McDonald’s Corporation is the world’s largest fast food restaurant chain serving more than 48 million customers daily through a network of more than 31,000 restaurants in 119 countries around the world. The company sells various soft drinks and fast food items including chicken, burger, fries, salads, and ice cream. Many of McDonald’s restaurants feature children playgrounds and advertising targeting children, and some of the restaurants have been redesigned in a more ‘natural’ style. About 80 percent of the restaurants are run by affiliates or franchise. The corporation’s revenues come from royalties, rent, and fees paid by franchises, as well as sales from restaurants operated by the company.
McDonald’s vision is to be the world’s best quick service restaurant experience. For them, being the best involves providing outstanding service, quality, cleanliness, and value so that they ensure every customer in every restaurant smiles. The corporation’s mission statement is to "be our customers' favorite place and way to eat." McDonald’s operations have been aligned around a global strategy with a plan to win centering on these five basic principles: people, products, place, price and promotion. McDonald’s uses all its available resources with utmost energy in an attempt to maximize its efforts (Clausewitz, 1873). The company is committed toward improving its operations and enhancing customer experience. Their missions include providing exceptional services to all customers and achieve profit growth through strengths such as innovation and technology. The company also aims at becoming the best employer for each of its local location. As stated by Sun Tzu, “when you see the correct course, take it; do not wait for orders.” McDonald has empowered its employees through providing conducive working environment which enables them t make appropriate decision.
McDonald’s values in practice are the corporate responsibility of the company. The company values the communication between customers and stakeholders. They work together with independent franchisees and suppliers to achieve sustainable future for both the company and the communities in which they operate in. These values have helped the corporation achieve its current status. One of McDonald’s values is customer satisfaction which they try to achieve through serving high quality food and exceptional service. In addition, they strive to achieve a welcoming environment.
Aims and objectives
McDonald’s aims to offer quick, efficient products and services to customers at reasonable prices. The company aims at expanding and increasing awareness of nutritious menu items such as expanded food and beverages containing vegetable and fruits and has increased awareness of vegetable, fruit, and dairy options for children menu. To remain profitable, the corporation offers quality products at prices that meet consumers’ demands. McDonald has remained profitable even during economic downturns by offering cheap alternative to sit-down meals. Another objective of the firm is to ensure customer satisfaction through quality food in a friendly and fun environment. The company also strives to increase its social responsibility through community outreach programs.
SWOT Analysis
Strength
Strong brand
Customer intimacy
Product innovation
Supplier integration
Weakness
Low depth and width of product
Opportunity
Entry into breakfast category
Expand into Tier 2 and Tier 3 cities
Threat
Increased competition from local fast food outlets like Jumbo King
Changing customer taste and lifestyle
Strategic alternatives
According to Tzu, an army avoids strength and strikes weakness (2000). As such, for McDonald to succeed in future operations, it must concentrate on its weaknesses. McDonald’s should consider further expansion into the Asian market over a two-year period by adding 500 restaurants per year at an annual cost of $4 billion. In addition to this, the company should consider applying zero grams trans fat in all worldwide McDonald’s restaurants. Introducing breakfast across all McDonald’s outlets present a key growth driver in the future.
References:
Clausewitz, C. (1873). On War, trans. James John Graham. London: N. Trübner & Co.
Tzu, S. (2000).The Art of War. Rogers, AR: Mundus Publishing.
http://www.mcdonalds.com
