MacDonalds Customer Policy
Strategic analysis is the way of conducting research on a company and its operational environment including internal and external factors that influence the company’s ongoing situation to create a strategy. Data becomes the key competitive advantage nowadays. Managers of an organization use this data to know about the competitor’s strengths and weaknesses. Data collection is not only important to operate the business but it also leads the company to develop a unique data strategy that helps them to maintain and maximize the wealth and value of their company. (Marr, 2019)
Mcdonald’s Corporation is one of the largest American fast food chain corporations in the world recognized for its hamburgers. Mcdonald’s Corporation uses the growth strategy to find a way to globalize more their business and create more value for all stakeholders. Mcdonald’s also uses this strategy to meet customers’ expectations. Through globalization, Mcdonald’s creates opportunities for unemployed people, as it is known to be the second largest private employer and consists of 1.5 million employees across the world. (www.britannica.com, 2018)
An organization’s main competencies ought to be targeted on how to meet customer expectations and need to attain more profit and this will be done through business-level strategy. Business level strategy refers to a decision made by the organization to value customer needs and expectations and how to increase competitive advantage in the market by offering new products and services to the customers. (Starr, 1999)
For example, McDonald’s business strategy develops a mixture of cost leadership and worldwide business expansion strategies. Furthermore, McDonald’s products and services standards are of high quality all over the world. Moreover, Mcdonald’s takes into consideration the local taste while preparing its menu to attract customers along with its high-quality standards, which is very important. Mcdonald’s added Mac Arabia to its menu only in Arab countries such as Kuwait, KSA, Qatar, etc. Moreover, Mcdonald’s has a competitive advantage over other restaurants due to its low cost of burgers of high quality. (Dudovskiy, 2016)
Mcdonald’s is also focusing on a digital marketing strategy to target young customers by advertising on Facebook, Twitter, etc. Mcdonald’s has also launched its application to target audiences by offering discounts and free meals.
Mcdonald’s has adopted a market expansion strategy to expand its business in increasing economies especially in Asian countries. The golden arches of McDonalds has set their visions on searching Asian markets. Although Asian countries have many other fast food restaurants as fast as Mcdonald’s do. It is often seen that McDonalds uses the strategy of Franchising and licensing to form a new market worldwide. Today, there are more than 80% franchises of McDonalds all over the world. Moreover, Mcdonald’s uses an adaptation strategy as wherever they expand their business every country has their own rules and regulation. For example, in Russia Mcdonald’s has to purchase the meat in particular way according to Russian rules. (mcdonalds600.weebly.com, 2013)
Environmental analysis is a strategic tool that businesses used to find all internal and external components that can affect the business performance in the future. Many tools are used by businesses to find out the internal and external factors. The organization does not have any control over these factors moreover, the organization can be unsuccessful if a company fails to block these factors. The most common tool that businesses used is known as PESTLE. PESTLE stands for Political, Economic, Social, Technological, Legal, and environmental factors. (PESTLE analysis Contributor, 2015)
In countries where Mcdonald’s operates, it is very important for McDonald’s to accept the political rules and regulations if not then it would result in the shutdown of the business. The government pressurizes Mcdonald’s as they have a high amount of sodium and sugar in their meals, which leads to cause serious health problems such as high heart disease, high blood pressure, and diabetes.
Mcdonald’s plays a significant role in helping the economy of the United States by providing job opportunities to the people. It is a great chance for youths to work part-time. McDonald’s also has its negative side that it pays low salaries to its employees without overtime to make a high-profit margin due to this it lost its employees. (nhdbbt.weebly.com, 2018)
Mcdonald’s has many social impacts on society because of the food they offer to the community. Their food is high in fats and lacks vitamins and fiber. Moreover, they are using domestically produced raw materials to turn into the local restaurants of an international chain. (nhdbbt.weebly.com, 2018)
Mcdonald’s has adopted all the changes to make its service better and faster. The main technology Mcdonald’s has recently adopted is a digital ordering platform that allows customers to order on a digital touch screen system which has led to reducing certain amount of time, which is used in waiting in lines to order a meal. (GREENSPAN, 2018)
Legal issues can have a major impact on the business that how successful it can be. If the laws are strict then it can affect business growth, on the other hand, if laws are not strict then it might allow the business to make more profit. In the UK as per employment rights, McDonald’s offers zero-hour contracts that allow employees the opportunity of moving to stable hours. (Ruddick, 2016)
McDonald’s is one of the biggest garbage producers of the garbage in the world like other fast restaurants but McDonald’s is trying their best to reduce garbage by implementing new ideas such as they have started recycling programs and packaging programs. (corporate.mcdonalds.com, 2019)
According to the environmental analysis as discussed above, it is highly recommended for Mcdonald’s to implement the below strategic plan taking into consideration the social factor.
The social factor is focused on customers as we have discussed above. Mcdonald’s can use the strategy of adding new cold beverages like mojitos and new burgers with new sauces on the menu for the customers who would like to have meals on a weekly or monthly basis. Mcdonald’s is also using the strategy of giving discounts or free meals on their Mcdonald’s application it has also helped the corporation to increase its sales. The strategy of McDonald’s of acquiring local communities’ tastes wherever McDonald’s franchises are is the best way to attract customers towards themselves in India McDonald’s added the local taste burgers with local names, for example, McAloo tikki Burger, Mcveggie burger and chatpata naan kebab, etc.
