...McDonald's Marketing Strategy McDonald’s is the world’s largest fast-food restaurant chain. It has more than 30,000 restaurants in over 100 countries. Over one billion more customers were served in 2007 than in 2006. Although net income was down by $1.1 billion in 2007, McDonald’s sales were up 6.8%, and revenue was a record high of $23 billion. “The unique business relationship among the company, its franchisees and suppliers (collectively referred to as the System) has been key to McDonald’s success over the years. The business model enables McDonald’s to play an integral role in the communities we serve and consistently deliver relevant restaurant experiences to customers.” (McDonald's, 2008, 25). McDonald’s overall strategic plan is called Plan to Win. Their focus is not so much on being the biggest fast-food restaurant chain, rather it is more focused on being the best fast-food restaurant chain. McDonald’s “strategic alignment behind this plan has created better McDonald’s experiences through the execution of multiple initiatives surrounding the five factors of exceptional customer experiences – people, products, place, price and promotion” (McDonald's, 2008, 25). McDonald’s also incorporates geographical strategic plans. In the U.S., McDonald’s strategic plan continues to focus on breakfast, chicken, beverages and convenience. These are the core areas in the United States. McDonald’s has launched the Southern Style Chicken Biscuit for breakfast and the Southern Style...
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...McDonald's Marketing Strategy McDonald’s is the world’s largest fast-food restaurant chain. It has more than 30,000 restaurants in over 100 countries. Over one billion more customers were served in 2007 than in 2006. Although net income was down by $1.1 billion in 2007, McDonald’s sales were up 6.8%, and revenue was a record high of $23 billion. “The unique business relationship among the company, its franchisees and suppliers (collectively referred to as the System) has been key to McDonald’s success over the years. The business model enables McDonald’s to play an integral role in the communities we serve and consistently deliver relevant restaurant experiences to customers.” (McDonald's, 2008, 25). McDonald’s overall strategic plan is called Plan to Win. Their focus is not so much on being the biggest fast-food restaurant chain, rather it is more focused on being the best fast-food restaurant chain. McDonald’s “strategic alignment behind this plan has created better McDonald’s experiences through the execution of multiple initiatives surrounding the five factors of exceptional customer experiences – people, products, place, price and promotion” (McDonald's, 2008, 25). McDonald’s also incorporates geographical strategic plans. In the U.S., McDonald’s strategic plan continues to focus on breakfast, chicken, beverages and convenience. These are the core areas in the United States. McDonald’s has launched the Southern Style Chicken Biscuit for breakfast and the Southern Style...
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...GRAFTON COLLEGE OF MANAGEMENT SCIENCE Unit Number: Unit 34: Operations Management in BusinessAssessor/Tutor : Nicholas Kelly | Registration Number : GCD 3389Learners Name: Kondwani MandeInternal Verifier (s) : Tracey Gallagher | | | Contents OPERATION MANAGEMENT IN LARGE BUSINESS 3 McDonald’s 3 Business Model 3 Mission Statement 4 Vision 4 SWOT Analysis 4 Learning Outcome 1: Understand the nature and the importance of Operations Management 8 1.1 The importance of operational management 8 Examples of operations management in McDonald’s 9 1.2 Assess the operations management in terms of production of goods and services safety, on time, low cost, quality and within the law 11 Production of goods and services safely 11 Production of goods and services on time 12 Low cost 12 Quality and within the law 13 1.3 Significance of links between operation management and strategic planning 14 1.4 Operations management system diagram 17 2.1 The impact of “Three E’s” (Economy, Efficiency and Effectiveness) make on operations management 18 Economy 18 Efficiency 18 Effectiveness 19 2.2 Identify any measure adopted for cost minimization and quality maximization 19 Measures for cost minimization and quality maximization 21 2.3 Evaluation of the significance of the five performance objectives 22 Learning Outcome 3: Understand how to organise a typical production process 25 3.1 How linear programming...
