Strategic Management

Topics: McDonald's, Fast food restaurant, Fast food Pages: 14 (3804 words) Published: May 17, 2013

Executive Summary

The purpose of this paper is to analyze the industrial and strategic aspects of McDonald's. From an Industrial point of view, the paper will attempt to dissect the industrial trends of McDonald's such as the use of technology and their stance on government and trade regulations. Also, the paper will cover the notable changes in McDonald's' industry environment. In addition, using a strategic group map, the paper will compare McDonald's to companies with similar business models and strategies in order to evaluate McDonald's performance amongst other similar businesses. Moreover, the Porter 5 forces model will be used to evaluate the attractiveness of McDonald's' industry. Finally, Using a SWOT analysis, the paper will attempt to offer strategic recommendations to improve McDonald's from an industrial point of view. On the other hand, when talking about the Strategic aspects of McDonald's, the paper will discuss McDonald's' mission statement in addition to assessing their strategies. The Assessment of McDonald's' strategy will focus on whether McDonald's has a generic strategy or not, the costs needed to implement their strategies and the challenges that face the company.Finally, the paper will identify all of McDonald's' growth options and recommend any changes needed to insure the company's growth. Industrial Analysis

Industrial Trends visible in McDonald's
When speaking about the trends visible in McDonald's, we can safely assume that they are quite similar to other major fast food restaurants. Firstly, McDonald's' segmentation strategies are quite similar to those of other fast food restaurants: 2 methods of segmentation that are observed are the Demographic and psychographic segmentation. Whe speaking about the Demographic segmentation, “McDonalds offers children a varity of options such as the Happy meal which includes a free toy. Targeting families, McDonalds also offers a selection of outlets and drive-thrus for families on the move. McDonalds has also made its environment suitable for students to hang out with their friends and get their lunch.” Another visible segmentation strategy is the psychographic segmentation. McDonald's' visible segmentation according to lifestyle is an example of this case: McDonald's offers a large selection of low calorie meals and salads for costumers who are trying to stay in shape while offering larger, filling meals at the same time.

Moving on, another industrial trend visible in McDonald's is the use of technology. According to the official McDonald's web page, the operations of McDonald's as a business would be a lot more difficult without using computers and other technologies .The use of technology ensures that the costumers recive the best possible service. (McDonald's,2011)

When speaking about the visible trends in McDonald's, an important issue that should be taken into consideration is government/trade regulations. McDonald's' severe adherence to the health and safety regulations place by the government insures that they are delivering products that are up to the standards placed by the government to avoid legal questioning. From the McDonald's web page : McDonald’s food standards meets or exceeds those placed by government regulations. A regular McDonald's burger goes through almost 60 different quality and health checks before reaching the customer. The website also states that McDonald's extreme abidance to the health and safety regulations placed by the government are in return used by the government to improve the standards of their regulations . (Mcdonald's,n.d.)

Noticeable Industrial Environment Changes
McDonald's ever-changing industrial environment is one that is not unique to companies of its size. As an Industry, McDonald's is constantly trying to improve their industrial environment to provide convenience to both the workers and the consumers. According to the McDonald's webpage : McDonald's attempt to decrease both their...

References: Dobbyn,T. (2009, Nov 19) McDonald 's sets 2010 capital spending at $2.4 billion Reuters
French-fry face-off. (2009, Aug). Consumer Reports. Retrieved from fries/overview/french-fry-face-off-ov.htm
Hai-Tseng, N. (2011, Jan 21). Three challenges to mcdonald 's growth .Retrieved from _growth .fortune /index.htm
Lawrence, F. (2010, Nov 12). Mcdonald 's and pepsico to help write uk health policy. Retrieved from
McDonalds. (2011, Mar). What technology does mcdonald 's use to help provide a speedy service?. Retrieved from the-business/business-operations/what-technology-does-mcdonalds-use-to-help-provide-a- speedy-service.html
Mourdoukoutas, P. (2012, Apr 20). Mcdonald 's winning strategy, at home and abroad. Retrieved from home-and-abroad/
Muehlhausen,J. (Producer). (2010). Market shares of major players in the fast food industry. [Print Photo]. Retrieved from’s-business-model-ten- times-better-than-hardee’s/
T, M. (2010, Oct 24). Segmentation, targeting and positioning model of mcdonalds . Retrieved from
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Air BnB Business Analysis Essay
  • Linkedin Essay
  • Strategic Management Essay
  • Strategic Management Essay
  • Strategic Management Essay
  • Essay on Strategic Management
  • Essay about Strategic Management Assignment Unilever and Blizzard

Become a StudyMode Member

Sign Up - It's Free