Question

By investigating Mcdonald's

1. What is the core business? And where can that organization be better than every other competitor?

2. What are the biggest threats facing the organization over the next three to five years? And how would you get prepared for this?

3. Which strategic path is one where we can execute on? Does the organization have the core capabilities of delivering on this plan? If not, what are the areas you think that it needs to develop?

Answer 1

Sol:

• McDonald's is an American fast food company. McDonald's founded in 1940 operated by Richard and Maurice McDonald in San Bernardino, California, United States. McDonald's had its headquarter in Oak Brook, Illinois, but moved its global headquarter to Chicago in June 2018.McDonald's is a largest restaurant in the world by revenue, serving over 69 million customers daily in over 100 countries.
• McDonald's is best for its hamburgers, cheese burgers and french fries and they feature chicken products, breakfast items, soft drinks, milkshakes and desserts. According to reports published in 2018, McDonald's is the world's second largest private employer with 1.7 million employees.

Why the McDonald's is better than its competitors

Price

• Assembly line machines brought down the labour cost also. As the machines are delivered quickly, the sales increased and further helped McDonald’s to sell very quality hamburger cheaper than other competitors.

Quality in Product

• Machines handled most of the tasks, McDonald brothers were free to work on the quality of the product in every step. That further increase the quality of hamburger, fries and beverages. They saw that competitors are mixing small quantities of other ingredient in the beef patties to reduce cost which was affect the quality of their product.

Cleanliness

• McDonald brothers noticed that one of the common problem of their customers was food hygiene and safety. They felt that it very important that none of the customer touch points should trigger this emotions They made efforts to keep high standards of hygiene in and around the restaurant.
• They made sure that their employee’s attire also would reflect cleanliness. They motivated employees to adhere the hygienic standards all the time. The customers also were allowed to view the kitchen and supporting areas where the food is prepared.

Biggest threats facing by the organization over the next three to five years

• Government considering regulation targeting fast food.
• Risky Investments on Technology Initiative
• Cultural Threat While operating in Various Countries
• New age fast food trend
• Commodity price increases will increase costs while a weak economy limits the ability to pass the price hike through to the consumers.
• McDonald's faces competition from strong peers such as 11 O'Clock Stock pick Yum Brands and Burger King.

McDonald’s promised to invest in digital technology although it will not necessarily be in acquisitions. Changes to the customer experience will be tangible but incremental although McDonald’s is testing even more dramatic steps like robotic fryers. McDonald’s is investing to ensure it is one step ahead of pace of change to make consumer live easier and become the fastest fast food for the digital age.

Strategies

Value for Money

McDonald’s aims to lure the price sensitive customers with its value for money such as the Buffalo Ranch McChicken and the Jalapeño McDouble. The company initially target high priced value items in their menu but has recently shifted to focus towards lower price product.

Customer Service

McDonald’s always focused on its service to provide customers with high quality food served quickly and in clean surrounding. Speed of service is most crucial aspects of fast food. During peak traffic times customers are expect to receive their orders within one minute after placing them. During slower times, customers are willing to wait only two or three minutes for their orders before they start to create negative opinions about the company.

Brand Marketing

McDonald’s has been affected by the growing health concerns of consumers all over the world. The products of McDonald’s labeled as junk food and declared unfit for daily consumption. McDonald’s aims to increase the trust of its customers in the food quality and brand of McDonald’s products as healthy food options. To do this, it has started offering fruit salads, iced tea, sugar free drink , fruit juices and other options that are either low in calories or low in carbohydrates.

Digital Marketing

McDonald’s shifted its focus on digital marketing strategy to engage and target the young online audience through social media such as Facebook and Twitter. More young people are visiting McDonald's than before.

Listed Areas should be consider for betterment

1. Customer Service

2. Lower Prices

3. Simplified Menu