Strategies Being Pursued by McDonald's in 2010

"Strategies Being Pursued by McDonald's in 2010"

McDonald's is a good place to if you are on a budget. Although McDonalds is a good choice for an individual that may not have it like that to purchase from higher priced competitors, there are still certain individuals that feel like McDonalds is not healthy. I believe that McDonalds will grow its business if they did further research on how to make their menu items less unhealthy. There is a majority of the public that feels like businesses like McDonald's are what encourages obesity. From reading different articles I have come to believe that if the menu changed to promote a healthier alternative of foods, revenues will grow and the overall reputation of McDonald's will improve.

Another strategy that I would use would be to create a more comfortable environment for customers to lounge. Like competitors such as Starbucks, McDonalds needs to create an atmosphere where people will want to hang out and feel comfortable.

According to an article on Reuters.com, McDonalds was scheduled to open shop in America House office building in the Romanian capital Bucharest. This is a great idea being that this would be their first restaurant that is opened in an office building. It would be wise for McDonalds Corporation to continue this trend, as more people are too busy to leave the workplace on their lunch breaks. People would be more comfortable having a convenient place to grab a bite from while also being affordable.

While reading the wall street journal online, I learned that McDonalds has planned to prepare for the difficult economy. According to Ralph Alvarez, president and chief operating officer of McDonalds, it is wise to start improving restaurant operations, adjusting prices and keeping down costs. Mr. Alvarez is "pruning gas-guzzling cars from the company fleet, pressing media buyers to negotiate lower advertising rates and putting the brakes on building new outlets on street corners where nearby development shows signs of weakness". McDonalds begin to invest in coffee beverages that are directly competing with businesses such as Starbucks. McDonalds also worked on improving their drive-through windows that increase sales and efficiency for the company.

McDonalds has put top priority on grooming their successors in Management and devoting to at least one board meeting each year to discuss and work on succession planning. Alvarez understands that as the global economy gets worse, additional measures are needed to stay competitive and profitable. Lower priced products are introduced and the menu is broadened with more items, computerized systems are consistently updated to adjust prices based on customer demand. According to the article "In China, some restaurants recently cut the price of certain combo meals at lunch by as much as one-third". This is a great way to gain the