Report mc donald's

1. Grand Strategy Matrix
The Grand Strategy Matrix is a popular tool which is using for formulating strategies.
In the Grand Strategy Matrix, McDonald’s was positioned in Quadrant IV because of
its high market share of 49.6% in 2011 in the US Burger market share but the slowly
in the growth of the Fast-food industry itself. Thus, McDonald’s must be create new
strategic. For the firms in Quadrant 40 IV market penetration, market expansion and
product development are appropriate strategies.
Analysis Grand Matrix Strategy:
1. Forward integration (joint ventures with retailers)
2. Product development (launch new innovative products such as healthier
ingredients)

2. 3. Market penetration through advertising, healthier products and diverse local taste.
Quantitative Strategy Planning Matrix
PROBLEMS: The US market share of McDonalds is going down; also their product
life cycle is on Decline stage due to many competitors in fast food industry. They
cannot growth more market share so they must come up with new strategy for US
market. There are two alternative strategies for McDonalds either expanding their
brand in Asia market for specifically in China and India or trying to offer healthier
menu.
The first strategy: Focus on China and India market; those are potential market for
fast-food industry with large market share. According to McDonald’s annual report,
the revenue in Asia Pacific keeps increase 50% in 4 years compare to other regions
such as US, Europe, America.
The second strategy: The trend of consuming healthy food is concerned by lots of
people, if McDonald’s can create new menu with more nutrition items, they can
increase sales significantly. Healthier food should not only come in the form of
vegetable, it should also provide differentiate McDonald’s from other competitors.
Healthy menu can include fruity iced drinks, different types of desserts, salads. This
can enhance the company’s strong position in the market.
We use the EFE matrix and IFE matrix to identify key strategic factors for the QSPM
matrix. Then, we can formulate the type of strategy we would like to pursue base on
others above matrix such as SWOT analysis, CPM matrix, SPACE matrix and BCG
matrix.
We choose 2 main strategies: Expand further in India and China market. Providing
diverse menu include nutrition food.

3. Attractiveness Score how each factor is important or attractive to each alternative
strategy: Scores is 1= not attractive, 2 = somewhat attractive, 3 = reasonably
attractive, and 4 = highly attractive.
For the first strategy:
We point 4 for a Globalization (Oversee Mc Donald worldwide), expansion of social
media, one of best brand recognition in the world, connect with local partners,
cultural diversity in the food that are provided based on location on restaurant these
factors will absolutely related to successful in expansion of the company. Moreover,
the expanding in new markets will deeply relevant to introduction of new diverse
menu and price of its products.
For the second strategy:
We focus on providing diverse menu. Thus, we give the 4 points for these factors
such as: Cultural diversity in the food that are provided based on location on
restaurant. Moreover, their new menus should avoid unhealthy food image and
target almost children. Because adult also a potential customer target.
Analyzing QSPM Matrix result:
The strategy 1 has 5.12 score which is higher than strategy 2 and have more
opportunity to success. So, we choose the expansion to Asia market, especially
China and India as a main strategy because they have the highest potential market
growth and suitable for our company long-term strategy.
Method

4. For long-term goal:
1. We continue to focusing on our three priorities of optimizing our menu,
modernizing the customer experience, and broadening accessibility to Brand
McDonald's within the framework for our long-term goal, these priorities align with
our customers' evolving needs, and - combined with our competitive advantages
such as convenience, menu variety, geographic diversification and system
alignment- will drive long-term sustainable goals successful.
2. The business is managed as distinct geographic segments that include:
• U.S.
• Europe
• Asia/Pacific, Middle East and Africa (APMEA)
• Other Countries & Corporate (OCC) including Canada, Latin America and
Corporate.
3. We view ourselves primarily as a franchisor and believe franchising is important to
delivering great customer experiences and gaining profitability. At year-end 2013,
more than 80% of McDonald’s restaurants were franchised. Of the total McDonald’s
restaurants worldwide:
• Over 57% are conventional franchisees
• Nearly 24% are licensed to foreign affiliates or developmental licensees
• 19% are Company-operated
• Innovations have included the Big Mac, Fillet-o-Fish, and Egg McDuffie
• Operate Hamburger University.
For strategy expansion to Asia market:
 Continuing to operate franchise restaurants at Asia market. For example, from
2011 to 2013, McDonald's plans to open one restaurant every day in China.
 Local outlets at foreign markets can be autonomy adapt to local tastes and
preferences. So, they have done the product development and marketing at a
local level and develop its own products to address unique tastes that their
consumers.
 They allow some flexibility changes in international restaurants. Each country
able to complete the marketing research, develop new menu items and
freedom to add to the menu and promote their products how they wish.
However, McDonald’s still keep the consistency of its products and taste
around the world and would not allow complete autonomy.
 In addition, they have to do marketing overseas which must be focus on
cultural differences, customer target differences.
Timetable

5. Expanding in Asia market
Activity Plan Star Plan
Duration
Actual Star Actual
Duration
Percent
Complete
Customer survey 1 10 1 6 0%
Analyze data 5 6 7 6 0%
Identify market
needs, segments
10 8 10 8 0%
Determine
potential
customers
17 6 17 6 0%
Align with
marketing
department for
new products
22 3 22 4 0%
Legal permission
in foreign country
1 3 1 3 0%
Prepare
infrastructures
22 8 22 7 0%
Find suppliers for
beef and fresh
vegetables
3 5 3 5 0%
Innovate and
cooperate with
community
3 4 3 4 0%
Sustain the profit
level of products
then expand to
new market
30 10 29 15 0%