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Operational strategy of mcdonalds
McDonalds strategic analysis
Operational strategy of mcdonalds
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McDonald’s Australia Holding
Executive Summary:
The purpose of this report is to present a SWOT analysis of McDonald's Australia Holdings and to make a recommendation on future products that could be introduced by the company to further enhance its operations. This report has found that McDonald's has a large range of strengths, but also has weaknesses and threats to the company that should be addressed. The major weakness of McDonald's is the lack of health food options on its menu and the threat of an increasing trend of demand for healthier food could see the sales drop as customers looks for alternative healthier food options. However this weakness can also be an opportunity for McDonald's as through the introduction of a new healthier burger a new target market can be accessed and McDonald's can remain competitive in the industry.
Company background:
McDonald’s opened its first store in America in 1955 and now has more than 34,000 restaurants operating in more than 100 countries. McDonald's has an iconic brand that is recognised in nearly every country in the world and is the largest fast food chain in terms of total global sales. McDonald’s opened its first Australian store in the Sydney suburb of Yagoona in 1971 and there are currently more than 900 stores operating across Australia who have all adopted the company’s motto of 'Quality, Service, Cleanliness and Value' (QSC&V) (McDonald’s 1957) The Management offices and restaurants of McDonald’s currently employ more than 90,000 people. More than 70% of the McDonald’s restaurants in Australia are owned by franchisees.
Strengths Weaknesses
Brand recognition
Largest Market share for fast food
Advertising
Partnerships
Economic contributions
Unhealthy food ...
... middle of paper ...
...ealthy options on its menu, however this weakness could also be an opportunity as there is an increasing trend for healthy food options and McDonald's could turn this opportunity into a strength if it introduces a healthy burger. As previously analysed McDonald's isn’t competing with its competitors in healthy fast food and hasn’t tapped into the health food market which is a major opportunity for the company. Currently 28% of customers deciding on which fast food chain to visit consider whether a healthy option is available to be a major factor when deciding (EMMA Report, 2014) and if McDonald's can cater to this decision factor then they can appeal to the customers values and increase its market. McDonald's can use its strength in its advertising to introduce this new healthy product and reach a large audience in promoting the healthier choice that is on offer.
Montgomery Ward is the name of two generally unique American retail ventures. It can allude either to the outdated mail request and retail chain retailer which worked between 1872 and 2000 or to the first name of the online retailer presently known as Wards. Industry specialists said Montgomery Ward, the 128-year-old retailer that as of late published its end, was the cause all its own problems and was unable to rival other immediate advertising monsters. After the organization affirmed the end of 250 stores and 10 conveyance focuses on Dec. 28, immediate advertising specialists and experts said they were not astounded when the end came. Montgomery Ward, which started list shopping, was described as having neglected to stay aware of the evolving times. It couldn't create a procedure to contend with new confronted organizations, for example, Target Corp, Wal-Mart Stores Inc. what's more other mid-range claim to fame stores that cut into its business.
Whole Foods Market, which is in the Grocery Store and Health Food Store industry, is one of America’s most prominent organic grocery store on the market. The supermarket chain has established a competitive advantage amongst other grocery stores, as it assures consumers that all foods are free of preservative, additive, and pesticides. The grocery store has gained such a profitable following, that it Amazon acquired it in August 2017, boosting Whole Foods Market’s digital and physical competitive advantage. In fact, most researchers have concluded that such an acquisition may eliminate any opportunity for other grocery store chains to compete against Whole Foods Market (Formichelli, 2017). Whole Foods Market’s key to success
In 1964, a National Hockey League legend by the name of Tim Horton opened his first coffee shop in Hamilton, Ontario, serving only coffee and donuts for 10 cents each. Throughout the years Tim Hortons’ has grown into a respectful company with an eagerness to achieve high levels of sustainability and creating better lives for coffee farmers, coffee communities, and economically disadvantaged children in North and South America. “The chains’ focus on top quality, always fresh product, value, great service and community leadership has allowed it to grow into the largest quick service restaurant chain in Canada specializing in always fresh coffee, baked goods, and home-style lunches” (Timhortons.com). Tim Hortons has expanding their
McDonald's current customer environment is people on the go or people who don't want to spend a lot while going out and need something quick and good to eat. It is best stated in McDonald's mission statement that they want to be the world's best quick service restaurant experience. As stated before, McDonald's has restaurants in 121 countries and has extensive global experience in customer service and satisfaction. McDonald's is excellent at researching an international area before building restaurant there. For example, in India McDonald's realized that the majority of the population was Hindu and vegetarian, they therefore, did not even bother to put beef or any other red meat on the menu.
