Name: Anthony Rehban

Course: Strategic management

Supervisor: Dr. Luciana Chaanine

Subject: The Strategy Diamond model of Hambrick and Fredrickson of

“McDonald’s”

A. ARENAS: where will we active?

1. Product categories

McDonald's product categories cover a wide range of flavors and preferences, offering
something for every craving and occasion.

First of all, iconic McDonald's classics include juicy burgers and flavorful cheeseburgers, as
well as classic sandwiches like the Big Mac and McChicken. These options are long-time
favorites for many customers and represent the essence of the McDonald's experience.

Then, McDonald's also offers lighter, fresher choices for those looking for healthier options.
From fresh salads with a variety of toppings to grilled chicken and vegetable wraps,
McDonald's offers balanced options for those who want to make more nutritious choices.

For breakfast lovers, McDonald's offers a range of morning delights including McMuffin
sandwiches, bacon croissants and egg and cheese wraps. These options are ideal for those
who want to start their day off right with a quick and satisfying meal.

Finally, McDonald's also offers delicious desserts to satisfy your sweet tooth. Classics like
Fruit and Nut Sundaes, Warm Cookies and the famous McFlurrys with your choice of
toppings provide a sweet touch at the end of every meal.

2. Channels: The most prominent place McDonald’s products can be found are at its
restaurants. Other places where the company uses to sell its products are:

 Kiosks
 Postmates website and app
 McDonald’s mobile app

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 3. Market segments: It is important to make a marketing plan because it is important
to understand the company's target clients for better communication and
marketing. It's easier to communicate with a consumer base after you've figured
out who they are. This turns into the most successful advertising to the consumer
base imaginable. McDonald's divided their items into categories based on
psychographic, behavioral, and demographic factors. Children, learners, families,
and businessmen are all targets for their products. McDonald's targets these
market sectors because of their enormous size, as well as the projected growth
rates. These categories are known for having extremely high-profit margins.

4. Geographic areas: McDonald's is a global presence, with restaurants in thousands

of cities around the world. The geographic areas where McDonald's operates are
vast, covering virtually every continent. In addition to these main areas,
McDonald's also has a presence in many other regions around the world, covering
a large part of the planet. This global expansion is a testament to the popularity
and ubiquity of the McDonald's brand, which continues to grow and thrive in new
markets around the world.
5. Core technologies: McDonald's core technology is based on a sophisticated IT
infrastructure that supports its large-scale operations around the world. At the
heart of this infrastructure is the point-of-sale (POS) system, which enables the
efficient management of orders, transactions and operations in each restaurant.
McDonald's POS systems are interconnected via a secure computer network,
allowing real-time communication between restaurants, distribution centers and
the company's headquarters. This ensures efficient coordination of operations and
complete visibility into the performance of each restaurant.
6. Value creation stages

The first step in creating value lies in the constant search for innovation. McDonald's invests
in research and development to create attractive new products and meet changing consumer
needs. Whether through collaborations with influential brands, launching seasonal products
or introducing healthier choices, McDonald's seeks to surprise and delight its customers with
new and exciting options.

Once the products are developed, the second step is to ensure consistent quality and a
consistent experience in every McDonald's restaurant around the world. This is achieved

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through strict quality control standards, well-defined operational processes and extensive
staff training to maintain the brand's high standards.

The third stage of value creation focuses on accessibility and convenience for customers.
McDonald's is investing in innovative technologies such as self-ordering kiosks, mobile
ordering and payment apps, and delivery options to provide customers with a fast, convenient
and personalized ordering experience.

Finally, the last step of value creation lies in customer satisfaction and loyalty. McDonald's
strives to exceed customer expectations with every interaction, providing friendly service,
delicious food and a welcoming environment in every restaurant. Loyalty programs such as
promotional offers and rewards programs aim to strengthen ties with customers and
encourage their regular return.

B. Vehicles: How will we get there?

1. Internal development: At the heart of McDonald's internal development is an
unwavering commitment to innovation. The company is at the forefront of
integrating cutting-edge technologies into its operations, whether through process
automation, digital order management systems or mobile app-based loyalty
programs. This innovative approach aims to optimize operational efficiency while
providing a seamless and personalized customer experience.
2. Joint ventures: are a key strategy for McDonald's in its quest for growth and
expansion in international markets. These strategic partnerships allow McDonald's
to leverage local skills and resources while benefiting from its own brand and
operational system expertise. By partnering with local businesses or regional
investors, McDonald's can accelerate its expansion into new markets where it may
be difficult to enter alone due to cultural, regulatory or logistical barriers. Joint
ventures also provide a way for McDonald's to share the risks and initial
investments associated with opening new restaurants in unfamiliar regions.
3. Strategic alliances: play a vital role in McDonald's growth and development
strategy, enabling it to strengthen its market position and explore new business
opportunities. These alliances materialize through a variety of partnerships with
brands, companies and organizations that share common and complementary
objectives. One of the most common forms of strategic alliances for McDonald's

