What opportunities and threats did McDonald face

How did it handle them What alternatives could it have chosen? Answer: Opportunities ) “Going green” – energy management, improving packaging efficiency, environmentally friendly refrigerants, and partnering with Greenpeace for rainforest protection  Charity – The Ronald McDonald House provides a cheap or free place to stay for parents of sick children. Over 250 worldwide in 48 countries. 2) New store looks/styles – McCafe coffee shop, and “forever young” redesign   3) McDonald’s has f maintained an extensive advertising campaign for decades.

For popularity they use media (television, radio, and newspaper), the company makes significant use of billboards and signage, sponsors sporting events from ranging from Little League to the Olympic Games, and makes coolers of orange drink with their logo available for local events of all kinds. Television has always played a central role in the company’s advertising strategy. They always advertise McDonalds much different way to their customers.Until now, McDonald’s has used 23 different slogans in United States for advertising, and few others slogans for select countries and regions.

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4) Recently McDonald’s is actively trying to reduce their negative impact on the environment by altering their company policies. Their policy now an outline is not only the individual restaurants’ behaviors, but also the ways in which they go about using their resources and acquiring them-.Since the 1990’s, McDonald’s restaurants have been encouraged to participate in the environmentally friendly movement by getting involved in community clean up days to cut down on the amount of litter around their stores. They have made an effort, assisted by Environmental Defense, to utilize recycling both in packaging their products and in what they use day to day which has allowed them to cut down on their waste significantly.McDonald’s continues to be environmentally conscious in their business and they are currently testing a restaurant that will potentially give off less harmful pollutants by using alternatives to harmful refrigerants  Criticism – contribute to obesity, and other health problems Many competitors for same costumer – Subway – Burger King – KFC – Taco Bell 5) They have the ability to add healthier lines of food.

They have already gotten rid of super sizing and I think they have made their fries healthier currently.There is another personify isThe Golden Arches are now more widely recognized than the Christian cross. McDonald’s operates more playgrounds – designed to attract children (and their parents) to its restaurants – than any other private entity in the US. Threats   Leaflet ‘A Threat’ to McDonalds MCDONALD’S, the biggest fast-food chain in the world, yesterday asked the High Court to stop two London environmentalists from distributing a leaflet which links the company’s meals to heart disease and cancer and accuses it of despoiling the environment and exploiting the Third World.Bird flu no threat to McDonald’s chicken: Advertisement strategy In a bid to save its plummeting sales of chicken products in mcdonalds, they have planned an exclusive advertisement campaign. //The campaign would ensure that the customers get the message that chicken here is safe. This has been planned by McDonald’s Corp. , of Oakbrook, Ill.

This strategy is a risk and pressure tactic which would ensure that is a epidemic and bird flu scare spread they can influence the customers.They have already prepared ads and would air them, as soon as needed. It is now a fact backed by scientific research that humans cannot get bird flu by eating chicken that has been cooked and prepared properly. This kills the virus. McDonald’s faces up to European fears over food and job quality LONDON – McDonald’s is set to admit that it has not done enough to reassure the European market on issues about the nutritional value of its food and the quality of jobs it provides, in a corporate responsibility report to be published next week.According to a report in the Financial Times, the report will admit that McDonald’s has learned that “we could do better in our understanding of wider social trends and expectations”. It says that the report will quote negative and positive comments given to it in a year of interviews, including accusations that McDonald’s “does not value its employees” and that “working at McDonald’s doesn’t look like much fun”.

It rejects the claims, and has been working to dispel the McJob tag with which it is saddled.Burger giant faces court threat over bad language idea Fast-food giant McDonald’s could be in trouble with race watchdogs for asking its staff to speak English. An outlet in Manchester put up a sign ordering employees to use English at all times in the store – including in the staffroom. But experts now believe the burger giant could have infringed workers’ human rights and European employment law. HOW DID McDonald HANDLE THEM? McDonalds handle these threats by by these possible steps. By decreasing health problem.

