Introduction of McDonald strategy Business strategy

        There are a lot of fast food industries in the world. These industries are involved in serving fast food to the customers. For this report McDonald’s is selected as the food industry that is involved in serving fast food to the customers.

Brief history of the McDonald

        The founder of this company is Richard and Maurice McDonald. These are brothers and they opened this restaurant in San Bernardo in 1940. Then after this Ray Kroc was the person that wanted to modernize this business in perfect way. Both these brothers were introducing new business strategy in 1948 and its name was Speeder Service System. Through this service system they have upgraded their system in the fast food industry. Then in 1962 this company is involved in applying new business strategy that is Golden Arches. They changes their symbol in 1965. This fast food restaurant was the first one that introduced Drive-in restaurant services. Later on they focus on expanding their restaurant all of the America and then after this Ray Kroc was the person that purchased that restaurant from these brothers. Both of these brother and Kroc fought for controlling this business (Jurevicius, 2019).

Revenue of the McDonald

        The revenue of the company is increasing annually. From the data it can be seen that for the year 2017 their earning was about 22.8 billion dollars and after this in 2018 their earing was about 134.5 billion dollars.

Mission and vision statement of the McDonald

        Their mission is that they wanted to become favorite place for eating and drinking. They wanted to upgrade their operation all over the world with complete plan. They also wanted to enhance customers’ experience. They focus on the five p’s of marketing for improving their operations.

External analysis of the McDonald

        The external analysis of the company is extremely necessary. The reason is that through external analysis they are able to enhance their business all over the world quite easily. For the external analysis the company must have to perform Pestle analysis and porter five forces model.

Pestle analysis of the McDonald

        This is one of the most important external analysis for the company. This is because through this analysis they are able to enhance their business in that country (Mcdonalds600.weebly.com, 2019).

Political factors of the McDonald

        This factor must have to be considered by McDonald if they wanted to enhance their business in the next country. This company must have to analyze the effects of governmental actions in detail. This is because through this it will become easy to improve their business in that country. For the case of McDonald this company must have to work for improving fast food industry environment and it can be done by increasing international trade with other countries. The next factor is related to the governmental guidelines for the diet and health and last factor is related to the public health polices for these fast food restaurants (Ahmed, et al., 2016).

Economic factors of the McDonald

        This factor is also important for the companies because they must have to be well aware about the economic condition of the other country. this is because through this it will become easy for expanding their business. It can be seen that economic changes has a direct or indirect effect on the business performance. There is huge effect of global economy that will influence industry environment of the McDonald. There are some economic factors that include

        There is slow and stable growth in the developed countries and it is a huge opportunity for the company. the Chinese economy is slowdown due to trade war between china and America. The last factor is that the growth is increasing rapidly in the developing countries (Sec. gov, 2013).

Social factors of the McDonald

        McDonald Company must have to consider social factor for increasing business in these countries. This company has to ensure the social condition of the country that will help the country to upgrade their business in that country. from the information of different countries, there are a lot of social factors from them there are some important social factors that McDonald must have to consider before expanding their business in that country. The first factors is related to the rising income of the country. In urban environments there are some signs of busy lifestyles. The cultural diversity is increasing in some countries. The last factor is related to the healthy lifestyle trend in this country.

Technological factors of the McDonald

        McDonald company must have to ensure some technological factors in their company. the reason is that through this it will become extremely easy for enhance their services and quality of their food products. The best part of this food company is that they depends upon in expanding their business trends through enhancing technology. There are some technological factors that they must have to address in perfect way for the company.

        Improve research and development activity in their company, introduce some valuable automation in the business. The last technological factor is that this company has to focus on mobile devices for increasing their sales.

Environmental factors of the McDonald

        The McDonald Company has to work on the environmental factors of the country because sometimes they linked to the natural environment. They must have to ensure that how these factors are affecting macro environment of McDonald. There are some important environmental factors that must be considered by this company.

        McDonald must have to rise their interest rates for their environmental programs. This company has to emphasize on improving business strategies. Change in climate condition may affect the sales.

Legal factors of the McDonald

        These factors are also important for the company if they wanted to expand their business in different countries. McDonald also have to consider some legal factors through this it will become extremely easy to enhance their business. It is extremely necessary for McDonald Company that they must have to consider some legal factors for better industry environment.

        Health regulation is increasing in different schools and workplace, regulation for animals are increasing. The last factor is related to the rise in minimum wages of the person.

Porter 5 Forces analysis of the McDonald

        McDonald is one of the best fast food brand in the world. they are also improving their revenue annually. But for the best external analysis the company must have to perform pestle analysis in detail. This is because through this they are able to enhance their business all around the world.

Threat of competition of the McDonald

        It can be seen that restaurant are increasing day by day. This means that this threat is extremely high because there are a lot of food restaurant all over Singapore. The advertisement strategy is extremely good in different competitors. This is high because different location of outlets are not near. The major competitors of this fast food company are Burger king and KFC.

