McDonalds Essay

Total Length: 1952 words ( 7 double-spaced pages)

Total Sources: 4

Page 1 of 7

Q1. Briefly summarize the problem(s). (Assume we’ve read the case). Think about the problem from McDonald’s perspective.

Despite the fact that McDonald’s is one of the most famous companies in the world, the business model which was so critical to its massive success in the past is threatened. The critical success factors that led to its dominance are no longer present in the American fast food marketplace today.  America is growing more diverse and consumers are demanding a wider variety of products, even from fast food restaurants. This includes not only the standard diversity of beef and chicken, but also ethnic diversity, as manifested in the dominance of franchises such as Chipotle. Yet the McDonald’s primary revenue remains derived from its burger offerings, chicken nuggets, and fries. 

Even many of its direct competitors for its burgers are offering menu items of higher quality than McDonald’s. Fast casual restaurants are likewise encroaching upon its revenue, and again offer a more diverse array of food products than McDonald’s. Many of these products are also healthier than McDonald’s core offerings, and McDonald’s has yet to design a product that is as equally desirable as its burgers and fries, yet appeals to a healthier consumer. McDonald’s has been a company associated with greasy, fast, comfort food, and to shift its brand image from this means sacrificing the image which has been the core of its revenue base. On the other hand, the attractions of this type of food are no longer embraced by the majority of consumers.

Offering greater variety and healthier and fresher items is time-consuming. But while the newly desirable millennial target market may demand such qualities from the establishments they frequent, this means that McDonald’s may have to sacrifice speed and the low cost of its items to answer these demands. On the other hand, one of the core principles of any sound branding is to offer a unique value proposition to customers that competitors cannot easily replicate. McDonald’s has always stood by its value (as exemplified in its dollar menu) and speed. 

Yet even in regards to speed, McDonald’s is lagging behind, as more and more companies offer online ordering, which means that the ability to get food quickly from a drive-though is less important. McDonald’s also is not the fastest fast food company, in regards to its drive-through dining.
McDonald’s cannot ignore these competitive threats, but on the other hand diluting its brand image by raising its prices and increasing its premium offerings or investing in products that may not sell well (like more salads and healthy burgers, which have traditionally not been its strength, based upon historical data).  Healthier foods are often more costly to maintain (such as refrigerated salads) and diversity means buying more items, but less in bulk, which can make it more difficult to keep the company’ price point low. The central problem is how can McDonald’s become a 21st company, yet still retain the essential features that make it quintessentially McDonald’s. 

Q2. Which trends in McDonald’s external environment (PESTEL) are likely to have the greatest impact on the company’s ability to sustain a competitive advantage?

Political

McDonald’s, like all chain restaurants, has found itself pressured by certain external political influences upon the food industry, including the demand to post calorie counts on its menus by the FDA (2019). This makes consumers more aware of the nutritional value of the food, its ingredients, and high calorie counts. Consumers have a greater ability to compare food based upon nutritional value.

Economic

Although the economy is recovering, people still desire value when they dine out. A core component of McDonald’s customers are still attracted by its value menu. On the other hand, when consumers are trying to save money, cutting out eating out is often one of their first priorities—although for patrons of its dollar menu, eating out might be cheaper than buying ingredients for a home-cooked meal.

Social

Dining out, remains an important trend, given that consumers are increasingly limited in terms of the time they have on their hands, due to both parents working and long commutes. Parents with children are often attracted to McDonald’s because of its ability to offer kid-pleasing meals palatable to….....

Show More ⇣


     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


Related Essays

McDonalds' Healthiest and Least Healthy Meals

McDonalds Corporation is the leading fast food restaurant across the globe and has continued to experience tremendous growth and profitability since inception. This fast food chain restaurant provides different food items that range from snacks to breakfast meals. In the past few years, the restaurant has faced significant attention in relation to the health and nutrition of its fast food items. Consequently, the McDonalds has introduced new food items and discontinued others in attempts to address health concerns. However, the fast food restaurant still has healthy and least healthy meals.… Continue Reading...

Significance of Effective Logistics Management at McDonalds

of new technologies and strategic alliances that are geared towards enhancing an organization's competitive advantage. For global companies like Mcdonalds Corporation, logistics management is vital for gaining access to new markets, taking advantage of technological competencies for overseas operations, and enhancing production efficiencies. This paper examines the importance of effective logistics management with regards to smoothing material flow, lessening inventory costs, and enhancing responsiveness across the supply chain. This analysis is done using Mcdonalds Corporation and challenges in its modern supply chain. McDonalds' Modern Supply Chain Problems McDonalds' Corporation, which is the largest fast food service provider across the globe, has been experiencing challenges with its supply chain. These… Continue Reading...

Globalization is Not Americanization

McDonalds restaurants throughout the solar system. The United States has acted in ways that reinforce its military, political, and economic dominance. It is also true that globalization has given rise to the proliferation of neoliberal policies that support and enable globalization. Yet globalization is not equal to Americanization; globalization is globalization of ideas, politics, attitudes, worldviews, and beliefs that are not restricted to one culture, one historical period, or one society. If anything, the cultural elements that are considered uniquely “American” are in part pan-European, in part international: such as… Continue Reading...

How to Judge a Business Idea

these have been the full-service restaurants and fast-food restaurants. Since the introduction of the first Mcdonalds, the fast food type of restaurant has grown extremely quickly and this type of establishment generally serves food that is fairly easy to prepare such as hamburgers, chicken, sandwiches, pizza, Mexican dishes, breakfast and snack items. These types of foods became popular quickly because not only do they taste good, but they are served quick and they are convenient for customers. In fact, most fast food restaurants have a drive through where people do not even have to leave their cars to get their meals and many people eat… Continue Reading...

Book Review of Bethany Moretons To Serve God and Walmart

Mcdonalds, Walmart is usually embroiled in antagonistic or spiteful zoning debates, and how can one reconcile this with Christian principles? How is one supposed to justify the quandary of the closure of innumerable Christian bookstores, partly because of their inability to keep up with competition posed by Walmart? Moreton's work will undoubtedly open up avenues for further research; for instance, it would be a great idea to make the author's work more complex and scrutinize Whole Foods and other such companies for explaining the impact of liberal doctrines on corporate… Continue Reading...

sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"McDonalds" (2019, February 23) Retrieved May 21, 2025, from
https://www.aceyourpaper.com/essays/mcdonalds-2172513

Latest MLA Format (8th edition)

Copy Reference
"McDonalds" 23 February 2019. Web.21 May. 2025. <
https://www.aceyourpaper.com/essays/mcdonalds-2172513>

Latest Chicago Format (16th edition)

Copy Reference
"McDonalds", 23 February 2019, Accessed.21 May. 2025,
https://www.aceyourpaper.com/essays/mcdonalds-2172513