McDonald's Case Study Strategic Management

STRATEGIC
MANAGEMENT
McDonald’s Case Study
Group member:
Panisales, Naomi R.
Chavez, Jolina Mari
Dolatre, Leonabel
Pabia, jenne grace
Dagot, kristel
This study source was downloaded by 100000857821619 from CourseHero.comion 11-27-2022 11:07:29 GMT -06:00
https://www.coursehero.com/file/26050272/case-study-mcdonalddocx/
Table of Contents
Problems 1
Executive Summary 1
I- McDonalds Background 2
II- Overview 1
Time Context 2
III- Vision/Mission 2
Statement of the Problem 3
 General Objectives
 Specific Objectives
IV- Areas of Consideration (SWOT Analysis) 3
V- Alternative Course of action 4
VI- Strategy Formulation 4
VII- Competitors of McDonald’s 5
VIII- Recommendation 5
IX- Action Plan 5
X- Potential Problems 5
XI- Contingency Plans 6
xi
This study source was downloaded by 100000857821619 from CourseHero.com on 11-27-2022 11:07:29 GMT -06:00
Strategic Financial Management
9:00-10:30am
McDonald Case Analysis
I- Problems
The market is quickly evolving and maturing, more competitors gaining
market share and started to change their menu to be healthier. McDonalds is
facing a lot of competitors in the market which demand for healthier and
exotic foods from burger king, Wendy’s. McDonalds must have turned around
strategy in order to gain back market share as well as solving this problem.
II- Executive Summary

 McDonalds corporation is the “centralized international company” which is
the largest chain of fast food restaurant with more than 31,000 restaurant
in 118 countries serving more than 58 million customers each day, and
McDonalds serves worldwide
McDonalds expand its market into foreign countries through the
primary methods, franchising, company owned restaurant, which will help
McDonalds. McDonalds need to face the risk of its change in operation
strategy.
This case study therefore focuses on the ways in which high quality
relationships have been established with bottling franchisees across the
globe to make sure that consumer needs and wants can be met in the
most effective way.
III- McDonalds Background

McDonalds operates in over 118 countries and over 31,000 restaurants
around the globe with more than
1 1.5 million employees and become the
largest fast food service and supplier in the world which serves 58 million
customers each day. McDonalds earn revenue by operating restaurant and
franchising.
IV- Overview
 Vice Chairman and chief Executive Officer
V- Time Context
MCD was launch in 1940 when brothers Dick and Mac McDonalds opened a
restaurant in San, Bernardo, California.
o 1979 MCD introduced Happy Meals
o 1981 MCD opened store in Spain, Denmark, and the Philippines
o 1983 MCD entered its 32nd country
o 1984 Ray Kroc Passed away
o 1987 MCD introduced fresh salads
o 1990 MCD opened a store in Moscow, Russia
o 1992 MCD opened a store in Warsaw, Poland
o 1995 MCD’s news ad was “Have You Had Your Break Today?”
o 1996 www.mcdonalds.com website introduced
o 1997 MCD’s new ads was “Did Somebody Say McDonald’s?”
o 2001 the big in N’Tasty sandwich introduced
o 2003 MCD introduced Premium Salads and “It’s Plan to Win”
strategy
o 2006 MCD introduced snack wraps
VI- Vision
McDonald’s vision is to be the world’s best quick restaurant service
experience. 2
VII- Mission
McDonald’s mission is to be customer’s favorite place and way to eat and
drink by serving best selling favorites such as world famous fries, and Big
Mac.
Organizations focus is mainly toward the external and internal costumers
such as customers and employees. The company is committed to innovate
and use the latest technology to earn more profit.
VIII- Statement of the Problem

-Should McDonald’s change its standardized operations in order to provide a
variety of products and improved service to its customers?
 General Objectives
-To use management theories in recommending the best solution for
McDonald’s current situation.
 Specific Objectives
-To identify the strengths, weaknesses, threats and opportunities of
McDonald’s as caused by the technologies used by the company.
IX- Areas of Consideration (SWOT Analysis)

