What Has Suddenly Made People Across the World Willing to Pay Three to Four Times More for a Cup of Coffee Than They Used to?

Topics: Fast food restaurant, McDonald's, Strategic management Pages: 7 (2087 words) Published: April 29, 2010
Topic: Topic Question No.3, McDonald’s (from Week 12 case study ‘China’s Big Mac Attack’ ) and its strategic appreciation using SWOT analysis and its possible future developments

This paper analyses possible development in McDonald’s’ future based on the strategic appreciation using SWOT analysis (Strengths, Weaknesses, Opportunities and Threats). Firstly, the paper briefly explains the outline of the case study. Secondly, it identifies the organisation’s current mission, objectives and strategies. Then the argument moves onto SWOT analysis. In this part, the paper analyses the environment in which McDonald’s is given, and the opportunities and threats are identified. The organisation’s resources are also analysed and it identifies strengths and weaknesses. In next chapter of the paper, it conjectures possible future strategies formulated within the organisation. Subsequently, the implementation of strategies is discussed. Lastly, the evaluation of results carried out by the organization concludes this paper.

The case study entitled ‘China’s Big Mac Attack’ written by James L. Watson focuses on how McDonald’s – a leading American fast-food franchise – could accomplish to break down a barrier of Eastern Asian dietary habits and expand its franchisee territories. According to the case study, McDonald’s ought to be considered not only as an outstanding international mega-hamburger chain but also as a representative of the cultural message transmitted through Hollywood and other American culture. The author points out that even though McDonald’s franchises outside the United States are mostly operated and managed by non-American franchisees, its distinguishing double arches of McDonald’s always represent the United States of America as Stars and Stripes does. This fact shows both pros and cons, which are explained later on in this paper. In China, a rise of new middle classes and its single-child family policy accelerate the expansion of McDonald’s chain, which is also caused by a rise in the amount of money and attention lavished on children. This enormous social and cultural change is certainly a reason why McDonald’s managed to have become so prominent in China. This globalization (Westernization or in other words Americanization) has also caused new type of localization. Just as any other multinationals such as Nokia, Sony, General Motors and Starbucks, McDonald’s is no longer American company but Chinese, German, Brazilian, Indian and Japanese company. The detail is explained afterwards. It also must be noticed that McDonald’s has changed people’s behaviour in China e.g. lining up when they order or wait for meals. McDonald’s stunning strategy is not only exclusive in its franchise but also its unique management system. Hamburger University in Oak Brook, Illinois – McDonald’s world-wide management training center – is designed exclusively to instruct personnel employed by McDonald's Corporation or employed by McDonald’s Independent Franchisees in the various aspects of the business. (www.mcdonald’s.com) The author notices the importance of McDonald’s in China as a public space where local students and elderly gather and socialize. McDonald’s proudly shows its highly guaranteed food quality management. This trust also helped McDonald’s to become a dominant fast food chain in China. An imitation of brand image and products is considered to be harmful and aging population due to single-child family policy may well require McDonald’s to change its customer target segment.

What’s McDonald’s’ current mission, objectives and strategies? Every organization holds its own mission, objectives and strategies – so does McDonald’s. McDonald’s was firstly founded in Illinois, the United States, in order to provide affordable meals to everyone anywhere. As the company grows, the company has continuously developed its brand image and moved its customer target segment onto children....
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