McDonald’s mission statement is “to be our customer’s favorite place and way to eat and drink”. By reviewing the mission statement of Mcdonald’s it is clearly stated that McDonald’s is focusing on customer satisfaction, as they are the main reason to influence McDonald’s to change their decisions. Due to this reason, Mcdonald’s modify its menu as per customers’ expectations. McDonalds modifies its mission statement to react to changes in the international food industry. McDonalds considers its mission statement as important policy and strategic management tool for nonstop development. (MEYER, 2019)
As per (John, 2014) Strategic direction is a plan that an organisation follows to achieve their organizational goals. McDonald’s strategic plan is known as “Plan to win”. To achieve the plan Mcdonald’s is trying to apply 5 P’s known as the marketing mix which is as follows:
People is the main factor for McDonald’s because they are the one who purchases their products which leads to increased sales of McDonald’s If customers are satisfied with the product then it will be a Boom for McDonald’s. Furthermore, Mcdonald’s uses strategies to meet customer expectations.
Products are the main factor of Mcdonald’s brand and corporate image and it is recognized all over the world due to its hamburgers. Mcdonald’s provides hamburgers and sandwiches, chicken and fish, salads, beverages, breakfast and McCafe, etc. The company adapts the strategy of local taste in making menu and they are updating their menus according to customers demand to meet their expectations.
For example, In United Stated they add Beef in their hamburgers whereas in India they are adding chicken and vegetarian products. (codes, 2018)
The place plays an important role in the fast food chain restaurant. Mcdonald’s has set up its franchises and self-owned restaurants in places where customers can easily access and enjoy their meals in an entertaining environment. Moreover, their Franchises and restaurants are located at the places where they can initiate more profit such as malls, airports, entertainments parks.
The price element of the marketing mix refers to the price of products. Mcdonald’s aims to use prices that can cover the cost and generates profits. McDonalds uses two types of pricing strategy.
In Bundle Pricing strategy, McDonalds offers combo products with discounted rates as compared to purchase each item separately. For example happy meals and extra value meal to raise the cost and value. Whereas psychological pricing strategy refers to Mcdonald’s using prices that look more affordable such as 0.99 Dollars instead of rounding off the figure to 1 Dollar. This pricing strategy helps the customers to purchase more products. (MEYER, 2018)
The fourth element of the marketing mix is a promotion that discusses the platform that McDonald’s uses to communicate with its customers to aware them of McDonald’s new offers and products. The platform McDonalds use to communicate with its customer are direct marketing, billboard advertisement, sales promotion and TV advertisements. (MEYER, 2018)
In a corporation where there is any number of people working each one has their own way of thinking due to which organisation sets their objectives so everyone could work on a plan to achieve the objective. Objectives assists the businesses to develop. It can use as a standards or plan. (Cram.com, 2008)
McDonald’s main objective is to give 100% and to provide quality food to the customers. It struggles day by day and bring changes in the menu to meet customers’ expectations. To achieve this objective they are using “Plan to win” strategy, which has discussed above.
Key performance indicator measures the value that explains how a business is achieving its main objectives. Some businesses use KPI’s at some levels to assess their success in achieving objectives. The focus of High-level KPI’s is on the performance of whole business whereas the focus of low level KPI’s is on the specific departments progress such as sales, HR or marketing department etc. (Wille, 2019)
McDonalds should organise customer service communities to know about how customers thinks about McDonalds staff. It is also required for McDonald to keep daily meetings with team leaders to explain them more about working on customer satisfaction.
All employees should be aware by McDonald’s mission and objectives and sell what customers want. They should take feedback from customers to act according to their needs. If Mcdonald’s come to know what customers want so it can work on it and cut the production cost to improve and increase sales.
Brand Image is not only about McDonald’s logo it needs to do a value check and organize a high-profile event to get known globally although it is a global brand fast food chain restaurant it is a food restaurant that people should be aware that it is not harmful and have the FDA approved quality products.
Mcdonald’s has to conduct a training session every 3 months to train its staff with new skills and prepare them to adapt to new technology rapidly. Therefore, Mcdonald’s can achieve its target easily and can serve the food with fast service and good quality.
Strategic control refers to a process controlling the establishment and implementation of strategic plan. Strategic control is different from all other forms of management control. Strategic control is the process to check and making sure that the process carried out has the required impact on the organization. (2GC active management, 2019)
As we have discussed above the strategic plan is to introduce new drinks like Mojitos and new burgers with new sauces on the menu. The management has to organize a meeting to discuss the plan with concerned authorities like Managers who will work on the plan and make the employees work hard and achieve the goals.
McDonald’s has also introduced a new electronic machine to order food in Kuwait without standing in a long queue and it also implemented the kiosk payment system that has helped a lot of the customers to make a payment without cash in hand.
Stakeholders are the ones who have an interest in the organization’s decisions. They can influence the organization to change their decision or they can be influenced by the organization’s decision. Internal stakeholders are the Board of Directors and managers. Whereas external stakeholders are Government and customers. (CHEN, 2019).
As per (Mimar, 2015) there are main four elements to evaluate the plan
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