McDonald's is a global fast-food chain with 35,429 restaurants worldwide and global sales of over $125 billion in 2013. McDonald's was one of the most successful companies during the Great Recession of 2007-2009, with stock values increasing steadily since2005. A staple of the McDonald's menu since that time has been the $1 burger and other dollar-menu items. Recently, McDonald's has been challenged by competitors Wendy's and Taco Bell in the low price menu category.
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.