contact: support@notesmatic.com, admin@notesmatic.com, Strategic Analysis of McDonald’s Corporation. McDonald's already enjoys unqualified success in Tokyo, Seoul, Beijing, India, and the United Arab Emirates, to name a few Asian markets. Declining brand image 3. Technological systems like point of sale, and other in store systems or platforms and technologies that support McDonald’s digital and delivery solutions. Here is how: Primary activities: This is a description of the primary activities in the value chain of McDonalds. In applying this growth strategy, McDonald’s develops new products over time, such as new McCafé products. The brand serves a diverse menu that includes hamburgers and cheeseburgers, Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, several chicken sandwiches, Chicken McNuggets, wraps, french fries, salads, oatmeal, shakes, McFlurry desserts, sundaes, soft serve cones, pies, soft drinks, coffee, McCafé beverages and other beverages. That also includes maximum utilization of the available human resources, such as labor (Hambrick and Donald, pp.567-575, 1980). McDonalds has a large customer base and enjoys very high level of customer loyalty. Although its menu differs across geographies based on local taste and preferences, the brand still serves a substantially uniform menu. Sociocultural factors have an increasingly important role in the context of marketing and business strategy both. Since each customer is valuable and none of the brands want to lose even a single one the focus has shifted towards customer and brands are trying to be more and more customer oriented. Rising health  consciousness and health related criticism: Globally, health consciousness is rising and people want  healthier food. Question. Task: Identify main factors influencing your business operation by performing a McDonald's Pestle Analysis case study. However, still it serves a rather uniform menu globally with minor local variations to suit the local taste. McDonald’s systemwide sales accounted for 7% of the entire sales generated by the IEO segment while its eating out establishments only constituted 0.4% of the entire 9 million outlets. The brands that have invested more in technology are ahead of the others in market. 8 out of 10 restaurant owners had started their careers as entry level employees. Another important strength of McDonald’s is its supply chain management. While this has intensified the race on the one hand, on the other it has given customers higher bargaining power. Operations: McDonalds is operational in around 120 countries. As of 2017, McDonalds employed around 235000 employees. Moreover the company returned 7.7 Billion dollars to the shareholders through share repurchases and dividends for the year. McDonalds is also making heavy investment in technology for successful marketing and growth of its brand. Customers know what to expect when they walk into a McDonalds store. Millennials are a highly etch save generation, Compliance issues have grown bigger in the 21st century which is because of the higher level of legal and political. the brand plans to turn it into 95% operated by franchisees. Changes are made to the menu to suit the local taste. Marketing and promotional efforts focus on value, quality, food taste, menu choice, nutrition, convenience and the customer experience”. While the business of McDonald’s is stable overall, franchisee issues still crop up from time to time. 7709 words (31 pages) Dissertation. Rising health consciousness and food quality related criticism can hurt the sales of fast food brands and it is why they need to focus on food quality and a healthier menu. It is one of the fast food brands that serves the largest variety. Non compliance results in heft fines an can cause large financial losses. The shape and condition of the US restaurant industry has continued to improve over the years and even during the recession, its performance was fine. The company is engaged in an extensive utilization of economies of scale to achieve the cost advantage. High level of profitability 5. (MEYER, McDonald’s Marketing Mix (4Ps) Analysis, 2015) Public relation McDonald’s do public relations activities help promote the business in target market. There are other technologies also that McDonalds uses to collaborate internally out externally with its partners. however, the brand will have to focus on managing its quality there and better management of franchisees in these regions. As per the Euro Monitor International report for 2016, the entire restaurant industry had 19 million outlets. It is because the brand has been able to build very high level of trust among its customers. This has kept adding to the intensity of rivalry in the fast food industry. While the brand’s systemwide sales increased 7%, consolidated revenues decreased 7%. However, having this complicated web of franchised and company-operated restaurants expose the brand to certain risks. The brand sells across more than 100 countries through its franchised and company owned restaurants. The IEO (Informal Eating Out) segment on the other hand had 9 million outlets and generated 1.2 trillion dollars in sales. Of the 37,241 McDonald’s restaurants that the brand operated in 2017, in 120 countries, 34,108 were franchised and 3,133 were operated by the company. the threat of substitute products for McDonalds is moderate. It is also a large employer and employs more than 14.7 Million people alone. The total amount that it generated in sales equalled 2.4 trillion dollars. McDonald’s is very popular in the global market and in various corners of the world. After analysing Porter’s Five Forces regarding McDonald’s competitive position, it can be concluded that in order to stay competitive, McDonald’s strategy can be seen most appropriately as a Cost Leadership strategy– minimizing costs to deliver products at low price.. With many other direct competitors also providing value menus, McDonald’s … This McDonald’s SWOT analysis reveals how the most successful fast-food chain company of all time uses its competitive advantages to continue dominating fast-food industry. It was because the industry was quick to adjust its menu and prices. The operating income rose from 7,745 million dollars in 2016 to 9,553 million dollars in 2017. McDonald’s sources its raw material from suppliers around the world. Strengths, Weakness, Opportunities and Threats of