Strategic Management of McDonald

This report provides an analysis of the strategic management of McDonald, including its vision, mission, internal and external environment analysis, key strategies, and implementation challenges.

Report on Strategic management of McDonald
Introduction
The content here in this report will be used for the preparation of infographics on McDonald
restaurants. The strategies, vision, mission, internal assessment and external assessment stated
here in the report will be detailed to understand the concept well. In infographics, the content
will be used substantially. It will be used to convey the message effectively for the strategic
management of McDonalds.
Vision/mission of organization
McDonald’s vision statement
Every organization works on understanding the ultimate vision that it wants. This vision is the
ultimate goal of the organization in the future. This vision of organization is hence a desired
future position for the company. (Bain & Company, 2018)
The vision statement for McDonalds is –
“To move with velocity to drive profitable growth and become an even better McDonald’s
serving more customers delicious food each day around the world”. (Meyer, 2019)
McDonald mission statement
This statement is a reflection of the company’s aims. Mission statement aims to set the purpose
of the business along with deciding on its internal approaches and strategies towards that
approach. The mission statement hence defines the near and middle term objectives for the
organization.
The mission statement for MacDonald’s is –
“To be our customers’ favorite place and way to eat and drink.” (Meyer, 2019)

These statements will further open up the strategic understanding for both internal and external
approaches of McDonald.
Summary of historic performance
McDonalds is an organization of global standards. It was started by Ray Kroc as a franchisee
operation and it was founded by Macdonald Siblings Maurice and Richard MacDonald’s in
1940. The story was very much adventurous for Ray Kroc who built this local brand into a global
franchisee. (Rodrigues, S, & Jacob, 2016)
Macdonald’s from the very start was very effective in its operations. It has limited menu with
high stress on quality. It only served burger, French fries and Ray Kroc used this method of
Macdonald’s at all its franchises to make it an effective operations brand using strategic
management. (McDonald's, 2019)
Currently, Macdonald’s enjoys its product features and use them as the method of brand
recognition. Customers visit its outlets globally only due to its expensive quality of product and
the amazing brand that it is. To remain competitive, it should extend more towards its strategic
objectives. (McDonald's, 2017)
In terms of sale, McDonald’s enjoys a large revenue pool now. It also earns from a lot of other
things such as royalties and franchisee rents. It also earns from its beverage suppliers like Coke.
Through all these historical works, it had achieved an intact place in the global fast food
industry. (Jurevicius, 2019)
Internal/External environment analysis
Internal environment analysis
At McDonald’s strategies that are being used internally are –
 Efforts should be made to maintain superior quality of all products.
 Centralized structure to operate all franchisees.

 Rigorous standards and training terms for all employees and franchisee managers.
(Jurevicius, 2019)
Evaluation:
Due to these strategies, company has been able to get these internal strengths.
 Strong brand presence.
 Market diversification.
 Standard and centralized process.
 Efficiently maintained quality products. (Greenspan, 2017)
These internal factors and strategies are the reason behind its actual success on all platforms
globally.
External environment analysis
There are also strengths related to company’s global outage that relate to its policies affiliated
with external environment. These are –
 Growing health consciousness and demand for organic products.
 Changing customer habits and demands such as home delivery requirements.
 Opportunities for effectively operated global restaurants in various nations.
 Change in commodity prices.
 Changes in political situations creating issues of lawsuits. (Barbleby, 2016)
McDonalds used all these in its favour and made these strategies for external environment.
 International market expansion.
 Full adaptation to new practices such as organic food processing.
 New products and services.
 Growth of franchise restaurants.
 Market dominance.
 Rapid expansion.

These external environment strategies have been used to make sure that company operates
globally by utilizing all opportunities and sidelining all threats. (Sharmin, 2015)
Description of key strategies and initiatives
The key strategies that McDonalds has used in the process are –
 Expansion in developing countries.
Developing countries have been the powerhouse of opportunities and hence creating a
base there will be productive. This is why, McDonalds applied this strategy.
 Market development in various under developing nations of Africa, Middle East
and Asia.
In some of the poorer countries of Asia, Africa and Middle East, there are emergence of
new opportunities. Nations in these continents have the potential which is being utilized
as an opportunity by Macdonald’s.
 Product diversification and launches of new products and services.
New products and services are the demand from new generations and hence it must be
done in a McDonald’s way. (Greenspan, 2017) (Zandi, 2018)
Implementation challenges ahead
There are various threats that company may have in the future ahead. It may have to face the
pressure globally due to -
 Decreased political mileage
 Increasing lawsuits
 Aggressive competition from other fast food outlets.
 Healthy lifestyle trends.
 New trends or regulations in the nations.

Measures of strategic success showing evaluation of
strategies
Through market development and global outreach, McDonalds can easily improve its business
reach. It should also be working towards high quality of products using product diversification.
The company should eliminate the threats by applying new development techniques such as
operating in the segment of home deliveries. As per the evaluation, these are the possible
techniques for McDonald’s.
References
Bain & Company. (2018). Mission and Vision Statements. Retrieved from
https://www.bain.com/insights/management-tools-mission-and-vision-statements/
Barbleby. (2016). Internal And External Factors Affecting Mcdonalds. Retrieved from
https://www.bartleby.com/essay/Internal-And-External-Factors-Affecting-Mcdonalds-
FKFFV9LJP995
Greenspan, R. (2017). McDonald’s SWOT Analysis & Recommendations. Retrieved from
http://panmore.com/mcdonalds-swot-analysis-recommendations
Jurevicius, O. (2019). SWOT analysis of McDonald's (5 Key Strengths in 2019). Retrieved from
https://www.strategicmanagementinsight.com/swot-analyses/mcdonalds-swot-
analysis.html
McDonald's. (2017). McDonald's Unveils New Global Growth Plan. Retrieved from
https://news.mcdonalds.com/stories/company-news-details/mcdonalds-unveils-new-
global-growth-plan
McDonald's. (2019). OUR HISTORY. Retrieved from
https://www.mcdonalds.com/us/en-us/about-us/our-history.html
Meyer, P. (2019). McDonald’s Mission Statement & Vision Statement (An Analysis). Retrieved
from http://panmore.com/mcdonalds-vision-statement-mission-statement-analysis

Rodrigues, J., S, N., & Jacob, S. (2016). Promotional Strategies of McDonalds and Market
Effects. innovative publication.
Sharmin, T. (2015). McDonalds Corporation Strategic Management Analysis. Retrieved from
https://www.slideshare.net/TahminaSharmin/mc-donalds-strategic-management-analysis
Zandi. (2018). The Effect of Job Satisfaction on Organizational Commitment: a Study of
Employee’s Performance in Malaysian Call Centers. Publisher of International
Academic Journals.