Executive SummaryMcDonald’s bears a heavy burden of success. Can its legendary record of market share growth, profitability, and branding continue in future? Answers will not be the same across all countries. The marketing analysis and strategy recommendations in this document apply specifically to the U. K.Productive address of a new cluster of segments is a Mantra for McDonald’s to enjoy a future in this country better than its historic business performance. Such an approach will address emerging needs of new customer groups, meet competitive challenges head-on, and take advantage of the changed economic scenario at the same time. Detailed sections that follow suggest action steps after describing the flux in the market place and elements of the marketing mix that require modifications. Situation Analysis and Environment ScanMcDonald’s is an exceptional and sustained business success by all measures.
The annual report for 2007 (Investing in McDonald’s, 2008) displays numbers that would do any management team in the world proud. Sales have grown annually by 6.8%. Shareholders enjoy compounded returns of 25%. The plan to win seems to work. This applies to the strategy of a unitary brand, system, and approach to customers.
It is tempting but dangerous to get carried away. Will the future be a simple extrapolation of the past? A key consideration is the forward projections of globalization and North American dominance of the world. This document is focused on the United Kingdom. The latter has its own web site, but the subsidiary functions as an obedient appendage of the U. S. parent (About Us, 2008). There are many reasons to consider the United Kingdom as a strategic and unique business territory. Much of this has to do with the resilience of the nation’s economy, and the commendable industrial progress in areas such as Ireland.
Even more significant is the multi-racial composition of the population, the country’s enviable position as a tourist destination, and its continuing command over the worlds of commerce and investment. The stability of the political system is easy to take for granted, but it is an irreplaceable asset for the Group, given the prevalence of dictatorships, strife, and poverty in so many parts of the world. The UK has been a formidable ally of the United States during the Camelot years of the McDonald’s Corporation.
It is not within the scope of this document to comment on whether the nearly servile links built across the two banks of the Atlantic will endure, but it is likely that social and economic trends in the United Kingdom may follow courses independent of North America. There are signs of some major discontinuities in the UK business landscape. Each of them has the potential to dissolve some existing revenue lines, even as new commercial opportunities bud and flower.
McDonald’s in this country is at risk of going the way of U. S. automobile majors from Detroit. Casual dining habits will probably change rather dramatically in this country. McDonald’s rivals Coca-Cola as a symbol of ‘Americana’. This has become less of an advantage than it used to be a decade ago (Beder, 2005). It has never been a key strength for the United Kingdom. Overall, there are serious prospects of footfall dropping as hordes of young people and adults who associated the brand with the Great American Dream, may no longer be enamored of it.