McDonald's Case

gIn the beginning of 2011, McDonald's determined the necessity for continuous building on momentum and strengthening of brand around the world. In today's challenging and highly competitive business environment, McDonald's made a lot of efforts for analysis of consumer needs, aligning of strategy and strengthened the pillars of its business, from menu and restaurants to value and convenience. Also, it is interesting to have a look on how McDonald's strategy was changed through the years. At some point, McDonald's surrendered the strategy of sacrificing profits for market share by cutting prices to drive sales and volume. The company started raising menu prices across half its system. Later on McDonald's changed strategy aiming at binding customers to apply more monopolistic price policies. The very low prices were replaced by product initiatives and promotion to attract customers and increase margins, and now, the margin of McDonald's belongs to the highest of the industry.McDonald's organizational structure can be defined as Corporate Governance. The corporation's revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. A McDonald's restaurant is operated by either a franchisee, an affiliate, or the corporation itself. There are basically two structures: one is the senior management side, the other is the restaurant side. Restaurant level usually includes General Manager, Restaurant Manager, 1st Assistant Manager, 2nd Assistant Manager, Shift, Running Manager, Floor Manager, Staff Training Crew and Crew Members. At the same time Business Leadership (McDonald's Board of Directors) is focusing business managers on the need to develop a business strategy, encompassing internal and external factors.