Strategic Management of McDonald's

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PROBLEM IDENTIFICATION

The main problem from McDonald's case, McDonald's Polishing the Golden Arches, is how to classify McDonald's strategy through Plan to Win into one of the five generic competitive strategies. Before we solve this main problem, we should determine the chief economic and business characteristics, the five forces analysis, and also the driving forces of the fast-food industry. After that we identify the strengths, weaknesses, opportunities, and threats by using SWOT analysis. Finally, we classify McDonald's strategy into one of the five generic competitive strategies.

ANALYSIS

The chief economic and business characteristics of the fast-food industry

In 2003 sales for the U.S. consumer food-service market totaled approximately $408 billion. For the sandwich segment, the top 30 sandwich chains had U.S. system wide sales of approximately $64 billion. Future growth in the sandwich segment was expected to be only around 2 percent annually for the foreseeable future. McDonald's and Burger King were the earliest and most aggressive hamburger chains to begin to expand internationally. The products of the various sandwich chains in U.S. were strongly differentiated, continuously follow the trends that are changed all the time.

The five forces analysis and the driving forces of the fast-food industry

By using the Porter's five forces model of competition, we identify rivalry among fast-food chains and buyers as the strong forces that make the competition in fast-food industry more and more tighten. In general, McDonald and its main competitors (Burger King Corporation, Wendy's International, Inc., Hardee's, and Jack in the Box) are active in making fresh moves to improve their market standing and bus...

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...simultaneously by making the restaurants more efficient to increase the speed of service and emphasizing hospitality, accuracy, and cleanliness with new training and incentives programs worldwide.

2) Leadership marketing

McDonald should maintain "I'm lovin' it" all the time and treat it more than a marketing campaign in order to deliver a global brand message through advertising, packaging, and restaurant experiences. This can be used for shaping McDonald's employees attitude in serving the customers.

3) Innovation

McDonald must make a lot of innovation in order to satisfy its customers and win the competition because successful innovation can strengthen the market position of the innovating companies. For example, by featuring a variety of Value, Premium, and wholesome menu offerings, McDonald can deliver the right products at the right price for its customers.

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