Strategic Management of McDonald's

Running Head McDonald’s 0
McDonald’s

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Contents
Introduction......................................................................................................................................2
PESTEL Analysis............................................................................................................................4
Porter Five forces model analysis....................................................................................................6
Competitors......................................................................................................................................7
VRINE Model..................................................................................................................................8
Conclusion and recommendation....................................................................................................9
Reference.......................................................................................................................................11

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Introduction
McDonalds is one of the successful businesses in fast food industry in the world which was
founded in 1940 by two brothers Richard and Maurice McDonald and they started it as a
restaurant. McDonald’s runs more than 35,000 restaurants in more than 100 countries and
serving almost 68 million customers daily. McDonald Corporation employs have more than 4
million people in the whole world. In many countries, they still do not have an existence and
their current plan is to focus on the marketplaces where they do not have their outlets and open
new outlets in new places. McDonald’s provides their franchise to operate with the right to
distribute its products, techniques, and trademarks by taking the royalty fee and some percentage
from the gross monthly sales. McDonald's have an identical menu which includes fries, burger,
wraps, salads, desserts, soft drinks and other beverages but the food which are served to the
customers in different countries have different taste according to the customers’ needs and
preferences. They offer the menu in the international market which is relevant and made
according to locals.
A mission of McDonalds Company is to be the best and a favorite destination of food service
and the vision is to move with quickness to drive cost-effective growth. Their vision helps them
to improve and achieve growth to become an even better McDonald’s. Mission and vision
directly impact on the innovative strategies adopted by the rivals in the fast food trade.
McDonald’s emphasize to become the favorite of target customers. The main target of the
company is to maximize sales by keeping the cost low and opening more outlets worldwide
(Ater and Rigbi, 2015). They want to make the restaurant a quick service provider by providing
the best quality, service, cleanliness, and value. There are different types of restaurants of
McDonald's all over the world like McDrive, McCafe, Create your taste restaurant and many
more. Globally, McDonald’s is one of the most valued restaurants whose net worth is more than
$40 Billion. Their strategic goal is to place the customer involvement at the core and their
objective is to provide high-grade food to customers and higher service in a clean and welcoming
environment (Abiodun, 2010). They want to operate the business ethically and also they believe
in the McDonalds systems which they are following. In the U.S, McDonald’s focus on breakfast,
chicken, beverages, and convenience and these are the essential areas in the U.S. In Europe

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market, they focus on the menu, which included the premium selection, classic menu, and
everyday affordable offerings to the customers.
The key objective of McDonald’s is to serve a high standard of food, value for money and fast
service to customers. To meet the aims of the company, McDonald’s set various objectives for
strategic management (Puzakova, 2105).