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...McDonald How would you define the industry to be analysed? Is the industry global? Is the organisation mentioned Australian or overseas base? What are the key product and services segments in the industry that are mentioned in the article? Are you able to identify the stage of the industry life-cycle from the facts in article? McDonald’s Corporation operates in fast food industry with a large chain of restaurants in various countries. Unlike other restaurants, McDonald’s serves fast foods including hamburgers, soft drinks, desserts, milkshakes and French fries. McDonald’s was formed by two brothers: Mac and Dick McDonalds in California. The company experienced a fast growth, expanding to all the states in the United States before moving out to other countries. Today, McDonald’s is present in more than one hundred and twenty countries, serving the world market in fast foods. This article does not give much detail information about key product and service segments in the industry. Generally speaking, the key product in Fast food industry would be Hamburger, Fries and soft drink. And the services segment is general public. The stage of the industry Industry – Fast Food industry (Globally, based in USA) 1. Key product – 2. identifying the key service segment- Geographic – US, Europe, APMEA and Other countries (119 countries) Product segment- Hamburger, 3. What type of Organisation is McDonald McDonald is the world leading global food service retailer...
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...Strategic Planning and HR Planning – Linking the Process at McDonald’s Strategic Planning and HR Planning – Linking the Process at McDonald’s Human resources and the organization’s strategic plan need to be in sync when it comes to integrating new technologies. We are talking about a new look for McDonald’s. You as new employees will be coming into the new world of McDonald’s. For the organization to grow, it needs to have the transformation take place by uniting the management and the employees as a team or more importantly – as partners. You as new employees need to want to become part of the family that is McDonald’s. As the extensive renovations happen and the expansion of employees progresses, working together will make the entire team productive and impact that will have on consumers coming in to enjoy their time and meals with us will be extreme. The changes that are being strategically planned include televisions, an electric fireplace, cozy chairs, lots of wood and stone, along with speeding up the drive-through, offering salads, and a lot more equipment to speed up service (Kelly, 2011). What this means is training for you as new employees to utilize the new technology. Hiring new employees requires human resources to do background checks, orientation, training, set up benefits such as pension, insurance, time-off, severance, and any packaged company benefit entitlements. All of these cost the company time and money. In addition to getting...
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...| McDonald’s: Polishing the Golden Arches Case Analysis by Amber Zirnhelt © 2006 Amber ZirnheltOriginally Submitted for Management 680: Corporate Strategic Planning and Policy Professor Frank ShipperPOLICY AND FUNCTIONAL STRATEGIES McDonald’s has been an industry leader within the fast food industry for years. In the introductory phase of their business operations they focused on following a generic low cost strategy consisting of offering consumers low priced food products in order to, “make eating out on a regular basis affordable for families…” (Marino 627). Faced with changing consumer trends and competitors pursuing aggressive competitive strategies focused on product differentiation and quality; McDonald’s then CEO, Jim Cantalupo, determined in order to address the companies recent profit losses and challenges a different stand on generic strategy must be taken. Through the implementation of McDonald’s Plan to Win strategy, Cantalupo shifted the company’s generic strategy to differentiation by focusing on marketing to turnaround the negative publicity recently experienced through offering customers a better overall fast food experience as compared to their competitors. McDonald’s financial strategy focused on decreasing capital expenditures by 40% while using their cash from 2003 operations to pay off debt and return cash to stockholders. These financial strategies have allowed the company to implement the Plan to Win strategy while also improving...
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...ABOUT THE COMPANY: The McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries across 35,000 outlets.Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald; in 1948 they reorganized their business as a hamburger stand using production line principles. Businessman Ray Kroc joined the company as a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth.A McDonald's restaurant is operated by either a franchisee, an affiliate, or the corporation itself. McDonald's Corporation revenues come from the rent, royalties, and fees paid by the franchisees, as well as sales in company-operated restaurants. In 2012, McDonald's Corporation had annual revenues of $27.5 billion, and profits of $5.5 billion.McDonald's primarily sells hamburgers, cheeseburgers, chicken, french fries, breakfast items, soft drinks, milkshakes, and desserts. In response to changing consumer tastes, the company has expanded its menu to include salads, fish, wraps, smoothies, fruit, and seasoned fries. STRATEGIES McDonald’s utilized an intense, rapid expansion into foreign countries through three primary methods, franchising, company owned restaurants, and joint ventures. With the majority of international restaurants stemming from franchising agreements, McDonald’s management relied on this...