In 1998, McDonald’s, in order to remain strong, tested the “McDonald’s Big Xtras” or “MBX” which was a potential hit. The “MBX” was a 4.5-ounce burger launched mainly to compete with Burger King’s “Whopper”. It was also reminiscent of the1980s “McDLT”, In ’98; they also brought back the “Filet-O-Fish” which in 1996 had been replaced by “Fish Filet Deluxe”. On a promotion basis, they offered novelty sandwiches, like “Cheddar Melt” and the “McRib”.
Internal resource is the first consideration that can lead to sustainable competitive advantage and Resource –Based View (RBV) is a theory that usefully helps a firm focus on internal resources (Kraaijenbrink, Spender & Aard, 2010). According to RBV (Valuable, Rare, hard to imitate and non-substitutable), companies have different tangible and intangible resources, these resources can be transformed into unique ability, this special ability cannot flow between firms and rival firms and difficult to reproduce. These unique resources and abilities are the source of enterprise sustainable competitive advantage. In this part, Starbucks and Apple are worth to be analyzed by RBV.
Their constant changes are more directed at customer satisfaction than keeping in line with their competitors. New market entrants, although small and initially insignificant, are exerting the most force over McDonalds Canada. They are able to cater to individuals a lot easier than a multinational company is and it should be these that McDonalds model any future changes on. As mentioned above, the introduction of organic products and the presentation of ‘greener’ images are essential for McDonalds to compete in a changing consumer environment.
The menu at McDonald's typically consists of hamburgers, chicken sandwiches, salads, drinks, shakes, and a recent influx of healthier alternatives. McDonald's also is widely known for their breakfast menu, which consists of sandwiches, pancakes, French toast, hash browns, and breakfast drinks. Since McDonald's appeals to such a wide audience, it must constantly re-evaluate its menu depending on feedback and market research. McDonald's expends considerable resources to update its menu and introduce new products in order to be more in tune with its target audience (The Times 100).
The McDonald's Corporation is one of the world’s largest chain fast food restaurant, which is headquartered in the United States. It has expanded its business in 119 countries, including Hong Kong. The company mainly provides fast food such as hamburgers, french fries, chickens and soft drinks. McDonald’s started its business in Hong Kong in 1975. Now, the company already has 218 branches in Hong Kong. Our group would like to analyze how McDonald's Restaurants (HK) Ltd(McDonald's) maintained its sustainability of business in the past 38 years since it had already influenced lifestyle of most Hong Kong people and become part of the local culture of Hong Kong.
McDonald’s vision statement can be said that it wants to be the world’s best quick service restaurant experience. Being the best for McDonald’s means that it needs to provide the best of the quality of food products, services, and cleanliness and value so that it can make everyone of its customer smile (Schmitt and et.al, 2011). A vision statement of the company is an idea for how business can be eventually perceived and what actions it will be taking for coming 5, 10 or 15 years for i...
Ovidijus, Jurevicius. "McDonald's SWOT analysis 2013." Strategic Management Insight, March 10, 2013. http://www.strategicmanagementinsight.com/swot-analyses/mcdonalds-swot-analysis.html (accessed February 17, 2014).
As the past few years show Mcdonald’s has failed to meet majority of their objectives seeing little success and a rise in competition, with Yum Brands growth building this threatens McDonald 's for the future.
McDonalds has always been a leader in the fast food industry. Through its dynamic market expansion, new products and special promotional strategies, it has succeeded in making a name for itself in the minds of the target customers. However, McDonald’s earnings has declined in the late 1990’s and 2000s. This is mainly due to a fiercely competitive industry and variety in customer tastes and preferences.
These are opportunities because they are all options McDonalds can take advantage of in order to expand their company. By doing these, McDonalds will bring in more customers as these changes will attract consumers that are looking for a fast food restaurant that possess these
Furthermore, this advance advertising helps more individuals to resonate with McDonald 's as they actively promote their business and its offerings than other competitors. Additionally, McDonald 's has way more locations in which to purchase items such as their hamburgers. Therefore, more children tend to recognize it and want it more than places such as Burger King or Wendy 's. This is all mainly due to the reputable brand and its well known reputation. LIkewise, children constantly see McDonald signs and advertisements.