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Mcdonalds AND ITS OWN Strategic Management Commerce Essay

The eyesight and quest of the organization defines the expected position and the fundamental purpose of the business. The goal of this assignment is to comprehend the perspective and objective of the circumstance company and to identify and understand the strategic aims and goals of a business and research its progress to the fulfillment of these aims and goals. Because of this different alternative strategies open to the organization are also considered. To fulfill the requirement of the assignment the organization selected for exploration is McDonalds. McDonalds is the leading junk food restaurant chain of the world which is portion more than 58 million customers on daily basis.

McDonald's Eyesight and Objective Statement

Every organization will need to have a eye-sight and a mission. Vision and objective statements are the short phrases which pieces the whole course of the business. Vision statement supplies the entire picture of the organization's desired future position in one phrase. This affirmation then sets a whole direction of all strategic seeks and goals of the organization. Below is the eye-sight statement of the case company i. e. McDonald's:

"To be the world's best quick service restaurant experience, being the best means providing exceptional quality, service, sanitation, and value, so that people make every customer atlanta divorce attorneys restaurant smile"

Mission declaration clarifies the fundamental purpose of the organization. Off course the purpose is to achieve the vision of the organization, but mission assertion goes in further fine detail and answers the question of the lifetime of the organization. Mission assertion of McDonald's is:

To be the best employer

To deliver functional excellence

Achieving durable profits

Expanding the brand name and extending the strength of McDonald's system through creativity and technology.

Analyzing the eye-sight and mission statement of the case company it is clear that organization's emphasis is mainly to the external and inside customers i. e. consumers and employees. Furthermore, the company is focused on innovate and use the latest technology to earn huge income.

McDonald's Strategic Seeks and Objectives

An aim is a broader assertion which tells what an organization wants to become and the aims are the specific goals or tasks that leads towards the fulfillment of the aim of the organization. It is vital for an organization to set such aims which can be pretty much possible and which is often measured. If this isn't the case the business will put its efforts and resources in that direction which is extremely hard by any means. For effective working and success for a business the aims and aims must be natural and it must also be associated with time frame as though it isn't the situation then there will be confusion within the organization regarding the period to complete the responsibilities and tasks (Fred David, 2006). Furthermore, the seeks should be measureable, as the improvement towards the fulfillment of goals should be easily measured as if this isn't the situation then it might be very difficult for a business to know that if the desired results are achieved or not.

McDonald's key to success worldwide is their priorities, which are also mentioned on the corporate website. The top priority of the leading fast food restaurant string is the customers. According to the McDonald's corporate and business values the reason why of the existence of the business are their customers plus they work only to match the needs and requirements of the clients. As per the company it isn't the matter of sales rather it is the subject of providing quality products along with the best services to the clients in affordable prices. The second priority is their employees or workforce.

The company is convinced that the employees make the dream of the organization become a reality. The employees are their valuable property and it is just due to skills and competencies of their workers which enables the business to attain the collection goals and goals. The company also believes the grade of their business design. According to the corporate values of the business the business enterprise model is set to meet the dynamic customer behavioral changes. The proper aims and goals of McDonalds and talked about below and these shows that what are the top priorities of the business and it gives a hint why the business is so successful all over the world:

To maintain the leadership in junk food restaurant industry

To serve the client with good food in an agreeable and fun environment

Providing the product quality food and value of money to the customer

Providing the shareholder a positive return on the investments

To meet the social and honest responsibility

Strategic Plan and its own Component parts

Strategic plan of any enterprise is an image of the desired position of the organization. Strategic plan provides root way that how the business will achieve the desired place or position in the given industry (Maches, B. 2010). Three major components of proper plan include formulation, execution and analysis of strategy carries that information and plan which gives a direction for the organizational goals (Kim Warren, 2008).

