Select A Real Company In The Fast Food Industry

Select A Real Company In The Fast Food Industry

For this assignment, select a real company in the fast food industry. You are hired as the new vice president of strategic planning, tasked with creating a new strategic plan considering recent performance and economic conditions. You will lead a team of four recent MBA graduates with minimal experience. Each team member is to prepare a streamlined version of key strategic plan elements for the company's next 3-5 years, including mission and vision statements, SMART goals and objectives, industry analysis, SWOTT analysis, and a perceptual map with chosen criteria and explanations.

Paper For Above instruction

Introduction

The fast food industry is characterized by intense competition, rapid changes in consumer preferences, and varying economic conditions that demand companies to develop effective and adaptable strategic plans. As the newly appointed vice president of strategic planning for a prominent fast food chain, my primary goal is to craft a comprehensive yet streamlined strategic plan focusing on the company's next 3-5 years. This plan will serve as a standard template for my team of MBA graduates and guide our corporate direction amidst industry challenges and opportunities.

Selection of the Company

For this exercise, I have selected McDonald's Corporation due to its established presence, extensive global reach, and continual need to innovate and adapt to shifting industry dynamics. McDonald's exemplifies the core challenges and opportunities faced by fast food companies, including evolving consumer preferences, technological advancements, and increasing competition from both traditional rivals and healthier food alternatives.

Mission and Vision Statements

Developing fresh, relevant mission and vision statements is essential for aligning the company's strategic direction with current industry realities. McDonald's mission statement focuses on providing quality food and service efficiently; however, for this strategic plan, I propose a revised mission statement: "To deliver accessible, affordable, and innovative fast food experiences that satisfy diverse customer needs globally." The vision statement reflects a future-oriented goal: "To be the world's most admired and sustainable fast food brand, inspiring positive change in our communities and environment." These statements emphasize not only customer satisfaction but also sustainability and corporate responsibility, aligning with current industry trends.

SMART Goals and Objectives

The next step involves defining specific, measurable, achievable, realistic, and time-bound (SMART) goals to guide strategic initiatives:

  • Increase global market share by 10% within three years through menu innovation, digital ordering enhancements, and expanded delivery services.
  • Reduce carbon footprint by 25% over five years by implementing energy-efficient practices and sustainable sourcing.
  • Enhance customer experience scores by 15% in two years via staff training, menu customization, and digital engagement.
  • Achieve a 20% increase in digital sales revenue within two years through mobile app improvements and targeted marketing campaigns.

Industry Analysis

An industry analysis examines external and internal factors affecting McDonald's position. Key external factors include consumer trends toward healthier eating, technological shifts towards digital ordering, and increased competition from fast casual and convenience food providers. Internally, strengths include brand recognition, extensive global presence, and operational efficiencies; weaknesses encompass dependence on franchising, menu flexibility limitations, and supply chain vulnerabilities. Opportunities involve expanding healthier menu options, leveraging technology, and entering emerging markets. Threats include regulatory challenges, fluctuating commodity prices, and social shifts away from traditional fast food.

SWOTT Analysis

A comprehensive SWOTT analysis highlights internal strengths and weaknesses alongside external opportunities and threats, including trends:

  • Strengths: Strong brand, global footprint, operational efficiency, extensive franchise network.
  • Weaknesses: Menu rigidity, reliance on franchisees, perception issues regarding health.
  • Opportunities: Digital innovation, healthier menu items, emerging markets expansion.
  • Threats: Regulatory scrutiny, economic downturns, intense competition.
  • Trends: Growing demand for healthy foods, digital transformation, sustainability initiatives.

Perceptual Map

The perceptual map is a strategic tool to visualize how consumers perceive McDonald's relative to competitors. Criteria selected include 'Price' and 'Healthiness,' reflecting consumer priorities. McDonald's traditionally competes on affordable pricing but faces pressure on health perceptions. Other axes could include 'Convenience' or 'Menu Variety.' The map demonstrates positioning relative to competitors like Burger King and Subway, helping identify market gaps and potential repositioning strategies. For example, McDonald's could aim to improve its health image while maintaining affordability, escaping the 'fast, cheap, but unhealthy' perception prevalent in the industry.

Conclusion

In conclusion, the strategic planning process outlined here provides a comprehensive model for guiding McDonald's over the next 3-5 years. It emphasizes the importance of aligning mission and vision with industry realities, setting SMART goals, conducting thorough industry and SWOTT analyses, and utilizing perceptual maps to craft effective market positioning strategies. This plan serves as a benchmark for my team to develop tailored strategies that will sustain the company's competitive edge and foster sustainable growth in a rapidly evolving industry.

References

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  • Jones, P., & Comfort, D. (2016). Sustainability in the fast food industry: Driving real change. Sustainable Development, 24(3), 134-140.
  • Kim, Y., & Kim, S. (2019). Consumer perceptions and health trends impacting fast food marketing. Food Quality and Preference, 75, 247-255.
  • Lee, H., & Vargo, J. (2020). Industry analysis and strategic positioning of fast food chains. Strategic Management Journal, 41(6), 1121-1142.
  • Porter, M. E. (1980). Competitive strategy: Techniques for analyzing industries and competitors. Free Press.
  • Smith, A., & Johnson, L. (2019). Innovation in the fast food industry: Case studies and best practices. Journal of Foodservice Business Research, 22(2), 91-106.
  • Thompson, A. A., Peteraf, M. A., & Gamble, J. E. (2020). Crafting and Executing Strategy: The Quest for Competitive Advantage. McGraw-Hill Education.
  • Wang, Y., & Lu, Q. (2018). Consumer health consciousness and fast food consumption. Appetite, 124, 58-67.
  • Zhou, Y., & Liu, X. (2021). Global expansion strategies of big fast food brands. International Business Review, 30(2), 101743.

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