Mcdonalds Strategy Audit

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  • Topic: McDonald's, Strategic management, Vermiform appendix
  • Pages : 19 (5868 words )
  • Download(s) : 245
  • Published : May 2, 2011
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McDonald’s stock symbol is MCD and their codes are: SIC-5812 and NAICS-722211. As of March 1, 2011, the stock price was $74.89. The range in the last year has been from $63.43 to $80.34, so the current price is on the high end. [1]

McDonald’s, founded in 1948, formed its first corporation in Illinois in April of 1956. As we all know, McDonald’s is in the food service industry. If you go in the store, you will find burritos, hashbrowns, McMuffins, sausage biscuits, hamburgers and cheeseburgers, fish sandwiches, several chicken sandwiches, chicken nuggets, chicken strips, chicken wraps, French fries, salads, shakes, sundaes, soft serve cones, pies, cookies, soft drinks, coffee, smoothies, apples, and milk for kids meals. In 1990, they decided to go with the fad and go green! They cut down on paper costs dramatically and “during the 1990s alone, we eliminated 300 million pounds of product packaging by redesigning and reducing materials.” [2] This shows the world that not only do they want to make our stomachs happy, but they truly are working to make the world a better place. By the end of last year, the company, “had a total of 32,737 restaurants in 117 countries, including 26,338 that were franchised or licensed, and 6,399 operated by Co.” [2]

“McDonald’s is committed to offering quality at an affordable price. We’re also committed to the well-being of our customers. We work together with our employees, franchisees and suppliers to serve a balanced array of quality food products and provide the information needed to make individual choices.” [6] With that said, let’s look at some of the organizational challenges McDonald’s is facing. Current Organizational Challenges

During this time in our economy we have all seen the unemployment rise dramatically and people take pay cuts. One of McDonald’s increasing organizational challenge is number of people who can’t afford to eat out, even at a fast food place. Many people who used to eat at McDonald’s have found alternatives like sandwiches at home to compensate for the decrease in income many families are facing. The current strategy McDonald’s has taken is to increase the size of the dollar menu and send out many coupons and promotions. This encourages families who can no longer afford to pay for the McDonald’s combos or meals to stick with McDonald’s and purchase lower priced items like the McDouble, or the dollar breakfast burritos for breakfast.

Another challenge that McDonald’s is facing is the increasing awareness of fat and calories in fast food. People are way more health conscious lately than they used to be, and it isn’t worth it to waste a whole day’s calories on a double cheeseburger at McDonald’s. Parents don’t want their kids to start learning bad eating habits either. Their strategy for this is to increase their menu to include healthier items like the snack wrap, the new variety of salads, or smoothies. For kids, they now have the option to get milk instead of the soft drink, and instead of fries they can get apples, oranges, or even something like a banana. McDonald’s knows how to play the game, and they have learned to alter their menu to go with the trends of the world and the economy. So far, it’s been working pretty well and McDonald’s stays in the lead against its competitors.

Strategy Formulation
Vision Statement
“Continuous improvement...growth opportunity...commitment to doing the right thing for our customers, our communities and the planet... these are some of the ingredients McDonald’s as a company is made of.” [19] Mission Statement

“McDonald's brand mission is to "be our customers' favorite place and way to eat." Our worldwide operations have been aligned around a global strategy called the Plan to Win centering on the five basics of an exceptional customer experience – People, Products, Place, Price and Promotion. We are committed to improving our operations and enhancing our customers'...
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