Strategy Formulation

Strategy formulation process starts off with the problem analysis of the organization. Situation analysis is an important part of strategic plan as it gives an overview of the prevailing position of the business. Situation analysis includes the analysis of internal and exterior environment of the business. Different tactical tools can be used to evaluate this situation i. e. SWOT analysis, PEST Research etc. This also includes the analysis of current mission and vision of the organization. Vision statement clarifies that what an organization want to become and on the other palm mission statements shows that what business the organization operates. Mission contains the products and services, its market segments and its employee management insurance plan. The evaluation of exterior factors of the business involves the listing down of finite set of factors which can be a potential menace or opportunities for the organization in the exterior environment. By finite list is intended that not absolutely all the factors are focused. The top priority is directed at those factors which have advanced of impact or form which high returns can be gained. The internal audit is also done in the situation analysis where the internal advantages and weaknesses of the business are stated down (Fred David, 2006).

After the clear understanding of the organization's current situation the true work begins where the strategies are created. The best practice is to entail the employees in this process as the employees from all levels will reveal their views and a better strategic decision will be expected. Here the strategies are developed to capitalize the opportunities available that have been evaluated in the external audit and minimize the threat of the factors. On the other hand the strengths of the organizations require such strategies which further boost them and the weaknesses are tried out to be defeat.

The next step in the strategy formulation stage is arranging the long term objectives. Lasting objectives are those that are associated with the sales and market talk about growth, it could be the growth of assets; it can be attaining any prize from the government body etc. That is a very important phase as the permanent goals and aims show a way to the complete organization. Long lasting objectives are placed after having a through thought of exterior and internal strengths, weaknesses, opportunities and hazards to the organization. The available resources and the expected resources are outlined and based on those resources the long term but possible, measureable and practical objectives are established with proper timelines (Fred David, 2006).

The final level of strategy formulation process is the analysis and collection of appropriate ways of meet the long-term objectives. In this particular the alternative strategies are also identified an evaluated and a contingency planning is also done. For example in case there is any external change which is beyond the change of business such as change in legislations or change in market conditions then that contingency plan can be utilized. The existing strategies of the business are the first point for strategy analysis.

Strategy Implementation

The next step in a tactical plan includes the strategy execution. Developing an effective strategy will not ensures that the strategic plan will be successful. It had been in the old occasions when the proper planning was done only at the amount of stagy formulation stage. Activities of different organizations and further studies unveiled that strategy formulation will not ensure the success of tactical plan. Implementation is another important part of the strategic plan. Inside the implementation phase the process of shifting the duties to the center and lower level of management is developed. As in the strategy formulation level it was pointed out that to require the employees of all levels is important, so if any corporation did this during the strategy formulation them the strategy execution process will be many more easier. It is because the center and lower level staff will have a clearer view of the strategies developed plus they would maintain a better position to use those strategies in real practice (Kim Warren, 2008).

Strategy Evaluation and Control

After the execution of proper plan it is important like all other plans and job to evaluate the progress of this plan. Implementation phase end with the start of evaluation process. This is a continuous process until the strategic goals and objectives aren't found (Fred David, 2006). There are numerous organizations such as McDonalds, who've strategic aims and objectives that shows continuity and a continuous process is required with the for instance one of the proper objectives of the company is to supply the value to the customer. This is an objective which ultimately shows continuity as the fast food chain is directed to provide the customer value with their money so to the strategy evaluation is essential. This process ensures that the integrated strategies are progressing to the achievement of organizational aims and targets or not. In this process the mandatory results or outcomes are weighed against the actual results and if there is almost any difference then with the change in strategies of taking appropriate steps that difference is tried out to be taken away or at least minimized.

