McDonald

International Journal of Business and Management

Vol. 3, No. 11

The Business Strategy of Mcdonald’s
Jing Han
School of Economics, Yunnan University
No.2Green lake north Road, Kun Ming, Yunnan 650031, China
E-mail: [e-mail]
Abstract
As one of the most successful fast food chain in the world, throughout the development of McDonald’s, we could easily identify many successful business strategy implementations. In this paper, I will discuss some critical business strategies, which linked to the company’s structure and external environment. This paper is organized as follows: In the first section, I will give brief introduction to the success of McDonald’s. In the second section, I will analyze some particular strategies used by McDonald’s and how these strategies are suitable to their business structure. I will then analyze why McDonald’s choose these strategies in response to the changing external environment. Finally, I will summarize the approaches used by McDonald’s to achieve their strategic goals.
Keywords: Strategy, McDonald’s structure
Introduction
McDonald’s, originated in California, USA, 1954, has become one of the most recognized and respected brands in the world. The success achieved includes that they have established more than 30,000 franchising stores in 119 countries, serving more than 47 million people each day, and generating about $15 billions revenues annually. McDonald’s also continuously enhances its brand imagine through different social activities and the sponsorship of special events and sports i.e. as a major sponsor of the world cup since 1994 and the Champions League football in England from 1996 to
2000.(www.McDonalds.com)
How can McDonald’s achieve such success? There are many formulating strategies, which we could use for our analysis of their recipe of success such as Porter’s competitive strategies model, which includes differentiation and low-cost leadership; or Miles and Snow’s ‘strategy

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