Mcdonald

Mcdonald

Introduction

By the month March 2017, Mcdonald, for the first time, introduced their growth plan strategy known as Velocity Growth Plan, it was named like that as Mcdonald is a fast-growing organization throughout the whole world. They are aware of how they want to grow their business and make a profit for all, including their stakeholders, and as it is growing, it is serving more customers all around the world. They focus on what is the demand of the customers and what they really want, though their main focus is on the basics that are hot and delicious food with fast service, providing a good experience and value for money to its customers.

Background of Mcdonald

Mcdonald is an American food centre joint which has now established its territories all over the world because of their famous hamburgers. Mcdonald’s headquarters is in Oak Brook, Illinois. The first food service centre of Mcdonald started in 1948 by Maurice Brothers. They started the business in a small way only buying a few appliances for a hamburger restaurant. When Kroc visited the Mcdonald brothers to know how this shop manages to sell so many burgers and milkshakes to such a vast number of customers, he found the reasons.  The brothers follow a simple yet efficient strategy where they are able to produce vast quantities of food at a cheaper price (Hafidz et al. 2019).

Current status of Mcdonald in product and service, performance, competitive positioning, revenue

The first thing that Mcdonald’s did is to take place in the hearts of the customers, thus gaining Positioning. By the year 1930, the concept of fast food results seen for the first time among the masses. A lot of restaurants of this concept spread in many countries. The fast-food idea at that time is to revolve around only Pork, Chicken, Beef Barbecue. Thus Mcdonald started attracting lots of teenagers as their customers and started growing rapidly (Jankauskaite, 2016).

When the bothers found out that their product was becoming too me too, they discarded the strategy as me also products are seen to lose their customers after a certain amount of period as the products were better than the competitors but not value to customers. They introduced the “quicker” service to customers (Jarde et al.  2017).

To even further reduce the service timing; the brothers introduced the lean manufacturing process. This assemble machine brought down the labour cost as well. As the tools thus introduced were quicker increasing sell in no time (Widjayanti, 2019).

Mcdonald brothers have worked on the quality of food in every step. Over the years, they tried to enhance the flavours and quality of their burger, fries and beverages to the next level. It is impossible to be one of the leading faces of fast food centre and sustaining to that position over the years with only the quality of food. Along with the quality of food, excellent services, loyal customer base, affordable food, unique and innovative methods, delicious taste etc. kept the competitive positioning of Mcdonald intact. At recent times Mcdonald’s have been able to spread across 117 countries all over the world, operation more than 32000 restaurants and feeding more than 1.5 million people worldwide. The main reason for such an extreme growth in much fewer amounts of time is their business pioneer model by the Mcdonald’s brothers which has to lead them to the epic of success (Ekarini, 2017).

The strategies

McDonald has employed a transnational strategy for both local and international integration. They knew from an early stage that integrating into the global market requires the business to have massive local responsiveness at first. As their business at recent days has gone vast, so the needs for proper management are of utmost necessary to spread it to various regions efficiently and effectively to achieve the goals. According to the strategy, the value chain has to be constructed taking in consideration of cultures, and legal economic and political environment.  Mcdonald has been stressing on the local market for maximum responsiveness to local markets. Above all, the hiring of local employees leads to more acceptance in the local market and the company was able to access bureaucracy related to local government. They have followed a strategic culture of innovation, better customer responsiveness and accountability (CW,2016).

Evaluate and justify why the multi-domestic strategy should be used in Bangladesh

While McDonald is not able to export its products but it can select among different modes of operation among them one is a multinational strategy where the company is aiming to achieve a maximum number of local responsiveness by customizing both of their products that are to be offered and marketing strategies to match the National condition of Bangladesh. Some of these may also involve higher degrees of the commitment of resources in comparison to others. Moreover, it can open a franchise where directly a joint venture of local partners can be established to make it a master franchises through agreements. The level of the accords and investment that Mcdonald commits to these markets and franchise different in case of different modes as also in the case of Bangladesh (Sari, 2018.). Mcdonald’s also, on the other hands, exerts a certain amount of pressure and significant control to all the existing outlets and even the growing outlets of each market. Mcdonald’s internalizes the cost of expansion of each such large market depending directly on the governance of the country of each of these markets(McDonald et al.  2019).

Conclusion

It can be concluded that as Mcdonald is one of the largest chains of the fast-food supply in all across the world and operating over 32 restaurants and serving more than 60 million people daily. The key to their such success is their strategy of successful international expansion in the model franchise that is pioneered by them.  Mcdonald’s knew from its early days that if they want to establish their business overseas in various markets, they are required to have an enormous amount of local responsiveness. This leads them to spread their business effectively and efficiently throughout the major countries of the world; now, they can target to integrate into the markets of Bangladesh as well by multi-domestic methods.

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Reference List

Sari, M.W., 2018. Pengaruh Lingkungan terhadap Kinerja Karyawan pada Restoran McDonal’s Cabang Taman Alfa Joglo.

Ekaterini, F., 2017. ANALISIS DESAIN WEBSITE BNI, BUKOPIN, J. CO DONUTS DAN MCDONALS MENURUT BUKU “THE PRINCIPLES OF BEAUTIFUL WEB DESIGN”. Elinvo (Electronics, Informatics, and Vocational Education), 2(1), pp.8-20.

Widjayanti, A.M., 2019. PENGENDALIAN MUTU BAHAN BAKU DAGING AYAM PRODUK McDonal’s di PT CAHAYA GUNUNG FOODS.

Jarde, A., Lutsiv, O., Park, C.K., Beyene, J., Dodd, J.M., Barrett, J., Shah, P.S., Cook, J.L., Saito, S., Biringer, A.B. and Sabatino, L., 2017. Effectiveness of progesterone, cerclage and pessary for preventing preterm birth in singleton pregnancies: a systematic review and network meta‐analysis. BJOG: An International Journal of Obstetrics & Gynaecology, 124(8), pp.1176-1189.

Jankauskaite, D., 2016. A case study of user generated content on the collaboration of McDonalds and Olympic games on Twitter. International Journal on Global Business Management & Research, 5(1), p.31.

Hafidz, M., Satrio, D., Dayang, B. and Muhammad, Z., 2019. Penerapan HACCP Kabupaten Bogor Jawa Barat. Karya Ilmiah Mahasiswa.

McDonald, S.D., Viaje, K.A., Rooney, R.A., Jarde, A., Giglia, L., Maxwell, C.V., Small, D., Pearce Kelly, T., Sabatino, L. and Thabane, L., 2019. A clinical carepath for obese pregnant women: a pragmatic pilot cluster randomized controlled trial. The Journal of Maternal-Fetal & Neonatal Medicine, 32(23), pp.3915-3922.

CW, C.W., 2016. PELAKSANAAN TRANSFER OF TECHNOLOGY DALAM SISTEM FRANCHISE DI MC DONALD’S KOTA PADANG. Abstract of Undergraduate Research, Faculty of Law, Bung Hatta University, 7(1).