Factors impacting on McDonald's Strategic Plan

Several interior and exterior factors can affect the tactical plan of McDonalds. These may include factors such as management's perspective, financial factors, scientific changes, legislative factors or market competition. As mentioned in the proper plan before that the strategies are developed by considering the existing sources of the organization. It also includes the existing technology possessed by the business. If the prevailing system of McDonalds becomes obsolete with the benefits of newer version of the same system then your business need to conform that system to maintain in the market. In this case the strategic plan requires a change (Kim Warren, 2008). Same is the situation with the marketplace condition. If at the time of tactical planning the market conditions are assessed and after implementation the marketplace condition changes and takes a change then your proper plan will also require a change. That is the reason it's advocated that McDonald's strategic plan should be versatile enough that can meet the changing market conditions. Furthermore the strategic programs are also be based upon the perspective of the management of the business. When the management chooses to go with a differentiation strategy due to market need then the existing proper plan will be evolved. Financial aspects cannot be neglected in the proper planning. Every strategy requires money in case the financial resources are not sufficient enough to meet the new strategy then it will require an alteration in the proper plan. However, these constraints can be reduced during the strategy formulation process by intensive research and analysis of the internal and external factors, but still the active market conditions and growing consumer needs can't be predicted.

McDonalds and Strategic Options

If there may be some change in the exterior environment of the business then in response to that the company opts proper option. Moreover, proper option is also chosen by a business to grow and it says that how the company needs to expand and what are the ways through which the completive gain is used by a business over its rivals. By manipulating and taking good thing about the opportunities available for an organization the business can have a positive end result. There are two renowned methods or ways which may be chosen by any corporation to gain a competitive benefit within the other group (Fred David, 2006). These two strategic options are the cost authority strategy and differentiation strategy.

Under cost authority strategy the organization cut down its cost of production or cost of goods sold and therefore increases their income. As the business enterprise word today is highly competitive and inn the fast food restaurant industry the customers have so many choices such as KFC, Pizza Hut etc. that are also providing high quality products. So in such scenario it isn't easy for McDonalds to improve the prices of their products. So, chopping the cost of development and other operational cost would be the best strategy to increase their profit margins. The internal features of McDonalds will require a concentration and must be enhanced to be able to achieve the goals of this strategic option.

Another tactical option available for McDonalds is to offer such products and services which can be unique in mother nature and aren't available for sale. In this way the client will have no other option to get the required service or product. This will keep the client intact with McDonalds and hence the income of the organization will keep on growing. A best example of this is the glaciers cream provided by McDonalds. No other junk food chain provides the best quality snow cream and people are keen on McDonalds Snow Cream which has been a unique product of the junk food chain which draws in millions of customers. Another unique feature of McDonalds is their quality customer services. On this era the customer service has gained utmost importance and McDonalds customer services is assisting those to increase their market show. Even if the restaurant is packed with the customers the client services quality remains the same making the fast food chain number one on earth.

Strategic Option - a Being able to help Hand to attain Strategic Objectives

Strategic options help the organization to achieve the organization strategic aims and objectives. However, a combination of the available proper options is an excellent option for just about any enterprise as this may have a dual positive impact in the organizational performance and income can be increased with a broad margin. Using built-in proper options allows the company a more leverage to consider decision on marketing mix. McDonalds may use either of the strategic option discussed before, but the more appropriate is by using the mixture of both the strategic options. This will help to achieve the strategic objectives of the business which were mentioned earlier in the doc. Utilizing a differentiation strategy, McDonalds can charge the top quality prices against the product features. However, keeping the legislation in mind is also important before charging the prime prices from the clients (Kim Warren, 2008). On the far side of the picture the cost leadership strategy provides the company a far more leverage to reduce their prices of provide discount offers to the clients as the company have more margin because of the increase in profit percentage. McDonalds may offer different discount deals on their core products as they are also provided by their major global competition KFC. So, if the fast food chain is following an integrated strategic option then it can attain competitive edge on either aspect of the court. This will match the first and important proper target of McDonalds i. e. to keep up the market innovator position. As the junk food chain can counter each offer given by its rival and can also attack the rival by offering new products and deals and maintain the market dominance.

Furthermore, using the differentiation strategy the junk food string can make their customer services so supreme that no other rival can duplicate that. Combined with the food quality which has already been very unique can be increased further and services can be launched which are not available in the market and not ever provided by any firm. By suing this differentiation strategy the company can achieve it's another strategic aim i. e. to supply the customer with quality food and service.

Cost command and differentiation strategies will improve the income and the tactical objective to give a positive return on investment of the shareholders and shareholders will be fulfilled.