By delivering superior value to customers then competitors.For better performance in Europe Mcdonald has to do a lot of work by providing the taste and dishes which have high demand in europen market. McDonald should increase advertisement in Europe. Mcdonald should distribute free sample in different offices and colleges. Mcdonald have to provide the job that person which can attract more customers through his stratigies. Mcdonald should make planning to avoid from bird flu and other diseases in future.

Mcdonald can done better performance then his competitors by providing dishes which are a part of that culture.Mcdonald should launch some new dishes according to condition. Mcdonald should provide traditional dishes . WHAT ALTERNATIVE COULD IT HAVE CHOSEN? Mcdonald can use following alternative to increase his value:  » Mcdonald should stop his product where it’s not doing well and take corrective action and check his quality. » Mcdonald should open new restaurant in that area where fast food has important part in the culture of that area.

» Mcdonald has to choose that management which can easily understand the demand of all customer. Mcdonald should decrease its prices in that country where per capita is very low. » Mcdonalds should make his manuals which include traditional dishes of that area. » Mcdonald should it think at the level of middle customer rather then the high level customer. » Mcdonald should provide bonus to his employees for better performance. Q.

2)Before Mcdonald s Entered The European Market Few People Believed That Fast Food Could Be Successful In Europe Why Do You Think Mcdonald s Has Succeeded What Strategies Did It Follow? There was a time not so long ago when U. S. ast-food giant McDonald’s was viewed by European consumers as the advance scout of what the French loudly decried as American cultural imperialism. The Golden Arches, ran the prevailing European line, were a threat to the Continent’s refined palates and appreciation of the civilized sit-down meal, and the livelihoods of people staffing “real” restaurants. Well, with the global economic crisis deepening, even the French aren’t complaining nowadays – especially with news that McDonald’s plans to invest more than $1 billion to keep its lucrative European business booming.

McDonald’s is well-established in Europe, Asia/Pacific Islands, the Middle East, and Africa. Its growth in Europe is mainly driven by France, Germany and the United Kingdom. In Asia, the general management has indicated that there is significant potential in the China market. The corporation has adapted its menu items to local cultures, such as the Teriyaki Mac in Japan, variants of Filet-O-Fish in China, and using lamb instead of beef in India.Mcdonald has got very strong position in Europe because the people of Europe like mostly fast food and Mcdonald providing fast food in Europe. The Mcdonald menu mostly include traditional dishes of Europe.

We know that per capita of Europe is high as compare to Asia, so prices are not problem in Europe. Mcdonald’s succeeded because in Europe there are people involved in many activities that require a lot of time,so they must eat somethimg on the run so that they can go back to their jobs, where they can ‘produce’ money that will be spent at a fast food. t’s a vicious circle. we all live in the era of speed, and we all are too fast and too furious… so, logically, a fast food like McDonald’s was in need, like it or not..

. but we hope that with all the existent technology, someone, someday will stop the avalanche of junk food. The net profit of McDonald in Europe is so high as compare to Asia . We know that per capita of Asia is low as compare to Europe is very low, so prices are a big problem in Asia. There is no any major different in McDonald strategy in Europe and Asia.

In Asia McDonald menu is according to Asian culture and traditional dishes and in Europe it’s according to their culture. McDonald’s has pursued two strategies since 2003. To keep up with rapidly changing consumer preferences, demographics and spending patterns, McDonald’s has introduced new items (Premium Chicken sandwiches and the Angus Beef Burger) and campaigns to create more healthy foods (Premium Salads).

The strategy reflects the philosophy that novelty, as opposed to loyalty to traditional products, is the key determinant of sales in the fast food industry.McDonald’s has also focused on increasing sales at existing restaurants instead of opening new ones[5]. To do so, McDonald’s has remodeled many restaurants, kept stores open longer and increased menu options. Nevertheless, new McDonald’s restaurants are still opening around the world at a rapid rate – the company plans to open about 1,000 units in 2008, and continues to grow its new restaurants at a 1%-2% rate each year. Q.

3)What is the basic philosophy of McDonald’s and how does it enforce this philosophy and adapt to different environments? Ans)


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