Mc Donald
Essay Preview: Mc Donald
Report this essay
INTRODUCTION OF THE COMPANY
“McDonald”
McDonalds Corporation is the worlds leading food service organization. The corporation started out as a small drive-through in 1948 by two brothers, Dick and Mac McDonald. Raymond Albert Kroc, a salesman, saw a great opportunity in this market and advised Dick and Mac to expand their operation and open new restaurants. In 1961 Kroc bought out the McDonald brothers. By 1967 McDonalds expanded its operations to countries outside the U.S.A. This unyielding expansion led the Corporation to open 23,000 McDonalds restaurants in 110 countries in 1994, producing $3.4 billions in annual revenues. From the study it has been found out that, McDonalds opens a new restaurant every three hours. Also, McDonalds has twice the market share of its closest U.S. competitor, Burger King, representing 7% of total U.S. eating-out sales. Similarly, McDonalds serves about 1% of the worlds population on any given day through its 23,000 restaurants internationally. Big Mac, the worlds most sold hamburger was developed by Jim Delligutti in 1967 to feed construction workers. Big Mac is the biggest attraction and backbone of the corporation. Moreover, McDonalds maintains its competitive advantage by constantly creating new items to add onto its menu. This shows us that McDonalds practices an analyzer type of strategy, introducing new items and defending its existing ones.
Key Success Areas
The real question, of course, is why has McDonalds been a success? Why is it that so many people will eat at McDonalds today?
Maybe because its quick, or easy, maybe because its affordable for some or just because they enjoy the taste. Any one or more of these reasons could apply to any individual or group at any point in time – but all of these reasons go to make up the McDonalds experience. The McDonalds experience is the first, and major key to our success.
McDonald’s MISSION AND VISION
We serve people with good quality food, fast and at low cost. McDonalds vision is to dominate the global food-service industry. Global dominance means setting the performance standard for customer satisfaction and increases market share and profitability through successfully implementing our convenience, value and execution strategies.
DIMMENSIONS TO STUDY
To have a clear picture of McDonalds corporation we need to look at its Task Environment, which includes its:
•
Competitors.
•
Strategic Allies
•
Regulators
•
Suppliers
•
Workforce diversity
•
Total quality management
COMPETITORS:
Customers are those who pay money to acquire an organizations goods or services.
For many years McDonalds mostly targeted the young people, however this has changed in this decade; McDonalds has turned towards a more general market. By doing this McDonalds concentrates on the family, targeting a diverse market, which includes consumers ranging from children to elderly people, using products such as the happy Meal for children and McArabia for the elderly. McDonalds also realized the changing world we live in and the need for healthier food, since there is an ever changing demographic group, who demand fast, top quality food that is low in calories. McDonalds is likely to responded to this opportunity in the year ahead, i.e, 2008 and will introduce a new and innovative product. This new product will be regular hamburgers will that taste like the real thing but was made of plant material like Soya beans. This same product also targets another demographic group, vegetarians. McDonalds mostly uses psychographic segmentation targeting the working and middle classes. These are the people that are more susceptible to enter a fast food restaurant, since these are the people that lead a fast moving life and thus require a fast meal. In brief McDonalds customers are of all classes, and people of all ages.
COMPETITORS:
A competitor is an organization that competes with other organizations for resources. In my findings, McDonalds has following competitors in fast food market:
•
K.F.C.
•
Nandos
•
Indulge
•
Papa John
Competitor refers to firms producing one or two products that compete with McDonalds products and therefore be a threat to the company. All of the mentioned restaurants offer burgers and fries on its menu, therefore competing with McDonalds for customers of these products. However, Indulge is a more of a hang out place, as a result charging more money for its products. K.F.C. targets middle to upper class customers, so where most of these customers overlap are in the middle class. Papa John is another indirect competitor reflecting the same characteristics as Indulge.
STRATEGIC ALLIES:
A strategic ally is an organization working together with one or more other organizations is a