Mission of the organization defines the expected position and the fundamental purpose


The perspective and mission of the business defines the expected position and the fundamental purpose of the organization. The purpose of this task is to comprehend the perspective and quest of the circumstance company and to identify and understand the proper aims and targets of a business and research its progress into the fulfillment of these aims and targets. For this different alternative strategies open to the business are also considered. To satisfy the requirement of this assignment the business selected for inspection is McDonalds. McDonalds is the leading junk food restaurant string of the world and is also providing more than 58 million customers on daily basis.

McDonald's Vision and Objective Statement

Every organization must have a eye-sight and a quest. Vision and quest statements are the short phrases which pieces the whole path of the business. Vision statement supplies the whole picture of the organization's desired future position in a single phrase. This declaration then sets a whole direction of all strategic goals and aims of the organization. Below is the eye-sight declaration of the case company i. e. McDonald's

"To be the world's best quick service restaurant experience, being the best means providing exceptional quality, service, cleanliness, and value, so that we make every customer in every restaurant smile"

Mission declaration clarifies the essential purpose of the business. Off course the reason is to achieve the vision of the business, but mission affirmation goes into further aspect and right answers the question of the lifestyle of the organization. Mission statement of McDonald's is

To be the best employer

To deliver functional excellence

Achieving durable profits

Expanding the brand name and extending the effectiveness of McDonald's system through advancement and technology.

Analyzing the perspective and mission assertion of the case company it is clear that organization's concentrate is mainly into the external and internal customers i. e. consumers and employees. Furthermore, the company is committed to innovate and use the latest technology to earn huge income.

McDonald's Strategic Goals and Objectives

An target is a broader declaration which tells what an organization wants to become and the goals are the specific goals or tasks which leads towards fulfillment of the aim of the organization. It is vital for an organization to set such aims which are almost possible and which may be measured. If this is not the case the business will put its attempts and resources in that way which is not possible whatsoever. For effective working and success for an organization the aims and aims must be genuine and it must also be associated with time frame as if it is not the case then there will be confusion within the business regarding the a chance to complete the jobs and tasks (Fred David, 2006). Furthermore, the aims should be measureable, as the progress to the fulfillment of targets should be easily measured as if this is not the case then it might be very difficult for a business to know that if the desired results are achieved or not.

McDonald's key to success all over the world is their priorities, that are also mentioned on their corporate website. The most notable priority of the primary fast food restaurant chain is the customers. As per the McDonald's corporate values the reason why of the living of the business are their customers plus they work only to match the needs and requirements of the customers. As per the business it isn't the problem of sales alternatively it's the matter of providing quality products along with the best services to the customers in affordable prices. The second priority is their workers or workforce.

The company is convinced that the employees make the dream of the organization become a reality. The employees are their valuable assets and it is merely as a result of skills and competencies of their employees which enables the business to attain the place goals and goals. The business also believes the quality of their business model. According to the corporate principles of the company the business model is defined to meet the active customer behavioral changes. The proper aims and goals of McDonalds and stated below and these implies that what are the top priorities of the company and it gives a hint why the business is so successful all across the world

To maintain the leadership in junk food restaurant industry

To serve the client with good food in an agreeable and fun environment

Providing the product quality food and value of money to the customer

Providing the shareholder an optimistic return on the investments

To meet the social and moral responsibility

Strategic Plan and its own Component parts

Strategic plan of any business is an image of the desired position of the business. Strategic plan provides root path that how the organization will achieve the required place or position in the given industry (Maches, B. 2010). Three major the different parts of tactical plan include formulation, implementation and analysis of strategy carries that information and plan which provides a direction to the organizational targets (Kim Warren, 2008).