Threat for new entrants of the McDonald

        This threat is also extremely high for this fast food company. The reason is that it’s a fast food restaurant and such restaurants has a huge market range. Anybody can enter this market easily. There is very low startup cost is required for starting this business. Making quality burgers are quite easy for anybody that wanted to start this kind of business in the market. There is not such regulation of limits in this restaurant industry.

Threat of substitute of the McDonald

        It can be seen that this threat is moderate for this company. The reason is that this is one of the most famous fast food brand in the world. McDonald is introducing new products in the market after every year almost. Due to this strategy this treat become moderate for this company. They also introduce some valuable things for their entertainment. McDonald also introducing some local taste products due to this this threat become medium.

Power of suppliers of the McDonald

        It can be seen that this company is one of the best in the fast food industry. The power of supplier of McDonald Company is low because it is one of the best restaurant in the world. The bargaining power over its suppliers is extremely high. Many suppliers all over Singapore are involved in owing McDonald for their own existence. The power of supplier is low then this means that there will be extremely low cost of the raw materials (Ahmed, et al., 2016).

Power of Buyer of the McDonald

        As it can be seen that there are a lot of fast food restaurant that are giving tough competition to McDonald. The reason is that there also ensuring quality products. Due to this reason the bargaining power of the supplier is moderate. It can be high in some countries but for the Singapore this power is moderate. The reason is that this fast food industry is not limited. If this company don’t focus on quality or the competitive price of the products then the bargaining power of the buyer must be extremely high. This is because the customer can easily able to try different fast food restaurants like burger king. The customers are able to switch between different brands easily.

Internal analysis of the McDonald

        The internal analysis is also important for any company. This is because through this the company is able to improve their business strategy. The next advantage is that through this it will become extremely easy to identify strength and weakness of the company in detail. For the internal analysis the SWOT analysis is one of the most important analysis for the McDonald Company.

SWOT analysis of the McDonald

Strength of the McDonald

        The major strength of this company is that they have a very strong brand name. Due to this name they have got a lot of fame all around the world. McDonald Company never compromise on the quality of the products. Due to this their brand name value is increased and accepted by everyone in the world. The next strength is that they have introduced wide range of fast food products. From burgers to cold beverages, in the last their promotion strategy is also perfect.

Weakness of the McDonald

        Beside strengths there are some weakness of this company that include, they offer very low range of vegetarian options to their customers. The menu of this food company is limited they always upgrade it after a lot of time. The quality of food products is extremely high due to this it has huge effect on the price. The system is not much upgraded.

Opportunities of the McDonald

        They have the ability to expand their business all over the world because their quality is extremely high and brand name is valuable. Due to their brand name they are able to upgrade their brand name easily without any difficulty. this company also able to enhance their restaurant system into cafe.

Threat of the McDonald

    Other fast food companies in the world like burger king and Subway. New fast food companies are coming to the market.

Strategic choice or growth

Business level strategy of the McDonald

        McDonald follows two type of strategies that are cost leadership and differentiation. In cost leadership the production operation cost must be low. Through this McDonald Company is able to sell their products at cheap price. They adopt this strategy after their brand name become extremely strong and valuable in the world. In differentiation the McDonald company always analysis different fast food restaurants. They always prefer local taste for enhancing their sales all over the world. This is the reason why this company is increasing revenue.

International strategy of the McDonald

        This company focus on local taste of the area and this is called traditional strategy. This company is also using standardization in their products.

Implementation of the McDonald

        The leadership style of the company is quite unique and famous, they focus on quality leadership style. This means that they just wanted to enhance their quality in their products. This is because through this they can easily expand their business. This leadership style also have changed the culture and strategy of the company.

Conclusion on the McDonald

        Summing up all the discussion from above it is concluded that McDonald is one of the best fast food restaurants in the world. This company was founded in 1940. In this report there is proper discussion on the different areas of this company. In the start external analysis was performed in detail on this company. In the external analysis pestle analysis of this company in detail. Then after this porter five forces model about this company is explained in detail. Then after this internal analysis on this company is performed in detail and in the last of this report there are some important points are discussed related to business strategy of McDonald Company.

References of the McDonald

Ahmed, R. R., Sheikh, D. M., Bhutto, M. T. & Memon, S. A., 2016. Strategic Marketing Plan for McDonald’s 2016. Technical Report, 01(03), pp. 01-10.

Jurevicius, O., 2019. SWOT analysis of McDonald's (5 Key Strengths in 2019). [Online]
Available at: https://www.strategicmanagementinsight.com/swot-analyses/mcdonalds-swot-analysis.html

Mcdonalds600.weebly.com, 2019. Corporate strategy. [Online]
Available at: https://mcdonalds600.weebly.com/corporate--business-strategy.html

Sec. gov, 2013. McDONALD’S CORPORATION. [Online]
Available at: https://www.sec.gov/Archives/edgar/data/63908/000006390814000019/mcd1231201310k.pdf?forcedefault=true