Financial Outlook McDonald’s is currently executing a strategic plan called “The Plan to Win, which entails global growth, menu optimization, modernizing the customer experience and increasing its accessibility. The current target growth is the following: System wide sales growth are projected of 3% to 5%, operating income growth is between 6% to 7% and the return on incremental invested capital in the high teens. The forecasted Capital expenditures of $2.9 to $3.0 billion, while providing for 1500 to …show more content…
Strategy 1 The first strategy is for McDonald’s to restructure the layout of their stores, which will consist of closing stores and opening fewer stores. McDonald’s has over 36,000 stores worldwide, in order to reduce overall operating cost and increase sales volume per store there needs to close stores that are in close proximity of each other. The results is McDonald’s competing against themselves instead of competing with the other brands. McDonald’s needs to expand strategically not just saturating an area, because that will result in an unnecessary increase in operating cost.
Strategy 2 The strategy will continue to focus on McDonald’s current strategy of developing a heathier menu. McDonald’s needs to focus on organic foods and add natural smoothies, fruit salads and instead of using lettuce they can use Kale. Their Fish sandwiches can be changed to grilled fish and also add Almonds into their menu. McDonald’s can continue to have their menu, they just need to add more nuts and have a larger selection of salads.
Strategy …show more content…
Once McDonald’s has changed their menu to include a healthy selection then they need to advertise though social media, television commercial as well as ads in local newspapers. McDonald’s will also meet with community leaders through outreach programs to directly inform the local communities of these positive changes. McDonald’s can use major sporting events to inform the public of all the positive change it has one. After the documentary “Supersize Me” their image was tarnished. McDonald’s needs to take aggressive steps in order to change the minds of the consumers. McDonald’s will need to increase their marketing budget by 20 percent.
Strategy 4 McDonald’s also needs to adapt to more efficiently to the local market, this includes having senior local market executives, this executives will have a better understanding of the local consumer and will be able to adapt McDonald’s menu to the preference of the local consumer. McDonald’s can also change the design of the restaurant based on the local market. What is consider acceptable in America, might not be acceptable in Russia. Walmart used a similar strategy when it enter the China market and it prove very successful.
Strategy