Strategy Formulation and Process

The chosen company in the fast food industry is McDonald’s. McDonald’s is currently the leader in the global food sector and the highest chain in fast food services where it operates more than thirty-six thousand restaurants outlets in the global setting attempting to millions of consumers every day (Gaspar, 2016). Since the industry has become particularly competitive due to the dominance of established companies a strategic plan will be essential in improving performance, sustaining its competitive positioning and overcoming prevailing business and economic-based changes.

Mission and Vision Statements

The company’s vision is to be the favorite fast food provider. The company is committed to offering the most suitable place for work, social responsibility and providing quality and trusted services. The comprehensive vision of the company is primarily to become a contemporary, and growing fast food products and services provider creating a more unique and satisfying consumer experience. In that, the contemporary vision is to ensure that the company’s brand gets to the position that it is required to be while growth means creating a new experience to the consumers to build better relationships to offer guidelines for future operations and in turn create loyalty. In order for this commitment to be realized the company has to be focused on offering premium-quality products, with unique and appealing taste to all consumers based on their preferences and choices to let them feel appreciated (Gaspar, 2016).

Goals and Objectives

The primary goal of the company is to attain sustainability in the global industry. The primary problem that is being faced by the corporation lies in marketing and sustainability due to the intensifying competition as well as economic and operational changes that are particularly aimed at improving the general performance. This goal is mainly based on its aim of maximizing the general profit earned by the company for its shareholders while still increasing its market share and sales. In order for sales to be maximized then a strategic plan to position the company’s products and services should be present. By adhering to its values it is easier to ensure that these objectives are achieved (Gaspar, 2016). The company seeks to achieve these objectives by honoring its quality, unique experience and safety (Gaspar, 2016).

Industry Analysis

The fast-food industry is characterized by intense competition mainly because most of the competing firms are well established and have already acquired a significant market share. These include companies such as Subway, Burger King and Chick-fil-A operating in more than 80 countries (Ireland, Hoskisson, & Hitt, 2012). In order for the companies to survive and sustain their competitive edge, each of them has adopted a strategic approach. Since fast food is increasingly being considered as unhealthy based on lifestyle changes and the need to sustain health wellness McDonalds similar to its competitors is concentrating on developing differentiated products that are considered healthier to suit the needs of these growing segment. In addition, the competition is intense due to the option of more companies settling for the affordability approach to attract more consumers. Entrant’s barriers are minimal also since small fast food companies are on the rise. Buyers have a high buying power in the fast food industry as it is their preferences and tastes that determine sales and the availability of substitutes make it even worse. However, since McDonald is a large corporation it has high suppliers control which makes it supply chain effective and also reliable (Ireland, Hoskisson, & Hitt, 2012).

SWOT Analysis

McDonald’s is able to maintain its leading positioning in the international fast food scale through the application of strategies that not only address internal but also external forces. These forces affect the operations and determine whether the company will achieve the set targets fully.

Strengths

The primary strength that the company has is its highly recognized brand. The company is equated with major firms such as Hamburgers and KFC and it is highly appreciated for changing the food industry and introducing more convenient and quality food to the world (Ireland, Hoskisson, & Hitt, 2012). The company has not only build a positive reputation but also loyalty which has led to its growth.  In addition, the company has a large market share as it is categorized as the largest firm in regard to size. The company has adequate resources as well as highly trained employees since it values the creation of suitable and appealing relationships with the consumers.

Weaknesses

Consumer demands changes and absence of differentiation are the primary weaknesses that the company has. In that due to the healthy foods perceptions. Consumers are constantly changing their preferences and demands leading to low sales since the company has not yet fully ventured into the healthy food service (Schlosser, 2012). These aspects are leading to reduced sales and profitability decrease since consumers have more options to choose from (Schlosser, 2012). Most of the company’s products are also being offered by the competitors thus requiring it to make adjustments to the menu.

Opportunities

The company’s opportunities are connected to its product marketing and global growth. The company’s opportunities lie in expanding to the global scale, market development to the emerging industries as well as focusing on diversification. In the general consideration of its general potential to grow into the international market. The company can also utilize the diversification opportunity by creating products that are unique quality and focused on the general values of the consumers (Schlosser, 2012).

Threats

Intense rivalry, healthy lifestyle and regulatory trends are the primary threats that the company is facing. The fast-food industry is particularly competitive which is worrying since the companies have established themselves adequately in the market (Ma'arif, 2008). In addition, individuals are now shifting their preferences to the healthier options which means that these might affect the operation and the general sales. More and more countries are now adopting more firm regulations policy to ensure that consumers are provided with healthy and safe foods.

A Perceptual Map

Market orientation is the selected plotting criteria. In that, since the company is in need of improving its performance and overcoming the increasing business and economic changes market orientation is the most important business strategy to apply (Ma'arif, 2008). In that, this strategy will seek to create customized and yet diversified products in the market based on preferences and demands of the consumers thus increasing sales. In the inconsistent global industry, the company can utilize this strategy to achieve a more competitive positioning. This strategy operates in two segments which are competitors and consumers orientation. Once the operations of the competitors have been established it becomes easier to position products in a manner that appeals to them (Ma'arif, 2008). This will be achieved while attempting to identify the general needs of the consumers in the market. There is a need to not only identify the general conduct of the competitors but also the needs of the consumers for a more competitive positioning.

 

 

 

 

 

 

 

 

 

References

Ma'arif, N. N. (2008). The power of marketing: Practitioner perspectives in Asia. Jakarta: Penerbit Salemba Empat.

GASPAR, J. E. (2016). Introduction to global business: understanding the international environment & global business functions. Cengage Learning.

Ireland, R. D., Hoskisson, R. E., & Hitt, M. A. (2012). Understanding business strategy: Concepts plus. Mason, OH: South-Western Cengage Learning.

Schlosser, E. (2012). Fast food nation: The dark side of the all-American meal. Boston: Mariner Books/Houghton Mifflin Harcourt.