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Chapter
10
The Strategic Management
Process
1
Drucker’s strategic questions
for strategy formulation:
1. What is our business
mission?
2. Who are our customers
3. What do our customers
consider value?
4. What have been our results?
5. What is our plan?
2
1. What is Business Mission?
Customer

to be our customers'
favorite place and way to
eat and drink.

Shared holder

A total of 1 billion shares
of McDonald's Common
Stock were outstanding
and entitled to vote at the
Annual Shareholders'
Meeting.

Employees

offer tools and
resources to help you
while searching for your
future career at
McDonald’s.

Communities

- Being a great place for
our people
- Delivering the
quality, service, cleanlin
ess and value our
customers

3
2.Who are our customers?

4
3.What do our customers

consider value?
• Fast and Cheap
• Drive through
• Delivery
• Happy meal

5
4.What have been our results?
the world’s most successful in fast food
franchise business

6
What is our plan?
• Provides a common framework for our global
business
• Enhances the restaurant experience for
customers worldwide
• Grows comparable sales and customer visits in
each of the last eight years

8
Core Value
•
•
•
•
•
•

Strive continually to improve
Give back to our communities
Operate our business ethically
Believe in the McDonald’s System
Committed to our people
Place the customer experience at the core of all
we do

7
Strategies
•
•
•
•
•

Quick serve
Quick delivery
More beverages & change in the menu
Get international
New low calorie healthy menu

9
BCG Matrix
High
Star

Question Mark

Growth
Rate
Cash cow

Dog

Low

10

High

Market Share

Low
Competitive Advantage
•
•
•
•
•

Brand Recognition
Real Estate
McDonald Aims their Brands at Kids
Creating New Items
Speedy Delivery of Food

11
Internal Assessment of the
Organization
Strength
• Well-known brand name.
• Large market.
• Specialized train for employee
at Hamburger university.
• Introduction of new product.

Weakness
• Unhealthy food image.
• High staff turnover
including top management.

SWOT
Opportunity
• Growth of the fast-food
industry.
• Globalization
• Growing eating trends among
customers.

Threat
• Increased competitor from
local fast food outlets.
• Changing customer
lifestyle and taste.
• Health issue.

External Assessment of the
Environment

12
Thank you

13
Reference
• http://www.authorstream.com/Presentation/aSGuest1204161260306-mcdonalds-final-powerpoint/
• http://www.marketwatch.com/story/4-strategies-formcdonalds-management-2012-11-21?pagenumber=2

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statistic management process of MacDonald

Editor's Notes

  1. McDonald’s is the world’s leading fast food restaurant chain with more than 34,000 local restaurants serving approximately 69 million people in 119 countries each day. More than 80% of McDonald’s restaurants worldwide are owned and operated by independent local franchisees.
  2. McDonald's brand mission is to be our customers' favorite place and way to eat and drink. Our worldwide operations are aligned around a global strategy called the Plan to Win, which center on an exceptional customer experience – People, Products, Place, Price and Promotion. We are committed to continuously improving our operations and enhancing our customers' experience. Communities:Being a great place for our people.We help our customers build better communities.
  3. From the picture, Mc Donald has locate almost every country around the world. So their customer come from many country with various range of age.
  4. profits of more than $21 billion. Known for its signature french fries. In 1968, McDonald's operated about 1,000 restaurants worldwide, but today it has more than 31,000.McDonald's is successful because they offer a convenient fast-food that matches a busy lifestyle. it is also helpful that they have over 33,000 restaurants worldwide.
  5. McDonald’s customer-focused Plan to Win provides a common framework for our global business yet allows for local adaptation.  Through the execution of initiatives surrounding the five elements of our Plan to Win – People, Products, Place, Price and Promotion – we have enhanced the restaurant experience for customers worldwide and grown comparable sales and customer visits in each of the last eight years.  This Plan, combined with financial discipline, has delivered strong results for our shareholders.
  6. Strive continually to improve:learning organization that aims to anticipate and respond to changing customer, employee and system needs through constant evolution and innovation.Give back to our communities:We help our customers build better communitiesOperate our business ethically:high standards of fairness, honesty, and integrityBelieve in the McDonald’s System:McDonald’s business model, includingowner, suppliers, and company employees. To balancing the interests of all three groups is key.Committed to our people: provide opportunity, nurture talent, develop leaders and reward achievementPlace the customer experience at the core of all we do:providing them with high quality food and superior service in a clean, welcoming environment, at a great value.
  7. Star : are units with high market share in a fast-growing industry They are successful question marks and become a market leader in a high growth sector.Question mark : are business operating in a high market growth, but having a low market share.Cash cow: are units with high market share in a slow-growing industryDogs:are units with low market share in a mature, slow-growing industry.According to the BCG Matrix McDonald’s is a star. The reason for this is its high market growth and high market share in all over market world.
  8. McDonald's brand is well known in all markets, nationally and internationallyReal Estate: They lease land and property they own to franchisees.McDonalds aims their brands at kidsCreating new items: McDonald’s maintains its competitive advantage by creating new items to add onto its menuSpeedy delivery: make the processes of cooking food simple for all your employeesto ensure the quick production and delivery of your food.