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...Q 4.2 Identify and evaluate resource requirements you will need to implement a new strategy within your chosen organisation. Definition of resources This means that in business anything everything that can help the business to operate is called resources. The use of human capital, natural resources, tangible resources like property or the machines that produce the product. And the intangible resources are the brand image and the understanding of the business, financial resources and anything else that can make the business profit is called business resources. All business resources have a value. Importance In business it is an asset to have a good manager and the use of the business resources to make a business successful. When a business makes use of all the resources that are available to them and work at a high level it generates more profit than the business who do not use. All business has a value and this is determined by the quality and the quantity of the resources. Human capital Human capital in business is an important resource, the skills and the abilities and the knowledge of the workforce. Staff are capable of turning raw material into products that are valuable, they use the knowledge and the skills to so. Controlled on a daily basis the routine and the operations of the business whether the staff are paid by the hour or commission based this includes the decisions of the managers work and customer services. The company will get its money’s...
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...McDonald’s (in 2013): How to Win Again By MGT 4800: Strategic Management March 27, 2016 Table of Contents Analysis: Focus on External and/or Internal Environments 3 External Environment Trends 3 Position in Relation to Competition 3 Formulation: Focus on Business, Corporate, and/or Global Strategy 4 Business Level Strategy 4 International Strategy 5 Implementation: Focus on Recommendations and How to Execute Them 5 Organizational Structure 5 What Role Does Thompson Need to Play? 6 References 7 Analysis: Focus on External and/or Internal Environments External Environment Trends There are several trends that could have a negative impact on the ability that McDonald’s has to sustain their competitive advantage. The first is that consumer spending habits have changed due to the economic recession. People have less discretionary funds, which inevitably leads to more careful consideration of what they buy. In addition, people are eating out less due to the 8% unemployment rate as well as the 15% underemployed rate (Rothaermel, 2015, p. 534). The second trend is rising health concerns. With consumer preferences switching from beef over to other lean meats, the gluten-free movement, and the Patient Protection and Affordable Care Act which stipulates that all nutritional information must be displayed on the food menus; it is difficult for a fast food restaurant to continue to grow without making changes (Rothaermel, 2015, p. 534). Finally, the increasing supply...
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...identity potential ethical issues management may face. The executive management team has asked me to submit a report of my findings. In the global competitiveness market the McDonald’s in China as one of the most renowned western style fast food trademarks on the continent of China. Previous studies have shown that its performance of their environmental analysis, and organization in terms of both Internal and external environments with the help of Michal Porter’s “five forces of competitive position.” A model of its internal analysis in regards to the organization’s core resources and competences equally well as the current strategic choices adopted by the company in the Chinese market sector. But in terms of its strategic capabilities, I have identified six general strategic capabilities which includes production, resources, revenue, design, delivery and shareholder value Seeing the company’s business objective in the Chinese market means that the expansion of its business scale and coverage are in a fast pace setting. I will then focus on the strategic preparation and strategic operation as well as the assessment of McDonald’s China’s strategic planning processes while providing the fast food chain with some recommendations in improving the effectiveness of its strategic planning processes (Porter, 1985). McDonald’s assessable...
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...2: “Customers Lead McDonald’s to Mobile Success” Amanda Drapkin BUS316A September 23, 2013 McDonald’s has had a goal to make their restaurants more convenient, and by doing so, have created a mobile application. The reason for the launch of the mobile application is to accelerate mobile sales utilizing a geographical based, or location, service. McDonald’s took the approach to introduce a mobile optimized website, as well as an application that is suitable for the iPhone and Android. Additionally, this approach is aimed at providing customers with tailored, mobile campaigns that will fit their needs or desires (Customers Lead McDonald’s to Mobile Success). While their goals and approach has exhibited a fervent attitude in regards to utilizing this launch as means for expansion, the results proved this to be a wise decision for McDonald’s to incorporate. After launching the application and website, McDonald’s experienced an influx of customers, reaching 1.2 million visitors on their website and it has also acquired 240,000 downloads of their mobile application (Customers Lead McDonald’s to Mobile Success). This demonstrates how it is successful for McDonald’s, already, and the results show that the application is likely to expand even further, especially with their future plans in mind. McDonald’s has definitely achieved their initial goal, however, the future will determine whether the approach was employed in the correct manner or not. McDonald’s has definitely accomplished...