Concluding this discourse it is suggested to the McDonald's management to continue delivering the product quality product and services and additional reduce their functional cost without diminishing the quality of their products and standard of these services.

McDonald's Stakeholders Analysis

Stakeholders are those systems or parties that have direct or indirect discussion with the business. These systems are affected with the procedures of the business enterprise positively or adversely. The major stakeholder for McDonalds includes their customers, shareholders and their workers.


Customers of McDonalds are the major concentration of fast food chain. Mentioned before in the record that the business's corporate values point out that customer is the king. The strategic aims are also aimed towards the client satisfaction by delivering value to them. Customer services is quite part of the McDonald's proper planning as through quality customer services they could preserve he customers. McDonald's branches and franchises are all over the world and they're huge in number. That is to facilitate the client to supply the quality food with easy access. Furthermore the free home delivery service of the junk food chain demonstrates the organization is focused on produce their products and services at the door step of the clients.


Shareholders are another major stakeholder of the business. Strategic objectives of the business show that the business is focused on deliver go back on investments. The company has adapted cost command and differentiation strategy that have given them a position of market leader and helped to raise the income which is the major matter of the buyers.


The employees will be the key to success for any company. At McDonalds it isn't a different history. The business considers their employees as a secured asset like all successful organizations which is committed to accomplish their employees who in real are the best resources leading into the fulfillment of organizations tactical objectives.

Five Competitive Forces Research of McDonalds

Michael porter provided a framework work which contains the analysis of five different causes effecting the organization (Kim Warren, 2002). Through this analytical tool five different makes affecting McDonalds are evaluated.

Figure 1 Porter Five Causes Model

Threat of new entrants

Fast food industry has gained a significant development in the 21st century. Many fast food chains are functioning in several countries. The major are KFC, Pizza Hut and Subway. However there are numerous local junk food chains offering the same kind of products which these international fast food chains do. However, the product quality and standard is not up to the level of these chains still these chains are able to grasp a handsome amount of market show. The entry in this business is not a difficult task; however, to launch a string at the level of McDonald is very difficult.

Threat of Substitutes

There are several substitutes available against the merchandise of McDonalds, that are also liked by the consumers. So McDonalds also have to consider those substitutes while planning their strategies.

Degree of Rivalry

The competition in the fast food restaurant industry is powerful. Getting the major brands like KFC, PIZZA HUT and Subway, McDonalds need to be up to the tag in terms of products and customer services to maintain the market innovator position.

Bargaining Power of Buyers

Bargaining electric power of buyers in case there is McDonalds is high as the client has so many options so the junk food chains have to keep up their prices very competitive and keep the degree of customer services sufficient.

Bargaining Vitality of Suppliers

Bargaining power of supplier is not saturated in circumstance of McDonalds. Suppliers make an effort to add their titles in the set of the big brands such as McDonalds because of the frequency of the orders.

Pest Analsyis of Mcdonalds

Pestle evaluation is to investigate the external pushes which can affect the organization. Below is the simple examination of McDonald's

Figure 2 Infestation Analysis Framework

Political Forces

Due to the global businesses of the business there are several procedures in different states which make a difference the McDonald's regulations and procedures.

Economic Factors

The global current economic climate can affect the organization in many ways. The change in the fast food industry business can also influence the McDonald's in a good or negative way.

Social Factors

Being operating in many countries throughout the world, McDonald have to recognize the sociable and social factors. For instance in Muslim countries the junk food chain has to assure the community regarding the use of Halal rooster.

Technological Factors

The immediate change in technology will drive the company to conform it in order to endure in the competitive market. Furthermore, the intro of new advertisements Medias gives a more chance to aggressively market the merchandise through different stations.


McDonald's enormous success all over the world is the consequence of their effective eyesight and mission which is leading the business in the right route. Selecting right strategies at the right time allows the business to achieve the organization set seeks and aims. The improvement of the business towards strategic goals and aims is satisfactory. Selecting integrated proper options allows the company to advance more efficiently towards the achievement of strategic aims and objectives.

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