McDONALD'S CORPORATION

The fast-food segment of the restaurant industry is approaching, if it is not already in, the mature stage of its life cycle. The restaurant industry, as a whole, is plagued by a declining availability of good expansion sites, market saturation, and rising labor costs (Barr, 1989b). Food costs, while relatively stable at present, remain volatile (Barr, 1989b).

Intensified competition in the fast-food segment has resulted in a practice of heavy price discounting (Barr, 1989b). Price discounting reduces profitability, causes consumers to expect lower prices on a regular basis, and in the fast-food segment, fails to build long-term volume (Barr, 1989b).

McDonald's is the industry leader in the fast-food segment of the restaurant industry, as well as it is in the hamburger sub-segment (Barr, 1989a). Kentucky Fried Chicken is quite close to McDonald's in terms of market share within the fast-food segment, while Burger King is second in the sub-segment.

Stakeholder Assumptions; Environmental Threats

Stakeholder assumptions for the fast-food segment of the restaurant are assessed in Figure 1, which may be found on the following page. The assessment is presented in the form of a

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icient and committed staff, and (4) expanding its international presence (Peters, & Waterman, 1982). McDonald's is highly successful in goal attainment (Peters, & Waterman, 1982). Company Capability Profile and WOTS-UP Analysis A company capability profile for McDonald's is presented in Figure 4. The figure may be found below on this page. Figure 4 Company Capability Profile McDonald's Corp. ----------------------------------------------------------------- Profile ----------------------- Function Weak Normal Strong ---------------------------------- ------ ------ ------ Management x Competitive x Financial x Technical x ----------------------------------------------------------------- A WOTS-UP analysis for McDonald's is presented in Figure 5. The figure may be found on the following page. Manufactural Style McDonald's goal and planning structure is of the participative management genre. The structure closely follows the basic management-by-objectives format. Some of McDonald's essential strategies have not changed over the years, and this stability has contributed to the company's
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Approximate Pages = 14 (250 words per page)