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 is working with other companies in cross-promotions or marketing partnerships.
These alliances allow McDonald's to expand its reach and attract new customers
by partnering with popular or influential brands. For example, joint promotions
with movies, sporting events or food brands can generate media buzz and boost
sales for McDonald's.
C. Differentiators: How will we win?
1. Image: McDonald's image is marked by its iconic logo, the famous golden
arches that often shine like a welcoming beacon for weary travelers on roads
around the world. These arches symbolize not only quick and easy access to
food, but also a cultural landmark of sorts, a place where families gather,
friends meet, and communities connect.
2. Customization: Customization at McDonald's goes way beyond just choosing
your favorite toppings on your burger. It’s a tailor-made experience, designed
to meet the unique tastes of each guest. Through self-ordering kiosks and
mobile apps, McDonald's offers customers the ability to customize their meal
precisely and conveniently. Whether you prefer a burger without onions, a
salad with specific ingredients, or a coffee with an extra splash of syrup,
McDonald's lets you create your ideal meal, exactly the way you want it.
3. Price: Price at McDonald's is synonymous with affordability and value. With a
wide range of affordable options, McDonald's strives to make its delicious
products accessible to everyone, regardless of budget. Pricing at McDonald's
reflects its commitment to providing a high-quality fast food experience at a
price accessible to everyone. Whether you're a student on a budget, a family
on the go, or just looking for a quick and tasty meal, McDonald's has
something to offer at a price that suits everyone.
4. Styling: McDonald's styling is a distinctive blend of modernity, friendliness
and consistency that is found in every restaurant around the world. With its
iconic logo, bright colors and recognizable design, McDonald's creates a
welcoming and familiar environment for its customers. McDonald's styling is
an integral part of its distinctive brand identity. By combining modern design,
welcoming colors and visual consistency across all its outlets, McDonald's
creates a comfortable and familiar environment where customers feel welcome
and comfortable.

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 5. Reliability: McDonald's reliability is an essential characteristic of its
commitment to its customers. Through decades of experience, McDonald's has
built a reputation for consistency and quality in its products, services and
operations. McDonald's is committed to providing reliable and efficient
service to our customers. Clear operational standards, extensive staff training
and well-established processes ensure that every visit to McDonald's is a
positive, worry-free experience for customers. Whether it's a drive-thru order,
a family meal or a quick lunch stop, customers can count on McDonald's for
fast, friendly and reliable service.

D. Staging: What will be our speed and sequence of moves

1. Speed of expansion: The key to this rapid expansion lies in the company's
strategic vision and ability to constantly innovate to meet changing consumer
needs. McDonald's has adopted a model of aggressive expansion, opening new
restaurants at a breakneck pace in key markets around the world. This geographic
expansion strategy has allowed it to become a ubiquitous presence in more than
100 countries and territories.
2. Interval between events: The interval between events at McDonald's is often
remarkably short, reflecting a business that is constantly in motion. Whether it is
the launch of a new product, the opening of a new restaurant or the introduction
of a technological innovation, McDonald's maintains a rapid pace to stay in step
with the expectations of its customers and market developments.
E. Economic logic: How will returns be obtained?
1. Lowest costs through scale advantages: One of McDonald's key advantages of
scale is its sourcing capabilities. By purchasing raw materials in massive
quantities, the company can negotiate lower prices with its suppliers and reduce
the unit costs of key ingredients in its products. This efficiency translates into
substantial savings that can be passed on to customers in price, while maintaining
business profitability. Additionally, standardizing processes and operations across
all McDonald's restaurants helps maximize efficiency and reduce labor costs.
Well-defined procedures, standardized equipment and extensive staff training help

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 minimize errors, speed up service and maximize productivity, resulting in lower
labor costs.
2. Premium prices due to proprietary product features: In the fast-paced world of fast
food, McDonald's stands out with its iconic products and exclusive features that
captivate the taste buds of consumers around the world. However, this distinction
sometimes comes with a hefty price tag.
McDonald's has created a powerful brand with unique items like the Big Mac,
crispy fries and the famous Happy Meals. These products, often accompanied by
ingenious promotions and a strong marketing presence, have acquired symbolic
value for many customers.