Purchase Solution

McDonald's Business Straegy

Not what you're looking for?

Ask Custom Question


I need two pages on Mcdonald's business strategy. Also, compare one of Mcdonald's competitors strategies as well.

Purchase this Solution

Solution Summary

The discussion focuses on the business strategies of two popular fast food chains. The discussion explains specific methods each company has utilized to improve profit. Both strategies are compared for potential effectiveness.

Solution Preview

McDonald's has established a business strategy that is not unlike other fast food chains.

Cutting costs, adjusting prices, and improving restaurant operations are the three pillars of a strategy

adopted by COO Ralph Alvarez (Adamy, 2009). Replacing older gas guzzling company vehicles with

more fuel efficient models is one way the company is cutting costs. Improving drive through process

efficiency is another way of reducing costs. When processes become more efficient, employees become

more productive and able to serve more customers. While this strategy is effective in many regions of

the globe, some weaknesses in sales, such as in Eastern European, German, and Chinese markets, must

be balanced by increased revenues in other regions, like Japan, Australia, and the UK. Roughly two

thirds of McDonald's revenues are generated from overseas markets (Adamy, 2009).

Though much of the organization's revenues come from overseas markets, McDonald's must

still maintain a competitive edge in U.S. markets. Though pricing strategy is often tied to marketing

efforts, McDonald's uses customer demand to determine which products should be reduced or

increased in price. High demand products or menu items can be reduced in price, due to larger

quantities of sales. However, the organization relies heavily on automated ordering systems, which

also track sales, to adjust prices in specific markets. Offering products customized to cultural

expectations, such as high end coffee drinks in U.S. markets, ...

Solution provided by:
  • MEd, Jones International University
  • BSc, DeVry University
  • MPH, Walden University
Recent Feedback
  • "Thank you so much!"
  • "Great work"
  • "thanks for the information"
  • "Thanks for the information"
  • "Excellent Work, very well-written, clear and concise."
Purchase this Solution

Free BrainMass Quizzes
Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Lean your Process

This quiz will help you understand the basic concepts of Lean.