LO1) Review and Determine the McDonald's Strategic Seeks and Objectives
McDonald's is one of the leading global fast food service retailers, with about more than 32, 000 restaurants portion more than 60 million people in more than 117 countries each day. McDonald's established fact for a few of its much desired food like; Chicken breast McNuggets, Big Macintosh and Egg McMuffins all around the globe. McDonald's 75% of its chains are held and handled by the franchisees across the world in support of 25% of its chains are managed by the business. In 1967 McDonald opened its first international wall socket in Canada. Most of the McDonald's outlets are free position units, other than that it also has many units located at airports and in other retail areas. Because the beginning of McDonald's first international store in Canada it is well known for providing the exceptional quality, quick service, cleanliness and value to its customers (McDonald's, 2011).
Current Strategic Goals and Objectives of McDonald's
McDonald's has evidently defined its strategic aims and goals; the eyesight of McDonald's is to be the main, quick and the best fast food service provider all around the globe. Other aims of McDonald's are; to keep up and develop the best quality foods in the quick service restaurant market, McDonald's also wishes to lead the quick service restaurant market by appealing to new customers, opening more profitable restaurants, increasing its sales through campaign that enable them to continue their program of extension. The McDonald's goal is to maximize its profits, maintain steadily its competitive gain by constantly creating services to add onto its menu, which will help to attract new customers and fulfill their existing customers that gives customers a reason to go to McDonald's often (McDonalds, 2011).
McDonald's main goal is usually to be the world's best quick service restaurant ever before experience and for this McDonald's provide remarkable service, quality, cleanliness and value to its customers all around the globe. McDonald's also aim to grasp every chance to innovate and lead the industry with respect to the customers, there is also a interest and feel focused on exceed their customers' objectives every time atlanta divorce attorneys restaurant to be able to enhance and protect the McDonald's brand across the world (McDonald's 2011).
An Analysis of the Component Elements of a Strategic Plan
Strategic planning is an essential business activity and it can be used to achieve certain goals and goals. A business sometimes summarizes its goals and objectives into a objective affirmation and a vision statement. Vision is actually a long-term view, which describes what an organization wants to maintain the future and also illustrate how the group wants the globe in which it operates. Eyesight basically concentrates on the future and your choice making requirements to the organization. Whereas mission defines the basic reason for the existence of an organization, the quest also defines about the desired degree of performance needed to be able to achieve the organizational goals and targets (Kotler, 1986).
The Perspective of McDonald's is usually to be the best and the best fast food specialist worldwide (McDonald's, 2011). You can find five different ways of judging the suitability of your organizational eye-sight; the first one is the foresight which tells whether the perspective of an organization is strong enough and genuine so when the eye-sight of McDonald's is examined it is clear that it's strong enough as well as sensible. The next way to guage the vision of a business is the breadth, which tells does the eye-sight of a business totally cover likely changes in the market place and McDonald's has a capability to change with the environment and ensure that atlanta divorce attorneys country of the world its customers must always get quality products, in quick time, in a clean and enjoyable environment with an acceptable price. Yet another way to judge the eyesight is the uniqueness that an group can capitalize on and delight its opponents and the uniqueness in the vision of McDonald's would be that the taste and how big is its burgers are same in each store all around the globe where it offers its products and services. The fourth way to guage the eyesight is through consensus, which explains to that an business should have only one eyesight and the McDonald's has only 1 and clear eye-sight and that is to be the best and the main fast food specialist all around the globe. Last but not least through action-ability a vision can be judge which tells whether the vision is ready for implementation or does the business have primary competences. The vision of McDonald's is ready for the execution and the primary competency of McDonald's offers convenience to its customers when they want to eat junk food at the costs that are competitive and offer cost effective for the customer's money (Hamel and Prahalad, 1994).
The mission assertion of McDonald's is usually to be our customers' favorite place and way to eat. Their main emphasis is on being the best junk food provider and for this their worldwide operations has been aligned around a worldwide strategy called an idea to Win based on the five factors of an exceptional customer experience; People, Product, Price, Place and Advertising (McDonald's, 2011). Similar to the perspective statement the mission assertion of McDonald's can be judge by witnessing how far it fits the certain formulations. First of all McDonald's should have a idea in what business they can be in and should also do a thorough general market trends before launching any new product. Second the mission affirmation should be made from a customer point of view and the mission of McDonald's is plainly defining that they have made their quest assertion while keeping their targeted customers at heart. Thirdly an organization must ensure that its mission statement reflects the main values and values of an organization and the McDonald's mission statement is clearly defining that it offers convenience when people need and want to consume good quality junk food at sensible price in a enjoyable environment. The fourth way to assess the mission declaration of an organization is to define what sustainable competitive advantage a business has over its competitors and one of the McDonald's competitive advantages could it be targets the steadiness of the quality, the utilization of recycleables and the creation of food all around the world. Lastly a business should summarize the proper approach they would use in order to achieve the strategic goals and aims of an organization. McDonald's has design certain proper methods to achieve its seeks and goals like the use of technology, the identified work exercises and preserving the competitive benefits (Lynch, 2006).
