Posted: May 25th, 2022

The top quality foods and beverages

Strategic Management McDonalds


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McDonald’s is the world’s largest fast food chain having presence in 119 countries with more than 34,000 outlets and restaurants. The major product offerings include of the company include Big Mac (hamburger), French fries, chicken sandwiches, Quarter Pounder, Chicken McNuggets, desserts, soft drinks, milkshakes, soups, and breakfast items. It has currently employed more than 1.7 million people around the Globe. It was founded in 1940 by Richard and Maurice McDonald as a small Bar-B-Q restaurant in San Bernardino, California. At present, McDonald’s is present in all the corners of the world and serves more than 69 million customers every day (McDonald’s, 2013).

Importance of Strategic Plan for the Success of McDonald’s

A strategic plan is important for McDonald’s in defining and achieving its corporate and business level objectives in an effective and efficient way. Strategic planning can help McDonald’s in matching its core competencies and distinctive capabilities with the most potential opportunities in the marketplace (Hitt, Ireland, & Hoskisson, 2011). These opportunities can be availed in order to become stronger, more profitable, and competitive against industry rivals. A strategic plan serves as a roadmap for the top level management of the company on how they can proceed in the industry in a view to win the stakeholders’ trust and confidence. It takes into account all the operational and functional areas which McDonald’s needs to focus during its day-to-day business operations — including finance, sales and marketing, human resources, production, supply chain, and customer relations. On the basis of strategic planning, the Company’s management can better allocate financial, informational, physical, and human resources in different areas (Hill & Jones, 2012).

Mission Statement

The mission statement of McDonald’s is to become the most favorite fast food brand among the worldwide customers by providing the top quality foods and beverages, rendering the most efficient customer services, and ensuring operational excellence in all the functional areas of the business. Thus, the mission statement of McDonald’s encompasses its concern for all the primary stakeholders which can play an important role in its success. Customers — the most important stakeholder of the company are given the highest priority in the mission statement due to their significant contribution in its sales and financial performance (McDonald’s, 2013). On the whole, the mission statement of McDonald’s guides its Management in setting the areas of priority and concerns in every type of strategic decision (Hitt, Ireland, & Hoskisson, 2011).

The Vision Statement

The vision of McDonald’s is to maintain its market leadership in the global fast food industry by continuously expanding its operations in the potential markets of the world. It also aims to become the strongest multinational corporation on the basis of financial position, customer base, supply chain and distribution network, and menu variety in both foods and beverages category. The vision statement of McDonald’s supports its mission statement by highlighting its strategic or long-term objectives which it wants to achieve by satisfying the needs and expectations of its primary stakeholders; including customers, employees, supply chain members, business partners, and investors (McDonald’s, 2013).

Five Key Objectives and their Importance for the Success of the Business

i. Financial Objectives:

The financial objective of the company shows its aim to become the strongest fast food chain with respect to profitability and market share in the global industry. This objective can only be achieved if McDonald’s purely focuses on improving its sales performance through superior quality food products and exceptional customer services. In addition to the operational aspects, the sales performance is also largely affected by the competitive strategies of the competitors. The top competitors of McDonald’s include KFC, Pizza Hut, Burger Kings, Dunkin Donuts, Starbucks, etc. In order to boost up its sales performance, McDonald’s will have to offer foods and beverages which are better in quality and competitive in their pricing against those offered by its competitors.

ii. Operational Objectives:

The second key objective of the company encompasses its aim to become operationally stronger and unbeatable in the long run. McDonald’s is currently the market leader in the global fast food industry due to various competitive advantages and core competencies: including extensive R&D, quality management, efficient manufacturing capabilities, strong supply chain and distribution network, excellent customer services, etc. All these competitive advantages and strengths are focused on achieving its operational objectives (Hitt, Ireland, & Hoskisson, 2011). By achieving these objectives, McDonald’s aims to prove itself as the most competitive fast food brand which is always the first choice of customers.

iii. Human Resource Objectives:

McDonald’s has employed around 1.7 million employees in its production plants, regional offices, restaurants, and the Headquarters (McDonald’s, 2013). It considers these employees as the most valuable resource for its business. Therefore, its five key objectives also constitute the human resource aspects of the business. McDonald’s has also expressed its true concern for these employees in its mission statement and corporate values. The human resource objective of McDonald’s is to develop the most efficient workforce that can contribute towards its success and competitiveness in every possible way. The corporate values of McDonald’s emphasize on cultural diversity and equal employment opportunities, employee rights, strong organizational culture, competitive advantage through human resources, and strong industrial relations.

iv. Corporate Social Responsibility:

In addition to the financial, operational, and human resource aspects of the business, the five key objectives of McDonald’s also include its concern for the social interests and well-being. Thus, the fourth key objective of the company is to become a socially and environmentally responsible corporate entity by making financial, personal, and social contributions in various types of projects which are aimed at improving the social life of people in under-privileged areas in the world (McDonald’s, 2013). For this purpose, McDonald’s makes heavy financial contributions in educational, environmental protection, health and safety, and other social welfare projects (About McDonald’s, 2011). All these efforts are ultimately beneficial for strengthening the public image and achieving a sustainable future in the industry (Thompson & Martin, 2010).

v. Supply Chain Objectives:

The supply chain of McDonald’s includes raw material suppliers, distributors, business developers, associates, and partners that make it possible for McDonald’s to manufacture top quality products and deliver them to the ultimate consumers in the most effective and efficient way. The fifth key objective of McDonald’s is to build and maintain strong relationships with all the primary and secondary supply chain members. These strong relationships are helpful in staying competitive and profitable in the long run (Hill & Jones, 2012).

How Five Key Objectives support the Mission and Vision Statements?

All the five key objectives are focused on making the company stronger, more competitive, and the most favorite fast food brand in the eyes of its customers. The financial, human, supply chain and operational objectives of the company show that it aims to strengthen itself in all the major operational and functional areas which can give it a competitive advantage in the industry. These areas are also emphasizes in the mission, vision, and corporate values of the company. Similarly, the corporate social responsibility efforts of McDonald’s support its mission statement which also emphasize on achieving sustainability and winning stakeholders’ trust and confidence.


About McDonald’s, (2011). Sustainability Scorecard. Retrieved on July 7th, 2013, from

Hill, C.W., & Jones, G.R. (2012). Strategic Management Theory, 10th Edition. Mason, OH: South-Western, Cengage Learning

Hitt, M.A., Ireland, R.D., & Hoskisson, R.E. (2011). Strategic Management: Competitiveness & Globalization – Concepts, 9th Edition. Mason, OH: South-Western Cengage Learning

McDonald’s, (2013). Our Story. Retrieved on July 7th, 2013, from

Thompson, J.L., & Martin, F. 2010, Strategic Management, 6th Edition. Andover: Cengage Learning, 2010.

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