Strategic Plan for McDonalds
In simple terms, strategic planning in an organization is a disciplined efforts that come s up with critical decisions and actions that reveal what that particular organization is, who it serves , what it operations are and why it carries out those particular operations with a specific focus on the future (Kaufman, 1992). This act is particularly carried out through a planning tool known in the field of management as the strategic plan. A strategic plan is therefore a document that the organizational management uses to communicate with the rest of the organization the goals and all the actions that are needed to achieve those particular goals including the timeframe and any other critical element that the strategic management may have developed during the planning stage.
Therefore, a strategic plan is a comprehensive document that include analysis or rather the assessment especially of both external and internal operating environments, strategy formulation, strategic formulation and evaluation of the developed strategy. As Simerson (2011) affirms,the importance of a strategic plan as a management tool in an organization lies in its ability to assist the organizational leadership to examine experience, test the hypothesis, collect and incorporate information regarding the present operating environment and assist in anticipating the future working environment. Vision Statement “Our overall vision is for McDonald’s to become a modern, progressive burger company delivering a contemporary customer experience. Modern is about getting the brand to where we need to be today and progressive is about doing what it takes to be the McDonald’s our customers will expect tomorrow.
To realize this commitment, we are focused on delivering great tasting, high-quality food to our customers and providing a world-class experience that makes them feel welcome and valued. ” (Pauline, 2017). Core Values • Teamwork • Integrity • Diversity • Innovation • Accountability • Community • Respect Objectives To offer customers food of high quality, quick services and value for money Analysis of Mission, vision, values and objectives The analysis of the above mission, vision, core values and objective of McDonalds reveals a reason for it unmatched success in the global fast food industry. The core values of McDonalds highly support both the mission and the vision of the organization since they are all customer-oriented in their approaches. The mission, vision and the core values all aim at enabling the organization to achieve its objectives both in the short and long run.
The objective of McDonalds is to offer high quality goods and services to its clients in different parts of the world that meets their satisfy their needs and expectation and give them new experiences each time they consume them. Environmental Analysis Business environment refers to the overall circumstances in which a given business entity carries its operations in order to deliver its core values to its clients. Just like other organizations, the operations of McDonalds are more or less influenced by the environment in which it operates. • Improving the health status of fast food products offered Threats • Rising health concerns on the harmful effects of fast food products across the world • Political instability in some countries especially in Europe which is one of the largest markets in which McDonalds operates Economic factors These are factors that tend to affect the purchasing power of the consumers of the products offered to them.
Opportunities • Slow and steady growth of US economy presents chances for continuous sales and expanded market opportunities across the states • The expanding markets especially in Asia, Africa, Latin America offer a chance for McDonalds to increase its sales Threats • Economic slowdown of China and other countries of the world reduces the volume of sales hence revenues realized from those economies • The rising rates of inflation and currency fluctuation especially in the third world economies threatens to shrink the organization’s revenue base. • Global economic crisis such as recessions threatens McDonalds’ glory since its operations depends on the economic progress of the country • Stable but highly risky economies especially in Europe Social factors These are factors that regards the way of life of people in the areas operated by McDonalds.
Issues like cultural practices and the increasing health awareness tend to impact on the choices of food materials to be consumed. Opportunities • The increasing cultural diversity present a chance for rising in demand for various food materials from the fast food outlets across the world. Firstly, the firm boast of a wide range of resources that enable it to translate it dreams into the reality that is seen in the value of the goods and services offered to its clients. The tangible resources of McDonalds that include well equipped and modernized restaurants and fleets of vehicles spread across the world that offers clients with dining experiences that are not common in most of the fast food outlets. This fact echoes the vision and the mission of this organization whose aim is to offer its clients favorite place and way to eat & drink in a manner that maintains quality of the products offered in terms of cleanliness, quality service delivery and value of their money (Althea, 2017).
This is to be achieved through progressive modernization of the services and products which is to be achieved through progressive innovation. The firm boasts of a highly competent human resource personnel spread in all of its branches globally. This has given it a competitive edge over its rivals. Factors for change The operations of McDonalds have been and will continue to change from time to time owing to the fact the operating environment in which it operates is never static but highly dynamic. The organization’s operating environment is composed of a number of factors that keep on changing, thereby forcing the organization to adjust it operations. The key factors that may cause a change in the manner in which McDonalds carries its operations across the world mostly stem from the political, economic, social, technological, environmental and legal (PESTEL) backgrounds.
In the technological environment, the key factors that may cause a change in the manner in which McDonalds operates includes the increased internet connectivity and adoption of digital communication devices across the world may force the organization to change most of the activities especially those related to marketing, ordering food products, inventory management among others (UKEssays,2013). To counter these effects, the firm needs to continually expend its market to capture the emerging opportunities especially in the high-growth markets in Asian, African and North American as well as Caribbean countries. This is due to the fact that most of the economies in these regions have most of their population falling in middle and lower income brackets who are the primary targets of the organization’s food products.
Additionally, most of the economies in these regions of the world are developing, hence present wide market opportunities which have not been exploited. The company can also revert to diversification of its products to include on its available menu new food products or even enter in other industries that are also related to the fast food products. This will go a long way to increase it revenue which can be used to expand its operations. (2017, February 5). McDonald's Organizational Culture Analysis - Panmore Institute. Retrieved from http://panmore. com/mcdonalds-organizational-culture-analysis Baines, P, Fill, C and Page, K (2011), Marketing, 2nd Ed, Oxford: Oxford University Press Gilbert, S. The story of McDonald's. com/investing/general/2014/04/03/McDonalds-brand-strength-still-dominates-its-peers. aspx [Accessed 21 April 2018] Pauline, M. (2017, February 5). Retrieved from http://panmore.
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