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Mcdonald's Balanced Scorecard.pdf

McDonald's Balanced Scorecard: A Case Study

McDonald's Corporation is one of the largest and most successful fast-food chains in the world. It operates in over 100 countries and serves more than 69 million customers every day. How does McDonald's achieve such a high level of performance and customer satisfaction? One of the tools that McDonald's uses to measure and manage its performance is the balanced scorecard.

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What is a balanced scorecard?

A balanced scorecard is a strategic management system that helps organizations translate their vision and mission into specific goals and objectives, and then monitor and evaluate their progress towards achieving them. A balanced scorecard typically consists of four perspectives: financial, customer, internal process, and learning and growth. Each perspective has a set of key performance indicators (KPIs) that reflect the critical success factors for the organization. By balancing these four perspectives, a balanced scorecard provides a comprehensive and holistic view of the organization's performance and helps align its activities with its strategy.

How does McDonald's use a balanced scorecard?

McDonald's has developed its own version of a balanced scorecard, which it calls the "Plan to Win". The Plan to Win is based on five pillars: people, products, place, price, and promotion. These pillars correspond to the four perspectives of a balanced scorecard, as shown in the table below:






Revenue, operating income, return on invested capital, cash flow



Customer satisfaction, loyalty, market share, brand awareness

Internal Process

Products and Place

Quality, service, cleanliness, innovation, speed, convenience

Learning and Growth


Employee engagement, retention, training, diversity, safety

McDonald's uses the Plan to Win to communicate its strategy to its employees, franchisees, suppliers, and customers. It also uses it to monitor and evaluate its performance against its goals and objectives. The Plan to Win helps McDonald's align its activities with its vision of becoming "the best quick service restaurant experience". It also helps McDonald's adapt to the changing needs and preferences of its customers and the competitive environment of the fast-food industry.

What are the benefits of using a balanced scorecard?

A balanced scorecard has several benefits for an organization like McDonald's. Some of these benefits are:

  • A balanced scorecard provides a clear and concise representation of the organization's strategy and how it is executed.

  • A balanced scorecard helps the organization focus on the most important aspects of its performance and avoid being distracted by irrelevant or conflicting measures.

  • A balanced scorecard enables the organization to track its progress towards its goals and objectives and identify any gaps or areas for improvement.

  • A balanced scorecard facilitates communication and collaboration among different stakeholders within and outside the organization.

  • A balanced scorecard fosters a culture of learning and innovation within the organization by encouraging feedback and continuous improvement.


McDonald's Corporation is a global leader in the fast-food industry that uses a balanced scorecard approach to measure and manage its performance. McDonald's has customized its balanced scorecard to fit its specific needs and challenges. By using the Plan to Win as its balanced scorecard, McDonald's has been able to achieve remarkable results in terms of financial performance, customer satisfaction, operational excellence, and employee engagement. The Plan to Win has also helped McDonald's adapt to the changing market conditions and customer preferences. The Plan to Win is an example of how a balanced scorecard can help an organization achieve its vision and mission.


[Strategizing of Fast Food Industries using A Balanced Scorecard Approach: A Case Study of McDonalds Corporation] [Strategizing of Fast Food Industries using A Balanced Scorecard ...] [Annual Report 2020 - McDonald's]

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