Strategies Being Pursued by Mcdonalds in 2010

McDonalds opened its first restaurant in 1940 and has since grown to become one of the most successful restaurant chains in the world. Seventy year later, McDonalds franchises and operates over 32,000 restaurants worldwide (McDonalds, 2011, p. 9). Its golden arches have become a global symbol of convenient, fast, and tasty food for a low price.

Continuing with the previously implemented Plan to Win strategy, McDonalds’ current financial performance system has consistently shown year over year sales and operating income growth. In its Annual Report, McDonalds demonstrated strong financial growth for the year 2010; reporting total yearly revenue of $24,075 million, which was a 6% increase from the previous year (McDonalds, 2011, p. 13). Cash by operations in 2010 increased by $591 million to a total of $6.3 billion (McDonalds, 2011, p. 13). McDonalds showed a comparable sales increase of 3.8%, 4.4%, and 6% in the United States, Europe, and the Asia/Pacific Middle East and Africa (APMEA), respectively (McDonalds, 2011, p. 10). In addition, earnings per share rose 11% to $4.28 per share (McDonalds, 2011, p. 13).

In 2010, the company continued to a strategy which focused on the global success factors of “branded affordability, menu variety, beverage choice, and convenience” (McDonalds, 2011, p. 10). Specifically, McDonalds attributed the sales growth in the U.S. to the key fundamental menu offerings, everyday value selection, expansion of the McCafe beverage and snack options, as well as limited release promotional items (McDonalds, 2011, p. 10). Successful European strategies included “upgrading the customer and employee experience, increasing local relevance, and building brand transparency” (McDonalds, 2011, p. 10).

McDonalds faced several challenges within the global market, including direct competition with its successful competitors in the fast food and beverage industry, largely unhealthy menu offerings, and the poor economy. Despite the...