McDonalds ... With a strong interest in developing and improving Business Strategy and to Conduct Business Analysis, he started The Strategy Watch in 2013 (Previously known as GotAbout Business Idea, Strategy, & Analysis). the millennial generation is highly health conscious and wants healthier products. – McDonalds needs to focus on managing its franchisees strategically. It has a strong brand image in the market that  it has built over the years and continues to strengthen through new campaigns and a smart strategy. Including more low cost items on the menu can also prove profitable for the brand and attract higher sales. Therefore according to pestle analysis of McDonalds we can say that Trade agreements have the capacity to simplify or complicate the process of undertaking business activities in certain areas. Another important strength of the brand is its innovative menu. It is especially so when the brand is heavily franchisee based. It provides the most useful resource of knowledge to business starters, researchers, strategists, and students. Particularly, it is the international brands that are being most affected by the increased control. The millennial generation should be engaged using modern technologies and other various methods for higher retention level. 9 out of the ten restaurant managers currently had started at the entry level. There are several brands that are offering similar products or have similar menu items. However, a, External Analysis of the restaurant industry, What You Need To Know About Marketing for Your New Business, Easy Ways Businesses Can Incorporate Sustainability. In case of McDonald’s it is well known as the leading fast food brand of the world. Apart form social media, there are other tools and methods also to bring the millennial consumers closer. Around the world the government oversight and regulation of businesses has grown. McDonalds is already known for customer service. The social factors have also kept growing in relevance in the 21st century. Non-compliance in any industry results in hefty fines and losses. Operations strategies play a very important role in achieving organizational goals. MCdoandls is known for its calorie heavy menu and has also received criticism in the past for its unhealthy food. McDonalds operates in more than 100 countries and has to remain cautious about compliance so as to not become a target of law. The bargaining power of customers in the 21st century, the threat of substitute products for McDonalds is moderate. McDonald’s systemwide sales accounted for 3.5% of the entire restaurant industry sales while its outlets were only 0.2% of the total outlets. The paper would analyze the strategic analysis of McDonalds in great detail while considering its competition, success factors, strengths and weaknesses, and strategy measurement. The demographics of the global population have changed and this offers opportunities for menu innovation. It is important to note that along with maintaining product and service standardization, McDonald’s takes into account local tastes and preferences, when developing its menu and engaging in marketing efforts. McDonald’s places heavy focus on customer service. 4.4. This also leads to higher costs and issues. The brand sells across more than 100 countries through its franchised and company owned restaurants. The company’s broad differentiation strategy also helps. Moreover, product and service standardization lies in the cornerstone of McDonalds business strategy. McDonalds is a large and global brands with a string brand image. these small variations are made in order to suit the taste of the local customers. Environmental factors have become very important in the business industry given that. McDonald’s has adopted a Market Development strategy for expanding into growing economies, especially those of Asian countries. Particularly, it is the international brands that are being most affected by the increased control. In 1999, McDonald’s was leading the world catering market with a strong brand and total sales of $ 35 billion. It is why McDonalds is focusing on sustainability and trying to achieve higher sustainability in the long term. While the brand’s systemwide sales increased 7%, consolidated revenues decreased 7%. McDonald’s restaurant will be selected to complete this assignment. Brand value and brand awareness 3. – The focus of McDonalds must remain on both reputation management and menu innovation. However, to make such large scale operations possible as profitably one must have economies of  scale as in the case of McDonalds. However, it does work to manage its quality standards and enforces them with the help of quality teams. The stronger the brand image of a brand, the higher are its sales and profits. Another important strength of McDonald’s is its supply chain management. Competition in the QSR industry has kept rising and it has led to higher marketing and customer service costs for brands. Apart from that it tests new products regularly to make its menu exciting. The Asian markets are among the fastest growing in the world and offer some major opportunities of growing sales and profits. In this assignment will focus on the business strategy. The business model of McDonald’s is overdependent on franchisees which operate more than 90% of its business. Market analysis in the Marketing strategy of McDonald’s – The fast food market is flooded with MNC’s and local food joints eating each other market shares. All these competencies have enabled it to grow its market share and customer base. Even McDonald has built in America but in recently, to describe McDonald’s restaurant, it is … Core Strategy of the Company. However, the threat gets to be moderated by the brand image as well as, The threat from new entrants for McDonalds is also moderate. The report also illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on McDonald’s Corporation. The net income of McDonalds rose from 4687 million dollars to 5,192 million dollars. The brands that have invested more in technology are ahead of the others in market. The bargaining power of customers in the 21st century  has grown very high. McDonald’s Corporation Report contains more detailed discussion of the company’s business strategy. Moreover, product and service standardization lies in the cornerstone of McDonalds business strategy. 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