McDonald’s Corporation is an American fast food company that was established in 1940 as a restaurant. The company has since grown and expanded to different parts of the world. McDonald’s is currently the largest restaurant chain in terms of revenue and it serves more than 69 million customers on a daily basis that are spread in more than 100 countries. In order to realize its success, McDonald’s has made use of a series of strategies that involve the globalization, the use of technology, an efficient industrial organization and resource-based model, an effective vision and mission, and meeting the needs of its stakeholders.

Globalization

Globalization can be defined as the process of international integration that results from the exchange and interchange of global products, views, ideas, and cultural aspects. McDonald’s has made use of globalization by adapting to both global and local standards. Crawford observes that McDonald’s is both a global brand through having an international standard and training operations but also appeals to the local markets through the use of local outsourcing of food, franchising to local entrepreneurs, and the targeting of specific demands of local consumers (2). Marthur observes the case where McDonald’s has changed the diet of hamburger Big Mac to chicken in India because Hindus do not eat beef while Muslims do not eat pork (3). Such a strategy thus involves thinking global and acting local hence the term “glocalization” (Marthur, 3). By ensuring that the company appeals to the local community, the company has aligned to the culture of the destination country hence attracted customers.

Technology

            McDonald’s has made an effective use of technology to manage its stores. Upon entering the stores, one is invited with a kiosk style of touch screen menu. In order to improve the services rendered to its customers, McDonald’s has replaced human servers with a voice –based technology at its drive-through in the United States. The company also seeks to incorporate AI technology in order to make the services more efficient (4).  McDonald’s thus seeks to hire more data scientists to improve its services. McDonald’s has also incorporated a mobile application where customers can order the company’s products and have it delivered at their location. The company has also made an effective use of social media to reach to customers throughout the world. The use of social media is used to get feedback from customers regarding the quality of the products sold and the necessary improvements that should be made.

Industrial Organization Model

The industrial-based model can be described as an analytical tool used by companies so as to determine the best industry. There are five forces that are used in the model that include the analysis of the external environment, an alternative sector, a strategy formula, the sills set, and strategy implementation to earn returns that are above average (Hitt, Ireland, & Hoskisson, 1). These forces can be used by a company to determine the best path to undertake. For the case of McDonald’s, the company has made use of the model to realize success when entering into new global markets. McDonald’s considers the external environment by analyzing the government regulations and the culture of the destination country. After finding the right external environment, McDonald’s focuses on having the right staff and training its employees so that they would have the necessary skill set. In order to earn above average returns, McDonald’s focuses on opening stores in a strategic location so that customers can access the company easily.

Resource-Based Model

The resource model is based on the assumption of a firm having unique capabilities and resources so as to make above average returns. There are five steps in the model that include, identification of resources and their strengths and weaknesses, determining a firm’s capabilities, determining the competitive advantage, identifying core competencies, and then locating an attractive industry to match the skills and resources (Hitt, Ireland, & Hoskisson, 1). McDonald’s has made use of the resource-based model successfully by first having a strong suppler network where it can buy products in large quantities. The company also has a competitive advantage because its franchise is a globally recognized and reputable brand. The company has also incorporated technology as a key company resource to ease the services rendered to customers. However, McDonald’s should continually strive to make improvements in the company by studying its resources, competitive advantage and capabilities. McDonald’s should consider some of the weaknesses that are in its food chain and strive to improve on them.

Vision

The vision of McDonald’s is based on the company’s values that includes responsible leadership, local integration, progressiveness, and inclusiveness (5). The vision of the company can thus be described as to offer the world’s best fast food service restaurant experience. By being the best, the company should focus on the provision of an exemplary quality, value, and service so as to put a smile on every customer. By focusing on its vision, McDonald’s strives to become a leader in sales and profit, sustainable and human sourcing, and the reduction of emissions from agriculture. The company also focuses on being an inclusive company where it considers all cultures.

Mission

The mission of McDonald’s is to become the favorite place for customers to eat and drink. The company aims at integrating its worldwide operations to a global strategy known as Plan to Win. The strategy involves a focus on people, product, promotion, price, and place. The company thus strives to continuously improve its operations so as to enhance customer experience. The mission statement of McDonald’s has been accurately defined and it shows the values of the company. It also reflects the experience that customers expect to get when they walk into the food restaurant at any part of the world.

Stakeholders

The stakeholders of a company can be divided into three primary groups that include the product market such as customers and suppliers, the capital market such as shareholders and capital suppliers, and organizational stakeholders such as employees, managers, and non-managers (Hitt, Ireland, & Hoskisson, 1). The different stakeholders play a crucial role in the success of McDonald’s. Capital suppliers such as banks and shareholders consistently provide the company with the required monetary resources so as to expand the company’s services and to open up new stores. Banks also facilitate revenue transactions through making payments from employees and suppliers. Customers are in the product category and they impact the company by making a demand for the company’s products. They make purchases from the company and thus ensure its continual growth. A large amount of suppliers provides the company with the raw materials that are required to make various food products. The employees in the company are the face of the brand and run the company’s daily operations. The company’s employees continually provide exemplary customer services ensuring that the firm retains a competitive advantage.

Conclusion

            McDonald’s is an international recognized brand and leading fast food company in the world. The company has been able to achieve this through an internal orientation that focuses on globalization, adequate use of technology, and industry analysis, resource allocation. The company’s global strategy involves meeting both the international and local standards. McDonald’s makes an effective use of technology through the use of mobile apps, social media, and artificial intelligence to improve its services. The industry organization and resource-based model also showed that McDonald’s had an effective orientation of its resources and industry to realize the company’s success. The company’s stakeholders such as capital suppliers, customers, and employees have all played a huge role in the success of the company.

Sources

1. Hitt, Ireland, & Hoskisson. 2020. Strategic management: Concepts and cases: Competitiveness and globalization (13th ed.). Mason, OH: South-Western Cengage Learning.
2. Crawford, A. 2015. McDonald’s: A case study in glocalization. Journal of Global Business Issues, 9(1), 11.
3. Mathur, S. 2017. Glocalization in Fast Food Chains Glocalization in Fast Food Chains: A Case Study of McDonald’s. In Strategic Marketing Management and Tactics in the Service Industry (pp. 330-347). IGI Global.
4. McDonald’s Uses AI for Ordering at Drive-throughs. 2019. https://www.bbc.com/news/technology-49664633
5. McDonald’s – Our Values. 2020. https://corporate.mcdonalds.com/corpmcd/about-us/our-values.html