Essays on Strategic Management of McDonalds Case Study

Download full paperFile format: .doc, available for editing

The paper "Strategic Management of McDonald's" is a perfect example of a case study on management. McDonald's has established themselves as world leaders in the fast-food industry. The restaurant has the capability to serve more than 69 million customers globally with restaurants in 119 countries. The mode of operation of McDonald's is through franchise by independent owners. McDonald’ s main goal has been to supply the fast-food industry with the best services. This has made McDonald's commit themselves to food safety and nutrition in their service delivery. MacDonalds have been annually improving and updating their menu.

This is in a bid to ensure that they do not lose their customers and give them a reason to visit their restaurants. The main competitive advantage of McDonald's is providing the customers with convenient fast food at competitive prices. The corporation has also been able to establish its brand making them be recognized worldwide (Mcdonalds, 2014b). The main competitors for MacDonalds are Domino Pizza, Subway, Kentucky Fried Chicken (KFC), Pizza Hut, burger king, and Hungry Jack. This report will analyze competitors and perform a SWOT analysis of McDonald's (Jack & Karabe, 2007). Competitor’ s analysis Figure 1a Figure 1b Figure.

1a. The graph shows the average percentage of market share among the competitors in the fast-food industry which are as follows: Others (55%), Mcdonalds (19%), Doctor’ s Associates (10%), Yum! Brands(9%), Jack in the Box(2%), Wendy's international (2%), Burger King Corporation (2%), and Domino’ s Inc (1%) (Andreyeva, Kelly & Haris, 2012). In Figure 1b, Mcdonald's hs 19% of market share while the rest take 81%. KFC and Mcdonalds KFC is a chain of fast-food restaurants that is based in Kentucky.

The fast-food chain has more than 11,000 restaurants that are based in over 80 countries. The chain's main objective is giving quality services and being customer friendly. KFC has its retail branches in hospitals, malls, universities, and also office buildings. One of the main competitive advantages of KFC over MacDonalds is its strong financial sources. KFC has been a multinational player for a long time enabling it to gain knowledge in a multicultural business environment. The quality problems and other issues associated with multinationals are well known by the company.

KFC has also been able to establish itself as environmentally friendly making it more appealing. This has been through the establishment of eco-friendly green KFC in Northampton USA. This is a restaurant that KFC designed in an eco-friendly manner cutting on energy consumption and CO2 emissions. The restaurant is capable of reducing its landfill waste through recycling and uses recyclable paper for packaging. As compared to McDonald's, the main weakness lies in the advertising campaign. KFC does not have a specific segment of appeal. The approach to the target market is poor as compared to MacDonalds (Darden, 2002). There have been associations of KFC name with unhealthy food.

The word fry at the company name gives a notion that the food is oily and may lead to health problems. The company faces a lack of a clear corporate direction. This is due to the fact that it has been under the ownership of four different parent companies. The different corporate functioning has affected KFC which has led to a lack of well-established culture. Compared to McDonald's, KFC lacks a proper innovation strategy. This has been a major hurdle that KFC has to face.

KFC growth has been recorded to be positive during 2011. KFC estimated that they were able to sell more than 300000 hot wings every day with the best selling product being mini fillet Burger which averaged to 19 million items yearly. In the previous year, KFC had recorded sales of 53.6 m which was an increase of 8.7 %. The sales for the whole year were calculated as 223.2 million pounds (Yum, 2014).

References

Andreyeva, T., Kelly, I.R., & Haris, J.L. (2012). Exposure to food advertising on television:

drink consumption and obesity. Cambridge, Mass: National Bureau of Economic Research. (http://www.nber.org/papers/w16858.pdf?new_window=1)

Bahaudin, G. & Bina, P. (2007). McDonald’s Success Strategy And Global Expans Through

Customer And Brand Loyalty, Journal of Business Case Studies – Third Quarter, 3(3): 123-144. (http://journals.cluteonline.com/index.php/JBCS/article/view/4857/4949)

Darden, B. (2002). Secret recipe: Why KFC is still cookin' after 50 years. Irving, Tex: Tapestry

Press.

Datamonitor (2008). Pizza Hut case study: Repositioning fast food as a healthy option. London:

Datamonitor.

Helstosky, C. (2008). Pizza: A global history. London: Reaktion Books.

Hollensen. (2003). Marketing management. A Relationship Approach, Financial Times/ Prentice

Hall.

Hussey, D. E., & Jenster, P. V. (2000). Competitor analysis: Turning intelligence into success.

Chichester, West Sussex, England: Wiley.

Kotler & Keller. (2008). Marketing Management, Pearson Education. 318-328

Llanas, S. G. (2014). Tom monaghan: Domino's pizza innovator. S.l.: Checkerboard Library.

Market Watch. (2014a). McDonald’s Corp. The wall street Journal, accessed 16th April 2014 from http://www.marketwatch.com/investing/stock/mcd/financials

Market Watch. (2014b). KFC ltd. The wall street Journal, accessed 16th April 2014 from http://www.marketwatch.com/investing/stock/3420/financials

Market Watch. (2014c). Burger King worldwide incl. The wall street Journal, accessed 16th April 2014 from http://www.marketwatch.com/investing/stock/bkw/financials

Market Watch. (2014d). Domino’s Pizza Inc. The wall street Journal, accessed 16th April 2014 from http://www.marketwatch.com/investing/stock/dpz/financials

Mcdonalds (2014b). Our History, accessed 16.4.2014 from,

http://www.mcdonalds.com/us/en/our_story/our_history.html

Melton, D., & McIntyre, T. (2009). Hire the American dream: How to build your minimum wage

workforce into a high-performance, customer-focused team: lessons from Domino's Pizza, where deliverymen become millionaires. Hoboken, N.J: Wiley.

(http://books.google.co.ke/books?id=jq9DFTay7vAC&pg=PR3&lpg=PR3&dq=Hire+the+American+dream:+How+to+build+your+minimum+wage++workforce+into+a+high-performance,+customer-focused+team:+lessons+from+Domino%27s+Pizza,+where+deliverymen+become+millionaires&source=bl&ots=67FWLiL-O4&sig=dkzCIqn2BLUQTFjZ07UxZex0Yqc&hl=en&sa=X&ei=bthQU5-2MMWd0AWRmICQBw&redir_esc=y#v=onepage&q=Hire%20the%20American%20dream%3A%20How%20to%20build%20your%20minimum%20wage%20%20workforce%20into%20a%20high-performance%2C%20customer-focused%20team%3A%20lessons%20from%20Domino%27s%20Pizza%2C%20where%20deliverymen%20become%20millionaires&f=false)

Richard, F. (2013). Here's How Many Fast Food Ads American Kids See Each Year. Business Insider, accessed 16th April 2014 from http://www.businessinsider.com/american- children-see-253-mcdonalds-ads-every-year-2013-11

Sacramento, J., & Karabe, H., (2007). Leadership: Featuring McDonald's. Olathe, KS: ACT.

Shimizu, K. (2012). The Cores of Strategic Management. Hoboken: Taylor & Francis. (http://books.google.co.ke/books?id=ARfbYDEm4GkC&printsec=frontcover&dq=The+Cores+of+Strategic+Management&hl=en&sa=X&ei=RtlQU_CLHsKg0QXhlICIDg&redir_esc=y#v=onepage&q=The%20Cores%20of%20Strategic%20Management&f=false)

Strong, J. & Smith, J. (2001). More Mcdonalds. Harlow: Pearson Education.

Yum (2014). KFC, accessed 16.4.2014, from:

http://www.yum.com/brands/kfc.asp

Download full paperFile format: .doc, available for editing
Contact Us