Strategy Formulation

Strategy formulation process starts off with the problem analysis of the business. Situation analysis is an important part of proper plan as it gives an overview of the existing position of the business. Situation research includes the evaluation of interior and external environment of the organization. Different strategic tools may be used to evaluate this situation i. e. SWOT evaluation, PEST Analysis etc. This also contains the evaluation of current mission and perspective of the organization. Vision declaration clarifies that what an organization want to be and on the other side mission statements implies that what business the business operates. Mission provides the products and services, its marketplaces and its employee management plan. The evaluation of external factors of the organization involves the listing down of finite set of factors which can be a potential threat or opportunities for the business in the exterior environment. By finite list is meant that not absolutely all the factors are centered. The main concern is given to those factors which have higher level of impact or form which high returns can be gained. The internal audit is also done in the situation analysis where in fact the internal advantages and weaknesses of the organization are outlined down (Fred David, 2006).

After the clear knowledge of the organization's current situation the real work begins where the strategies are formulated. The best practice is to involve the employees in this process as the employees from all levels will discuss their views and an improved strategic decision will be expected. Here the strategies are developed to capitalize the opportunities available which were assessed in the external audit and reduce the risk of the factors. On the other side the talents of the organizations require such strategies which further improve them and the weaknesses are tried to be overcome.

The next thing in the strategy formulation level is preparing the long term objectives. Long-term objectives are those that are associated with the sales and market share growth, it can be the expansion of assets; it can be attaining any honor from the government body etc. That is a very important period as the long term goals and aims show a direction to the whole organization. Long run objectives are establish after having a through consideration of external and internal advantages, weaknesses, opportunities and threats to the organization. The available resources and the expected resources are outlined and predicated on those resources the permanent but attainable, measureable and genuine objectives are set with proper timelines (Fred David, 2006).

The final stage of strategy formulation process is the analysis and collection of appropriate ways of meet the permanent objectives. With this the choice strategies are also recognized an assessed and a contingency planning is also done. For instance in case there is any external change which is beyond the change of business such as change in legislations or change in market conditions then that contingency plan can be utilized. The existing strategies of the organization are the primary point for strategy analysis.

Strategy Implementation

The next thing in a strategic plan includes the strategy execution. Developing an effective strategy does not means that the strategic plan will achieve success. It was in the old occasions when the strategic planning was done only at the amount of stagy formulation stage. Experiences of different organizations and further studies discovered that strategy formulation will not ensure the success of proper plan. Implementation is another important area of the strategic plan. Inside the implementation phase the process of moving the obligations to the center and lower degree of management is developed. Just as the strategy formulation stage it was described that to require the employees of all levels is important, so if any group did this during the strategy formulation them the strategy execution process will be many more easier. This is because the center and lower level personnel will have a clearer view of the strategies developed plus they would be in a better position to use those strategies in real practice (Kim Warren, 2008).

Strategy Evaluation and Control

After the implementation of strategic plan it's important like all the plans and project to judge the progress of this plan. Implementation phase end with the beginning of evaluation process. That is a continuous process until the strategic aims and objectives aren't achieved (Fred David, 2006). There are plenty of organizations such as McDonalds, who've strategic seeks and objectives that presents continuity and a continuous process is necessary for the for instance one of the tactical objectives of the company is to provide the value to the client. This is a target which shows continuity as the fast food chain is directed to provide the customer value with their money so for that strategy evaluation is required. This process means that the executed strategies are progressing to the achievements of organizational goals and aims or not. In this technique the required results or final results are compared with the genuine results and when there is any sort of difference then with the change in strategies of taking appropriate steps that difference is attempted to be eliminated or at least minimized.

Factors impacting McDonald's Strategic Plan

Several internal and external factors can affect the proper plan of McDonalds. These may include factors such as management's vision, financial factors, technical changes, legislative factors or market competition. As mentioned in the proper plan before that the strategies are produced by considering the existing sources of the organization. In addition, it includes the prevailing technology possessed by the business. If the existing system of McDonalds becomes outdated with the release of newer version of the same system then your organization need to adapt that system to maintain in the market. In cases like this the proper plan takes a change (Kim Warren, 2008). Same is the case with the marketplace condition. If at the time of tactical planning the marketplace conditions are assessed and after implementation the marketplace condition changes and takes a change then the proper plan will additionally require a change. That's the reason it is suggested that McDonald's strategic plan should be adaptable enough that can meet up with the changing market conditions. Furthermore the proper strategies are also depend on the eyesight of the management of the business. In case the management determines to go with a differentiation strategy because of the market need then the existing tactical plan will be modified. Financial aspects can't be neglected in the proper planning. Every strategy requires financial resources in case the money are not sufficient enough to meet up with the new strategy then it should take a change in the tactical plan. However, these constraints can be minimized during the strategy formulation process by extensive research and analysis of the internal and exterior factors, but still the vibrant market conditions and growing consumer needs can't be predicted.

