Debbie HBU Mcdonalds

Executive Summary
The fast food industry has a long and complex history, spanning several
centuries and encompassing a wide range of cultures and cuisines. The modern
fast food industry, as we know it today, emerged in the United States in the early
20th century, with the growth of drive-in restaurants and the introduction of mass-
produced fast food chains (Freedman, 2020).
McDonald's is one of the most iconic and recognizable fast food chains in the
world, and has played a significant role in shaping the history of the industry.
Founded in 1940 by Richard and Maurice McDonald in San Bernardino,
California, McDonald's began as a small drive-in restaurant, but quickly
expanded into a global franchise system (McDonald's, 2021)
MC’ DONALDS
McDonald's is a global fast-food chain that has
become one of the most recognized and iconic
brands in the world. Founded in 1940 in San
Bernardino, California, McDonald's has grown into
a massive franchise system with over 38,000
restaurants in 100 countries around the world
(McDonald's, 2021).
McDonald's has been successful in building a

strong brand through consistent branding,
marketing, and a focus on customer experience.
The company's golden arches logo is one of the
most recognizable symbols in the world, and its
marketing campaigns, such as the "I'm Lovin' It"
slogan, have been widely popular (McDonald's,
2021)
MC’ DONALD'S
Within the period of 2017 to 2021, McDonald’s has
averaged $19-$21 Billion in annual revenues. Its net
income increases steadily year-over-year, from 2015
to 2019. Lock, S. (2021, Apr 8).
In 2020, McDonald’s innovative adoption of
‘drive-throughs guaranteed success despite the
challenges”.
These drive-throughs delivered 70% of the chain’s
total sales. In the latest quarter ending March 31,
2021, the fast-food giant accumulated $5.125 billion in
revenues, an 8.7% increase year-over-year. KPMG.
(2021).
MC’DONALDS MISSION & VISION STATEMENTS
MISSION
“ To make delicious feel-good
moments easy for everyone”
VISION
“To move with velocity to drive profitable
growth and become an even better
McDonald’s serving more customers
delicious food each day around the
world.”
THE MC’DONALDS BRAND
The company's brand is built on a number of factors, including its affordable

pricing, convenience, consistency of food quality and taste, and its emphasis on
customer experience and satisfaction
One of the key strengths is the company's standardized operating procedures and
menu items ensure that customers can expect the same quality and taste of food
no matter where they are in the world.
Another important aspect of the McDonald's brand is its focus on innovation and
technology. The company has made significant investments in digital
infrastructure, including mobile ordering and delivery services, to improve the
customer experience and stay ahead of the competition
McDonalds BUSINESS STRATEGY MODEL
McDonalds – CHALLENGES
PROCESS STRATEGY: One challenge for McDonald's is maintaining consistency and

efficiency in its operations across its thousands of restaurants worldwide, as adapting to
local regulations and customer preferences, such as offering regional menu items.
FORECASTING: Accurate prediction of customer demand to avoid stockouts or waste.

However, this can be challenging due to fluctuations in customer traffic, seasonality, and
changing consumer preferences
QUALITY MANAGEMENT:. This has been particularly challenging when dealing with
complex supply chains and multiple suppliers
McDonalds – CHALLENGES
CAPACITY AND SUPPLY CHAIN MANAGEMENT : Ensuring that suppliers can meet the
company's demand for products and ingredients. Additionally, disruptions in the supply
chain, such as weather events or pandemics, can impact the availability of certain
products
DIGITAL INVESTMENT: McDonald's faces the challenge of balancing the cost of

implementing and maintaining new technology with the potential benefits, such as
increased efficiency and customer satisfaction
E-COMMERCE: McDonald's faces competition from online food delivery platforms and
must balance the cost of using these platforms with the potential benefits of increased
sales and customer loyalty
PROPOSED SOLUTIONS
PROCESS STRATEGY : Streamline its cooking and ordering processes to reduce wait
times and improve customer satisfaction. This could involve simplifying its menu offerings,
implementing more efficient cooking equipment, and improving employee training
FORECASTING: invest in data analytics and machine learning technology to better

predict demand. The company could also develop contingency plans to respond to
unexpected events like pandemics or natural disasters
QUALITY MANAGEMENT : Implement more rigorous quality control measures

throughout its supply chain, including regular inspections of supplier facilities and testing
of food products. The company could also improve communication and collaboration with
suppliers to ensure consistent quality and timely delivery
PROPOSED SOLUTIONS
CAPACITY AND SUPPLY CHAIN MANAGEMENT: diversify its supply chain to reduce its
reliance on a small number of suppliers and improve its resilience to disruptions. The
company could also invest in sustainable packaging and waste reduction initiatives to
improve its environmental impact
DIGITAL INVESTMENT: continue to invest in new digital technologies to improve the

customer experience and stay ahead of the competition. This could include implementing
mobile ordering and payment options, developing personalized marketing campaigns, and
leveraging social media to engage with customers
E-COMMERCE: expand its delivery services and improve its online ordering platform. The
company could also develop partnerships with third-party delivery providers to reach more
customers and improve delivery speed and efficiency
IN CONCLUSION
.
The fast food industry poses challenges and opportunities for McDonald's, and
the company needs to constantly innovate and adapt to stay competitive.
McDonald's should concentrate on its strengths and address its weaknesses,

while prioritizing innovation, sustainability, and customer experience. By doing so,
McDonald's can maintain its position as a major player in this constantly
changing industry and pave the way for future success.
REFERENCES
• Maze, J. (2021, Jan. 28). McDonald’s ends a tough year on a strong note.
Restaurant Business Online
• Lock, S. (2021, Apr 8). Net income of McDonald’s 2005-2020. Statista
• LaSane, A. (2020, Feb 3). I ate my way through McDonald’s entire menu. Insider
• Plexure (2020, July 26).
How McDonald’s Japan utilized technology to optimize the customer experience in-
store
. Plexure
• McDonald’s Corp (2020, Nov 9). McDonald’s Announces New Growth Strategy.
PRNewswire
• Beckett, E. M. (2020, Nov 9).
McDonald’s new loyalty program will optimize digital, drive-thru opportunities.
Restaurant Dive
• McDonald’s. Our Company. McDonald’s Corporate

Debbie HBU Mcdonalds

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Executive Summary

McDonald's has been successful in building a

The company's brand is built on a number of factors, including its affordable

PROCESS STRATEGY: One challenge for McDonald's is maintaining consistency and

FORECASTING: Accurate prediction of customer demand to avoid stockouts or waste.

DIGITAL INVESTMENT: McDonald's faces the challenge of balancing the cost of

FORECASTING: invest in data analytics and machine learning technology to better

QUALITY MANAGEMENT : Implement more rigorous quality control measures

DIGITAL INVESTMENT: continue to invest in new digital technologies to improve the

McDonald's should concentrate on its strengths and address its weaknesses,

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