Strategic PlanningIntroductionMcDonald’s company is the world’s largest fast food organization which operates the best food producing restaurants in Australia and other parts of the world. The organization operates about 30,000 food outlets in several countries; in Australia alone, it has close to two hundred outlets. The history of McDonalds can be traced back to the early 1940s and 1950s. During these years Ray Kroc, an old man aged 52, became one of the distributors to this company. This man is thought to have brought the idea of expanding the company to several other countries apart from concentrating in Australia alone.
The first of its restaurants to diversify was in Des Plaines, Illinois in 1955 and this gave room for the development of several other restaurants across the world. McDonalds utilizes several strategies so as to achieve a competitive advantage in the market. One of the strategies is setting high marks for itself which have to be met at the end of the day, month or year. This goal however, is often not met because of the differences in the perception of outsiders about this organization (Armstrong, G.
2009. P 126). Through their successful branding campaigns, McDonald’s Ltd has a target of minimizing the cost of their products yet meeting their goals and objectives. Strategic planning process MacDonald Company in AustraliaDue to the high competition in the market, budget oriented planning in MacDonald Company or even forecast-based planning has proof to be inadequate for the company to maintain its competitive advantage in the market. The management of the company has therefore resolved to strategic planning so as to improve their performance in highly competitive market environment.
This method works effectively because it defines some key issues such as objectives of MacDonald Company and the internal and external situation in the company (Kotler, 2009. P 79) Furthermore, the method, strategic planning, is used to implement and evaluate the progress in the company. It also assist in making the necessary adjustment in the company so that it can enable the company to maintained its positive image and also improve the quality of food they provide to the market segment they served in the market.
The summary of the strategic planning is shown in the diagram below. Mission and ObjectivesMission statement is very important to any organization because it explain the purpose of the company and the visionary goals that direct the company on how to achieve its goals. The company’s vision helps the management of the company to achieve its financial objectives and strategic objectives. Financial objective of McDonald Company is to increase the amount of sales made in a day and also increase the number of the customers served per day. On the other hand, target objectives help the company to meets it market position i. e.
market leader and improve its image. This can also embrace some important factors such as positioning of the company in the market and reputation of the company (Armstrong, 2009. P 149). The Strategic Planning ProcessEnvironmental Scan