Key Success Factors
McDonald’s key success factors are cost efficiency, product development, marketing, and promotions. To ensure McDonald’s remained consistent with these factors, they sold Donatos Pizzeria, a company they owned for the past four and half years, due to the costly operations of running the company. This allowed McDonald’s to address the issues of slumping sales they experienced in the past and focus their attention on their operations. In 2003, McDonald’s introduced a new revitalization plan aimed to help market itself to today’s health conscious consumers and to improve its financial position through discipline. In previous years,
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McDonald’s had been attempting to grow primarily by adding new restaurants. With the limited success of this strategy, the McDonald’s managers appeared they were more interested in expanding the empire than generating shareholder wealth. With the new campaign, McDonald’s has begun to look like the world’s food service industry leader once again. McDonald’s has introduced new products like salads and chicken options that have been well received by the more health conscience consumers. McDonald’s also streamlined and improved techniques its training and operations systems. This resulted in an even more enjoyable customer experience. Finally, McDonald’s has practiced impressive levels of financial discipline lately. They have paid down their own debt, reduced capital expenditures by starting less new restaurants, and reducing other expenses. As a result, McDonald’s was able to put more money in the pockets of its shareholders in the form of dividends. Because of the success of its newly implemented revitalization plan, McDonald’s forecasts a 3% to 5% growth of its total sales and revenues annually. We also expect McDonald’s to benefit from this new plan and experience a steady capitalization