Strategic Management Case Study: Mcdonald's Corporation

Both McDonalds and Chipotle provide fast food services. However, while they share some similarities in terms of belonging to the food industry, utilizing the concept of time to woo their customers, and emphasize on healthy alternatives, the two differ in their business practices and model, types of food that they offer, the efficiency, and extent that they have managed to influence and shape the perception of the consumers. Both McDonalds and Chipotle are restaurant chains that aim to provide fast food services to individuals on the go and highly emphasize timeliness of service as its major selling point. Besides both restaurants being in the food industry, the two restaurants emphasize the speed of their services as a selling point. As a quick service restaurant, McDonalds aims at reducing the time that its customers take before they are served.

Threats Since Subway concentrates on nutrition and health consciousness, any kind of negative news could impact the brand equity. Competition is fierce in the fast food segment and the rivals are having higher brand equity. 2.2 Pest analysis Political factors The political factors affecting Subway are the health regulations where Subway has an advantage. Many organisations and consumers are deriding the fast food concept and the utilisation of genetically modified food which are of low quality and used by the competitors.

Maryam Bababayli (ID: 201508101) Happy Meals and the Old Spice Guy Joanna Weiss Everyday about sixty eight million people eat at McDonald’s. The World’s largest chain of fast food restaurants serves daily in 119 countries across the World and sells more than 75 hamburgers every second. These are just some of the mind-blowing facts about the 90-th largest economy in the World with its $24 billion revenue. The article was written by the Boston Globe op-ed columnist Joanna Weiss and it emphasizes one of the famous McDonald’s food package Happy Meals.

The factory style restaurants had positive and negative sides. The positives were fast, good-tasting food. However, the negatives were much more prevalent. McDonalds became a chain restaurant that appeared all over the United States. The owners wanted their food to taste the same at all locations.

The Similarities and Differences of McDonald’s and Wendy’s Corporate America has taken a stranglehold on American nutrition and eating habits. McDonald’s food has dominance over the market with its cost effectiveness and availability. In contrast, Wendy’s has superior products with higher prices. While these fast-food giants have a massive place in America, they have their similarities and differences. Wendy’s and McDonald’s demonstrate these traits in cost, diversity, and quality.

Plato’s Diner is a family owned and operate business. The owners, Dean and Chris Papas are Greek immigrants and they believed if they worked hard and spend their money wisely they will become successful businessmen. Contrary to their beliefs the case highlights several issues at Plato’s Diner. These challenges derive from lack of strategic planning, management operation, human resources management, marketing strategy and non-compliance of labor laws, and taxes regulations. These challenges pose legal ramifications for their business.

As people have issues about Mcdonalds’ low food quality toward people’s health. However, there is another important area that we have to consider seriously about is how its system, so-called “Mcdonaldization”has influenced and continuously effecting our society. From the article “McJobs: Mcdonaldization and the Workplace” by George Ritzer, he distributes the idea of how Mcdonaldized system has changed our society into scripted and “programmized” places (Ritzer 1998:140). He has specifically analyzed the McJobs’( job that has been Mcdonaldized) into four elements,which is its efficiency, calculation, prediction and control. As the nature of the world is made of a full of colors, diverse opinions of people naturally exist toward the term

McDonald’s is the world’s largest restaurant chain, serving a total of 69 million people a day at 34,000 restaurants worldwide. While facing a tough competition, McDonald’s has chosen to launch a new product to sustain competitive advantage as well as to attract customers in the ’18 to 32 years old’ range, which they have struggled with up to today. They launched the McWrap on April 1, invented by the 47 years old vice president and executive chef Dan Coudreaut. The McWrap is meant to be a healthier choice than the products McDonald’s are in general known for, as well as to compete with competitors such as Five Guys, Subway and Chipotle. However, people assimilate McDonald’s to junk food unlike the ”Subway buster”.

In the beginning, McDonalds was run by two brothers named Richard and Maurice McDonald who not only owned but ran a hamburger restaurant in San Bernardino ,California in the 1950’s. Ray Kroc saw the potential in McDonalds and had ideas to expand it globally so he founded the McDonalds Corporation in 1955. Today, there are more than 33,000 McDonald’s restaurants globally in 119 countries (REFERENCE/web). McDonald’s applies Scientific Management by Frederick Taylor in their management. Frederick Taylor proposed four principles in scientific management that is ‘‘ the replacement of rule of thumb methods for determining each element of a worker’s job with scientific determination, the scientific selection and training of workers, the cooperation

Stakeholder analysis Stakeholder are entity that will affect the organization actions, objectives and policies. There are two types of stakeholder which is internal stakeholder and external stakeholder. The McDonald’s stakeholders are customers, suppliers, employees, managers, government, local communities and pressure groups. Customers Customers are the external stakeholders of the company, no customer mean zero profit.

McDonalds has restaurants at 33,000 locations in 118 countries and 32,500 restaurants in 118 countries. But how are they able to open as many stores as this? The reason is because of its advertising methods social media and they started using social media since 2006, McDonalds uses social media as an advertising tool for marketing their products in order to communicate with the consumers for their product and by using social media tactics McDonalds ranks as 1st in social media as well as it is one of the top 10 global fast food chain industry. Thereby they have opened so many stores and each earns a large profit from many people visiting by seeing their products and their reviews online. Social media has helped McDonalds expand their business.

McDonald’s is the largest fast food restaurant chain in the United States and represent the largest restaurant company in the world, both in terms of customer served and revenue generated. In 2014 IBISWorld market research estimated MCD held an 18.6 % of market share of the entire global fast food industry; Burger King in at just 4.6%. Under franchising visionary Ray Kroc, McDonald 's became the world 's premier food brand by selling the rights to operate a McDonald 's store. With this model, MCD keeps overhead costs down and lets local owners deal with individual units, while food costs remain low and service remains fast for a culture increasingly on the go.

The social forces that have an influence on the company’s products include by ethical and social orientations relating to the safety of their products, together with changes in meal intake behaviors and increasing nutrition and health awareness. In terms of technology, McDonald’s Australia Holdings’ food and beverage products are influenced by the levels of technology advancement in their quality and quantity per unit time of production. Through partnerships, the company is able to gain adopt technology that leads to flexibility, opportunities to gain new expertise and prowess, and novel technological knowhow and simplified consolidation and divestiture processes. The Primary and Secondary Target Markets for Mcdonald’s Australia Holdings The primary market for McDonald’s Australia Holdings comprises of direct consumers of the food and beverage products within the Australian public, while the secondary market for the company comprises of the Australian stock exchange market.

According to TrackMaven, market segmentation is the process of dividing the market of potential customers into groups, or segments, based on different features. The created segment consists of consumers who will respond to the same marketing strategy and who share the nature of the same interests, needs, or locations. McDonald uses demographic segmentation as their main types of market segmentation. According to Sakshi Natani (2016), McDonald in Malaysia used mainly demographic segmentation, which divided in age, income, family-life cycle and social class.

This is a huge market since the U.S. and the world revolved around convenience. Although McDonald’s is very popular right now you never know if one day it will become a shadow to another company. Next, since there are so many competitors each company is trying to be unique and bring new things to the market. Whether it is McDonald’s McPick 2 or Wendy’s 4 for 4 competitors are trying to out shine each other, making it hard to compete and keep prices down sometimes. With a quick google search I found that there are over 50,000 different fast food chains in the United States alone.