Factors Influencing the Strategic Plan
There are certain factors that have an effect on the McDonald's organization a great deal that their role in shaping the strategies cannot be disregarded and these factors are; politics, economical and public factors. The political factors affect the organization in different ways like the international functions of McDonalds are highly inspired by the average person state regulations enforced by each authorities. For example different countries give attention to different regions of matter like; the employee protection, health and the environment. All these elements are in the control of federal and considers when offering a certificate of the restaurant in several countries (Bateman and Scott, 2004).
Different organizations in the fast food industry have their specific concerns involving financial factors. The different branches and the franchises of McDonald's hold the tendency to see difficulties where the overall economy of certain countries struck by the inflation and the changes in the exchange rate. Therefore, in case a franchise manages in a particularly economically weakened country, then these franchises must make certain modifications in their ways of maintain the economies of range (Sustar and Sustar, 2005).
The communal factors also impact the strategies of an organization. McDonald's cater variety of customers with different kinds of personalities in various countries. McDonald's uses different concepts of consumer behavior like product personality and purchasing decisions of consumers to make proper strategies, such that it can attract new customers and gratify their existing customers to be able to achieve its aims and objectives effectively (Bateman and Snell, 2004).
LO2) Measure the Alternative Strategies to meet the desired Future Strategic Position
2. 1) A Range of Strategic Analysis tools to Audit Progress towards strategic Aims and Goals
The marketing audit is very needed for an organization as it provides the backbone proper analysis that facilitates corporate decision making process looked after tells the existing position of a business. The SWOT analysis is one of the auditing tools that are use to analyze the inner as well as the external factors of a business that are favorable and unfavorable to achieve the objectives of a business (Aaker, 1997).
The biggest power of McDonald's is its large market talk about, strong brand image and reputation, strong financial performance and position in the meals industry, friendly environment for customers and the practice of becoming enviromentally friendly has made it easy for McDonald's to get more fame all around the world. The weaknesses of McDonald's are it had to face certain legal action because of using trans-fat and beef engine oil that can adversely affect its brand image, other weaknesses of McDonald's are it includes all of the junk food which is recognized as a very unhealthy food among people which is also sacrificing its customers due to the increase competition (Peter and Donnelly, 2007).
There are certain opportunities as well for McDonald's like; through globalization open more profitable restaurants, it could also make itself more ground breaking by offering deals that appeal to new customers, and other opportunity is that in the last few decades there is a huge growth in the junk food industry has been observed. Like some opportunities there are certain hazards as well that McDonald's encounters like; the health pros accuses McDonald's because of increasing medical issues of diabetes, raised chlesterol heart problems and overweight. Another menace for McDonald's is the opponents' market show of the company both internationally and domestically (Peter and Donnelly, 2007).
2. 2) The Anticipations of major Stockholders and their Affect upon the Organizational Strategy
The major stockholders like; the most notable management, customers and suppliers impact the organizational strategies in various ways. So for this the most notable management should set up a superior tactical decision process throughout the business so the strategies can progress and flourish constantly over time. All of the strategic tastes that boost the value for both the customers and the talk about holders are highly attractive and should increase the development of any organization. For instance, McDonald's rapid drawback of its fifty-five cent hamburger marketing campaign, which separated franchises without creating much new customer devotion or demand, was a costly but necessary decision to avoid further harm to talk about holder value (Hill and Jones, 2009)
The conflict arises when the director face options that involve real trade-offs between your customer and the talk about holder value. Let say if the proposal to increase customers or customer value will certainly reduce the shareholder value, then it ought to be rejected. For instance with increasing recognition about the meals and the value of the well-balanced diet, if McDonald's would start pushing people to choose for low calorie food with high dietary fiber content then people might appreciate McDonald's for supplying this awareness and folks will might change their eating habits and spend less on fast food. This might be beneficial for customers but not for the shareholders and this would gives surge to conflict that could harm the organizational strategy (Hill and Jones, 2009).
Suppliers play a vital role in obtaining the organization's aims and goals and also influence the strategy of an organization and it is believed that suppliers' success can be an integral to an organization's success (Webster, 2002). So an organization should understand that suppliers cannot be likely to support their plan with an organization's plan unless organizations have distributed its strategic strategies with suppliers.