McDonalds and Strategic Options

If you can find some change in the exterior environment of the company then in response compared to that the business opts tactical option. Moreover, strategic option is also chosen by an organization to increase and it explains to that how the company needs to increase and what are the ways through which the completive benefits is used by a business over its competition. By manipulating and taking advantage of the opportunities designed for an organization the business can have a positive final result. You will find two renowned methods or ways which is often chosen by any corporation to gain a competitive benefits on the other firm (Fred David, 2006). Both of these strategic options include the cost control strategy and differentiation strategy.

Under cost control strategy the organization cut down its cost of creation or cost of goods sold and therefore increases their profit margins. As the business enterprise expression today is highly competitive and inn the fast food restaurant industry the customers have so many choices such as KFC, Pizza Hut etc. which can be also providing high quality products. So in such circumstance it is not easy for McDonalds to improve the prices of their products. So, chopping the expense of production and other operational cost would be the best strategy to increase their income. The internal capacities of McDonalds will demand a concentration and needs to be enhanced to be able to attain the goals of this strategic option.

Another proper option available for McDonalds is to offer such products and services that happen to be unique in nature and aren't available for sale. In this way the customer will haven't any other option to get the desired service or product. This will keep the customer intact with McDonalds and hence the profit margins of the business will keep on growing. A best example of this is the ice cream provided by McDonalds. No other fast food chain supplies the best quality snow cream and people are fond of McDonalds Snow Cream which is a unique product of the fast food chain which attracts an incredible number of customers. Another unique feature of McDonalds is their quality customer services. On this era the customer service has gained extreme importance and McDonalds customer services is supporting those to increase their market talk about. Even if the restaurant is filled with the customers the client services quality remains the same making the junk food chain number 1 on the planet.

Strategic Option - a Helping Hand to attain Strategic Objectives

Strategic options help the organization to attain the organization strategic goals and aims. However, a blend of the available tactical options is a good option for just about any enterprise as this can have a dual positive impact in the organizational performance and profit margins can be increased with a wide margin. Using integrated proper options allows the firm a more leverage to consider decision on marketing combination. McDonalds can use either of the tactical option discussed earlier, but the appropriate is by using the mix of both the tactical options. This will help to achieve the proper objectives of the organization which were mentioned before in the file. Utilizing a differentiation strategy, McDonalds will be able to charge the superior prices against the product features. However, keeping the legislation in mind is also important before charging the superior prices from the clients (Kim Warren, 2008). On the far side of the picture the price leadership strategy will provide the company a far more leverage to reduce their prices of provide discount offers to the customers as the business have more margin because of the increase in profit margin. McDonalds may offer different discount deals on their central products as these are also provided by their major global competition KFC. So, if the fast food chain is following an integrated proper option then it can attain competitive edge on either side of the judge. This will fulfill the first and important strategic objective of McDonalds i. e. to keep up the market head position. As the junk food chain can counter each offer given by its rival and can also attack the competitor by offering services and deals and keep maintaining the marketplace dominance.

Furthermore, using the differentiation strategy the junk food string can make their customer services so supreme that no other rival can copy that. Along with the food quality which is already very unique can be increased further and services can be launched that are not available in the market and not ever before provided by other corporation. By suing this differentiation strategy the company will be able to achieve it's another strategic target i. e. to supply the customer with quality food and service.

Cost command and differentiation strategies will improve the income and the tactical objective to give a positive profits on return of the shareholders and investors will be satisfied.

