Chapter 10The Strategic Management Process

The Business That We Focus Today

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Drucker’s strategic questions for strategy formulation:

1. What is our business mission?

2. Who are our customers3. What do our customers

consider value? 4. What have been our

results?5. What is our plan?

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1. What is Business Mission?

Customerto be our customers' favorite place and way to eat and drink.

Employeesoffer tools and resources to help you while searching for your future career at McDonald’s.

Shared holderA total of 1 billion shares of McDonald's Common Stock were outstanding and entitled to vote at the Annual Shareholders' Meeting.

Communities- Being a great place for

our people - Delivering the quality,

service, cleanliness and value our customers

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2.Who are our customers?

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3.What do our customers consider value?

•Fast and Cheap•Drive through •Delivery•Happy meal

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4.What have been our results?

the world’s most successful in fast food franchise business

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What is our plan?

• Provides a common framework for our global business• Enhances the restaurant experience for

customers worldwide • Grows comparable sales and customer visits

in each of the last eight years

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Core Value

• Strive continually to improve• Give back to our communities• Operate our business ethically• Believe in the McDonald’s System• Committed to our people• Place the customer experience at the

core of all we do

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Strategies

• Quick serve• Quick delivery• More beverages & change in the menu• Get international• New low calorie healthy menu

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BCG Matrix

Star Question Mark

Cash cow Dog

Growth Rate

High

Low

Market ShareHigh Low

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Competitive Advantage• Brand Recognition• Real Estate• McDonald Aims their Brands at Kids• Creating New Items• Speedy Delivery of Food

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SWOT

Strength• Well-known brand name.• Large market.• Specialized train for

employee at Hamburger university.

• Introduction of new product.

Weakness• Unhealthy food image.• High staff turnover

including top management.

Opportunity • Growth of the fast-food

industry.• Globalization• Growing eating trends

among customers.

Threat • Increased competitor

from local fast food outlets.

• Changing customer lifestyle and taste.

• Health issue.

Internal Assessment of the Organization

External Assessment of the Environment

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Thank you

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Reference • http://www.authorstream.com/Presentation/aSGuest120416-

1260306-mcdonalds-final-powerpoint/

• http://www.marketwatch.com/story/4-strategies-for-mcdonalds-management-2012-11-21?pagenumber=2