McDonald’s is a global fast-food chain with 36,889 restaurants worldwide and global sales of $95 billion in 2016. McDonald’s is one of the most successful companies, with stock values increasing steadily to an all-time high of over $150 in June 2017. A new low-price menu, a new Big Mac, and all-day breakfast have helped a lot. However, McDonald’s is always concerned by challenges by competitors such as Wendy’s and Taco Bell.

Required

1. What is McDonald’s competitive strategy (cost leadership or differentiation)? Briefly explain your answer. What strategy is used by Wendy’s and Taco Bell?

2. Would McDonald’s benefit from the use of a balanced scorecard? Why or why not? What would be some of the critical success factors in McDonald’s balanced scorecard?

3. As a global company, McDonald’s is subject to the risk of foreign currency fluctuations. Explain how changes in foreign currency exchange rates could affect the company. How has the trend to economic nationalism in the UK (Brexit), the U.S., and elsewhere affected the company’s position on currency fluctuations?