Mcdonald's Strategic Management Case Study
STRATEGIC MANAGEMENT CASE STUDY: MCDONALD’S CORPORATION
1. INTRODUCTION
McDonald’s Corporation is the world’s leading fast food restaurant chain with more than 34,000 local restaurants serving approximately 69 million people in 119 countries each day. More than 80% of McDonald’s restaurants worldwide are owned and operated by independent local franchisees. Its revenues come from the rent, royalties, and fees paid by the franchisees, as well as sales in company-operated restaurants (McDonald’s, n.d.).
The organization view themselves primarily as a franchisor and believe franchising is very important to delivering good customer experiences and driving profitability. At year-end 2014, more than 80% of McDonald’s restaurants were franchised.
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The diagram above shown the CPM of McDonald’s and its competitor, KFC and Burger King; indicates McDonald’s is in a strong strategic position than its competitor. Major reasons on why McDonald’s is successful and has high market relate to it strong brand name recognition, a strong customer loyalty, and its global expansion. Furthermore, McDonald’s is also invested a large amount of money in advertising and very well known toward it charity program through Ronald McDonald’s House. Nevertheless, there are areas in which the organization can improve. One of those areas is their public image. Certain legal issue caused McDonald’s negative publicity such as low employee wages and new healthier menu choices that do not go well with the consumers. Another area to consider is the innovation. McDonald’s should take advantage of its R&D to come out with healthier local adapted menu.
4. EXTERNAL FACTORS EVALUATION (EFE)
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