Strategic management of MC DONALD and how they maintain their succeses Essay

Strategic management of MC DONALD and how they maintain their succeses over the years - Essay ExampleThere be few gainsays and problems that the confederation faces which would be discussed in this study. The biggest challenge for McDonalds is to overcome the increase in competition, maintain its quality and keep a strict check and match on the customer satisfaction as the company has more than half of the business depends on franchising. In the SWOT analysis of the company it has been found out that McDonalds occupies a very strong position in the market. Special attention paid to hiring potential staff has been a key to its success. As we know in the food and hospitality industry the major role is to be played by the innate customers (that ar employees) as they will be the source of satisfaction for the external customers (the real customers). So keeping the internal customers satisfied and properly training them is what McDonalds has been doing. This has been a key success factor for the company. The concept of franchising has also been fertile for the company as it generates 60 percent of its sales through franchising (Gallagher, 2008). McDonalds focuses on five main things that be its drivers for success namely people, product, price, place and promotion. muser Analysis Following is the Pestle Framework application to McDonalds. PESTLE framework includes the semipolitical, economical, social, technological, environmental and legal factors that relate to McDonalds. Political Factors While McDonalds plans to expand its business it has to keep a lot of political factors in mind like the taxation and licensing issues (Ghemawat, 1991). During international expansion the analysis of the political situation of the other country happens to be of critical importance. Economical Factors Economic factors are of concern to McDonalds, because they are likely to influence indigence, costs, prices and profits. Amongst the economic factors the high unemployme nt levels are one the most influential factors as it reduces the demand for a lot of goods and also the food industry. Inflation is one other thing that has impacted more or less every business in the world and so is the case with the food industry. The economic factors mentioned above are mostly beyond the companys control but at the same time their cause related to the marketing mix and performance can be reflective. Social Factors The awareness of the health issues is change magnitude amongst the consumers day by day and the attitudes they hold towards food is continually changing. The quality that McDonalds has provided to its customers over these years has helped the company earn a good repute and thus a strong position in the ball club (Schlosser, 2008). Technological Factors New technologies profit company and the customers both. The adoption of the new technology by the company and forever keeping everything updated has helped the company in attaining this strong market position (Vignali, 2001). Upgrading of its equipments and the machinery used have also served as a source of satisfaction for the internal and external customers both. Environmental Factors McDonalds has always focused on firm and clean environment and this has helped the company in winning the trust of the customers. Legal Factors The policies of government in shape to control monopoly and the reduction of power of buyers can lead to putting a limit to entry in this sector by putting controls such as license requirements and limitation to access the