Strategic Choices

Strategic Choices

Q1- Examine McDonald's strategic choices

In order for McDonald's to reach its goal of "par excellence", it must use the full meaning and definition of marketing. Marketing is giving the target market what they want, when and where they want it, at a price they are willing to pay for it. For McDonald's to achieve its "par excellence", they must focus on the fact that there is an ever changing market and that the wants and needs of consumers are constantly changing. Since McDonald's has been around for forty-one years, it is safe to say that they are the father of the fast food industry and that they have set an example for others to follow.   When Ray Kroc bought the first McDonald's in 1955, he focused on what people wanted. With this focus came the utilization of Mr. Kroc's theory of QSC ( quality, service, and cleanliness ).

QSC successfully got McDonald's off the ground, but as times changed, the company saw many more market segments and opportunities. In the 1970's and 1980's once again McDonald's lead the way in the fast food industry.

McDonald's strategic power is based on a particular theory referred to as relationship marketing. The customer is viewed as an asset and the company's marketing goal is to attract, maintain, and enhance customer relationships. (Love, John F. McDonald's 1995. Pp 100-103)

There are five main criteria that must be met for a successful relationship marketing strategy and they are as follows : 1) There needs to be an ongoing and periodic desire for the product or service by the customer. 2) The service customer controls the selection of the service supplier. 3) There are alternative suppliers of the service. 4) Customer loyalty is weak and switching is common and easy. 5) Word of mouth is an especially potent form of communication about the product. All of these criteria are met by the fast food industry, and McDonald's has generally had a very successful relationship marketing strategy, especially through the implementation of the QSC program.

Q2- Will McDonald's succeed in growing as a consequence of the company's strategic choices? How would you compare McDonald's and Wal-Mart's growth strategies?

Ans. Yes McDonald's will be successful in the long run with it's strategic move. Walmart, which is a large shopping mall chain in the U..S. and several neighboring countries, is allied with McDonald's, which offers great opportunities for both companies. McDonald's has restaurants in each Walmart, offering its customers conveniences and excellent fast food at a low cost ease of accessibility.

McDonald's corporation describes it best in this scenario: Imagine a busy shopping day at your local Walmart and having the ability to sit down with the kids and enjoy many of our McDonald's favorites, like 'Big Mac' sandwiches, world famous fries and kids favorite 'Happy Meal'. McDonald's understands your busy lifestyles and the demands on your time. That's why we are making it easier for you to do more things in less time.

Q3- Perform a SWOT analysis of ...