MCDONALDS

McDonalds

McDonalds

Introduction

For one it's an honour to make a research on one of the most profitable societies of the world, for second because the kindness of McDonald's employees and the precision of McDonald's Web site, are perfect sources for all kind of information that can help analyse through Porter's value chain, all the aspects of its value creation. In the late 1940s, Dick and Mac McDonalds were searching for a way to improve their little drive-in restaurant in San Bernardino, California, U.S.A.; they invented an entirely new concept based upon speed service, low prices, and big volumes. Word of its success spread quickly, in 1952 they had more than 300 franchising inquires a month from all over the country. McDonald's is now the largest and best-known foodservice retailer and one of the two best-known and powerful brands in the market. With more than 24,500 restaurants in 115 countries, some of those operated by the company, some by franchisees or by affiliates operating under joint-venture agreements. The global market potential is still huge: yet on any day, even as the market leader, McDonald's serves less than one percent of the world's population.

Strategy

The restaurant chain plans to expand their leadership position through convenience, superior value and excellent operations. The effort to increase market share, profita! bility and customer satisfaction has produced high returns to shareholders: a compound annual total earning of 210ver the past 10 years. McDonald's vision is to dominate the world-wide foodservice industry. Universal dominance means setting the performance standard for customer satisfaction and increasing market share and profitability through successful fulfilling McDonald's convenience, value and execution strategies. A precise way of considering McDonald's' role of operations is through Porter's value chain analysis. The Value chain breaks down the firm into its strategically relevant activities, in order to understand the behaviour of costs and the existing or potential sources of differentiation. A firm gains competitive advantage by performing these strategically important activities more cheaply or better than its rivals. For a company which feeds some 38 millions clients every day, finding a reliable quality supplies is a major factor for success. McDonald's has solved the problem by making food supplies part of their success. McDonald's distributors are strategically to be accessible to the each restaurant and carry practically everything, from meat and potatoes to lightbulbs.

If we are examine the corporate strategies of the world's Mc Donald's. We will find the three basic kinds of strategies like as Parenting, Following and Rule breaking. The first strategy is concern with 'Parenting group', this group of Mc Donald's. Mc Donald's have tendency and responsible for inventing the new products throughout the world. Their main strategy is retaining their customer and holds their market share with new and modified products. The second type of strategy is 'Following'. In this group, their main strategy is following the 'parenting group' inventions and produced the same goods and services which introduced by the parenting group.

Modern views on strategy

"The determinant of the basic long-term goals of an enterprise, and ...