Assignment on

Business strategy
An analysis of Mcdonal’s

Course Name: Strategic Management

Course code: MGT 421

Submitted to:
Shamima Akter
Assistant Professor of Marketing (UITS)
Faculty of Business
University of Information Technology & Science

Submitted by:
Firoza Khan
ID: 2115101023
Section A
BBA 51 Batch
Department Business Studies

Date of Submission: 25th September, 2023

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 Introduction

McDonald's Corporation is an American multinational fast-food industry, known for

its iconic golden arches and globally recognized brand. Founded in 1940 by Richard
and Maurice McDonald, it has since grown into one of the most prominent and
influential players in the global fast-food industry. McDonald's serves a wide range of
food items, primarily focusing on burgers, fries, chicken products, breakfast items,
and beverages. With a presence in over 100 countries and a vast network of
franchisees, McDonald's is synonymous with fast, convenient, and affordable dining
options.

The company's devotion to uniformity and standardization, which guarantees that a

McDonald's meal tastes the same whether you're in New York City or Tokyo, is one
of numerous important aspects that contribute to its success. at the fast food market,
McDonald's has also been a trailblazer, developing ideas like the drive-through
window and the idea of a children's play area at its establishments.
McDonald's has expanded their menu to include healthier options and catered to
special dietary needs over the years in order to adjust to shifting consumer tastes. This
flexibility has enabled the business to continue to dominate the fast-food sector.

In addition to its commercial success, McDonald's has had a profound cultural

influence, affecting not just how people eat but also popular culture, advertising, and
even the layout of public areas. In many regions of the world, Ronald McDonald and
the Golden Arches emblem are instantly identifiable icons.

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 Vision, Mission of McDonald's

Vision
McDonald’s corporate vision is “to move with velocity to drive profitable growth and
become an even better McDonald’s serving more customers delicious food each day
around the world.”

Mission
McDonald’s corporate mission is “to make delicious feel-good moments easy for
everyone.” This mission statement highlights the significance of customers and
service quality in maintaining the company as a major option for consumers in their
food and beverage purchase decisions. McDonald’s corporate mission statement has
the following main points:
 Delicious food and beverage
 Good experiences
 Accessibility
 Global market reach

Products & services of McDonald's

McDonald's provides a variety of goods and services, with a focus on fast food. Here
are some of the main goods and services McDonald's provides:

Products
Burgers
Big Macs and Cheese Quarter Pounder, Hamburger McDouble, cheeseburgers, and
more.

Chicken
Chicken Mc Nuggets, Mc Chicken, McChicken Spicy, McChicken Deluxe and more.

Food for breakfast

Hotcakes with egg and sausage mc muffin other items.

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Sides and Fries
McDonald's Apple Slices Fries, Sticks of mozzarella, Salads on the side.

Drinks
Soft drinks in a range of sizes, coffee, McCafe Drinks, Milkshakes, Bottled water and
other things.

Sweets
Baked Apple Pie, Apple Pie Sundae McFlurry, soft-serve ice cream cones, and more.

Wraps and Salads

Premium salads, Wraps with grilled chicken, Caesar wraps and other foods.

Services

1. Drive-Thru: For easy ordering and pickup, McDonald's restaurants offer drive-
thru service.

2. Dine-In: Customers are permitted to eat inside the establishment at tables and
chairs.

3. Takeout: For customers who prefer to order and take their food to go, McDonald's
offers takeout service.

4. Mobile Ordering: McDonald's offers mobile ordering through their app in some
areas, enabling consumers to place orders and make payments in advance for faster
service.

5. Delivery: In some places, McDonald's offers home delivery through partnerships

with various third-party delivery firms.

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 McDonald's position in global market

The McDonald's Corporation had a substantial market share in the world's fast-food
industry. One of the biggest and best known fast food restaurant franchises in the
world. Here are some crucial details regarding McDonald's position in the global
market, even though particular rankings and market shares can fluctuate over time:
1. There are about 40,275 McDonald’s locations worldwide as of 2022.
2. Globally, McDonald’s serves over 69 million people daily.
3. McDonald’s operates in 118 countries and territories.
4. McDonald’s earned $23.18 billion in global revenue in 2022.
5. More than 2 million people work at McDonald’s franchises worldwide
6. Depending on the region, McDonald's had to contend with Burger King, Wendy's,
Subway, KFC, and Taco Bell among other fast-food restaurants.

Business strategy of McDonald's

McDonald’s generic strategy: McDonald’s generic strategy is cost leadership, which

builds competitive advantage through cost minimization. The company has
standardized processes designed to maximize efficiency, minimize costs, and ensure
profitability despite the use of competitive selling prices. The competitive advantages
achieved through the cost leadership generic strategy support McDonald’s intensive
growth strategies, especially market penetration and product development. Applying
this generic competitive strategy puts the food service company against many
competitors in the fast-food market.

Intensive Growth Strategies of McDonald’s Corporation:

1. Market penetration is the main intensive growth strategy that supports

McDonald’s business development. The company’s strategic objective in using
market penetration is to generate more sales in food service markets where the
business currently has operations. The restaurant chain employs a number of ways
for this intensive growth strategy, including franchising, licensing, joint ventures,

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 and partnerships. Market penetration, the business strengths identified in the
SWOT analysis of McDonald’s Corporation add to the competitive advantages for
growing sales and market reach. McDonald’s marketing mix or 4Ps determine the
actual strategies and tactics used for reaching target restaurant customers.

2. Product development is applied as one of McDonald’s intensive growth

strategies. The company’s strategic objective in product development is to
produce and sell new food and beverage products to its current markets, such as
the EU and North American markets. In applying product development, the
company has a low frequency of releasing new products, such as new burgers or
variants of existing menu items. This intensive growth strategy relates to
McDonald’s cost leadership generic competitive strategy, in terms of competitive
pricing. PESTLE analysis of McDonald’s shows that these trends determine how
the market responds to the business and its products

3. Diversification is only minimally applied as an intensive growth strategy in

McDonald’s business. In this case, the strategic objective of diversification is to
grow the business through new products in markets outside the food service
industry. The company has implemented this strategy for intensive growth, but
only to a small extent and still within the area of food preparation and production.

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