McDonalds as the leading global foodservice retailer Case Study

McDonalds as the leading global foodservice retailer - Case Study Example The following are their targets: Constant currency results exclude the effects of foreign currency exchange and are calculated by translating current year results using the previous year average exchange rates. System wide sales include sales at all restaurants both from company operated stores and franchisees. Return on incremental invested capital is a measure used to evaluate the overall profitability of all business units, the effectiveness of capital deployed and the future allocation of capital. The company's business strategy is tagged by management as the "Plan to Win". The plan is focused on customers and alignment of the company, its franchisees as well as its suppliers. The business model employed by the company enables them to consistently deliver locally-relevant restaurant experiences to customers and become an integral part of the company they served. The "Plan to Win" strategy is centered on being better, not just bigger - which has become the company's system wide mantra for six years now. It provides not just a common framework for the global business corporation but also allows for local adaptation. It is the corporate headquarters philosophy to think globally but to act locally. The company executes multiple initiatives in order to pull off their grand strategy. Every program focuses on the five key drivers of exceptional customer experience. The key drivers are people, product, place, price and promotion. The company aims at enhancing the restaurant for customers worldwide in order to grow sales and customer visits. The company's success factors include brand affordability, menu variety and beverage choice, convenience expansion, ongoing restaurant reinvestment and operations excellence. McDonald's Short Term Objectives McDonald's will continue to drive success and profitable growth in the years to come. They will further differentiate the brand, increase customer visits and grow market share by pursuing their short term objectives in three key areas. The areas include service enhancement, restaurant reimaging, and menu innovation. The company will leverage technology in order to make it easier for restaurant staff to quickly and accurately serve customer. They will also speed up the interior and exterior reimaging efforts as well as innovate at every level of their menu in order to deliver great taste and value to customers. (McDonald's Corporation, 2010) McDonald's Functional Tactics In the US, the company's functional tactics include strengthening the restaurant's core menu and value offerings such as the Big Mac, pursuing new growth opportunities in chicken, breakfast, beverages and snack options, and elevating the brand experience. New product offerings include Mac Snack Wrap, frappes and smoothies. They will be updating their technology with a new point of sale system; optimizing drive-thru service; enhancing restaurant manager and crew retention and productivity; and completing interior and exterior reimaging in about 500 restaurants. (McDonald's Corporation, 2010) In Europe, the company focuses on building market share by updating restaurant's ambiance through reimaging approximately 1,000 restaurants. They will be leveraging technologies such as