BUSINESS STRATEGY

Per McDonald's CEO, James Skinner, the company's business strategy is Plan to Win. The organization focuses on the five P's: People, Products, Place, Price, and Promotions. By the company focusing on these factors the business continues to thrive even in a struggling economy.


The McDonald's business structure is based upon a geographic structure. McDonald's divided its operations into five geographical divisions; United States, Europe, Asia/ Pacific / Middle East / Africa, Latin America and Canada...75% of McDonald's revenue are generated in the United States and Europe. So to McDonald's, the most important strategic approach for maintaining its leading edge is to keep their major markets at the same time expanding their business into the emerging markets. However, different customer groups in different countries may have different tastes and/or requirements. So each functional geographic unit of McDonald' was required to wholly response for producing and marketing its product in that region. Through this regional structure, McDonald's could not only satisfy the local consumers' needs in different geographical areas but also pursuing 'maximum local development'. Actually they produce and market slightly different types of products in different areas, and they even have different prices. McDonald's philosophy of quality, service, QSC, and V - quality, service, cleanliness and value is same for everywhere. And McDonald's targets the similar consumer segments that need fast service, affordable price and good standard hygiene. So their main products are similar in most countries, where they provide service, including beef, chicken, bread, potatoes and milk. As the consumers in different countries having different foods requirements, McDonald's keep launching new products for their regional consumers. China and France are good examples.

For China, chicken is a big eater in that region. Therefore, McDonald's business strategy is to try to adapt more Chinese tastes by adding more chicken meals into their menu to attract more customers. In France, McDonald's has boosted it sales by remodeling restaurants, i.e. hardwood floors, wood-beam ceilings, comfortable armchairs. Also by adding new menu items such as espresso, brioche and more upscale sandwiches. In addition, the Tours, France McDonald's has added self-service kiosk, which allows the customers to either control their kids or control their orders. By doing that McDonald's have successfully responded to the preferences of the local area while increasing their sales.

Moreover, in addition to the innovative menu, McDonald's is also rebuilding and even relocating some of their restaurants to make the environment more attractive. At the same time, McDonald's is differentiating itself by creating more relevant experiences such as allowing the customers to access the Internet with the wireless technology platform-for FREE. This innovative way not only attracts the teenagers, but also perfectly fitting the modern professionals' requirement. McDonald's is staying in touch with people's technological needs by allowing them to surf the net, social networking, video games, or even preparing business proposals or presentations. (Information sited from International Journal of Business and Management-March 2009 (www.ccsenet.org/journal.html)


The e-commerce that McDonald's use is Business to Cusumer (B2C)...for example when a customer makes a purchase from a business they use cash or credit and they get a product or service in this case it will be McDonald's fast food products.

The type of Internet business models that are used are:

1. McDonald's systematize their business, which as a result give consistency for customer experience across the word via the Internet.
2. Also, by duplicating and documenting the way the business is running can be sold as an ebook that can help people understand how to successfully run a McDonald's franchise.
3. McDonald's provides free WI-FI service to their customers so that they can grab a burger etc...and conduct business all at the the same time.
4. The POS (Point-Of-Sale) at all McDonald's stores are touch screen, in addition, in some restaurants their are self service devices.