Mcdonald's Strategic Analysis

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Higher Institute For Business Administration
Ministry Of Higher Education
Syrian Arab Republic

McDonalds Company
Strategic Analysis

By: Dana H.

INDEX:
1. COMPANY ANALYSIS
1.1 Description of the firm (history, managers, mission, vision, values, main products and markets) 1.1.1. History
1.1.2. Managers
1.1.3. Mission. Vision. Values
1.1.4. Main Products and the markets
1.2 Current strategy of McDonald’s
1.3 Identification of strengths & weaknesses
1.4 Issues facing McDonald’s
2. EXTERNAL ENVIRONMENT ANALYSIS
2.1 Analysis of McDonald’s macro-environment
2.2 Analysis of industry (five forces framework)
2.3 Key strategic factors in the industry (strategic groups, market segments, critical success factors) 2.3.1 Strategic groups
2. 3.2. Market segments
2.4. Future scenarios
2.3.3 Critical success factors
2.5 Identification of opportunities and threats

3. DEVELOPMENT and RECOMMENDATIONS FOR IMPLEMENTATION OF STRATEGIC OPTIONS

CONCLUSIONS

1. COMPANY ANALYSIS
1.1 Description of the firm (history, managers, mission, vision, values, main products and markets) 1.1.1. History
Everything has started when Patrick McDonald opened “The Airdrome” in California at 1937. After 3years his two sons, relocated the whole building and opened the restaurant with a new name “McDonald’s Bar-B-Que Restaurant. It was a typical drive-in featuring a large menu and car hop service. In 1948 McDonald, with a self-service drive-in, restaurant was opened. The menu was minimized and it consisted only from nine items (hamburger, cheeseburger, soft drinks, milk, coffee, potato chips and a slice of pie. After several years, in 1954, a multimixer salesman Ray Kroc enters into a McDonald’s developing stage. He realized that taking an opportunity to become a franchising agent for a whole new concept of restaurant is an appropriate decision for his future. In 1955 the first McDonald’s restaurant Illinois is opened. The biggest event at that time in 1960’ was the statement that McDonald’s has sold 100 Million of hamburgers in more than 100 restaurants in America. A few years later in 1961 Hamburger University is opened. After this university students get a Bachelor degree of “Hamburgerology”. The Business started to expand and in 1967 McDonald’s starts the business internationally. Therefore, nowadays we can see McDonald’s restaurants in 119 countries around the world. Another big change in McDonald’s history was the first Drive-thru. It was opened in Sierra Vista, Arizona. As long as there were soldiers near Fort Huachuca who were not allowed to leave the car in army fatigues, the McDonald’s has solved this problem introducing a new service “drive-thru”. It became one of most successful implementation in services field. Later on McDonald’s started to expand its business really quickly. At the year of 1996 the Internet site McDonald’s is created. Nowadays McDonald’s is considered to be the leading global food service retailer. It owns more than 32,000 local restaurants in 119 countries worldwide. The principle of this expansion is quite simple to serve high quality, standardized products to all customers. The restaurants are operating independent and they run by local businessman or businesswoman. 1.1.2. Managers

McDonald’s name is well known for franchising which was the key to nowadays success in the worldwide food industry market. There are 119 countries where the McDonald’s is operating and more than 75%of it is set by franchising. The managers of McDonald’s are considered to be those people who are highly qualified business people joining their System as Owners/Operators. In McDonald’s case the top executive officers are working as managers who direct restaurant’s staff indirectly. They use several levels of supervisors who then direct the workers. There is a high need to be familiar with the work which now they are managing. So, there is no wonder why they all climbed the carrier from the bottom to the top. In...
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