What Is The Strategic Strategy Of Mcdonalds

Decent Essays
Jose Armario is the executive Vice President of McDonald’s and the Worldwide Supply Chain, Development and Franchising. The Chief Financial Officer is Kevin Ozan, he sets the financial direction and develops strategies of the company.
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

Related Documents

  • Improved Essays

    Mcdonalds Human Geography

    • 1341 Words
    • 6 Pages

    1. McDonalds uses human geography to plan out where to build a restaurant by using culture and economy. In certain places McDonalds will alter their food to fit a certain type of flavor.…

    • 1341 Words
    • 6 Pages
    Improved Essays
  • Improved Essays

    Why are so many young Americans overweight? It’s the parent’s fault. Parents should provide their children with the proper food and exercise they need to grow into healthy adults. In the article, “The Battle Against Fast Food Begins in the Home”, Daniel Weintraub tries to convince the reader that the parents are to blame for not properly feeding their children. David Barboza disagrees with Weintraub saying the food companies are responsible.…

    • 724 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Morgan Spurlock Inhumane

    • 847 Words
    • 4 Pages

    America is the fattest nation in the world. Obesity is now the second leading cause of preventable death in the U.S, only second to smoking. If the same rate continues, obesity will become the leading cause of preventable death in the U.S. (Spurlock). All of this information was exposed by film maker, Morgan Spurlock. Muckraking is searching and publicizing factual information about a famous person, or a company.…

    • 847 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    McDonaldization Christopher Rivers DeVry University McDonaldization Let’s take a few seconds to think about how McDonaldization has made your life better. For example; online shopping, self-checkout, online education, communication, and even the way we travel. Even though McDonaldization costs thousands of people their jobs, McDonaldization helps businesses thrive because it’s far less expensive, with more control means there’s fewer human errors, and more is done in lesser time. McDonaldization is a term use by sociologist, George Ritzer in his book titled The McDonaldization of Society (1993).…

    • 1518 Words
    • 7 Pages
    Superior Essays
  • Improved Essays

    The introduction is a brief overview of the integration of fast food into American society and how it reflects on American society and ultimately our way of life. There is a particular stress on Mcdonalds and “the Mcdonaldization of America” which is a consistent theme held throughout the book. Particular ironies are exploited in the introduction between the company’s ideals versus the men who build them. Colorado Springs is used as the focal point of the book and the revolutionary changes that are apace there provide a perfect backdrop for what is really happening all over the United States.…

    • 683 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    McDonalds started in 1955 and has been growing its company over the decades. The company’s advertising has adjusted to maintain their appeal to the ever changing generations, from the 1960’s slogan; “McDonald’s is your kind of place”, to the more popular “I'm lovin’ it” slogan that began in the early 2000’s and is still currently present throughout many McDonald's commercials. The McDonalds empire has utilized almost every form of rhetoric possible to keep up with the changes in society. McDonald’s used the rhetoric form of Ethos and Pathos in their advertising by creating the famous Ronald McDonald which showed a friendly and happy environment that is now associated with their establishment. Shortly after the year 2000, McDonald's phased…

    • 734 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Qualitative Research is primarily exploratory research. It is used to gain an understanding of underlying reasons, opinions, and motivations. It provides insights into the problem or helps to develop ideas or hypotheses for potential quantitative research. Qualitative Research Methods gives would-be practitioners enough practical instruction to allow them to undertake, analysis and report research (Edwards, 2008, p. 238). The tow companies that I have been consistently doing research on are McDonalds and Walmart.…

    • 1076 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    There are four main points of McDonaldization; efficiency, calculability, predictability, and control. Efficiency places an importance on time and cost and using as little of both as possible whatever the outcome is. Calculability has to do with the quantity of an item or how much it costs and how much emphasis is put on it. When there is attention brought to the quantity then it’s very possible that the quality will be lacking due to less time being spent on an individual order. Predictability has to do with the consistencies carried across many fast chains.…

