McKinsey 7S Framework of McDonald’s 

McDonald’s is a retail fast-food chain American multinational company. Ray Kroc, Maurice McDonald, and Richard McDonald founded the company in 1940. Today, we’ll discuss the McKinsey 7S framework of McDonald’s as the 7S framework in strategic management and change management; strategy, structure, system, style, shared values, staff, and skill of McKinsey 7S model strategy with Example Company.

Products and services of McDonald’s

  • Breakfast
  • Chicken
  • Coffee
  • Desserts
  • Milkshakes
  • Salads
  • French fries
  • Pancakes
  • Wraps
  • Hamburgers
  • Soft drinks

Statistical facts and figures of McDonald’s

  • The net worth of McDonald’s total assets is 53.854 billion USD
  • Established a Network of more than 40031 retail chain stores in 120 countries across the globe
  • World’s 6th most valuable brand
  • McDonald’s annual revenue was 25.014 billion USD in 2023
  • Out of which, the net profit of the fast-food brand was 8.333 billion USD
  • Approximately 150,000 employees are working for the company to manage its global operations

Top competitors of McDonald’s

  • Wendy’s
  • Shake Shack
  • Chick-fil-A
  • Chipotle
  • Burger King
  • Subway
  • KFC

The McKinsey 7S framework of McDonald’s would analyze the elements of the 7S framework in strategic and change management; strategy, structure, system, staff, skill, style, and shared values. Here’s the McDonald’s McKinsey 7S model strategy with Example Company as follows;

McKinsey 7S Framework of McDonald’s 

Let’s discuss the McKinsey 7S framework of McDonald’s as the 7S framework in strategic management and change management or McKinsey 7S Model strategy with Example Company; they’re as follows;

Strategy of McDonald’s

Some of the main elements of McDonald’s organizational strategy are the key elements of the 7S framework in strategic and change management in the McKinsey 7S model strategy with example as follows;

I-Cost Leadership

The business strategic approach of McDonald’s is achieving cost leadership in the fast-food market. The company does so by efficiently conducting its operations and producing food at the mass economies scale. Fast food brands have also established a very reliable supply chain and distribution network. Collectively, all these factors help the company to achieve a cost leadership position in the market.

II-Market Expansion

The other organizational strategy of McDonald’s is aggressive global market expansion. The fast-food brand has established a very large network of retail chain outlets comprising over 40000 in more than 120 countries across the globe. McDonald’s spreads a high level of brand awareness and promotional campaigns for its franchises. Some of the main competitive features of the brand are as follows;

  • Speedy and quick customer service
  • Unique taste
  • Cleanliness of the restaurants

Structure of McDonald’s

Some of the main elements of McDonald’s organizational structure are the main elements of the 7S framework in strategic and change management in the McKinsey 7S model strategy with examples as follows;

I-Divisional

McDonald’s follows the divisional organizational structure. Since every division is operating its business in different geographical markets, managers have the autonomy to make their business decisions independently. However, the main divisions of McDonald’s in different geographical markets are as follows;

  • Africa
  • Middle East
  • Asia/Pacific
  • Europe
  • USA

II-Franchise Licensing

Along geographical divisions, McDonald’s issues licenses to franchisee owners in different geographical markets across the world. The company allows them to use the recipe and McDonald’s brand name for a specific amount of annual franchising fee; the parent brand does the branding and marketing.

System of McDonald’s

Some of the main elements of McDonald’s organizational system are one of the main elements of the 7S framework in strategic and change management in the McKinsey 7S model strategy with examples as follows;

I-Multiple Systems

McDonald’s implements multiple systems to expand its operations on a global scale. Some of the main systems that the company employs are as follows;

  • Knowledge management system
  • Advanced business intelligent system
  • Customer relationship management system
  • Transaction processing
  • Team orientation and development
  • Employee recruitment and selection

Staff of McDonald’s

McDonald’s offers the best employee experience at its workplace. The fast-food brand gives high value to its employees and workers to achieve growth and success in the long term. In fact, the core principle of the brand is looking after people. The company has established such a supportive and collaborative workplace culture, that the company empowers them and offers them opportunities to pursue career growth and aspiration.

  • Benefits and rewards
  • Competitive wages and compensation
  • Facilitating restaurant staff
  • Supportive corporative environment

Skills of McDonald’s

McDonald’s pays a lot of heed to the continuous growth and development of its employees. Some of the core initiatives that the company offers are as follows;

  • 9 months of leadership programs for potential candidates and director before taking the senior leadership role
  • Holding senior leadership accountable
  • Supportive behavior of leadership for talent development and retaining future leaders
  • Recognizing potential leaders and investing in the talent developmental programs
  • Focuses on continuous improvement and performance motivation process
  • Building highly engaging and performing team

Style of McDonald’s

McDonald’s has set up a safe and respectful workplace environment that focuses on protecting the safety and health of its employees and workers. The company is continuously collaborating with its franchisee for the development and promotion of the workplace environment.

  • No fear of harassment
  • No discrimination
  • Without violence or retaliation
  • Listening to the feedback of customers and employees
  • Protecting the health and safety of its workers and employees

Shared Values of McDonald’s

The mission and vision of McDonald’s is to offer the best and favorite place to the customers, where they can eat and drink. The objective of the brand is to achieve growth and progress and become the better version, serving customers across the globe.

Conclusion: McDonald’s McKinsey 7S Framework in Strategic Management |McKinsey 7S Model Strategy With Example Company 

After an in-depth study of the McKinsey 7S framework of McDonald’s; we have realized that McDonald’s is the world’s leading fast-food chain brand. If you are learning about the McDonald’s McKinsey 7S model with example; then you should keep in mind the elements of the 7S framework in strategic management and change management; strategy, structure, system, staff, style, skill, and shared values.

References

  1. https://strategicanalysishub.com/ansoff-matrix-of-mcdonalds/
  2. https://corporate.mcdonalds.com/corpmcd/our-purpose-and-impact/jobs-inclusion-and-empowerment/talent-and-benefits.html
  3. https://mcdonalds.az/en/staff-management
  4. https://corporate.mcdonalds.com/corpmcd/our-purpose-and-impact/jobs-inclusion-and-empowerment/safe-respectful-workplaces.html
  5. https://www.nelp.org/publication/behind-the-arches-how-mcdonalds-fails-to-protect-workers-from-workplace-violence/
  6. https://www.glassdoor.com/FAQ/McDonald-s-Question-FAQ200128-E432.htm
  7. https://businessmodelanalyst.com/mcdonalds-mission-and-vision-statement/
  8. https://mcdonalds.com.pk/mission-and-values/
  9. https://www.comparably.com/companies/mcdonalds/mission
  10. https://swotandpestleanalysis.com/swot-analysis-of-mcdonalds/
  11. https://en.wikipedia.org/wiki/McDonald’s