MCDONALD'S

Strategic Hospitality Management

Strategic Hospitality Management

Introduction

Strategies are important in all the businesses, regardless of the service or product that they are offering. Strategic management allows a business to integrate effective and efficient ways of running the business successfully. It is through strategies that the businesses make a profit or go into losses. Strategies result in a greater level of loyalty of customers for the business. Hospitality industry is a multibillion euro industry in the world and United Kingdom. It includes a broad category of fields in the service industry. Restaurants, lodging, event planning, theme parks, cruise line, transportation, and all the other fields in the tourism industry. It includes all the motels, hotels, inns and all the businesses which provide short term or transitional lodging, without or with food (David, pp.226, 2012). The hospitality industry depends on the disposable income and the availability of leisure time. The business of the hospitality industry depends on the business sentiment and the consumer confidence. The industry is facing a lot of pressure to deliver quality, value and innovation. The economic conditions of customers are tightening because of the fragility of the UK and European economies. The industry is known for its unrelenting work, high turnover and fast pace (David, pp.226, 2012). The importance of the brand, as well as, effective channels of distribution, is increasing every moment. The industry is engaging with digitally active customers these days and hence, the demands of the customers, as well as their expectations have increased. The company that I have chosen for this assignment is McDonald's.

Discussion

Overview of the Company

McDonald's started in 1954 and has a rich history. The company has become one of the most renowned food chains of the world. The company is also well known for the strategies it makes (Wayne, pp. 34, 2006). The trademark of the company is a clown named Ronald McDonald. The company also has franchises all over the world which help in the profit and income that the business generates. The target customers of McDonald's is young people and children. The company has also entered the apparel industry targeting the kids. The latest products have entered the market with the name of McKids. The products include videos, footwear, casual clothes and toys (Paul, Adina, 2009).

Strategies of McDonald's

McDonald's is one of the most popular brands that the world currently has. It is known throughout the world by children and adults alike. The sales of the company have been on the rise despite the fact that the company had some issues raised against it. To increase sales and profit of the company further and to increase its performance, management of McDonald's has formulated some strategies (Wayne, pp. 34, 2006). A part of the business strategy that McDonald's has formulated is to portray the image of business as a provider of nutritious food. They are moving towards phasing out the soft drinks and the super size French fries that it offers. These food items are to replaced with healthy food which helps fighting ...