McDonald’s and the CUEGIS concepts

Change:
Change refers to the modification or transformation of the way a
business is run due to internal or external factors that affect a business
such as changes in the state of the economy, fashion and trends in
society. Change is at times necessary because of those unpredictable
internal and external factors.

Culture:
Culture is everything that has to do with believes and traditions of
communities; it is strongly linked to the likes and dislikes of consumers
of a specific community/ society. Culture is a very important aspect of
business and management. It affects all aspects of business and how it is
ran.

Innovation:
Innovation is the process of translating ideas into something that
creates value. In business, it involves deliberate application of
information, imagination and initiative thinking that further satisfy the
needs and expectations of customers and therefore gives the firm
competitive advantages. Innovation can be applied to not just products
but to all aspects of business activities.

Globalization:
Globalization is the opening up of economies, which enables businesses
to expand over seas. It is basically opening up to the world’s trade
market. Globalization is an extremely important step in the
development of big businesses; the expansion to various parts of the
world allows it to target a wider market. Furthermore, opening up
branches in different markets decreases risks and increases market
share which leads to higher revenue and increase in goodwill.
Ethics:
Ethics is the set of values and principles that a firm uses to decide
whether decisions or actions are right or wrong. Ethical considerations
have to be taken into account when a business makes decisions but it is
also involved in everyday practices. For instance in terms of treatment
of employees or day to day impacts on the environment.

Strategy:
Strategy refers to the significant long-term planning decisions that
organizations make in order to meet the needs and wants of customers
and other stakeholders.

Marketing strategy:
Marketing strategy is the overall strategy that combines all marketing
goals into a comprehensive plan, which involves an effective product
mix, promotion mix, place mix and price mix. It helps the business fulfill
the needs and demands of customers profitably.

Human resource strategy:

The human resource strategy of a business determines the way and
methods that management will use and handle workforce. It is
extremely important as an efficient workforce is a key factor to a
successful business. The human resource strategy will determine the
motivational strategies, leadership style and general approach of
management towards employees. It varies depending on the nature of
the business and types of employees.
Background information:
 American fast food company
 Founded in1940 as a restaurant operated by Richard and Maurice
McDonald, in San Bernardino, California, United States
 Started as a hamburger stand and then the company turned into a
franchise (golden arches logo- introduced in 1953)
 World’s largest restaurant chain by revenue- serves over 69
million customers daily in over 100 countries
 Best known for hamburgers, cheeseburgers and French fries, but
also has chicken products, breakfast items, soft drinks,
milkshakes, wraps and desserts

Change:
 New CEO Steve Easterbrook, 2015
 The company has added to its menu salads, fish, smoothies, and
fruit:
- Due to the negative backlash because of the unhealthiness
of their food
- Helps in attracting more customers
- More support/loyal customer base
 Customizable burger options:
- Can attract wide range of customers with varying tastes/
preferences
 Raising wages by more than 10%- ended their war against
minimum wage of $15 per hour:
- They believe that this is not their biggest problem at this
point
 Only showcasing top selling items on outdoor menus to cut down
rive through wait:
- Allows them to attend to more customers and allows
customers to get their food faster
- Can attract more customers
 All day breakfast:
- They made this change because they found out that many
people want some of their breakfast food at other times of
the day
 Renovating restaurants to make it more modern and progressive:
- Can attract a younger generation
Culture:
 Food varies from country to country based on cultural values:
- New mexico: green chile
- Maine: lobster
- India: mcpuff/mcpaneer/mc aloo tikki- omit pork and beef
in indian menu
- Creating vegetarian options: McArabia
- Each country has its own preferences in tastes and some
cultural restrictions and not following those can lead to
backlash
 Adapted restaurant looks based on location

Ethics:
 Good treatment of employees- good training plan/committed to
grow and develop employees/believes in empowering employees:
- Helps them in sustaining good workers
 Being green:
- Unbleached napkins used from recycle material
- “One meal, One napkin”
- “McRecyle”
- Using renewable materials to make packaging
- Recycling use cooking oil
 Accused of wage theft, poverty level pay and mistreatment of
pregnant workers in Brazil- resulting in protests
 Negative impacts on the environment due to the multiple factories
around the world
 Continuous use of plastic/paper cutlery- abusing environment by
cutting trees
 Ethical issues with food- giving cows steroids to make more beef

Globalization:
 32000 outlets in 117 countries
 Expanding value options internationally
Innovation:
 Expanding dollar menu to breakfast:
- Can attract wider range of customers
- Can make it easier for more customers to purchase these
products
 More than just fast food- specialty coffee
 Constant updates in menu:
- To be in sync with customers’ dietary needs
- Innovations to provide options to suit virtually every
culinary preference
 Constantly releasing new advertisements:
- Marketing strategy
 Children’s menu options- happy meal
- Attracts younger customers
 Changing cup designs

Strategy:
 Minimizing costs to offer products at low prices
 Vertical integration
- Growth strategy
 Market penetration
- Growth strategy
 Higher quality products such as McCafe
 Market development- in more countries
 The company deals with three strategic issues:
- Growing competition
- Financial issues like high franchisee fees in contrast with
geographical expansion goals
- Worldwide economic crisis
 Financial issues- dealt with by spreading risk through
globalization