Strategic Management Report: McDonald's Australia's Strategies

This report provides a strategic management analysis of McDonald's Australia, examining its corporate strategies, growth strategies, and stability strategies within a competitive business environment. The report delves into McDonald's marketing initiatives, including advertising, social media marketing, and customer-oriented approaches. It evaluates the company's efforts to maintain its market position and recommends strategic initiatives such as adapting to cultural differences, leveraging social media, sourcing from local suppliers, and innovating healthy menu options. The report concludes that while McDonald's faces challenges, focusing on brand loyalty and adapting to consumer preferences is key to sustaining growth and market share. The analysis highlights the importance of technological advancements, customer relations and competitive advantages in the fast-food industry.

Running head: STRATEGIC MANAGEMENT: MCDONALD’S, AUSTRALIA
Strategic Management: McDonald’s Australia
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Executive summery
The purpose of writing this assignment is to recommend few marketing strategies considering
the market position of McDonald’s, Australia. In order to do that, this report has briefly
explained the issues that the company had experienced previously. A discussion of their growth,
sustainability and corporate strategies has been presented in order to understand their effort to
make it one of the leading fast food chains across the globe. In the era of digitalization,
preferences of consumers has become dynamic. Therefore, this report will work as a guideline as
it suggests the way to perceive the value and sustain within such a competitive business
environment.

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Table of Contents
Introduction..........................................................................................................................3
Corporate strategies initiated by McDonalds......................................................................3
Growth strategy of McDonalds...........................................................................................4
Stability strategy of McDonalds..........................................................................................5
Recommended strategic initiatives......................................................................................6
Conclusion...........................................................................................................................7
References............................................................................................................................9

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Introduction
Corporate level strategies are important for business organizations as these are helpful in
enhancing business operation along with retaining the performance existing business.
Considering the current competitive business scenario, corporate level strategies are having more
importance as those have the power to determine the competitiveness of the business
organizations. Being the world’s one of the leading fast food chains, to sustain the business
within such a competitive business environment McDonald’s, Australia has initiated strategies to
operate their huge operation sector with the help of effective corporate strategies.
Considering their huge operation and revenue generation along with increasing
competition, McDonald’s has realized the need of effective and efficient corporate level
strategies. This essay will identify and discuss about strategies initiated by McDonalds as well as
the suitability of these strategies will be evaluated as well. In addition, few strategies will be
recommended to improve future operations of McDonald’s Australia.
Corporate strategies initiated by McDonalds
Since past few years, McDonald has been facing a difficult business environment to
operate. Issues have been developed regarding the sale of the stores due to the poor growth of
stores in China (Xu, 2014). Besides, lack of variation in food menu and European recession have
been identified as some of the reasons behind such challenging nature of the business. In order to
get back the golden days, the company decided to initiate a strategic approach (Mishra & Kar,
2013).
 McDonald’s has kept the expenses for advertisement same as they used to do targeting
different age groups especially children. In order to make the brand recognizable

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worldwide their extensive advertisement has become common in television. Moreover, to
influence the children they have started to provide small toys for them with every order
of Happy Meals. Children have developed an interest to go for McDonald not only
because of food but also for the additional benefits. As described in Cairns et al., (2013),
use of global mascots Roland McDonald has been maintaining to attract the attention of
children along with adults who prefers to have quality fast foods in a fun place.
 Advertisements towards children has developed an image of McDonald’ as a place to go
with entire family.
 McDonald’s have extensive global presence. Although, in this era of globalization, when
every native brands are even busy presenting them globally; considering the competitive
business environment like all other companies Following the study of Coursaris, van
Osch and Balogh, (2016), McDonald’s has adopted social media marketing strategy as
well. They have realized instead of spending billions for advertisements, promotional
activities can be executed via Facebook, Instagram and Twitter Pages, which would work
effectively to maintain customer relationship as well.
Growth strategy of McDonalds
 There are several factors, which have been working towards success since the initial days
of their business operation. One of the most significant factors is they value their
customers more than any other sector. Employees are being trained to maintain a friendly
behavior. Priority has always been not make the customers wait for too long and serve the
food when it is hot.
 They have realized the customers’ preferences quickly just after entering the market. The
company renovated the kitchen for commercial use just to reduce the serving time. Faster

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delivery and quality food have made the customers happy and with this faster flow, they
have achieved the title of restaurants of new generation.
 Customers can experience a clean and secure experience every time they step into their
stores as they focus on consistent cleanliness and installed several technology including
CCTV to make the service better and to monitor any immoral practices within stores
(Kogan et al., 2017).
 According to experts, the central reason behind its consistent success and growth is the
customer-oriented nature of the services by keeping the stores and adjacent bathrooms
clean, fast delivery of quality food at affordable prices, good behavior and efficient
execution of operations.
 Not only strict restrictions of serving good quality foods at affordable prices, their
relationship with the suppliers is so well maintained by the management that even it
encourage them to develop innovative food items and creative idea of serving (Coursaris,
van Osch & Balogh, 2016).
 As far as their global presence is concerned, and as per the description in Qureshi &
Hassan, (2013), all the stores are being monitored by central office with technological
aids. Apart from that, the company is successful to implement successful franchise
models across the world maintaining every single detail.
Stability strategy of McDonalds
 When it comes to providing products of perceived value, McDonald’s has always been
dominating other food chains in this case. Customers can easily choose McDonald’s
while deciding where to eat best quality products without investing much time.

