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Marketing Strategy: McDonalds | SWOT

McDonald was released by Dick and McDonald of Manchester, New Hampshire in San Bernardino, California. It was further widened by business partner, Ray Kroc, of Illinois, who then jointly found the idea of McDonalds Organization. The McDonald brothers had been in the restaurant business since 1937. It had been the thought of Kroc to franchise their restaurants across the world. In 1956 McDonalds brothers possessed licensed the franchise rights for cook country. In 1959, Kroc opened 67 new restaurants, over new 101 locations in a variety of countries. Such as this they started expanding their business across the world and became best junk food restaurant.

McDonald Company is one of the most significant chains of junk food restaurant with 500, 000 of employees portion nearly an incredible number of customers daily. After an extremely careful analysis McDonald has given its company the brand of happy clown personality known as Ronald MacDonald. McDonald put great emphasizes is often on youngsters and children's. They are really following a analyzer kind of business strategy with bureaucratic dynamics. McDonald success is hiding in its simpleness and tactical formulation to be totally quality control, more hygienic and making affordable production by selecting cheap and young personnel trained properly under high guidance of managers. Real human resource policies of McDonald are firmly and totally under control

The McDonald's Corporation is the most significant worldwide franchised food service group. Inside the 1960's, Ray Kroc franchised restaurants for the low amount of $950, requiring 1. 9% of sales. McDonald's have the ability to overcome cultural obstacles that have previously hindered other organizations. Because the residents immediately translate both product and service, there may be little hint of what may be construed as US brand culture. McDonald's is concurrently global and local. Obviously, an increase in the amount of franchised restaurants causes the direct effect of a rise in McDonalds' income. McDonald's can also boast that it is the largest retail property owner on the planet.

Task 1a

Organizational structure provides relationship between your duties performed by the users of the company by means of different department, following rules and legislation, and coordination and control system. The structure either at the corporate level or at the franchising level, both have a great effect on business strategy followed by the McDonalds.

McDonalds has mechanistic composition because duties performed in the business are highly repetitive at every local shop. There's a extreme department of labor, with not at all hard and small work activities.

McDonalds has rigid and hierarchical management structure. They have vertical communication within the business flowing from top to bottom. Decision-making is highly centralized with the most notable management. So strategy planning could happen within this composition but it has to effectively talk to the members to acquire its affectivity.

Task 1b

SWOT analysis helps in understanding the inner and exterior factors impacting on to the business. For identifying tactical option of a corporation it is compulsory to know the various power and weaknesses.

Strengths of McDonald's:

Mcdonald is socially dependable, community focused company. They may have easily adapted themselves to the global restaurant with different culture. About 80% restaurant of McDonald are owned and handled by franchisees. The worldwide restaurant of McDonald are provided with duplicate and organized preparing food process. Macdonald are very seriously interested in their consumers health, and there is proper checking of food and furthermore all foods are bought from skilled suppliers only. These are playing a great role socially by bringing out "Ronald McDonald house" for the kids. Mcdonald was the first food restaurant to supply the information to its customers about dietary facts.


Considering the weakness of the McDonald, it has got high-turn over employee. The main weakness they are experiencing is lack of innovation on the market. The main aim for of Mcdonald over advertising campaign is the kids.


There are numerous opportunities before McDonald by creating new product offerings. They can be more socially responsible through sustainable product packaging and use of inexperienced energy. At exactly the same time they can start some of its franchises at the luxurious places to get the major customers on the market.


The major rivals of McDonald are burger ruler and KFC which has included a variety of foods in their menu with fewer prices as compared to McDonald which has become a risk to the business. As the McDonald has greatest part of these menu as fast food therefore the health awareness of individuals has been also a concern to the McDonald. This recession period in addition has let down the revenue of the McDonald to a great amount.

So considering the major dangers and opportunities of the McDonald the tactical option because of this business could be:

Emphasis on Local Management

Environmental Friendliness

Have to be flexible

As some years again McDonald had already gone through a reduction in brand image because of the issues related to the health problems by eating food of the MacDonald. So today also there is certainly some perception in people's mind about that issues which could affect too much to McDonald. So they need to make more of the positive reputation nationally or internationally, and attempted to provide environmental friendly services.

Mcdonald has gained the global approval by selecting local management. Their main emphasises is to think globally and act local.

Mcdonald should try to modify itself to the constantly changing market. The marketplace is dynamic. They have to make themselves much versatile in order to adapt more easier to the changing scenario.