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...Phoenix, Arizona and created the well-known golden arches of McDonalds. Fox had huge success with the store and the brothers were reluctant at first to begin a national franchise system, but soon realized that too many copycats were creeping up and they needed an advantage and a head start. Ray Croc joined the team as the exclusive franchise agent in the United States. Some of the problems and challenges facing the company is the increase in competition, poor management, bad marketing, and lack of response to the changes in the needs of franchises and customers. This resulted in the strategic issues that needed to be implemented to continue growing success for the company. Going global is critical in the expansion of McDonalds. Over the past couple of decades, the major chains have also begun to expand into the global marketplace and have opened franchises up around the world. McDonald’s currently operates in...
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...(2014, October 24th). McDonald’s Is Making 4 Changes To Get You To Eat There Again. Retrieved from http://www.businessinsider.com/mcdonalds-us-strategy-for-2015-2014-10 3. Ovidijuis Jurevicius (2013, February 16th). SWOT analysis of McDonalds. Retrieved from http://www.strategicmanagementinsight.com/swot-analyses/mcdonalds-swot-analysis.html 4. Harsh Narula. ( 2014, July 29th). McDonald’s Supply Chain. Retrieved from http://www.slideshare.net/harshnarula/mcdonalds-supply-chain-37455744 5. Dan Moskowitz (2014, March 22rd). The Motley Fool: McDonald's new menu item hints at new strategy Retrieved from http://www.usatoday.com/story/money/business/2014/03/21/mcdonalds-new-menu-item/6705499/ 6. Keith Nunes (2014, October 22nd). McDonald’s to focus on local, customization in 2015. Retrieved from http://www.foodbusinessnews.net/articles/news_home/Business_News 7. Adam Jones (2014, June 18th). Must-know: A company overview of McDonald’s. Retrieved from http://marketrealist.com/2014/07/must-know-company-overview-mcdonalds/ 8. Don’t just talk; register. (n.d). A McDonald’s Restaurants case study. Retrieved from http://businesscasestudies.co.uk/mcdonalds-restaurants/the-marketing-process/introduction.html#axzz3TmfHSNfl Don’t just talk; register. (n.d). Marketing Strategy of McDonalds. Retrieved from http://sales-management-slides.com/marketing-strategy-of-mcdonalds/ 9. Ana Pomposo Carreras. (2014, February 24th). What is the Secret to McDonald’s Global Branding Success...
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...Teaching Note: Case 14 – McDonald’s Case Objectives 1. To investigate the key external environmental issues that can affect a firm’s strategy. 2. To examine how a reevaluation of strategy involves assessment of internal activities and resources. 3. To discuss the decisions and actions that a firm has to undertake to sustain a competitive advantage, especially when pursuing growth. See the table below to determine where to use this case: |Chapter Use |Key Concepts |Additional Readings or Exercises | |1: Strategy Concept |Strategic management; vision, mission, strategic |Visit McDonald’s website to evaluate its mission.| | |objectives |See an embedded video of a 1967 McDonald’s TV | | | |commercial. | |2: External Environment |External environmental forces; Porter’s five forces |Visit investor commentary on MCD, view embedded | | |model |video about current coffee strategy; read about | | | |healthy foods controversy, watch video re | | | ...
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...SBL SCHOOL OF BUSINESS AND LAW MANAGING HUMAN CAPITAL Module Tutor: Dr. Rajendra Kumar Student: Iryna Viter Student Ref: 0188SBMA1109 Course: MBA1 D, APR 10 TABLE OF CONTENTS: I. INTRODUCTION------------------------------------------------------------3 II. HUMAN RESOURCE MANAGEMENT--------------------------------4 III. STRATEGIC HUMAN RESOURCE MANAGEMENT --------------6 IV. HUMAN RESOURCES PLANNING-------------------------------------8 V. JOB ANALYSIS--------------------------------------------------------------9 VI. JOD DESIGN/DESCRIPTION--------------------------------------------10 VII. RECRUITMENT/SELECTION-------------------------------------------11 VIII. TRAINING AND CAREER DEVELOPMENT------------------------14 IX. PERFORMANCE APPRAISAL------------------------------------------18 X. REMUNERATION---------------------------------------------------------19 XI. MOTIVATION--------------------------------------------------------------21 XII. ROOM FOR IMPROVEMENT-------------------------------------------24 XIII. RECOMMENDATIONS---------------------------------------------------25 XIV. CONCLUSIONS-------------------------------------------------------------25 XV. REFERENCES---------------------------------------------------------------27 XVI. BIBLIOGRAPHY-----------------------------------------------------------28 I. Introduction In today’s tough competitive market many companies are faced...
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