Thus, the fourth key objective of the company is to become a socially and environmentally responsible corporate entity by making financial, personal, and social contributions in various types of projects which are aimed at improving the social life of people in under-privileged areas in the world (McDonald's, 2013). For this purpose, McDonald's makes heavy financial contributions in educational, environmental protection, health and safety, and other social welfare projects (About McDonald's, 2011)
It takes into account all the operational and functional areas which McDonald's needs to focus during its day-to-day business operations -- including finance, sales and marketing, human resources, production, supply chain, and customer relations. On the basis of strategic planning, the Company's management can better allocate financial, informational, physical, and human resources in different areas (Hill & Jones, 2012)
Importance of Strategic Plan for the Success of McDonald's A strategic plan is important for McDonald's in defining and achieving its corporate and business level objectives in an effective and efficient way. Strategic planning can help McDonald's in matching its core competencies and distinctive capabilities with the most potential opportunities in the marketplace (Hitt, Ireland, & Hoskisson, 2011)
It was founded in 1940 by Richard and Maurice McDonald as a small Bar-B-Q restaurant in San Bernardino, California. At present, McDonald's is present in all the corners of the world and serves more than 69 million customers every day (McDonald's, 2013)
For this purpose, McDonald's makes heavy financial contributions in educational, environmental protection, health and safety, and other social welfare projects (About McDonald's, 2011). All these efforts are ultimately beneficial for strengthening the public image and achieving a sustainable future in the industry (Thompson & Martin, 2010)
McDonalds works within the quick service industry, where they have a differentiated position (Mantkelow, 2014)
QSRs value breakfast as a means of generating sales at hours when they would otherwise be closed but incurring fixed costs. McDonalds has long been the leader in breakfast with the Egg McMuffin (Cardenal, 2014), but consumers are starting to view coffee quality as a key determinant in their breakfast purchase decisions -- important since many consumers only want coffee in the morning
This is one of the strategies company has adopted to retain customers and make them highly satisfied. The restaurant aims to offer exceptional quality products with excellent customer service and they handle the complaints of the client effectively (Dietz, 2006)
In the global arena where the consumer loyalty is the most non-loyal thing the top three brands that have been able to generate highest customer loyalty are McDonalds, Coke and Disney. With the passage of time, fast food industry and McDonalds have been able to grow themselves and now McDonalds has become the world's largest fast food restaurant as it serves more than 58 million people every day (FAQs)
The restaurant not only innovates to expand its products but it also innovates in business processes and techniques that are used. There are several menus and deals that McDonalds has come up with, only to satisfy its customers (Muller, 1991)
McDonalds has also been able to smartly deal with the changing environment while operating in the world wide arena. Also it has to modify its strategy according to the culture, norms and values of the society in which it operates (Shapiro, 2007)
Since the change with the Internet in May 1995 when the National Science Foundation ended its support so all the web's traffic relied on commercial networks then the next thing you know businesses, educational centers, public libraries, homes, offices, and technological industry companies were able to provide their own way. After Microsoft get big with Bill Gates in 1998 multimedia communication is well on its way to being very successful and phenomenal as to what it can do today (Howe, 2010)
In today's world the definition to communication in the economy of a particular market takes on a broader explanation and is more than just talking to someone about selling and buying, and over time communication has went from types of writing and using symbols such as Morris code through typewriters and word processors to telephones and computers to even smaller devices such as iPods, blackberries, and other online accessories can take wherever you want to converse and interact with others especially on the many different types of cell phones. While multimedia has been changing so has the way every marketing interaction has been put out there for consumers and buyers in how they are distributed, promoted, advertised, presented, evaluated, displayed, showcased, modeled, as well as, the way companies come together with other investors and businesses to communicate other discussions, presentations, and marketing strategies and goals by using innovative technology and contemporary multimedia devices show their buyers the significance of the products they intend or already market (Teow, 1998)
Thus Mc Donald's constantly attempts to invest money in its brand name in order to differentiate itself from its competitors as well as come up with new products and services from time to time thus indicating that it is in the market for long haul. (Rittenberg & Tregarthen, 2009)
"Mc Donald's already enjoys a major fraction of the fast food market share, serving more than 47 million customers around the world The corporations' revenues grew 27% over the past three years with an operating income of approximately $3.9 billion" (Krugman & Wells, 2009)
Monopolistic competition in a fast food industry is a form of an imperfect competition where many franchises compete fiercely against one another on the basis of product differentiation. However, due to the huge differences in branding between these franchises, much consideration is not given to the impact of their own prices on the prices of other firms (Solow, 1998)
McDonalds is both ethical and socially responsible, because the company follows proper procedures for taking care of its employees and its customers. Another example of the social responsibility of McDonalds is how it focuses on ensuring the meat it uses comes from suppliers and farmers that treat the animals humanely (Derdak & Pederson, 2004)
Performance goals for those who are newly hired are not as difficult as the goals that are set for those who have been working for the company for some time. Even the goals for long-time workers are realistic and attainable, however, because the company wants to give people a chance and see them succeed (Love, 1987)
McDonald's assessment to open new- fangled put up for sale outlets in airports plus hospitals encompassed proved to be flourishing. Its promotional memorandum has superior benevolence with once a year Charity Christmas Carnival in Chicago plus its Ronald Mcdonald House publicity (Hartley 1998)
As a close relative, you are told that the kids can now have the choice of choosing improved choices of Happy Meal, so that you don't comprise of worrying on the subject of your kid getting plump. (Cain 2003) You may already imagine where I'm going away with this but bear with me and let me tell you with reference to Burger Kings tactics