldest foundations in the country. Modern system of governing was initiated in the year of 1971. The municipality focuses on improving the level of public utilities and services.
A SWOT analysis also has been conducted to ascertain the strong and weak points as well as the scopes and threats. Based on these factors, few strategies have been developed that would help the company to hold on to its competitive advantage as well as stay ahead in the global competition.
& V.) became the company motto since 1957. In 1961, Ray Kroc bought all rights to the McDonald’s concept from the McDonald brothers (mcspotlight.org). He also opened the Hamburger University in Elk Grove, near Chicago where people intending to be in the business were given high quality training and development.
This business strategy of the company is referred to as the blue ocean strategy. It entails targeting of customers who have preference over quick service restaurants as opposed to traditional restaurants. Value innovation is what keeps the business strategy from other known management tools.
Similarly, if Chipotle spends a huge amount on its advertising and other Integrated Marketing Communications but fails to achieve profitable returns and increases in its revenue, then it would be better off not
32. Classical control theory considers that a feedback is implemented as a means of controlling states or outputs of a dynamical system (Goodwin, p. 10). Fig. 1 demonstrates a traditional feedback system as articulated in technical terminology.
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