    • 707 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    It is based in the United States and has been operating in the quick service restaurant chain industry for almost 80 years (Bhasin, 2017). It has consistently changed into a main fast food restaurant by developing branches in various sections of the country and also in the foreign markets. McDonald’s is a major brand that is recognized globally considering that it has constantly sustained its standards in the delivery of quick services regarding their food serving to their consumers. A recent study has approximated that in the United States only, the company serves not less than 60 million consumers each month, a determinant of how huge McDonald’s is in the industry (Bhasin, 2017). McDonald’s is among the major fast food chains in the industry and the top competitors of Dunkin…

    • 1411 Words
    • 6 Pages
    Improved Essays
  • Improved Essays

    According to the recent news in Japan, there is a sushi restaurant with conveyor belt. It lays out in an “E” shape, allowing more dinners to be served with a conventional loop arrangement. The restaurant can serve 196 customers, with kitchen staffs no more than 50 and there are no chefs. Everything is automatic, provides everything high quality at low price. The kitchen receives a personal order from a dinner, it is delivered along a high speed lane straight to the table.…

    • 1059 Words
    • 5 Pages
    Improved Essays
  • Great Essays

    This awareness strategy for McDonald’s products was proven successful for capturing target market at the very initial stage. 9.2 Exploration: During the exploration stage, McDonald started to increase promotional campaign, corporate marketing, personal sailing, direct marketing using web based marketing strategies i.e. promotion with communication. More and more consumers able to know about McDonald products via newspaper, online email subscription system (i.e. newsletter, discount coupon, event booking for kids) and radio. This was in mid 1950-1960 of the year when McDonald launched franchise options to expand the business in United States of America. As the business is expanding, consumers began to have more interest of McDonald’s information.…

    • 3760 Words
    • 16 Pages
    Great Essays
  • Improved Essays

    Changing the Public Image Some of your favorite food brands and restaurants are changing their menus or products. Kellogg’s, the cereal brand, is making their foods healthier, because there was a threat of a lawsuit by advocacy groups with children’s health. McDonald’s, the fast food restaurant, is also making changes to their products, because they wanted to help kids eat right.…

    • 383 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    McDonald’s To Whittle Down Menu 1) Offering more products or offering more complex products makes operations management more difficult in multiple ways. One way an operations manager’s job gets more difficult with complex product offerings is inventory becomes more difficult to manage. The more items you offer in your product line, the more suppliers you will need to supply you with the materials to produce the offerings. For example, the operations manager for McDonald’s currently might deal with a fish supplier for their fish-filet sandwich, but after the menu changes they might decide to cut out the fish-filet sandwich from their menu, due its lack of appeal to their customers. In this case, McDonald’s would have less inventory to manage…

    • 1300 Words
    • 5 Pages
    Improved Essays
  • Superior Essays

    Summary of the Article and McDonald’s McDonald’s is the largest fast-food restaurant chain in the world and was originally founded in 1940 by Richard and Maurice McDonald as a barbecue restaurant. It primarily serves regular fast foods like burgers, chicken, soft drinks, French fries, breakfast products and a recent influx of healthier alternatives in an effort to boost sales. Target customer of McDonald’s includes families, teens, young professionals and business customers. The companies’ major competitors included KFC, Wendy 's, Burger King, Taco Bell, and many others. McDonald’s Corporation earns revenues by investing in properties, collecting fees paid by franchisees and sales in company-operated restaurants.…

    • 1178 Words
    • 5 Pages
    Superior Essays
  • Great Essays

    McDonalds is getting more growth Situational analysis shows that McDonalds in Malaysia is having a rapid growth in fast pace comparing to KFC. McDonalds market share is will be growing faster and bigger, if KFC isn’t going to overcome this Lack of manpower The same situational analysis shows that huge variance between quantity of workers and outlets for KFC are not…

    • 1719 Words
    • 7 Pages
    Great Essays