McDonald’s Corporation Free Sample Essay

McDonald’s, in full McDonald’s Corporation, American fast-food chain that is one of the largest in the world, known for its hamburgers, especially its Big Macs. Company headquarters are in Chicago.

Early history

The first McDonald’s restaurant was opened in 1940 by brothers Maurice (“Mac”) and Richard McDonald in San Bernardino, California. It originally was a drive-in that offered a wide selection of items. However, in 1948 the brothers decided to revamp the business, and after a three-month renovation, a newly envisioned McDonald’s opened. The small restaurant was designed to produce huge quantities of food at low prices. To achieve this, the brothers limited the menu—which only featured hamburgers, potato chips (later replaced by french fries), drinks, and pie—and developed a simple, efficient format that they named the Speedee Service System. This included a self-service counter that eliminated the need for waiters and waitresses, and customers received their food quickly because hamburgers were cooked ahead of time, wrapped, and warmed under heat lamps. These innovations allowed the brothers to charge just 15 cents for a basic hamburger, about half the price of competing restaurants. McDonald’s was a huge success, and the brothers began a franchise program.

McDonald’s Mission

McDonald’s corporation has its own unique set mission and vision to guide the company to attain its main goals. The brand mission for the firm is to be the preferred place and way for its customers to eat (“McDonald’s Mission,” n.d.). McDonald’s operation is based on a global strategy referred to as the plan to win, focusing on remarkable customer experience. Their vision is to be the paramount fast food restaurant experience in the world (“McDonald’s Mission,” n.d.). Literally, it intends to provide exceptional value, service, quality, and cleanliness, in order to satisfy its customers fully. Despite the mission and vision, McDonald’s has major goals to ensure that they fulfil its mission and vision effectively. These major goals include: To consider customer experience in everything they do, commit themselves to its people, place their belief fully on McDonald’s system, conduct their business operations ethically, give back to their society, ensure business growth that is profitable and also strive persistently for improvement (“McDonald’s Mission,” n.d.).

Corporate-level Strategy

The corporate-level strategy for McDonald’s is to focus on the fast-food industry which bases on value, service, cleanliness, and quality. McDonald’s concentrates on a single task of the fast-food industry which enables the firm to gain supremacy, market share, and customer loyalty ( Thornton et al., 2009). Another corporate-level strategy that McDonald’s exploit is diversification. They diversify their operations in various ways. McDonald’s applies related diversification by producing the same products such as burgers and salads mostly but in various types and as well are located in different geographical locations but still perform a similar task. It also exploits the international expansion corporate-level strategy since it operates globally while still extending its services to more countries.

Business-level Strategy

McDonald’s exploits cost leadership strategy as its business-level strategy in its operations which helps in delivering reliable food as well as excellent service ( Thornton et al., 2009). It retains its business-level strategy active through the innovation of its markets and products too. In McDonald’s primary market, it utilizes cost leadership and brand differentiation business-level strategy which acts as an analyzer throughout its business model establishment and sustainment ( Thornton et al., 2009). Its business-level strategy is enhanced by its operative strategies that encompass the capability of the firm for achieving and maintaining quality, excellent service, and innovative products. Moreover, McDonald’s takes on brand loyalty, low cost and differentiation business-level strategy which is very significant for ensuring the long-term success of the company and that’s why McDonald’s dominates in the fast-food industry despite the high competition.

Question 4:

Cost leadership business-level strategy has enabled McDonald’s to achieve its vision by enabling delivering reliable food as well as excellent service in order to fulfil its mission and vision by providing high-quality services and ensuring customer satisfaction ( Thornton et al., 2009). So far, we witness the firm in a stable industry that uses product proliferation so as to fulfil some needs in the quick-service industry while at the same time adjourning new products. Today, McDonald’s has become very innovative in terms of its products which has facilitated the fulfilment of its mission and vision. Through exploitation of both low cost and differentiation business-level strategy and related diversification corporate-level strategy, McDonald’s has been able to come up with varieties of products that are similar to suit the customers’ preferences and tastes which have attracted many satisfied customers and retained them.