Strategic Plan
Introduction
Business from its very own nature is characterized by the need to make profits and at the same time realize its set goals and objectives. To accomplish both, it calls for the installation of strategic planning as a mechanism that will provide a pattern of direction towards achieving the success of an organization. Rothaermel(2016), appreciates that strategic plan, therefore, becomes an essential tool of business that not only defines the goals and the objectives but also provides necessary guidelines that are to be taken in daily to daily operations of the company. It equally guarantees an opportunity for evaluation of the progress made so far while revisiting the approaches to eliminate and which one to improve. Here, an attempt is made to provide strategic planning for the McDonalds company as one of the leading fast-food organization in the world.
Mission and Vision Statements
i). Mission statements
McDonald company is engineered to be the most trustworthy and best place to consume healthy drinks and food. From this statement, customers safety and well-being become the locus point of its existence. Equally, the company endeavours to gain the customers’ trust, especially in a globally competitive market of the fast-food industry. This, therefore, calls for ethical observance which will ensure there is a good relationship between the business and the general society across the globe.
i). Vision statements
The company’s vision is to reach all corners of the world, serving healthy and affordable food and even become essential food providers in extreme circumstances that face the world each day. This statement emphasizes the company’s interest to expand and be accessible across the globe, which will increase its profit margin. Also, the company is concerned about how it can be beneficial to human society, especially in critical circumstances, the human world experiences every day.
Goals and Objectives
i). Goals
To provide nutritious and hygienic food to our customers all over the world.
To provide enough returns for its shareholders, both the employees and the society.
ii). Objectives
To offer customer satisfaction for both the short- and long-term objective of the company. This can be attained through the provision of nutritious and hygienic food to the customers.
To institute the growth of the company. Thus, the company endeavours to reach all corners of the world in such provisions of food and drinks.
Industry Analysis
Food and drinks form the primary basic needs of human beings. As a result, it is characterized by stiff competition to satisfy the unlimited want for food and beverages. McDonald’s company provides the employees with a rationalized payroll that outsmart other companies in the same industry. This has been exemplary in the realization of quality output as each worker is paid what he or she really deserves (Rothaermel, 2016). Further, the company’s re-emphasis on the provision of nutritious and hygienic foodstuff, including the environment is responsible for customer satisfaction. This so far has been an emblem of attraction for many customers as confirmed from their numerous feedbacks. The company has thus emphasized this aspect as the competitive advantage over other fast food providers (Kauri &France, 2018). Also, as the centre of the company’s success immensely lies on its knowledgeable support team. The team is comprised of a diverse workforce who can handle various customer interest from almost all parts of the world. As such, there is a high retention of customers who have made contact with the team
SWOT Analysis
SWOT analysis becomes integral in examining both internal and external strategic factors that influence business (Gurel & Tat, 2017). This SWOT analysis illustrates the critical concerns facing McDonald company.
Strengths
Weaknesses
Opportunities
Threats
Strong brand image
Affinity to the western market
Intrusion to other world markets
Stiff competition
Diversified market
Less product diversity
Product diversification
Trends in healthy living
Ideally, McDonald enjoys many benefits from its hygienic brand image, which makes it even more competitive on a global scale. Also, with its many branches in other parts of the world, it realizes much profit which is integral in excellent service delivery.
However, the firm has a concentration on the western market, which makes it risky in case of market decline. Also, McDonald focuses highly on foodstuff. This implies that any form of fluctuation in the market can expose the company into economic vulnerability.
Further, McDonald’s has the opportunity to intrude other world markets like Asia and Africa to increase its profitability. At the same time, the firm has the opportunity to diversify its product or join new industries with close or different brands from their own
Lastly, McDonald is faced with the challenge of stiff competition that is often noted in the food industry. This threatens its renowned stature in world economies. Also, the Ingredients of GMO products are questionable among many consumers. Therefore, it calls for the company to create customer awareness on the content of their foodstuff to eliminate fear (Gurel &Tat, 2017).
Perceptual Map
High quality
McDonald’s
Low price Starbucks High
KFC
Burger King
Low quality
The criterion measurement for the perceptual map (Price, Quality) was picked because first food companies like McDonald’s positions themselves with a higher value in the pricing of its foodstuffs. Besides, the quality was selected as another criterion for measurement because the majority of the consumers are primarily concerned with the quality of food they take. Firms such as Starbuck was chosen to re-emphasize the essence of competition that faces McDonald’s in the same market. In the same vein, firms like KFC and Burger King are in the pursuit of correcting the negative attitude towards the quality of their foodstuff. As such, they both experience low demand and eventually lowers their pricing. For the sake of recommendation, McDonald’s must be worried by the aggressive condition that it faces from Starbucks and therefore should review the best mechanisms that would ensure it remains on the top of the food industry.
Conclusively, strategic planning is pivotal to the realization of significant business goals and objectives. It starts by investigating the present organizational condition will help shape the direction upon which the business should take (Rothaermel, 2016). This direction will be formed through the formulation of aims, visions, missions and objectives that will, in turn, define a given trajectory to pursue. As such, as manager coming up with strategic a plan is creating a foundation upon which the future well-being of the company is anchored. However, without full implementation of the objectives and aims, the rectification of existing weaknesses and emphasizing the strengths, organizations will not realize its full potential.