Mcdonalds Business Strategy

The business strategy of McDonald

          McDonald's originated in California, USA in the year 1954. McDonald's has grown to become one of most esteemed and acknowledged company in the world. As a result of their success they lay foundation in 119 countries, and more than 30,000 franchising stores, serving more than 117 million people each day. McDonald's is a very successful company; they make 15 billion dollars yearly in profit.

          Which strategy should McDonald's use to achieve their ultimate success? There are many strategies such as Porter's competitive strategies model, which is built of differentiation and low cost leadership, or Mile's and Snow's "strategy typology" which defined prospector, defender, analyzer, and reactor strategy. Clearly it is vital for McDonald's to pick a strategy most suitable in order to be at the top of the game. From my perspective, being an analyzer is the best befitting strategic position for McDonald's to use to develop their business as a whole. Particularly when facing a world that’s downright complex and changes constantly.

          How McDonald's business structure influences its strategy? McDonald's based its business upon a geographic structure, and it's divided into five geographical divisions. As shown in the charts above, 65% of McDonald's restaurants and about 75% of its revenues are made in the USA and Europe alone. Their most important strategic approach to retain their leading position is to uphold their major markets, but at the same time aggrandize their business into all the other emerging markets. Although different customer groups in various countries all have different tastes or requirements, McDonald's manages to satisfy the customer's needs, and also seek a "maximum local development", doing this will alter the type of product they market, and prices. Jim Skinner stated "if you are looking for a command center with one push button that will operate our restaurants in every corner of the world,...