McDonald's: Strategic Management, Ansoff Matrix & Business Tactic

This report provides a strategic management analysis of McDonald's, the world's largest fast-food chain, examining its mission, current strategic direction, and geographic segmentation. It assesses how McDonald's utilizes the 4Ps of marketing (product, price, place, and promotion) to achieve its goals, particularly in the US and European markets. The analysis incorporates the Ansoff Matrix to illustrate the company's strategic direction and evaluates its alignment with the current business environment. A cost leadership strategy, utilizing Bowman's model, is proposed to enhance competitiveness by leveraging skilled personnel to offer products and services at lower prices. The report concludes that selecting the right strategy requires thorough analysis of the business environment and emphasizes the importance of achieving a competitive advantage to increase profit and sales. Desklib provides access to similar solved assignments and study resources.

Strategic
Management

Introduction
Strategic management is the practice of
formulating as well as implementing major
goals and objectives of company and thus
enable firm with respect to attain success
in the market in an effectual way.
McDonald owing its existence to 1940 is
world’s largest fast food chain which has its
operation present in around 119 countries.
McDonald has around 59% of conventional
franchisee, 21% of its store are licensed
which are given to foreign
affiliates.However, 20% of the restaurants
are operated by McDonald only.

Major geographic
Segment
There are four main geographical
areas assessed, wherein cited
firm has established its
remarkable presence. These are
all depicted in below:
 United State of America
 Africa
 Asia
 Other nations etc.

Mission
The ultimate mission of the company is to
provide best and high class services to the
buyers.
The firm also has the goal to maintain as well
as enhance the satisfaction level of buyers by
giving them high quality of goods and services.
Company is totally committed in enhancing the
fast food chain experience of their customers.
Hence, in order to achieve the same it makes
use of four basis p's of marketing effectively
which is of product, price, place and promotion.

Current Strategic
Direction
The current tactical direction of company is not
to become the biggest fast food restaurant
chain, but is to become best fast food
restaurant chain all over the world.
The company is making use of product, price,
place and promotional tactic with an aim to
give the practical implementation to the
respective concept.
There are some examples which indicates that
how McDonald is achieving its tactical direction
by using 4P's of marketing. In United state
market, firm tactical plan basically focuses
upon breakfast, chicken and convenience. In
European market cites firm focuses upon
affordable offerings, classic menu and
premium selection etc.

Ansoff Matrix
The model which is given below also
help in giving description about the
tactical direction of cited company.

Current Strategic direction
fitting into present
environment
The current tactical direction of firm is perfectly
meeting with its current environment.
The main goal of firm is to deliver high quality
services to customers and maintain their level
of satisfaction.
In the given task, the tactics which is being
employed by cited corporation is playing very
critical role.
For example, by developing new product
McDonald is fulfilling needs and demands of all
its buyers.In the similar way, the firm is also
making changes in its operation as per the
culture of nation where it is operating its
function. Thus, it is through this way only
McDonald is delivering the best services to its
customers.

Proposed Strategy
 By making use of Bowman's model, an
effective tactic is suggested to the
manager of cited firm.
 It is recommended to the firm that it
should use low price or cost leadership
tactic.
 Cost leadership is suggested because the
firm is having the team of such skilled
personnel which can give practical
implementation of the given tactic.
 By using this approach, McDonald can
attain competitive edge in market where it
is operating its operation.
 This method will also assist in improving
sales and profits of corporation.

Cost leadership enhancing
the capabilities
 The cost leadership tactic will give
opportunity to McDonald in terms of
selling its product and services at low
prices.
 The given thing will help in creating
different image of McDonald in the mind
of its buyers.
 McDonald can also give tough
competition to its rivalries which are also
offering the same type of services but at
high prices.
 Thus, through this way firm can attract
large number of price sensitive buyers
and thus the given thing will help in
sustaining the growth of company.

Conclusion
 It can be stated that making the selection
of one specific tactic for the company is
not an easier task.
 This is because, with an aim to do the
same manager of firm will have to
conduct thorough analysis of the
business environment.
 Furthermore, for the firm it is very
essential that it should use such tactic
which can give its competitive
advantage.
 This is due to the fact that, on doing all
given type of work overall benefit can be
gained by McDonald in terms of
increased profit and sales.

REFERENCES
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[Accessed on 16th August 2016].
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