Comprehensive Strategic Plan for McDonald's Business

This report presents a strategic plan analysis of McDonald's, a multinational fast-food company. It begins with an introduction to McDonald's, its founding, and global presence. The report outlines the company's mission and vision statements, emphasizing consumer focus and expansion goals. It details SMART goals, including raising profit margins, introducing quality products, and improving service quality. The report then examines the U.S. retail food industry, highlighting growth drivers such as disposable income and urbanization. A SWOT analysis reveals McDonald's strengths (standardization, brand recognition), weaknesses (unhealthy menu, franchising issues), opportunities (technology, sustainability), and threats (obesity concerns, unfavorable franchise frameworks). A perceptual chart illustrates McDonald's competitive positioning. The conclusion emphasizes the need for healthier product options, aligning goals with evolving customer needs, and the importance of the company's recognized brand in the market.

Running head: MCDONALD’S STRATEGIC PLAN
MCDONALD’S STRATEGIC PLAN
Name
Institution affiliation

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Introduction
McDonald is multinational American fast food company which operates several franchised
restaurant chains in different countries. The organization was founded Maurice and Richard
McDonald in the year 1940. The two brothers begun their corporate as a hamburger
standpoint before later reconsidering it as a franchise. McDonald is considered the world’s
largest chain restaurant by its total revenue. It has approximately 36,900 outlets in over 100
countries offering services to over 69million consumers every day. The company is known
for hamburgers, it also sells breakfast, French fries, soft drinks, chicken products, milkshake
and wraps. As a result of changing customer tastes and negative reaction because of
unhealthiness in the company’s food, the corporation included salads, fish, smoothies and
fruits to its menu. (Mieth, 2005).
Mission and vision statement of McDonald
The mission of the company was developed by its founders, Maurice and Richard
McDonald, which is being in a favourite way, a consumer’s best place of eating and drinking.
This statements of mission denotes the relevance of consumers focus in the company while
keeping in place the supremacy of the organization on major purchasing decisions of food
and drinks. The company develops designs of restaurants as well as layouts to optimize
customer experience and its level of output. The company’s mission statement consists of
main components which are: in a good way of eating and drinking, a customer’s choice and a
customer’s best place of eating as well as drinking.
The vision of the company is ‘with swiftness move to driving increase in revenues
and be an improving company offering services to more consumers of food delicacies
everyday worldwide. This shows that the company aims at expanding its growth and
operations. It further aims at flexibility in its operations in order to accommodate more
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customers in its chain of restaurants. This statement was articulated in community investing
meeting in 2017 by the organization.
SMART goals and objectives
Specific To raise the
profitable margins
of the organization
To bring to
awareness a variety
of quality product
options.
To improve quality
of services provided
in the restaurants.
Measurable Increasing the
organization’s
market share.
The customers will
be offered with a
variety of healthy
and nutritious food
options.
The quality of
services will
increase the number
of buyers in the
hotels.
Attainable The objective is
achievable within a
specific duration.
This aim is
achievable in the
restaurants with the
aid of availability of
nutritious and
quality foods.
Objective is
achievable by well-
trained personnel’s
in the hotels.
Relevance The objective is
important in raising
the income levels of
of McDonald.
Goals are
significant for
mounting a market
share for McDonald
in the industry.
The objective can
show its relevance
so as to develop and
maintain the
profitable margins of
McDonald
Time specific Duration elapsed in
achievement of the
objective is 2 years.
The duration taken
to achieve the
objective is 1 year.
Duration which can
be elapsed in
attaining objective is
12 months.
USA retail food industry investigation
The fast retail food industry in American states has indicated increasing growth levels
for the past five years. This is as a result of increase in the level of disposable income and a
strengthening domestic US economy. This has enabled buyers to purchase more premium
products from restaurants and groceries. The growth has been realized on wholesale and retail
sale volumes of the fast food industry (Abell, 1980). The urban population is the main driver
which has been able to accelerate the growth level since customers prefer eating in
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restaurants than cooking in their homes. Increase in buyers’ spending, awareness on eating
healthier and increase in urban population have influenced the growth of fast food industry in
the United States (Noe, 2006).
SWOTT analysis of McDonald
Strengths – McDonald has increased standardization level which seeks to make sure
uniform delivery of product and services worldwide. This has been assisted by strict food
standard preparation which is part of employees training and development for franchised
stores and the company owned stores. McDonald is recognized as a worldwide brand and it
has sponsored international events such as the World Cup and this has enabled wide coverage
of its value and coverage (Bashiri, Badri, and Talebi, 2012).
Weaknesses – The menu of McDonald is considered complex as it has foods with
high fat and calories level. This is unhealthy for consumers and it may end up losing its
customers to competitors due to health effects such as obesity. Franchising may mean the
quality of services provided at McDonald’s outlets differ in different places and this may
result affecting the brand of the company.
Opportunities – McDonald should consider making better use of technology to
increase convenience in service delivery to its online customers. It should also consider
increasing its level of sustainability by coming up with appropriate recycling facilities. This
will assist in demonstrating the company’s commitment to sustainability to its consumers,
stakeholders and the government (Pagh, and Cooper, 1998).
Threats – The rising concerns regarding obesity levels may result to an increase in
taxation on fast food which will reduce the profit margin of the organization. This will also
have an impact on consumers as the tax may be transferred to them through an increase in
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cost of buying fast foods if McDonald is unable to the reduce contents of fat in its food. In
addition, existence of franchise framework that are not friendly in some nations will limit the
expansion of the company.
McDonald’s perpetual chart
Increase Cost
KFC DOCTOR’S ASSOCIATES
Restricted selection Desolate Choice
selection
DARDEN MCDONALD
Decrease Cost
Drawing 1 – Perceptual Chart
Basis – Generated by writer
The placing chart established above shows the operations of McDonald basing on cost
levels and consumers’ preference. Customers form a significant share of profitability and
operational stages of the company in the food retail industry. The company in a position to
offer high competitive levels to McDonald based on price is Darden. Similarly, the high
priced competition of McDonald is KFC (Galbraith, 1995).
Conclusion
In conclusion, it is evident from the essay that McDonald has developed its position in the
market share in the fast food industry from its recognized brand. However, the fast food
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industry requires healthier variety of products introduction offered by the organization to its
consumers. The goals specified in the strategic market plan are basing on the frequently
changing customer requirements (Mintzberg, 2000).
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References
Al Flaiti, S. A. Human Resource Contribution to Organizational Success.
Abell, D. F. (1980). Defining the business: The starting point of strategic planning (pp. 3-26).
Englewood Cliffs, NJ: Prentice-Hall.
Bashiri, M., Badri, H., & Talebi, J. (2012). A new approach to tactical and strategic planning
in production–distribution networks. Applied Mathematical Modelling, 36(4), 1703-
1717.
Noe, R., Hollenbeck, J., Gerhart, B., & Wright, P. (2006). Human Resources Management:
Gaining a Competitive Advantage, Tenth Global Edition. McGraw-Hill Education.
Mintzberg, H. (2000). The rise and fall of strategic planning. Pearson Education.
Mieth, H. (2005). The history of McDonald's. Grin Verlag.
Galbraith, J. R. (1995). Designing organizations: An executive briefing on strategy,
structure, and process. Jossey-Bass.
Pagh, J. D., & Cooper, M. C. (1998). Supply chain postponement and speculation strategies:
how to choose the right strategy. Journal of business logistics, 19, 13-34.
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