McDonalds Marketing - Essay Example

McDonalds McDonalds Balanced Scorecard McDonalds has always maintained offering quality services since it was started. It has adapted an effective and reliable balanced scorecard, which has boosted its prosperity to today. If, the main areas of the scorecard are focused on, then McDonald will continue to give enough customer satisfaction and raise its financial positions. McDonalds 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. McDonalds has; therefore, tried to adapt healthy menu items and avoid unhealthy characters that are not in demand by everyone. In order to support innovation, the MacAfee was introduced (Panwer 2004). They sell coffee drinks, which are premium at very competitive prices. It offers customers a different experience; thus, making the McDonalds different from their competitors. McDonalds has many suppliers throughout the world who provide to all the restaurants. Some of the suppliers include Martin-Brower, J.R Simplot, and golden State Foods. The McDonalds restaurants all use products from the same product suppliers. This means one can get the same products whether in different countries or states. This new foundation has been put to ensure consistency among the restaurants. McDonalds expect that their suppliers give them the best products. The suppliers are relied on to do the shipping of the products. Change of a supplier would lead to a change in its menu. This factor allows the suppliers to have a high bargaining power. It continues to differentiate itself with suppliers and its customers (Rothaermel 2007). The distribution of its products is not any different from other companies. It operates a strategy of cost leadership. The chief investment strategist has a belief that they should entail the factor of product differentiation. They operate as if they are premium products to gain the market share. The McDonalds have a competitive advantage among other competitors because of their low costs (Pisano 2011). McDonalds offers some training to the store managers. The training is done every year and the goal of training them is to ensure they provide the best quality services in all countries. Its vision gives it the advantage in the industry especially because it is competitive. Exams are done to ensure the trainees are perfect. The McDonalds make the effort to make high profits by improving speed and efficiency amongst the restaurants. This plan was a result of the McDonalds introduction of wraps that slowed speed times since they required new techniques. The need for increasing speed is the high growth rate in the economy (Panwer 2004). The McDonalds work on increasing profits by product innovation to allow training and development. The improvements made help in reducing the ordering times and the waiting times. From the financial perspective, the McDonalds focus on profits and sales. In the customer, perspective service times are the main areas of focus. In the growing and learning perspectives; how the employee is committed, and turnovers are the focuses. The financial perspective of the McDonalds focuses on sales and the store manager probably specifies areas that are to be improved. Increase in the market share and increasing the production and delivery times maximizes the productivity (Grove 2000). On focusing on the sales, the McDonalds focus its attention on the cost leadership, and efficiency. The customer perspective focuses on areas including new customers. Combining all these areas makes sure that customers have experiences that are repeated on the good quality products and services and they tell their friends. Learning focuses on important concepts. The technology plays a major role in ensuring employees works quickly and efficiently (Hill 2007). Benchmarking Benchmarking is to be done on certain key aspects of service that is valued by the customer. Fast-food chains have been benchmarking against McDonald’s efficacy in delivering the Order in five minutes. McDonald’s powers in front as the QSR leader in all ways. It sets a standard that is almost impossible to replicate. The system’s big scale is preceded by unparallel execution in development and marketing. While the scores that rate the customers are not probably, what they should be it is easy to note the fact that this weakness is not reflected by the industries’ leading sales performance. The sales growth eventually tells everything about the program. The brands ability of innovation should not be underestimated and its executions ability which is an expectation for the future (Drucker 1999). Ratios The McDonalds have had a huge competitive advantage both nationally and internationally in the fast food industries. McDonald’s income in 2007 was 2.4 billion dollars, and in 2008, it rose to 4.3 dollars and further to 4.5 billion dollars in 2008. In 2009, the income was at 4.5 dollars billion and later projected to 4.6 billion in 2010 and 5.0 billion dollars in 2011. The stocks of the McDonalds trade less than the neon and the median value that is targeted. The low stock target of McDonald is 73 dollars, whereas the mean target is 85.56 billion dollars (Pisano 2011). VRIN McDonald’s products and services are valuable to make sure the consumers are satisfied. They improve the value of products by constantly checking on the products that suppliers deliver to them and ensuring that they are of good quality (Hill 2007). This allows the managers a chance to exploit any opportunities in the firm. The products served at the McDonalds are rare to find in any other restaurant. This means they are scarce; hence, the consumers have to get them from McDonalds most of the time; thus expanding the profit realization. The services and products are also imitation protected to ensure the consumers get the right commodities. If, imitation happens then only imperfect imitation takes place (Rothaermel 2007). McDonalds has also ensured that the products are substitution protected to avoid consumers preferring other products that are substitutes to their own products. They ensure that they provide products that do not have close substitutes (Drucker 1999). Bibliography Drucker, P, 1999. The theory of Business. Harvard Business Review, 95-105. Grove, F, 2000. Only the paranoid survive only the paranoid survive: How to exploit the crisis points that challenge only the paranoid survive: How to exploit the crisis points that challenge every company and career. New York: Currency Doubleway. Hill, J, 2007. Strategic management theory. An integrated approach. Boston: Houghton Mifflin. Panwer, J, 2004. Beyond Consumer marketing. London: sage Publications. Pisano, T, 2011. Dynamic capabilities and strategic management. Strategic Management Journal, 509-533. Rothaermel, S, 2007. “Alliance type, alliance experience, and alliance manage alliance type, alliance experience, and alliance management.” Journal of Business Venturing, 898-921. Read More