COMPETITIVE STRATEGY

Competitive Strategy

Introduction3

Background3

McDonald's Vision4

McDonald's Mission Statement4

Strategic Direction5

Analysis6

Strategic Analysis (SWOT)6

Strengths6

Weaknesses6

Opportunities7

Threat7

Nature of Competition7

Competitive Positioning9

Drivers for Change10

Justified Growth Targets11

Strategic Options12

Recommendation13

Implementation and Control14

Conclusion16

References17

Competitive Strategy

Introduction

Background

McDonald is the largest hamburgers chain of fast food restaurant across the world and is headquartered in Oak Brook, Illinois, United States. Big yellow “M” is the company logo. The company was started by Richard and Maurice McDonald in 1950s, and the business primarily deals in hamburgers, salads, desserts and French fries. In United States, the first restaurant was opened during 1955 where customers were being served a vast menu at low cost while company ensures quality food in a good environment. McDonald has over 6,000 branches by the year 1983. In 1967, the first overseas branch was opened in Canada. McDonald has obtained 20% of its total sales from aboard franchises during 1985 (McDonald, 2012, pp.1-54).

McDonald produces products that can be classified into several groups, including pork, fish, chicken and hamburger products, deserts, salad, soft drinks and French fries. However, McDonald main product remains hamburger. McDonald offers a variety of hamburgers, such as McNifica, Big N'Tasty, McDouble, Double Cheeseburger, and Cheeseburger while the consistent and names varies across the countries. Each day, there are about 18 million customers eat McDonald, and has their fast food chain in 40 countries across the globe. Presently, McDonald has over 34,000 locations across the world countries and obtained revenue of about £27.56 billion. McDonald is the largest fast food restaurant that operated in more than 100 countries and serves around 52 million customers in a day. McDonald operates with QSC&V standards and the world-class standard, which are followed in all its restaurants across the world (McDonald, 2012, pp.1-54).

McDonald's Vision

The vision is to offer the best experience to its customers in a family environment. People are the key to the company's vision as the company puts its people at the centre. That goes for its customers as well as for its employees.

McDonald's Mission Statement

The brand mission of McDonald is to be the favourite way and place to eat for its customers. The common and broad mission of the company is more apparently defined by the values of McDonald that reflect the customer's experience, which they expect when walking into the restaurant despite the location of the fast food restaurant.

McDonald's Core Values

The core values of McDonald include (McDonald, 2012, pp.1-54):

Customer centric and oriented culture

The company is committed to its people (external and internal customers)

McDonald believes in its system

The company operates in an ethical manner

McDonald fulfils its responsible towards its community

Strives for business profitability

McDonald strives for improvement on continuous basis

Strategic Direction

The alignment strength among McDonald, its suppliers and franchisees (mutually refers to as the system) have been the major reason behind the success of McDonald. McDonald's business model allows the company to offer locally-relevant and consistent restaurant experiences to its customers and be an essential part of the society where they operate. Moreover, it assists the company in identifying, implementing and scaling innovation ideas and concepts that meet preferences and needs of ...