coporate strategy

The frist part is cost leadership strategy:

Mcdonald’s corporation always concentrate on the control to its cost.they always try to lower it.

Frist, for the site selection and construction cost:

Mcdonald’s sets a rule that every new restaurant cannot spend more than 50 thousand on the cost of land.Meanwhile, Macdonal’s use the standardized restaurant design, all the equipments and makings purchase are through the same system around the world.

Second, for the labour cost,

They use the Hourly Labor Guide to limit there stuff.When the turnover changes, the stuff will adjust to a accurate number.

Third, for its raw material cost,

we had mention that Macdonald’s hand in glove with their suppliers, and the suppliers only corporate with them.So Macdonald’s can obtain the raw material in a popular price.

Last, for its energy cost,

Mcdonald’s also has a brilliant idea.In 1980s, an energy dilemma also make a stright affact on catering industry.To solve this problem, Macdonald’s creat a dotsystem..

the following chart explain the cost leadership strategy:

The second part is differentiation strategy:

for this part, I refer to introduce the golden archway.We all know that yellow is the best color to attract people’s eyes.The design of the macdonal’s logo hit the mark by a fluke. A reserch show that it is only 25% of the costumer coming for the food, others are seeing the logo by accident, then they associate with humburger in their mind, so, they just come to the restuarunt unknowingly.By now, the M representative the standardization of its food and service.

In order to make itself more style and attractive,they make an effort on design and landscaping.

The last part is focus strategy:

on one side, macdonald’s take a globel standardizing service.but on the other side,macdonald’s produce different products in different areas.

Frist,they make their product locailzation,

for example,Macdonald’s created rice made a succeed in taiwan,the rice burger occupie 6% of the market,this urge Macdonald’s expand the product concept to singapore, philippines,and malaysia.

Second, they make advertise slogan localization.

Macdonald’s use I’m loving it for its slogan in present, but it is translated into different in china:我就喜欢~~

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