McDonald’s Corporation adjusts its corporate mission and vision statements to respond to changes in the global food service industry environment. As the biggest fast food restaurant chain in the world, the company considers its corporate vision and mission statements as essential policy and strategic management tools to ensure continuous growth. A firm’s corporate mission statement sets the purpose and related activities of the business. In this case, McDonald’s mission statement establishes the company as an influential favorite food service destination. In contrast, a firm’s corporate vision statement sets the long-term aims of the business. McDonald’s vision statement pushes the company to achieve growth and improvement. Considering major international competitors like Burger King, Wendy’s, Subway, Starbucks, and Dunkin’ Donuts, as well as smaller regional or local firms, it is essential that McDonald’s develop competencies to strategically manage the effects of competition and to achieve business goals based on the company’s mission and vision.
In implementing its corporate mission and vision statements, McDonald’s Corporation strengthens its core competencies. Such strengthening is a way to protect the business against the strong force of competitive rivalry. The Porter’s Five Forces analysis of McDonald’s Corporation shows that competition creates a strong force against the company and its business environment. The company’s corporate vision and mission statements are a direct response to the aggressive and innovative strategies of competitors in the food service industry. In this way, McDonald’s expects that its current mission and vision are appropriate in continually growing multinational operations, in spite of economic problems and challenges linked to competition.
McDonald’s Corporate Mission Statement
McDonald’s corporate mission is “to be our customers’ favorite place and way to eat and drink.” This mission statement highlights the significance of customers as the business focus, while maintaining the company as a major influence on their food and beverage purchase decisions. McDonald’s corporate mission statement has the following main components:
- Customers’ favorite place to eat and drink
- Customers’ favorite way to eat and drink
In its mission statement, McDonald’s Corporation emphasizes becoming the favorite of target customers. Based on this aspect, the company considers customers’ preferences as a major determinant of its business. For example, to become such a favorite place, McDonald’s develops its menu and recipes to satisfy consumers’ preferences with regard to fast food products like burgers and fries. The components of the corporate mission statement focuses on two points: becoming the favorite place and becoming the favorite way. As a fast food service business, the company develops restaurant designs and layouts to optimize productivity and customer experience (see McDonald’s Operations Management Strategy and Productivity). This factor, along with menu development, helps make the company’s restaurants and franchised locations the favorite place to eat and drink. The “favorite way” component of the corporate mission statement shows that the company aims to influence how people eat and drink. This point presents challenges to the business in terms of effectively influencing people’s behavior. McDonald’s marketing mix or 4P helps in reaching this corporate mission, especially by promoting the company, its brand, and its products, to influence consumers.
McDonald’s Corporate Vision Statement
McDonald’s corporate vision is “to move with velocity to drive profitable growth and become an even better McDonald’s serving more customers delicious food each day around the world.” This statement is included in the growth plan that the company introduced in 2017. The company’s previous vision statement was “Our overall vision is for McDonald’s to become a modern, progressive burger company delivering a contemporary customer experience.” The following are the main components of the company’s new corporate vision statement:
- Move with velocity to drive profitable growth
- Become an even better McDonald’s
- Serve more customers delicious food each day around the world
The first and third components of McDonald’s vision statement show that the business aims to grow and expand its operations. This aim entails opening more locations and improving operational efficiency to improve profit margins. McDonald’s generic competitive strategy and intensive growth strategies support the growth and expansion objective embodied in this corporate vision statement. The second component focuses on improving the business. The company does not specify the type of improvement stated in the corporate vision. However, it is realistic that McDonald’s aims to implement comprehensive improvements of its business to include various aspects, such as product development, marketing, franchising, and human resource development. In following this corporate vision statement, the company expects growth and an overall enhancement of the various areas of the fast food restaurant chain business.
McDonald’s Corporate Vision & Corporate Mission – Recommendations
McDonald’s mission statement satisfies many but not all of the criteria for developing ideal mission statements. For example, the company includes products (food and beverage) and part of its business philosophy and self-concept (becoming the favorite place and way) in its corporate mission. However, McDonald’s does not include information about its target consumers (every consumer), target markets (global), and stakeholders (employees and others). The company can improve its corporate mission through the inclusion of such additional information. This recommendation aims to make the corporate mission statement easier to implement in all areas and aspects of McDonald’s business organization and its network of franchised locations.
McDonald’s vision statement is strong in satisfying the criteria for developing ideal vision statements. For example, the company’s corporate vision is clear and concise. It is also focused on the future. Such focus makes the statement stable in terms of suitability for future business situations. Also, the emphasis on becoming an even better McDonald’s makes the corporate vision statement challenging and inspiring. These characteristics make the company’s corporate vision satisfactory. However, a suitable improvement would be to include information about how the company can make itself better.
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