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McDonalds Strategy Essay Sample

McDonalds Strategy Pages
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According to the McDonalds 2010 annual report, the company continues to remain in a good position for success because McDonalds applies the “plan to win” strategy (McDonalds, 2010-2014). The concept behind the “plan to win” strategy is not for McDonalds to be the biggest fast food chain but for the company to be the best fast food chain (McDonalds, 2010-2014). The plan to win strategy focuses on the core drivers of the business. The strategy utilizes the five P’s, which are price, people, promotion, place, and product (McDonalds, 2010-2014). This approach helps the company to focus on the right priorities to keep their brand relevant and meet the evolving needs of their customers. The “Plan to Win” strategy is combined with the company’s competitive advantages of convenience, menu variety, geographic diversification, and system alignment, which drives long-term sustainable growth (McDonalds, 2010-2014). The strategy has served McDonalds very well over the last eight years and the company will continue to utilize the “Plan to Win” (McDonalds, 2010-2014). In 2010, McDonalds in the United States had a 3.8 percent in their sales, compared to prior years, which had a lower sales percentage (McDonalds, 2010-2014).

The McDonalds operating income increased to $7.5 billion in 2010 compare to the $6.8 billion in 2009 (McDonalds, 2010-2014). Wendy’s utilizes a long-term growth strategy where menu innovation plays an important role. Wendy’s hopes to utilize their strategy to win the battle against McDonalds and other competitors, which will put Wendy’s at the top of the list (Wendy’s International, LLC, 2014). The company is trying to differentiate the menu from McDonalds and other competitors by having insisting on premium, healthier, top products such as the Wendy’s Garden Sensation Salads and Bacon Portabella melt on Brioche (The Motley Fool, 1995-2014). The one problem I see as an issue for Wendy’s is that there prices are much higher. The problem I see for McDonalds is that the menu continues to serve the same products with only a few new additional healthier products. However, McDonald’s keeps their prices low and utilizes the “Plan to Win” strategy, which has helped the company to succeed (McDonalds, 2010-2014). Wendy’s sales in 2010 for 52 weeks were at $ 3,045, 317 (Wendy’s International, LLC, 2014).

Wendy’s did experience losses because of the pricey food ingredients they utilize to serve healthier and top quality products (The Motley Fool, 1995-2014). Since 2010, Wendy’s strategy is starting to work and their sales are slowly increasing (The Motley Fool, 1995-2014). Wendy’s will need to continue to approve their strategy plan to win the battle against McDonalds. I believe that the “Plan to Win” strategy for McDonalds is very effective considering the fact that there sales continue to increase and they remain the most popular fast food restaurant worldwide. The company competes successful with Wendy’s because of the low prices, fast service, and their promotions, which target families and other individuals. From my own knowledge of Wendy’s, the company is very high on their meals. I recently ate at Wendy’s and for a hamburger meal, the price was around $10 compared to McDonalds lower prices on meals. The service is always slow at Wendy’s and normally takes about 20 minutes for me to receive my meal, where at McDonalds the service is quick and I am out the door within 5 minutes.

Wendy’s does not promote their products like McDonalds, which leads me to believe that McDonalds will remain at the top of the list. Some recommendations I have for the McDonalds Chief Officer involves their fries. The fries are flavorless, very thin, and normally hard like a potato chip. The company needs to improve the quality of the fries by introducing thicker fries and adding seasoning to the fries to improve the taste. Another recommendation is run promotions a little longer. The company can promote the products by mail as well as internet and television. As for the company’s strategic plan, it remains a successful approach for McDonalds, although the company needs to look into other approaches to prepare for competition with their competitors.

The company remains the most popular fast food chain, although the status is subject to change as competitors like Wendy’s utilize new strategies approaches to take over the fast food market. I believe the Chief Officer should allow suggestions from the public and find ways to improve their poor business ethics in relation to lawsuits, misleading information and so forth. This case study was a bit challenging because the websites in the learning exercise were invalid links, which made it difficult to gather information. The only evaluation I obtained was the sales growth and some information on the strategy plans. The strategy plans showed how McDonalds techniques differed from Wendy’s and how Wendy’s plans to overtake their competitors.

References

Wendy’s International, LLC. (2014). | News | About Wendy’s. Retrieved from http://ir.wendysarbys.com/phoenix.zhtml?c=67548&p=irol-newsArticle&ID=1535337 McDonalds. (2010). Company Profile :: AboutMcDonalds.com. Retrieved from http://www.aboutmcdonalds.com/mcd/investors/company_profile.html McDonalds. (2010). 2010 Annual Report. Retrieved from http://www.aboutmcdonalds.com/content/dam/AboutMcDonalds/Investors/C-%5Cfakepath%5Cinvestors-2010-annual-report.pdf The Motley Fool. (1995). How Wendy’s Plans to Take Over the Burger Market. Retrieved from http://www.fool.com/investing/general/2013/12/14/how-wendys-plans-to-take-over-the-burger-market.aspx

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