Plans and Strategies

           All of departments or organizations make plans or strategies to achieve their goals. It means there are some important processes are in each organization.

Then we’d like to explain about three steps of planning. These are Mission Statement, Formulate a Strategy and Implement the Strategy. These are very important for all organizations and departments to achieve the goals. We’d like to explain about them using McDonalds as an example.

 The first step is Mission Statement. It’s an explanation of a company’s purpose, products and customers. In the case of McDonalds, they thought about new meals for kids. Also, their motto is to “be our customer’s favorite place and way to eat.” The second step is Formulate a Strategy. It’s to create the plan. In 1979, McDonalds supplied a new meal, “Happy Meal” with a toy. The third step is Implement the Strategy. It’s the action to reach the goals. The same year, toy of Happy Meal were related to movies or famous characters companies. As a result, McDonalds kept their popularity.

There are different term goals in each organization. In McDonalds, long–term goal of our organization is to spread McDonalds all over the world. Now there are many McDonalds’s stores, but not all countries have these stores. Therefore, McDonalds wants to expand their stores and for more people to eat their food. Next, an intermediate goal of our organization is to develop machines as advanced as possible like dishwashers and deep fryers because they want to make food faster and better tasting. Finally, a short-term goal of our organization is to find new toys for happy meals because kids get tired of toys quickly.             McDonalds organization follows the strategy of International Expansion. It means to sell goods globally. Moreover, the organization is divided into three levels. Each level manager has their own strategy. Corporate Level Managers have the system of spreading the store as his strategy. Middle Level Managers try to avoid happening will occur. First Level Managers think about money. These are strategies of each level of planning.

When they decide about that, they try to think about some facts. These are called SWOT. This stands for strengths, weaknesses, opportunities and threats. We’d like to explain about these things by using McDonalds companies as an example. The strengths of McDonalds are low-cost, make food fast, and are convenient and famous. The weaknesses are these meals are greasy, unhealthy and don’t have enough variety. The opportunities are to rent DVD and sell McFLURRY. The threats are Burger King, K.F.C., Wendy’s and Jack in the Box. These are details of SWOT in McDonald’s.

Next, we’ll talk about the five forces model. These are Level of competition, Potential for entry, Power of suppliers, Power of customers and Threat of substitute products. In McDonalds, they have many competitors for example, K.F.C. and Burger King. Also, their potential for entry is easy, because they can use food as a car fast food. Moreover, they relate to many companies to get ingredients. The Power of customers are not much, because everyone can buy McDonalds. In addition, Threat of substitute products is many, because there are many healthy fast food stores like a Subway. These are the five forces model.

In conclusion, planning is important for every organization to create their business, because of this they can achieve and make their goals. Therefore, the process of planning will be key to success their organization like McDonalds.