McDonald International is a Company that is popular globally. It is the world's biggest chain of fast food eatery, serving virtually 47 million consumers visiting it daily in approximately 31,000 eateries in 119 nations globally. McDonald's trades a variety of soft drinks and fast food, which includes but not limited to cheeseburgers, hamburgers, salads, chicken products, ice cream desserts, breakfast items, and fries. Numerous restaurants of McDonald International have incorporated a playing field for kids. The Company has an extension of McDonald's into several markets internationally; the company has turned out to be an icon of globalization and the stretch of the American lifestyle (Grant 2). It also spread the McDonald's menu in latest decades to incorporate different meal alternatives such as a snack and salads wraps so as to exploit the mounting customer interest in wellness and healthiness. Every McDonald's eatery is run by a franchisee, a partner or the Company itself. The company revenues are realized from the royalties, rent, and funds from payment from the franchisees, along with the sales made in company- run eateries.
There is also a strong competition from the competitors like burger king and Wendys companies; however, Macdonald has internal strengths, which makes the company competitive. McDonald Company has the huge strength of recognition of its brand. They are well-known for high quality, low priced, fast and suitable food alternatives in a globe where speed and competence have become supreme to customers. McDonald’s has taken approximately half of the United States hamburger market, this market share is almost triple the market share of its close competitor. The McDonald business also control the expanding industry of fast food breakfast taking a quarter of the entire breakfast business which is worth $25 billion. With McDonalds expanding internationally, concerns have arisen that the company were shifting from American fast food whilst acclimatizing to local way of life. For instance, In Europe, the company is competing with other coffee places like Starbucks to achieve a share on the market. Also, McDonalds has altered their menus to suit the culture and make food more appetizing and attractive. The strategy to expand and grow abroad has changed significantly over the years owing external and internal factors. Internally, the company had to have diversity put in operation to have a variety of views on strategy as compared with the Wendys Company. The company had to appreciate that diversity is an asset, which significantly contribute to the profitability of the company.
Externally, the company should have the society be involved to expand internationally. With the involvement of the community, it results to strengthening of the brand name and emphasizes on the main cores implemented by Ray Kroc. In comparison with Burger King Company, McDonald Company exploits local suppliers for foodstuffs enhance the correlation between a community and business. Menus are made to suit culture and customs, the company is also sensitive to the feedback a product can obtain if done erroneously. McDonald’s tough strategies and ethical structure for international are helpful in McDonald’s achievement for many upcoming years.
The main player of this business is Jack Greenberg who was formerly the accountant of the company but currently the Chief Executive Officer. The company is in a fast food industry, which deals in restaurants offering fast moving food; MacDonald international is one of the leading players in the industry (McDonald's Corporation 2). Just like any other business, McDonald's International faces some problems in their operations. One of the challenges is maintaining the quality and freshness of food, to maintain the quality, as well as freshness of the food is the main problem in the fast food business. Particularly for McDonald International there is a renowned notion that consumers will get more expectation for better food since it is the leading company in the industry (Holweg & Pil 74). If the company will compromise quality and freshness then it will imply that customers will shy away; hence, low sales and profitability. Therefore, it is certainly the company's responsibility to get rid of any mistakes that make the customer doubt companies product quality and freshness. Consequently, the company faces the problem of ascertaining their products are fresh and of high-quality.
Moreover, here is also a problem of managing the inventory system and order, as well as the supply chain. McDonalds is experiencing a real trauma on the system insurgency to maintain very helpful farmers who supply food and the consumers over the regarding the products which must be of the utmost products quality, freshness and value. The operations in the company; the procurement procedures and supply chain are very extensive hence require a lot of precautions since it can result to massive loss if mistakes are committed in the process. The other challenge the company going through is the Bullwhip. The Bullwhip Effect is a major rationale for elevated costs and troubles in the company especially in supply chain. It explains how some instability in demand at the customer level are increased as orders goes through the supply chain; manufacturers, distributors, and suppliers. In immense range of supply chains, the upstream operations respond to forecasts, whilst someplace on the other section of the chain awaits the procurement of orders. The alteration of management in a de-centralized structure is also another problem. McDonald International has a supply chain system, which is so easy that the supply chain is founded on the three-legged stool model Company – Franchisees – Suppliers. Thus, at times it causes the reaction on the troubles more slowly as contrasted with its competitors.
McDonald's strategy in marketing is surrounds the external environment, internal resources, and its essential proficiencies alongside shareholders of the company. McDonald's strategy to build up its international employees is intended to match with and sustain the implementation of its greater strategic business objective, which is to develop into each one’s preferred place and technique to eat. McDonald's present strategy is to promote the representation of healthy foodstuff that can be created at Re- modeled. Moreover, McDonald's latest strategy of offering its restaurants as the suitable place where healthy foodstuff can be assessed (McDonald's Corporation). The company is preparation other menu alteration, such as changing to a sausage burrito and cinnamon roll as its main breakfast present, whilst bagels would turn out to be an option item. These alterations are components of its strategy to proffer a variety of alternatives that maintain a reasonable lifestyle, consequently to draw new customers and keep old ones. Quality has constantly meant guaranteeing that the clientele get food products, which are the outcome of the strict standards, finest ingredients, and verified preparation process for assurance of great tasting ad healthy product. Since the company presently faces the problem, the company should employ professional supervisors to enhance the system.
It is recommended that the management of McDonald Company should focus on the clarity of business philosophy. Worldwide networking should also be enhanced, this will make the company popular and hence enjoy lions share in the market. The utilization of the internet is also recommended, this help in the sharing of information as regards the company and its operations among the various branches globally. The departments should be given the liability to control problems, which arises; this will avoid the fluctuation of product supply. In addition, the company should focus on research and widen the supply chain, this contribute to minimization of instability and facilitate the operations of the company. McDonald ought to advance the level of advertising, forecast and promotions of products (McDonald's Corporation UK). Another solution is the establishment of the direct supply system of products, in McDonald, there are numerous direct providers of the materials and goods that acquire from the indirect dealers. It causes the McDonald's expenses to be high and the superiority of the materials lesser. Thus, McDonald can establish the inner direct suppliers. The other solution is to establish a decentralized structure, because of international integration; the company will expand the area of its operations; hence, enhancing its profitability (Holweg & Pil 80).
Work cited
Grant, R. Contemporary Strategy Analysis. London: Springer, 2010.
Holweg, M. & Pil, F. ‘Successful Build-to-Order Strategies start with the Customer', MIT Sloan
Management Review, Fall issue, 2001, Vol. 43, No. 1, p. 74-83
McDonald's Corporation. About McDonald's/McDonald's History (online). Retrieved from
http://www.mcdonalds.com/corp/about.html. On April 28, 2008
McDonald's Corporation UK. Eat Smart/What's On/Good News (online). Available at:
http://www.mcdonalds.co.uk/ Retrieve April 28, 2008