2. 3) Analyze, Interpret and Produce a Structured Evaluation of the Organizational Strategic Position
The issues that McDonald's encounters are; as the food industry is continually growing the rivals are entering into the marketplace with competitive prices not only internationally but domestically also and due to this McDonald's can lose its customers as well as its market talk about. The other difficulty that McDonald's is facing is the increasing awareness about the food and the value of the well-balanced diet nowadays people are deciding on low calorie food and changing their eating habits by consuming less fast food and this is basically because there are rivals that provide the low calorie food at the prices almost the same as McDonald's and because of this McDonald's can lose its customers (Freidman, 1999).
McDonald's can achieve competitive gain by using three universal strategies of cost leadership, differentiation and concentration. The competitive advantages can be achieved by differentiating the products from those of opponents and McDonald's is differentiated by its brand name and brand images of Big Apple pc and Ronald McDonald. Another way to achieve competitive advantages from those of rivals is through low costs and McDonald's provides large entry barriers from economies of level and cost advantages which plainly identify that McDonald's follow the cost leadership strategy. Organization's can perform competitive advantages through concentrating on their products by a wide target, in doing so covering the majority of the marketplace place, or they can focus on a narrow goal in the market. McDonald's target market is wide-ranging almost covering the most of the marketplace and not focusing a specific market (Porter, 1998)
PEST/EL can be an analysis of the external macro environment in which a business operates. The operations of McDonald's in each country are highly affected by the average person country regulations enforced by each administration and every country has its political affects on the organization and its operations. The monetary factors are also different in different countries that influence the organizations strategies like the various franchises of McDonald's in different countries have to handle different problems because of the change in economic environment (McDonald's, 2011).
McDonald's run its businesses in more than 100 countries which signify it will serve variety of consumers with different civilizations and personalities. So McDonald's cannot use only one strategy for many its food chains, the strategy might not be completely different but differs with respect to the interpersonal environment. The technology has greatly helped McDonald's in providing quick service to its customers. The incorporation of technology in the businesses of McDonalds tends to add value with their products. The social duties of McDonald's on the country are influential to the operations of the company and these involve allegations of environmental destruction with such statements like the using non-biodegradable substances for their drinks spectacles and the Styrofoam coffers for the foodstuffs. McDonald's also had to face certain legal activities because of using trans-fat and meat oil which could easily harm the reputation of the McDonald's worldwide (McDonald's, 2011).
LO3) Decide the Strategy and Justify the choice to meet the Required Future Strategic Position
3. 1) Create a Range of Alternative Strategic Options to meet Strategic Seeks and Objectives
The junk food industry is often criticized due to its role in creating numerous health issues like excess weight, cholesterol and diabetes and was thought to be the driving power for the unsafe eating disorders. These times' customers are becoming more alert to the nutritional values and medical benefits of the products they are consuming. So to be able to achieve tactical aims and objectives McDonald's should produce greater modifications in its menu and provide more healthy food like sandwiches and salad and innovative fresh juices for the health conscious people.
There a wide range of competitors in the industry due to rapid expansion of the fast food industry around the globe and these competition are providing almost the similar products and services at almost similar prices. So if McDonald's would like to achieve its strategic goals and targets and would like to attract new customers as well as retain the existing customers then it need to focus more on the strategies that attract more children to their restaurants by offering toys and games that are most popular among children with a happy meal because this might help them in keeping their customers.
McDonald's also needs to see what similar products the other rivals are offering and try to offer something very progressive product that no other competitor is providing or as well as that attract the clients.
McDonald's also needs to start individual McCafe's for teenagers and college going students and the ambience of that caf should echo the different colors of young ones. McDonald's should also expose more variety in the prevailing range of dairy shakes and smoothies and also expose an assortment in coffee and offer impressive high quality and refreshing products at an acceptable price that allures the young people.
3. 2) Determine and Justify the Strategic Option that fits the Revised Strategic Position
Among the four proper options that were given above the first option and that is McDonald's should offer better food like sandwiches and salad and ground breaking fresh juices is the best option for McDonald's to attain the strategic seeks and objectives in the food industry because of the increasing health issues like heart attack, fatness, cholesterol and diabetes. As the consciousness about the nutritional values, health benefits and the benefits associated with low calorie food with high fiber content content has increased among people and due to this people have started changing their eating habits and spend less on processed foods that the fast food chains are providing.
McDonald's need to expose a healthier menu that emphasize the healthy aspect of McDonald's and should also introduce the low calorie variations of most its burgers and make its fries healthier utilizing the right type of olive oil, then do the intense advertising of the new menu variety to be able to handle medical concerns related with its products. This might help McDonald's to achieve its strategic goals and objectives proficiently as well as it would proof that McDonald's gets the capability to change with the environment and the consumers tastes and lastly this might also improve the brand image of the McDonald's in the consumers brain.