Task 1 c

For adapting themselves to the changing environment McDonald need to concentrate on optimizing their acceleration, maximize service, minimize the expense of the product and emphasize dependability. They need to focus more geographically and psycho graphically research so as to find out the real customers of the McDonald. As McDonald has brought them globally so they have to give attention to product development in which to stay the market. They must bring in more of the much healthier product with their menu in order to get more of the health-conscious people. To get this done they have to adapt strategies to gain rivals customers giving more good options than others, including discount, launching more packages to their menu, and minimizing down the price of some of the food to make it affordable for the general consumer also.

Task 2a

For the implementation of the strategy part it's important to keep carefully the various social tasks of McDonald in mind. They are simply highly focusing on reducing the weight of the presentation by not influencing the quality and quantity of food. They may have added much healthier food to their menu. McDonald is doing reusable material to maintain the sustainability. They pay a great attention towards happy food toy utilized by the millions of children, never to be made by lead. They also have involved in various charities doing social working.

Task 2b


McDonald's objective is to provide people who have best quick service, good quality food at low cost.


Its perspective is to dominate the global food-service industry in order to become the customer's favorite destination to eat. They want the Global dominance in sense of establishing the performance standard for customer satisfaction and increases share in the market and success through successfully utilizing our convenience, value and execution strategies.

Most of all the greatest advantage is the vision or the fantasy with that your company was began. Sustaining this goal over the years is any companies' best advantage. A brandname usually revolves for this eye-sight sustaining this eye-sight and working in lieu with it is a great SCA. McDonalds was began to help people who had very little time and energy to prepare food or was too active to get into an effective restaurant. The eyesight was to provide quick service, cheap products and quality satisfaction. Keeping this eye-sight in mind the company which slackened a bit because of incompetent franchise holders has been weeded and new and better people are placed in this place as the torch bearers of the company sustaining and living the perspective.

Task 2c

For the execution part of the strategy to begin with there should be a picture of the technique to be used in your brain of each person in the organization. As there's a change in culture need to bring in McDonald so three tips have to keep in mind which is: leadership style, turning strategy into action and performance management. In any company for the implication of any strategy a real leadership is definitely required which bring the effective expansion. Leadership is the main thread to run the entire procedure for the translation of strategy into results. To start the strategy plan there should be a proper chart made comprising all the various activities to be done during the job. During this work several questions need to be answered like what is the objective behind the strategy, what important issues need to be solved through the project, how that'll be done and how much time will it take. Lastly how they will be succeeded. The task of performance management is to align the complete organization and make them work better to attain the best point. They make sure that the strategy is communicated properly, actions the performance at every step, and always make an psychological contracting with the workers to keep them motivated for the task to be achieved.

Task 3a

Project management techniques will be the process used to assemble the information, and get the task done more efficiently and effectively. There are several tools for the implementation of the program like critical avenue circulation analysis diagram, Gantt chart, brain storming method. I am using Gantt chart to be able to design enough time stand for the implementation of the strategy. Gantt graph is extremely useful for communication, budgeting, scheduling of the plan. It will keep all the record of task taking place.

According to this slated plan the strategy will be completed in 2013 by going through all the necessary stages.

Task 3b

For the execution of the strategy it is compulsory for all your members of the business to coordinate. The very best degree of management makes all the relevant decision of supplying work to the staff members and making sure to give them a timeline for the finish of the task. In the organization first of all a board assembly is held to make the proper planning and decide how to achieve it. Then specific goal and targets are set based on the strategy organized. For the beginning of the job budget is made looking at the financial position of the business and all resources are being used required for the conclusion. The supervisor should see that the proper plan is simple, clear, based on real current situation, have sufficient time to settle. A time table is made to note the various roles and responsibilities of the users and making the time line for the dependable person.

Task 3c

Monitoring and handling will be the major section as it guarantees the efforts designed for the plan. It helps in keeping a normal check in the accomplishment of the task. It can help in calculating the corrective action. If something is certainly going in an incorrect way it might help in knowing that and increasing that. for example when there is change in environment so there has to bring a big change in forecasting. There should be a continuing monitoring of performance of the project because that helps in predetermining goals and representing most important aspect of that. So the top management should make sure in doing the sales or market share analysis through the project time frame.


http://www. mcdonalds. ca/en/community/rmcc. aspx

Marketing as strategy, Nirmalya Kumar

Applied proper planning, Leonard David Goodstein, Timothy M. Nolan, J. William Pfeiff

Strategic planning and management, Delmar W. Karger

http://www. mcdonalds. com

Peter, J. P. , & Donnelly, J. H. Jr. (2007). Marketing Management (8th ed. ). NY: McGraw-Hill Irwin

Jolly, A. (1998) " GROWING Cravings" CBI media march pp. 20-1

Fifiled, P. And Gilligan, C, (1996), proper marketing management, butterworth- Heinemann

Vignalli, C. et al. (1999), various, united kingdom food journal, volume level 101no. 5/6

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