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Summary of McDonald’s strategies and performance

The McDonalds Corporation is a successful global restaurant that operates chains around the globe. The organization has employed global expansion and effective management strategies to enter new markets and gain a share of the diverse, fast food market. It is clear that McDonalds has achieved this massive success. The business has established best practices in the global food industry. However, it has also experienced international growth challenges trends in the recent past. These factors have seen the company perform poorly in its different businesses in both local and foreign nations. (Mourdoukoutas, 2013)

One of the strategies employed by McDonalds is the creation of both customer and brand loyalty for its products and services. Right from the beginning, the founder, Ray Kroc ensured that the French fries customers bought in one restaurant would be similar to another McDonald restaurant by developing a sophisticated operating and delivery system. He proved himself an industrial pioneer who revolutionized the American restaurant industry by imposing discipline on the production of milkshakes, hamburgers, and French fries. The consistency made McDonald’s the brand name that defined American fast food. In the restaurant industry, the McDonald’s is well known for high-quality foods and services evident in the quantity of customers they serve. The making of a uniform and consistent product for customers is one of the most important aspects of McDonald’s success. (Beef Central, 2015)

Irrespective of where customers purchase their products, once they see the ever-present “golden arches” they know exactly they are expected to get. McDonald’s Mission Statement has helped the business to focus on what really matters both to itself and to stakeholders. It has acted as a guide to strategic and routine operational decisions. In addition, it represents the glue that binds all the franchises under the organization together. Another strategy employed by McDonalds is rapid expansion. Right from the beginning, McDonalds expanded by franchising. By 1960, more than 200 McDonald’s outlets were operational. McDonald’s Corporation has been recording declining sales and profits both in its local and foreign businesses. On the other hand, competitors have been formulating strategies to attract more customers to their business. In 2015, McDonald’s reported 30% drop in profit and 11% decrease in revenue for the first three months of the year. It announced hundreds of store closings. The company has been trying to fix its problems particularly in the U.S market that generates 40% of its profit. It is simplifying its menu to appeal to its customers. It is testing all-day breakfast and has slowed down service and focused efforts on reducing errors in orders. (Mourdoukoutas, 2013)

The reality is that McDonald’s recent performance has been poor. In 2015 first quarter, the company recorded US$5.6 billion in global revenue down from $6.7 Billion in 2014 first quarter. The net income recorded amounted to $ 811 million down from $1.2 billion in the year 2013. Part of the business expenses arose from charges linked to restaurant closures. In the US and Canada, 220 restaurants were closed as well as 130 in Japan. The company is expected to close other 350 restaurants worldwide to avoid further loses. McDonald’s largest division in the United States saw a decrease in sales of up to 2.6% reflecting low customer traffic and negative sales amidst high competition. (Mourdoukoutas, 2013)

The operating income decreased by 11% as a result of weak sales and restructuring and closing activities. In its Europe’s division, the business experienced a decline in sales of 0.6%. First quarter operating income decreased by 20% partly as a result of currency and inflation pressures in Russia and continuing macroeconomic pressures facing much of Europe The business’s Pacific, Asia, Middle East and African divisions saw first quarter sales decrease by 8.3%. Asia region had a prolonged impact of consumer perception issues particularly in Japan over food safety breaches. The operating income in these regions decreased due to restaurant closing in response to poor performance.

Introduction
Childhood obesity has rapidly increased in America over a short period. Currently, nearly one in three children is obese. This number is even higher among African American as well as Hispanic societies where 40 percent of the children are overweight (Blackwell, 2012). If the country does not put measures to solve this issue, a third of the children born in the 2000’s or later will end to suffer from diabetes at some point in lives. Most of the children will face chronic obesity health problems such as cardiovascular risk factors (high blood pressure and high cholesterol levels, heart disease, cancer, obstructive sleep apnoea and asthma. Childhood obesity is a significant public health problem that should get addressed through prevention interventions and government policies so as to avoid future health complications.

In the recent past, many people led lives that kept them at a healthy weight. Children walked to school and from every day. They used to run around in recess, participated in gymnastics class as well as playing for long hours after school and before supper. Dishes got cooked at home with healthy portions of natural ingredients. Vegetables that are an excellent source of dietary fiber that helps reduce the risk of chronic diseases were part of the meal on a daily basis (Nkrumah-Elie, et al., 2012). Chemically raised food was rare while snacking between meals was scarce. These practices assisted in reducing the risk of childhood obesity; however the present day situation has allowed the population to become crippled by child obesity. Currently, kids have very opposite lifestyle. They now go to school by car or bus rides. Gym classes, as well as after-school games, got extinct. Evenings get spent on TV, video games as well as the internet. Families take less home-cooked food as required. Snacks are now the tradition in many households (Willhite, et al., 2014).

Obesity is the major challenge that faces children in the United States. In my opinion, many problematic illnesses that affect many children today are as a result of fast foods. It gets attributed to the fact that the children fall a victim to the fast foods advertisements that encourage their addiction to fast foods. My view, therefore, is that there should be stringent measures imposed on fast food industry especially in the method of advertisement, in which the key advertising practices target children (Blackwell, 2012). Many lifestyle diseases including cancer and other obese illness related problem gets attributed to the fast food snack that the children eat each and every day. The fast food industry consistently advertises their products in all the mass media that is greatly accessible to children. Some of the mass media in which children have access and where they get the information are the Internet, radio, and television (Wurtzel, 2015. Before the introduction of fast foods, children lived a normal healthy life and consumed health food; however the introduction of fast foods into the market led to a change in eating lifestyle. The eating habits of the children entail more of snacks in between meals than fruits or any other food. Home cooked food does no longer get preferred in households. It, therefore, calls for the need to regulate the fast food advertisement, as it has impacted heavily on the children eating habits on foods that are less healthy.

Fast foods get widely supported due to their high convenience regarding costs and time saving, as well as taste and flavor (Anderson, et al., 2014). Consuming fast foods is the fastest way of satisfying one’s hunger compared to preparing a meal at home that entails visiting the grocery store, cooking and later washing utensils. It is also more economical compared to preparing a meal at home where there are expenses from cooking ingredients and resources such as gas. However, these factors should not get considered for the loss of an individual’s health that may result in adverse effects.