Concluding this dialogue it's advocated to the McDonald's management to continue delivering the product quality product and services and further reduce their operational cost without reducing the grade of their products and standard of the services.

McDonald's Stakeholders Analysis

Stakeholders are those body or parties which have immediate or indirect connections with the business. These physiques are affected with the procedures of the business positively or negatively. The major stakeholder for McDonalds includes their customers, shareholders and their employees.


Customers of McDonalds will be the major focus of junk food chain. Mentioned before in the document that the company's corporate values point out that customer is the king. The strategic targets are also targeted towards the client satisfaction by providing value to them. Customer services is the key part of the McDonald's tactical planning as through quality customer services they are able to sustain he customers. McDonald's branches and franchises are worldwide and they are huge in quantity. That is to facilitate the customer to provide the quality food with easy access. Furthermore the free home delivery service of the fast food chain implies that the business is focused on produce their products and services at the entranceway step of the customers.


Shareholders are another major stakeholder of the business. Strategic goals of the company show that the business is focused on deliver go back on investments. The company has modified cost leadership and differentiation strategy which have given them a posture of market leader and helped to improve the profit margins which is the major concern of the investors.


The employees are the key to success for any company. At McDonalds it isn't a different tale. The company considers their workers as an asset like all successful organizations and it is committed to accomplish their workers who in genuine are the perfect resources that leads to the fulfillment of organizations tactical objectives.

Five Competitive Makes Research of McDonalds

Michael porter provided a structure work which provides the research of five different forces effecting the business (Kim Warren, 2002). Through this analytical tool five different forces impacting McDonalds are evaluated.

Figure 1 Porter Five Pushes Model

Threat of new entrants

Fast food industry has gained a significant expansion in the 21st hundred years. Many fast food chains are operating in various countries. The major are KFC, Pizza Hut and Subway. However there are numerous local fast food chains that provide the same kind of products which these international junk food chains do. However, the quality and standard is not up to the amount of these chains still these chains have the ability to grasp a good-looking amount of market talk about. The access in this business is not a trial; however, to start a string at the level of McDonald is very difficult.

Threat of Substitutes

There are several substitutes available against the merchandise of McDonalds, that happen to be also well-liked by the consumers. So McDonalds also need to consider those substitutes while building their strategies.

Degree of Rivalry

The competition in the fast food restaurant industry is strong. Getting the major brands like KFC, PIZZA HUT and Subway, McDonalds really have to depend on the draw in terms of products and customer services to maintain the market head position.

Bargaining Vitality of Buyers

Bargaining ability of buyers in case of McDonalds is high as the client has so many options so the junk food chains have to keep their prices very competitive and keep carefully the degree of customer services up to the mark.

Bargaining Power of Suppliers

Bargaining electric power of company is not high in circumstance of McDonalds. Suppliers make an effort to add their brands in the list of the big brand names such as McDonalds due to frequency with their orders.

Pest Analsyis of Mcdonalds

Pestle evaluation is to investigate the external causes which make a difference the business. Below is the short research of McDonald's

Figure 2 Infestation Analysis Framework

Political Forces

Due to the global businesses of the company there are several procedures in different expresses which make a difference the McDonald's regulations and types of procedures.

Economic Factors

The global overall economy can affect the organization in many ways. The change in the junk food industry business can also affect the McDonald's in a positive or negative way.

Social Factors

Being operating in many countries throughout the world, McDonald have to recognize the communal and ethnic factors. For instance in Muslim countries the fast food chain must assure the city about the use of Halal chicken breast.

Technological Factors

The fast change in technology will power the company to modify it in order to survive in the competitive market. Furthermore, the launch of new advertising campaign Medias gives a more chance to aggressively market the products through different channels.


McDonald's extensive success around the world is the result of their effective perspective and objective which is leading the organization in the right route. The selection of right strategies at the right time allows the organization to attain the organization set seeks and goals. The improvement of the business towards strategic seeks and goals is satisfactory. Selecting integrated tactical options will allow the company to progress more efficiently into the achievement of tactical aims and objectives.

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