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  • Essay / Strategic Management of McDonald's - 1147

    PROBLEM IDENTIFICATIONThe main problem in the McDonald's case, McDonald's polishing the golden arches, is how to classify the McDonald's strategy through Plan to Win into one of the five generic competitive strategies. Before solving this main problem, we need to determine the main economic and business characteristics, five forces analysis, as well as the driving forces of the fast food industry. After that, we identify strengths, weaknesses, opportunities and threats using SWOT analysis. Finally, we classify McDonald's strategy as one of five generic competitive strategies. ANALYSIS The Key Economic and Business Characteristics of the Fast Food Industry In 2003, sales in the U.S. consumer foodservice market totaled approximately $408 billion. For the sandwich segment, the 30 largest sandwich chains had U.S. system-wide sales of approximately $64 billion. Future growth in the sandwich segment is only expected to be around 2 percent per year for the foreseeable future. McDonald's and Burger King were the first and most aggressive hamburger chains to begin expanding internationally. The products of the various sandwich chains in the United States were highly differentiated and continually followed constantly changing trends. The Five Forces Analysis and Driving Forces of the Fast Food Industry Using Porter's Five Forces Competition Model, we identify the rivalry. between fast food chains and shoppers, as the powerful forces driving competition in the fast food industry become increasingly tight. Generally speaking, McDonald's and its major competitors (Burger King Corporation, Wendy's International, Inc., Hardee's and Jack in the Box) are working to take new steps to improve their market position and improve their position in the walk. .....simultaneously making restaurants more efficient to increase speed of service and emphasizing hospitality, precision and cleanliness with new training and incentive programs around the world.2 ) Leadership MarketingMcDonald should maintain "I love it" all the time. time and treat it more than a marketing campaign to convey a global brand message through advertising, packaging and restaurant experiences. This can be used to shape the attitude of McDonald's employees towards serving customers.3) InnovationMcDonald has to do a lot of innovation in order to satisfy its customers and win the competition, because successful innovation can strengthen the position of innovative companies on the market. For example, by offering a variety of Value, Premium and healthy menus, McDonald's can offer the right products at the right price to its customers...