CASE STUDY ON MCDONALDS

Case study on McDonalds

Abstract/Executive Summary

The paper evaluates a case study based on the company McDonalds. The paper explores the concept of external environment impacting on McDonalds. McDonald's is one of the most well-known brands in the world, and is associated with burgers and with American-style fast food throughout the world. The company changed the way that Americans--and indeed, much of the world--eats, but the company has also struggled in recent years. McDonald's relies on a vast network of franchisees, and has arranged to buy back franchises that cannot be sold. The company's stock price has plummeted in recent years, franchisees are unhappy with the marketing support--or lack thereof--that they receive, and the consuming public has changed its tastes both domestically and in the international market. Also the paper discusses various strategies adopted by McDonalds that are currently in use in accordance with the internal and external data presented in the case study.

Table of Contents

Abstract/Executive Summary2

Introduction/Background4

Aims & objectives of the study5

Methodology6

Analysis7

Question 1: Discuss the environmental factors that effect McDonalds, placing emphasize on the key drivers.7

Question 2: Based on the given internal & external data about McDonalds, critically evaluate the current strategies in use.12

Conclusion16

Recommendations18

References21

References21

Case study on McDonalds

Introduction/Background

Today McDonald's operates in the global quick service restaurant industry business. McDonald's was the pioneer of this business and it was McDonald's which made the quick service restaurant business a global industry by creating a huge global commercial empire. (Cannon, 2008: 59-64)Currently McDonald's ranks 114th in the list of Fortune 500 companies and thanks to its pioneering processing and standardized approach to the commercial production of fast food, McDonald's has placed the quick service restaurant industry amongst the big economic driving force industries such as steel and automobiles. McDonald's trademark competition edge was its process management approach in which the company literally put hamburgers on the assembly line. (Blyth, 2008: 14-21) For McDonald's outlets to succeed they had to attain perfection by breaking the labour into parts and fine tune every aspect of hamburger manufacture. This approach is being imitated by companies all over the world not just fast food companies. McDonald's even has a Hamburger University which is actively engaged in developing efficient food assembly processes and teaching and training McDonald's employees, no other fast food chain goes to such lengths to ensure product consistency. (Michael, 2009: 356-374)

McDonald's was the first fast food chain which launched a central advertising campaign and built advertising icons in the shape of Ronald McDonald the McDonald clown. McDonald's advertised in network television and radio which made its franchise even more popular. Later on the McDonald's Golden Arch would display the yearly sales figure on them. The character Ronald McDonald is so popular that he ranks second in recognition to Santa Claus among children of 4 to 7 years of age. McDonald has also sponsored players and the American All Starr Basket Ball teams. Among the sponsor list of McDonald's are names like Michael Jordan and Magic Johnson. (Aaker, 2007: 137-144) When McDonald's started operations in foreign countries ...