How McDonald's Strategic Objectives Merged with the Vision and Mission of the Organization - Example

Executive Summary McDonald’s performs in the food chain industry and has grown its presence over different countries by developing products and services which matches the requirements of the customers. McDonald has followed this strategy and helped to build its brand image by ensuring quality in food and services. The report presents the manner in which the strategic objectives have merged with the vision and mission statement of the organization. The positioning statement provides the objectives based on both the short and long term phenomenon. The report shows that in the short run McDonald’s looking towards improving the quality by looking into health issues and develops a brand name for the future as its long term objectives. Working on the areas highlighted will help to build a strong brand image and create a pool of loyal customers. Contents 1. Introduction 3 2. Purpose of the report 3 3. Strategic Analysis 3 3.1. Vision & Mission Statement 4 3.2. Positioning 5 3.3. SWOT Analysis 5 4. Strategic Objective 6 4.1. Short Term Objective 6 4.2. Long Term Objectives 7 5. Risk Management Strategy 7 5.1. Product Analysis 8 5.2. Marketing Strategies 8 5.3. Contingencies 8 6. Conclusion 9 7. References 10 1. Introduction McDonald’s leads in the fast food industry and has been able to maintain the sustainable advantage by ensuring quality products and timely services. The company has adopted the philosophy of being flexible which has ensured that they are able to change its services according to the requirements of a country and culture. This has helped McDonald’s to satisfy the human hunger by providing variety which ensures higher customer satisfaction. 2. Purpose of the report To find out the vision, mission, positioning and SWOT analysis of McDonald’s so that the strategic objectives can be determined To find out the objectives pertaining to both the short and long term for the organization To conduct a risk management analysis so that the information relating to product, marketing and contingencies can be gathered 3. Strategic Analysis McDonald’s has a presence in 120 countries with over 12,000 branches. The company operates in the fast food industry and has grown over the years due to improvement in different quarters. The organization has improved its product line by innovating new products so that the customer base increases (Vijayrani, 2007). The popularity of the store can be witnessed by the fact that the store has around 40 million visitors everyday and is increasing each day (Vijayrani, 2007). The customer base has grown because of innovation, better services, increased product line and marketing strategy to attract customers. The growth rate is witnessed in Australia where there are around 808 outlets employing 85,000 people. The organization has looked towards improving the training imparted to employees so that customer satisfaction is better and service is of high quality. 3.1. Vision & Mission Statement McDonald’s has identified the following vision statement as seen from their website McDonald’s vision statement is “to be the best quick service restaurant” (McDonald’s Website, 2010). The company by being “the best” to ensure a smile on the face of every customer leaving the store by ensuring quality in service and food (McDonald’s Website, 2010). The company to accomplish its vision looks towards incorporating the following mission statement so that the objectives can be achieved Improve the product by developing new products that matches the taste buds of customer Improve the brand image by ensuring higher customer satisfaction Improve the experience customer gains by increasing the fun customers achieve by dining at the outlets 3.2 Positioning McDonald’s has taken a strategy of ensuring that they are able to eye customer of all ages from 5 to 60 years (Dylan, 2007). The organization has also ensured that they provide the food at different prices so that it suits the pocket of all individuals. To ensure it the organization has kept products at various prices so that each one can be eyed at. Along with it McDonald’s has looked towards ensuring that it eyes different segment like family, children and youngster by offering something for each individual (Narula, 2007). The above strategy adopted by McDonald’s has helped to improve its positioning in the market. 3.3 SWOT Analysis Strengths Strong brand name Variety of products like different varieties of burger, salsa French fires and so on which has helped to position itself differently (Ferrell, 2002) Strong presence over different markets High market penetration Economies of scale (Adam, 2009) Innovation Adaptable to different culture (Adam, 2009) Weakness Limited storage life as the food needs to be served hot else it looses it taste (Ferrell, 2002) Lack of advertisement targeting different age groups Increased competition from players like KFC (Adam, 2009) Opportunities Increase the product range by developing new product (Ferrell, 2002) Move in new market Improve the supply channel Improve the comfort level by developing better stores Threats Health issue due to obesity Increased cost of advertising 4. Strategic Objectives The strategic objectives of McDonald’s will help to understand the short and long term objective that the organization wants to achieve 4.1 Short Term Objectives Advertise aggressively by highlighting that the food is low in fat and doesn’t causes obesity to people consuming it over a time of 6 months Having promotional events and health campaign which shows that people consuming food are not affected by consuming food from their chain over a time span of 12 months KPI: Achieving the above objectives will help the chain to improve the people consideration regarding the health issue concerning obesity and help to build the image in the long run. 4.2 Long Term Objectives Improving the brand by highlighting the strengths so that the awareness grows over a period of 5 years Increasing the sale of the products by increasing the market reach. The organization looks towards increasing the growth by 10% over a period of 2 -3 years. KPI: McDonald’s if they want to achieve their long term objective need to be innovative by developing new products and advertising the stores aggressively. The organization should also look towards increasing the product line by adding new products after a short span of time. 5. Risk Management Strategies This risk management strategy will help McDonald’s to develop strategies keeping in view the market and molding the vision statement along will help to ensure better functioning. 5.1 Product Analysis The risk for McDonald’s in relation to the product is that the product contains calories leading towards obesity. This is making certain section of the consumer stay away which makes it important that a strategy is devised to reduce its impact on the mind of the customer. 5.2 Marketing Strategy McDonald’s to improve its market image is looking towards marketing its stores by demonstrating the fun people visiting the chain have. To ensure an effective marketing strategy McDonald’s look towards having in store promotions so that the benefits of eating in the store can be demonstrated (Bristow and Frankwick, 1994). McDonald’s should also look towards marketing its stores through paper, hoardings and distribution of pamphlets (Bristow and Frankwick, 1994). McDonald’s has also looked towards marketing its stores and improve its image through television, radio, billboards, newspaper, hoardings, and public relations, personal selling, direct mail and internet (Justin, 2008). Having a mix of the above ways has ensured that McDonald’s is able to increase its market reach and expand in other markets. 5.3 Contingencies McDonald’s faces competition from other small local players who supply similar stuffs like burger and fries. This makes it important that the organization plans a strategy to fight the contingencies. This can be achieved by moving towards other products like nuggets or salads which are health and helps to position as a differentiator. 6. Conclusion McDonald’s has been able to strive and increase its market share by concentrating on the important aspect which helps to build the brand image. The organization has been working on the same phenomenon and has developed over the years and following a similar strategy will help McDonald’s to further develop their market. 7. References Adam, (2009). McDonald’s SWOT Analysis. Retrieved on August 31, 2011 from www.isolution.org Bristow, D. and Frankwick, G. (1994). Product manager influences tactics in marketing strategy development and implementation. Journal of Strategic Marketing, Volume 2, Issue 3 Dylan, W. (2007). Even McDonald’s has a market positioning. Retrieved on August 31, 2011 from www.marketingyoursmallbusiness.com Ferrell, G. (2002). SWOT Analysis for McDonald. Orland, Dryden Press Justin, A. (2008). Hotel Industry. Service Sector Management, Business Week McDonald’s Website. (2010). McDonald’s Website. Retrieved on August 31, 2011 from http://mcdonalds.com.au Narula, A. (2007). McDonald’s positioning what do you think. Customer & management consultancy services Vijayrani, N. (2007). McDonald’s business analysis. ezine articles, retrieved on August 31, 2011 from http://EzineArticles.com/?expert=N._Vijayarani Read More