Strengths-
 Market Leadership-Largest Global food service retailer serving more than
58 million people every day with over 31,000 restaurants in 118 countries.
 Financial Performance & Annual Growth–Increase of 3.1% as compared to
last year.
 General Costumer
 Technology Innovative
Weaknesses-
Increase long term debt and liabilities from 14,111,900 to 15,078,900 in 2008
High employee turnover- increase hiring and training cost of new employees.
Less locus on nitrous food- McDonald’s
3 provides no nutritional information.
Opportunities-
 Expanding new geographic areas
 Introducing new menu items
Conservation
Threats-
 Competitors rising quickly
 Health Issue (obesity)
 Lawsuit activist by around the world
X- Alternative Course of action
1. Do not change anything with the current operation standards of
McDonald’s since, it has proven to be effective through the years.
2. Maintain McDonald’s current operation in fast-food business but
diversify its products and services. The following SWOT analyses of
the technological innovations of McDonald’s show recommended
actions for the company.
XI- Strategy Formulation

-The team concludes that the best solution to the problem is Alternative #2.
 Maintain McDonald’s current operation in fast-food business but diversify
its products and services. The following SWOT analyses of the
technological innovations of McDonald’s show recommended actions for
the company.
XII- Competitors of McDonald’s

As one of the largest fast food chain
4 the global market, McDonald has a lot of
competitors such as:
o Burger King (KBC)
o Yum! Brands (YUM)
o Wendy’s (WEN)
o Starbucks Corporation (SBX)
XIII- Recommendation
 More healthy choice to remove obesity link to McDonald. McDonald
should develop menu choices that are healthy and socially acceptable to
keep their position in the market.
 Understand local taste provide special menus for each country while
offering the basic burger and fries.
XIV- Action Plan

Specific tasks: The managers and their teams must be more careful to
maintain the high quality and unique products and their services.
Time Horizon: There is an estimated time for a plan, but as long as the
company still expands in different places in this industry, the obligation of
McDonalds will always be there to measure plans and their operations.
Resource Allocation: The specific plans available in this activities are the
other resources of the company, the management can use their excess funds
in this activities to accomplish the McDonald’s desired.
XV- Potential Problems
Stronger competition
-Other fast food companies also offers a variety of burgers, chicken

sandwiches, breakfast items and salads that compete directly to with
MCD. McDonalds must always think of a new and better strategy to make
their products appealing to the customers
Weak Demand
5
-This will happen if the economy is bouncing back, and the stock remains
frisky. And the people are spending like crazy on jewelries, watches or
other luxuries.
Such financial hardships affect McDonalds patrons, limiting the company’s

ability to adjust its business to drive growth
Problem with Food Quality
-When fast-food consumers in China have shifted away from their original
curiousity about western fast food, and nowadays hey are puckier and
more focused on health. (they were likely not choose fast food as option
for a healthier food.
XV- Contingency Plans
Contingency Plan 1.
Be prepared- The first major issue that will arise amongst the customers is what is
the potential risk to them from the allegations of employees tampering with their food
orders. With all altered food products, there is a possibility that the customer might
become physically ill.
Contingency Plan 2.
Be available- When potential risks occur, the company must be appealing to the
customers. They should let their customers feel that they are being taking care of.
Caring about the well-being of the customers and offering help and guidance is a good
strategy for the company.
Contingency Plan 3.
Be credible and responsible- McDonald’s know that customers will be worried

about eating their products from the locations in which this crisis occurred. To ease their
worries and focus on the safety of the customers, they must investigate each facility and
properly punish by termination of employment, those alleged employees that did tamper
with the customers food. This will help ease the customers and let them know that
McDonalds is doing its best to prevent any other potential threat similar to the food
tampering crisis.
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STRATEGIC

Chavez, Jolina Mari

Pabia, jenne grace

McDonald Case Analysis

II- Executive Summary

III- McDonalds Background

VIII- Statement of the Problem

IX- Areas of Consideration (SWOT Analysis)

XI- Strategy Formulation

XII- Competitors of McDonald’s

XIV- Action Plan

XV- Potential Problems

-Other fast food companies also offers a variety of burgers, chicken

Such financial hardships affect McDonalds patrons, limiting the company’s

Problem with Food Quality

XV- Contingency Plans

Be credible and responsible- McDonald’s know that customers will be worried

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