Question

Based on your current and previous knowledge regarding McDonalds Corp and along with various research. (Relate to how McDonalds grew as a company since the 1940s and to current time)

1. Provide strategic options for Mcdonalds to consider based on thier weaknesses and problems. Justify your reasonings.

Note: Im reading a case study on how the company progressed and struggled over time.

Answer 1

The concept of Mcdonalds chain of restaurant emerges from the union of two persons of American origin - Maurice Mac and Richard Dick Macdonald who shifted to california and started their restaurant business which came into reality on 1938.

Presently Mcdonald can be seen in almost 120 countries of the world. They have almost 32,000 restaurants They became successful because of the global approach which they have adopted. It was ranked as the best restaurant corporation in 2007.

They have approached some strategies to became one of the popular brand which imclude:

1.consistency in food: It has became the string Global brand because of the consistency in food. Whether you eat in New York or Moscow, taste will be the same.

However they have maintained the cultural diversity based on the location of restaurant.

2.Diversified income :It has different sakes and earnings in different places which tend to offset one another. Diversification helps in relatively stable cash and finally results in profitability of the company.

But it has some weakness as well:

1 Negative publicity :it is known of unhealthy foods having more of fat, salt and sugar There was a case of Morgan spurlock whose health was deteriorated duecto continuously eating McDonald's food fir 30 days.

2. High employment turnover :There is mainly low skilled job with low payment. Due to this employers work for short period and performance is not up to the mark. Thus training cost of the company is high.

But there are some strategic moves which has been followed to remain in the business profitably.

1.New CEO has decided to provide premium products in some locations.

2.It introduced Artisan chicken and sirloin burgers to its menu in US.

3.It is trying to improve and strengthen its position in beverage industry.

4.As it was criticised for unhealthy foods thus it include fruit smoothies which is a healthier product for health conscious consumers.

5.It has planned to expand its market share in underdeveloped countries due to saturated market in North America and Europe.

Still it is facing threat from many competitors but following these strategies it is trying to maintain its position and also try to improve its negative popularity of unhealthy food.