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Strategic Management Case Study: Mcdonald's Corporation

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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 important to delivering great customer experiences and driving profitability. At year-end 2014, more than 80% of McDonald’s restaurants were franchised. From …show more content…

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. Some of the reasons McDonald’s is successful and has high market is due to it strong brand name recognition, a strong customer loyalty, and its global expansion. Furthermore, McDonald’s is also invested a large sum 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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Both McDonalds and Chipotle provide fast food services. However, while they share some similarities in terms of belonging to the food industry, utilizing the concept of time to woo their customers, and emphasize on healthy alternatives, the two differ in their business practices and model, types of food that they offer, the efficiency, and extent that they have managed to influence and shape the perception of the consumers. Both McDonalds and Chipotle are restaurant chains that aim to provide fast food services to individuals on the go and highly emphasize timeliness of service as its major selling point. Besides both restaurants being in the food industry, the two restaurants emphasize the speed of their services as a selling point. As a quick service restaurant, McDonalds aims at reducing the time that its customers take before they are served.

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