Strategic Marketing - Porter Value Chain Analysis of McDonald

Contents

Porter Value Chain Analysis of McDonald’s        

2.3.1 Strategic groups        

Bibliography        

1. COMPANY ANALYSIS

1.1 Description of the firm (history, managers, mission, vision, values, main products and markets)

INTRODUCTION

In this ever changing world, industries as well as companies tend to find the best strategies which will keep them on top. Due to the high level of competition in businesses, there is therefore the need for every company to have a strategic plan which will intend help bring out some of the most intriguing problems and then come out with solution in order to remain competitive. Research shows that top companies and the leaders of most industries like GM, in the automotive industry, McDonald’s in the fast food industry use these strategies and come out with the best way to lead and maintain its position.

Most of these companies invest more in R&D to come out with the most appropriate ways to satisfy its customers profitably. This research will tend to look at McDonald’s and investigate how it has been able to use strategies as well as a thorough analysis of its environment to improve on its financial and market share.

Background of the study

McDonalds was founded in the year 1948 in San Bernardino, Calif, as a result of Maurice Mac and Richard Dick opening their first barbecue in the year 1930. The company was sold in the year 1961 to Ray Kroc who was a milkshake machine seller. Mr. Kroc founded the Franchise Realty Corporation in the year 1955; he had his first McDonald's restaurant in Des Plaines, Ill. He changed the name to the McDonald’s Corporation in the year 1960. He finally bought the company from Dick and Mac Donald for $2.7 million the next yearInvalid source specified..

The company has since grown from family burger to a worldwide fast-food behemoth, with over 32,000 locations in over 119 countries worldwide (Randy, 2009) employee over 400,000 all over the world. Their major reasons for this expansion are to serve high quality, standardized products to all customers.

Its franchising has grown over the years and has since been one of the most franchised companies in the world.  The times reported on the 31 of December 2011 that, out of their 33,510 restaurants in 119 countries 27,075 were franchised or licensed and 6,435 operated by the company itself. They have over 19,527 franchised to conservative franchisees, whilst 3,929 licensed to development licensed and 3,619 to foreign affiliates basically from Japan. Its menu includes hamburgers and cheeseburgers, Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, several chicken sandwiches, Chicken McNuggets, Snack Wraps, French fries, salads, oatmeal, shakes, McFlurry desserts, sundaes, soft serve cones, pies, soft drinks, coffee, McCafe beverages and other beverages (KEITH, 2012).