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 The company has mastered the act of sustaining competitive advantage as they have been
operating the market since a very long time by providing creative dishes with high-class
taste. Menus are changed occasionally as per the customer preferences to gain the
sustainability.
 The company follows strict restrictions regarding operations and employees are bound to
follow every organizational rules to make the operations perfect. As per Al-Shaiba,
(2017), in order to keep the as the leading one management strictly monitors the resource
development sessions to ensure efficiency of human resource in the case of every order.
 Their focus has been to generate more traffic in the path of their existing rivals and other
restaurants. The company possesses a strong substantial advantage over its competitor
food chains as they have extensive global presence, possesses more resources in order to
innovate and promote brand according to the market trend (Mishra & Kar, 2013).
 The organization’s hard work, resources and global presence have made it one of the
most recognizable fast food chain, which means it has possessed a positive brand image
among the consumers across nations.
Recommended strategic initiatives
 The first thing that company can consider is, occupying the international market.
Interpretation is not that McDonald should expand their business internationally, instead
the company needs to recognize the cultural differences and varied preferences among
the different regions. Besides, creating customized burgers and wraps it can response
against the varied preferences.
 It can promote their innovation and business by forming websites and pages over social
networking sites. It will help the company to increase the knowledge of the customers

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more than broadcasting advertisements on Television. As per the views of Pfeffer,
Zorbach and Carley, 2014), some of the stores have been practicing it in an isolated way;
McDonald’s Australia must recognize their customers and try to resolve the queries of
them over social media to maintain a better communication with customers.
 It would be helpful for the economy of country if the company consider country farmers
as their major suppliers of raw materials instead of departmental stores (Mylan et al.,
2015). It will help to generate profit keeping the operation cost low.
 Considering the recent global issue of obesity if company can innovate healthy options in
the food menu, customers who are fitness conscious or suffering from health hazards will
definitely respond to the initiative (Schrempf, 2014).
 Moreover, right price, maintenance of the menu according to customers’ choice and
effective strategies to maintain public relations (attracting attention of the children,
presentation of transparency through social media etc.) will be key to success and retain it
perceived position in the market (Chhabra & Sharma, 2014).
Conclusion
It can be concluded with the statement that there is a possibility of failure as far as
recognizing new competitors is concerned. They have a huge sector to work on. While managing
such elaborative sectors of operations if they cannot influence the consumers with innovative
process and recipes, the company may lose its market share globally. Therefore, installation of
new technologies to keep the operation cost and effort low, following the social trends can be the
key to frame corporate strategies. Hence, the concentration should be to achieve sustainability
based on the business of their existing restaurants instead of expanding the franchised store. The
purpose will be fulfilled if McDonald’s can create brand loyalty and maintain the growth by

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influencing both the existing and new customers in terms of providing them quality fast food at
the right price.

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References
Al-Shaiba, A. S. (2017). Role of Human Resources Function in Successful Organizational
Transformations for Efficiency Improvement. European Journal of Multidisciplinary
Studies, 6(2), 273-280.
Cairns, G., Angus, K., Hastings, G., & Caraher, M. (2013). Systematic reviews of the evidence
on the nature, extent and effects of food marketing to children. A retrospective
summary. Appetite, 62, 209-215.
Coursaris, C. K., van Osch, W., & Balogh, B. A. (2016). Informing brand messaging strategies
via social media analytics. Online Information Review, 40(1), 6-24.
Kogan, L., Papanikolaou, D., Seru, A., & Stoffman, N. (2017). Technological innovation,
resource allocation, and growth. The Quarterly Journal of Economics, 132(2), 665-712.
Leekha Chhabra, N., & Sharma, S. (2014). Employer branding: strategy for improving employer
attractiveness. International Journal of Organizational Analysis, 22(1), 48-60.
Mishra, A. J., & Kar, S. (2013). Broader social implication of the strategies of business
corporations. International Journal of Indian Culture and Business Management, 7(2),
213-225.
Mylan, J., Geels, F. W., Gee, S., McMeekin, A., & Foster, C. (2015). Eco-innovation and
retailers in milk, beef and bread chains: enriching environmental supply chain
management with insights from innovation studies. Journal of Cleaner Production, 107,
20-30.

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Pfeffer, J., Zorbach, T., & Carley, K. M. (2014). Understanding online firestorms: Negative
word-of-mouth dynamics in social media networks. Journal of Marketing
Communications, 20(1-2), 117-128.
Qureshi, A., & Hassan, M. (2013). Impact of performance management on the organisational
performance: An analytical investigation of the business model of
McDonalds. International Journal of Academic Research in Economics and Management
Sciences, 2(5), 54.
Schrempf, J. (2014). A social connection approach to corporate responsibility: The case of the
fast-food industry and obesity. Business & Society, 53(2), 300-332.
Xu, Y. (2014). Understanding CSR from the perspective of Chinese diners: the case of
McDonald’s. International Journal of Contemporary Hospitality Management, 26(6),
1002-1020.