A Comprehensive Analysis of The Global Fast Food Giant

The brand I've picked is one of the most recognized and powerful brands in the history of this country and, honestly, the whole world. They've been super successful globally, and pretty much everyone has grabbed a bite from them at some point. The brand I'm talking about sells all sorts of food, like hamburgers, chicken, French fries, salads, and so on. This iconic and influential brand that's been around for years and still going strong is McDonald's.

History and Founding of McDonald's

This company started back in 1948, founded by two brothers, Richard and Maurice McDonald. Their first restaurant was in San Bernardino, California. They got most of their appliances for their burger joint from a salesman named Ray Kroc, who was really curious about their need for eight malt shake mixers. Kroc visited their store and was amazed at how such a small place could sell so many milkshakes. He saw huge potential in the McDonald's brand and offered to start a franchise program for the brothers (Britannica, 2018).

Current Global Reach

Fast forward to today, McDonald's is the world's largest restaurant chain by revenue. They serve over 69 million customers every day in more than 100 countries, across around 36,900 outlets as of 2016. Their management has played a big role in their success as a brand and an effective company overall. The management makes sure all McDonald's restaurants work towards achieving common goals. What makes this company so successful is their great customer relationships and constant innovation, which is maintained by their management. The planning function helps develop company objectives, while the controlling function checks and monitors resources.

Management Functions Driving Success

What makes this company stand out is their focus on customer relationships and innovation, driven by their management. The planning function sets company goals, while the controlling function checks resources (Bailey R, 2017). The organizing function helps build strong human resources, leading activities to achieve efficient results. These management functions heavily influence McDonald's competitiveness and overall performance.

Value Proposition

Also, the planning function ensures the brand sets and achieves reasonable goals. This is a serious role because it confirms all restaurants work towards shared objectives. Managers benefit from these goals, ensuring resources are effectively used to achieve McDonald's objectives. McDonald's value offering is strong. What sets them apart from competitors is their convenient locations, comfortable seating, and facilities for people to relax and socialize while eating.

Their service is fast and efficient. They're consistent with their quality menu items, like the famous Big Mac. Their pricing is reasonable, and they offer a broad range of foods that appeal to all ages. Their value offering is unique because they target a wide audience. McDonald's food choices can appeal to a whole family, with options like Happy Meals, Quarter Pounders, salads, Big Macs, and more.

Overall, McDonald's has a distinct brand compared to its competitors for all these reasons. They give customers a reason to stay loyal to the McDonald's brand, which contributes to their longevity in the market.

Business Environment Analysis

Next, let's look at the business environment. Every organization, including McDonald's, is affected by the business environment. Just because they're successful doesn't mean they aren't affected.

McDonald's falls under PESTEL, which stands for political, economic, social, technological, environmental, and legal factors. Their operations are influenced by state policies and government regulations. Some important issues include health, tax issues, employee licensing, and other concerns (Greenspan, 2017). The company follows local and foreign government policies for its franchise strategy. Political stability also affects McDonald's business.

Economic Influences

Economic factors are also a big deal for most businesses. For example, a global economic downturn can affect all companies. Because McDonald's operates internationally, they've faced different tax and revenue challenges in various countries. They've also had issues due to international currency, especially with global food distribution. Local economic conditions can also affect McDonald's operations. If the economy is struggling, people might not want to spend money on fast food.

Sociocultural Trends

Social factors come next. People's lifestyles change over time, affecting demand for McDonald's. Technology plays a big role here, as modern society expects updated service and technological advancements from McDonald's. That's why they have touch screen menus and apps for ordering. McDonald's operates worldwide; changing demands vary by country. In India, for example; many people prefer vegetarian options; Muslims avoid pork. McDonald's needs a different approach there; this requires research to satisfy Indian customers; especially with the menu (Kannan; 2014).

Technological Advancements

Then there's the technology factor: Technology is crucial for meeting customer expectations. There are many competitors like Burger King; Domino's; KFC; Wendy's; Popeye's; so McDonald's has to stay ahead: They use technology to enhance customer experience with Wi-Fi; entertainment equipment; touch screen order menus: This helps McDonald's stay successful.

Environmental Challenges

With positives; there are also negatives: Environmental factors have negatively impacted McDonald's because they use harmful materials: For example; they use non-biodegradable substances for drinking glasses; Styrofoam containers are discouraged: Environmentalists are concerned about packaging; call for awareness.

Legal Considerations

Legal issues are also important: Following rules regulations procedures ensures smooth operations: This includes safety rules staff laws registration taxes more: In Islamic countries Halal food authorization crucial respect customer beliefs: Following legal processes benefits everyone ensures smooth operations: Being huge company responsible legal issues.

Diverse Target Marketing Strategy

When it comes to target marketing; one of best strategies: Their target market ranges from toddlers seniors: Environment family-friendly evident commercials food mascot Ronald play areas kids: Appeals anyone looking meal.

They don't just appeal families kids but cater workers go breakfast menu coffee: Teenagers looking place relax enjoy too even health-conscious individuals salads fruits broad audience key element success.

Brand Positioning Techniques

Their brand positioning another key element use adaptive product positioning strategy constantly adjusting products services: According company's "McDonalds made itself family-friendly low-cost restaurant fast food business have narrow scope customer base low-cost strategy" (McDonald’s 2016).

Competitive Landscape Analysis

Next analyze competitive forces competition fierce main competitors include quick service restaurants street stalls casual dining takeaway delivery more some biggest competitors Starbucks Subway Burger King KFC Domino's Pizza threat substitute meals strong home-cooked meals threat too.

The bargaining power low work large suppliers Dr Pepper Snapple Group Coca-Cola Company Clorox Company International Paper Company affiliates usually don't supply food paper related items factors abundance supplies low product uniqueness reduce bargaining power suppliers.

Barriers for New Entrants

The threat new entrants weak competing huge number outlets worldwide massive capital investments significant effort extremely difficult new entrants compete especially established brands Subway Starbucks Domino's struggle keep up.

Promotional Strategies Employed

When it comes promotional strategies spends huge amount advertising campaigns including TV newspaper ads billboards sponsoring major sports events Olympic Games FIFA World Cup aggressive approach negative campaigns against competitors focus promoting brand catchy slogan "I'm Lovin' It" created Heye Partner popular celebrities Michael Jordan Justin Timberlake Kobe Bryant Venus Williams spokespeople brand.