MINI CASE
ANALYSIS-McDonald’s
We have learned that a Business Strategy is dynamic and
needs to be continually reviewed against changes in the General and Competitive
Environments and often modified to respond to any changes that might
significantly affect the firm’s future long-term performance.
This Mini-case will look at the current strategy of
McDonald’s, which has led to about 70 years of business success as the world’s
leader in the fast-food industry, to determine if recent changes or trends in
the General External and Competitive environments might require changes in
McDonald’s current strategy.
McDonald’s was founded in 1940 by the McDonald’s brothers (Richard
and Maurice) as a single hamburger stand in San Bernardino, California. In 1955
Ray Kroc, a former milkshake mixer salesman purchased the business and set out
to make it a global leader in the fast-food industry. Today McDonald’s serves over 69 million
customers a day in over 100 countries across 37,855 outlets. They are the
world’s second-largest employer, with over 1.9 million employees worldwide.
McDonald’s core business strategy in the fast-food industry
has been A BROAD LOW-COST PROVIDER. To support this strategy, they have
developed a low-cost global supply chain, built a worldwide network of low-cost
and efficient retail operations, and developed a training facility (Hamburger
U) to train managers in McDonald’s low-cost methods and culture. McDonald’s has
a broad fast food product line to support this strategy (beef, chicken, and fish
sandwiches, various beverages, and dessert items). McDonald’s has adapted its
products to local cultures to reflect differences in eating habits while
maintaining its core focus on low cost and fast service.
Since the founding of
McDonald’s, many conditions in the General Environment have changed. Changes
in dietary preferences, technology, demographics, and economics are some
examples. For this Mini Case paper, conduct the following analysis:
1. IDENTIFY current
changes or trends occurring in each of the GENERAL ENVIRONMENTAL categories of Political,
Economic, Social, Technological, Environmental, and Legal that are likely to
have a NEGATIVE effect on McDonald’s future performance. DISCUSS how the changes
or trends you have identified would potentially affect McDonald’s long-term
future performance (i. e., revenues, profitability, market share, etc.)
2. What ACTIONS
should McDonald’s take to offset or minimize each potentially negative change
or trend? Explain how each recommended action
would benefit McDonald’s in the future and offset the potential negative effect.
3. IDENTIFY
OBSTACLES that may prevent McDonald’s from implementing your recommended
actions, and suggest steps McDonald’s leadership can take to overcome these
obstacles.
The paper is to follow APA Writing Style format and all the
Course Guidelines for Written
Assignments as outlined in the Guidelines document posted on Blackboard.
The paper should have a COVER PAGE, an ABSTRACT, an INTRODUCTION,
a Section for Identifying the General Environmental Trends, a Section on HOW
TRENDS AFFECT MCDONALD’S FUTURE PERFORMANCE, a Section ON OBSTACLES AND ACTIONS
TO DEAL WITH, a Section on SUMMARY and CONCLUSIONS, and a REFERENCE PAGE.