Share
Explore BrainMass

Strategic Management

Organizations or major corporations within the fast-food industry are primarily one of the most competitive organizations. For example, McDonalds, Jack in the Box, Wendy's and/or Burger King have one thing in common and that is to "persuade consumers that their methodology of preparing and packaging products is better than the rest of the competition." Studies have shown that of the aforementioned restaurants, McDonalds reigns supreme over competitors and have more location every restaurant chain imaginable. What is it about McDonalds strategy that enabled the corporation to serve over a billion customers? The strategy McDonalds employ includes nationwide diversification. One of the reason contributing to the franchise's overwhelming popularity and success is the fact that they provide a comprehensive marketing strategy that is geared towards children first and foremost. Out of all of the restaurants mentioned in this document I've noticed McDonalds to be the aggressor in terms of appealing to a younger generation through various venues. An organization that appeals to a younger demographic that is totally dependent on parents will more than likely generate enough buzz about specific products of interest thus persuading parents to dine-in or take-out. Some parents have used McDonalds as a negotiation tool for their children to achieve a higher standard in academics in a "quid pro quo" tactic (i.e. if you get an "A" on your report card we will have McDonalds for dinner). The "Happy Meal" for instance is the number one seller of McDonalds products for the reason that it offers new toys of current characters established in Disney, Hollywood, etc. McDonald's also enables consumers to win money and prizes from their periodic game "Scrabble" where you match game pieces found on your soft drink or specific foods and match to win (while conducting research no other competitor offers incentives of this magnitude). The franchise often engages in promoting movies by incorporating every character from 3D animated movies into "Happy Meal" circulation, the company in turn uses each new character to their advantage to boost profitability. Keep in mind, that childhood initiated sales are not the sole source of the organizations revenue, however, it is a significant contributing factor. The logic behind this philosophy is this: when busy parents are unable to prepare a fresh home cooked meal for being too tired after a long days work, one of the first places that comes to mind is to purchase a "Happy Meal" from McDonalds for small children, and value meals for adults. From a consumer perspective I've noticed that McDonalds (based on my own observation) is usually the first organization to change or alter their menu as a result of a rapidly changing market and consumer demands. For instance, in the documentary "SuperSize Me" McDonalds was scrutinized for not contributing to America's overwhelming obesity crisis, and has reacted by offering healthier options for consumers and created a trickle-down effect in the competition whereas all fast-food chains followed suit, all except In & Out Burger and FatBurger. In these cases parents are willing to purchase large quantities for the whole family. In addition to creating a product that is beloved by citizens all over the globe, the corporation also promotes education, active learning, and family unification. "For the past 7 years, McDonald's franchisees in Pennsylvania, in association with Ronald McDonald House Charities, have awarded college scholarships to 15 high school seniors annually. The RMHC/African American Future Achievers Scholarships are awarded based on academic achievement, community service and financial need." (McDonalds, 2011). Unfortunately, McDonalds denies that the documentary was the primary cause of the company changing their menu, however, the changes took place immediately after the documentary aired in 2004.

Solution Preview

Organizations or major corporations within the fast-food industry are primarily one of the most competitive organizations. For example, McDonalds, Jack in the Box, Wendy's and/or Burger King have one thing in common and that is to "persuade consumers that their methodology of preparing and packaging products is better than the rest of the competition." Studies have shown that of the aforementioned restaurants, McDonalds reigns supreme over competitors and have more location every restaurant chain imaginable. What is it about McDonalds strategy that enabled the corporation to serve over a billion customers? The strategy McDonalds employ includes nationwide diversification. One of the reason contributing to the franchise's overwhelming popularity and success is the fact that they provide a comprehensive marketing strategy that is geared towards children first and foremost. Out of all of the restaurants mentioned in this document I've noticed McDonalds to be the aggressor in terms of appealing to a younger generation through various venues. An organization that appeals to a younger demographic that is totally dependent on parents will more than likely generate enough buzz about specific products of interest thus persuading parents to dine-in or take-out. Some ...

Solution Summary

Organizations or major corporations within the fast-food industry are primarily one of the most competitive organizations. For example, McDonalds, Jack in the Box, Wendy's and/or Burger King have one thing in common and that is to "persuade consumers that their methodology of preparing and packaging products is better than the rest of the competition." Studies have shown that of the aforementioned restaurants, McDonalds reigns supreme over competitors and have more location every restaurant chain imaginable. What is it about McDonalds strategy that enabled the corporation to serve over a billion customers? The strategy McDonalds employ includes nationwide diversification. One of the reason contributing to the franchise's overwhelming popularity and success is the fact that they provide a comprehensive marketing strategy that is geared towards children first and foremost. Out of all of the restaurants mentioned in this document I've noticed McDonalds to be the aggressor in terms of appealing to a younger generation through various venues.

$2.19