The Global Strategic Management

Plan:

Nike Inc., Levi Strauss & Co., and

McDonald’s Corporation

Herbert Thweatt, D.B.A.

Executive SummaryThe purpose of this presentation is to develop, analyze, evaluate,

and measure the Global Strategic Management Plan. Three Firms

founded in the United States of America (Nike Inc., Levi Strauss & Co.,

and McDonald’s Corporation) were researched and used as examples

of successful global strategic planners. The summary will examine

each step taken to complete this Global Strategic management Plan

Presentation.

The Need for a Global Management Plan

The need for a global management plan or global strategy is very real for the

most successful Firms. Global strategy is defined in business terms is an

organization's strategic guide to globalization. A sound global strategy should address

these questions: what must be (versus what is) the extent of market presence in the

world's major markets? How to build the necessary global presence? What must be

(versus what is) the optimal locations around the world for the various value chain

activities? How to run global presence into global competitive advantage?

Purpose and Scope of the Plan

The purpose and scope of global strategy or planning

is appropriate in industries where Firms are faced with

strong pressures for cost reduction but with weak

pressures for local responsiveness. Therefore, it allows

these firms to sell a standardized product worldwide.

Outline of Global Strategies

Global strategies or planning require Firms to tightly coordinate their

product and pricing strategies across international markets and locations, and

therefore Firms that pursue a global strategy are typically highly centralized.

Scope & Steps of the Global Strategic Planning Process:

Role of the Planning Consultant

Planning to Plan

Values Scan

Areas of Influence

Stakeholders

Role map - who does what, identifying influential relationships, both

formal and informal

Situation Analysis - identification of current issues

Environmental Monitoring - External

Competition Analysis

Internal Business Culture -- [Models of Business Culture]

Knowledge Analysis

Plan Development

Vision [ deeper understanding ]

Mission Formulation [ deeper understanding ]

Business Modeling

Strategy Development

Testing

Performance Audit

Gap Analysis

Implementation

Commitment to Change - Influence Plan

Balanced Scorecard - document and communicate: strategy, objectives and measures

Measure results

Plan Maintenance

Feedback System - take corrective action as needed; loop back to previous steps as required

Ever important in global strategy are the “Four P’s” of marketing:

product, price, placement, and promotion are all affected as a company

moves through the five evolutionary phases to become a global

company. Ultimately, at the global marketing level, a company trying to

speak with one voice is faced with many challenges when creating a

worldwide marketing plan. Unless a company holds the same position

against its competition in all markets (market leader, low cost, etc.) it is

impossible to launch identical marketing plans worldwide.

Situation Analysis: Nike Inc. and Strategic Opportunities

Nike, Inc. is a major publicly traded sportswear and equipment

supplier based in the United States. The Company has found

strategic global opportunity by doing the right thing

environmentally and socially. This analysis will examine the

company behind the Swoosh as they “Just Do It” with management

strategies that identifies opportunities, addresses threats, and

analyzes and takes on industry competition.

Throughout the 1980s, Nike expanded its product line to include

many other sports and regions throughout the world. Nike is the

world's leading supplier of athletic shoes and apparel and a major

manufacturer of sports equipment with revenue in excess of US$18.6

billion in its fiscal year 2008 (ending May 31, 2008). As of 2008, it

employed more than 30,000 people worldwide. Nike and Precision

Castparts are the only Fortune 500 companies headquartered in the

state of Oregon, according to The Oregonian.

Nike is also the official kit sponsor for the Indian

cricket team for 5 years, from 2006 till end of 2010. Nike beat Adidas

and Puma by bidding highest (US$43 Million total). Nike also

sponsors some of the leading clubs in world football, such as the

Brazil National Team, Portugal National Team, Netherlands National

Team, US National Team, Manchester United, Arsenal, FC Barcelona,

Dan Wieden, Juventus Shakhtar, Porto, Steaua, Red Star, Boca Juniors,

Corinthians, Club América, Aston Villa, Celtic and PSV Eindhoven.

Nike also sponsored Dundee United summer 2009 and several of the

world's top golf players, including Tiger Woods, Trevor Immelman and Paul

Casey. Nike also sponsors various minor events including Hoop It Up (high

school basketball) and The Golden West Invitational (high school track and

field). Nike uses web sites as a promotional tool to cover these events.

Nike also has several websites for individual sports, including

nikebasketball.com, nikefootball.com, and nikerunning.com.

Problem IdentificationNike is a large participant in manufacturing and many of its processes

negatively contribute to the environment. The ways that Nike’s industry

affects the environment is by contributing to water pollution, climate change,

the use of fossil fuel, and raw material consumption. In addition to this,

today's electronic textile plants spend significant amounts of energy while

also producing a throw-away mindset for consumers due to trends founded

upon fast fashion and cheap clothing. (“Emerging Textiles,” Retrieved 2010).

Complexities in Developing a Global Strategy

Nike’s management has developed a complex global strategy and tries to counteract

negative press and environmental controversy with different projects. According to

a New England-based environmental organization Clean Air-Cool Planet, Nike ranks

among the top 3 companies (out of 56) on a survey conducted about climate-

friendly companies. Zabarenko, D. (2007). Nike has also been praised for its Nike

Grind program (which closes the product lifecycle) by groups like Climate Counts.

In addition to this, one campaign that Nike began for Earth Day

2008 was a commercial that featured Steve Nash wearing Nike's Trash

Talk Shoe, a shoe that had been constructed in February 2008 from

pieces of leather and synthetic leather waste that derived from the

factory floor. The Trash Talk Shoe also featured a sole composed of

ground-up rubber from a shoe recycling program. Nike claims this is

the first performance basketball shoe that has

been created from manufacturing waste, but it only

produced 5,000 pairs for sale.

Another project Nike strategic management has begun is

called Nike's Reuse-A-Shoe program. This program, started in

1993, is Nike's longest-running program that benefits both the

environment and the community by collecting old athletic shoes

of any type in order to process and recycle them. The material

that is created from the recycled shoes is then used to help create

sports surfaces, such as basketball courts, running tracks,

and playgrounds. “Wicked Local,” (2010).

Developing a Global Management Plan: Levi Strauss & Company

In 1971, Levi Strauss & Co.'s long-standing status as a wholly family- and employee-owned

enterprise came to an end, when the company’s global management plan included selling stock to

the public for the first time. Denim jeans, Levi's in particular, had transcended the status of a mere

product to become a worldwide social and cultural phenomenon, and the company could no longer

raise enough capital privately to pay for needed expansion. The craze for jeans continued to grow,

with seemingly no end in sight. The company coped with a constant shortage of denim. Levi Strauss

& Co.'s existing, heavily centralized structure became inadequate, and operations were broken into

four divisions: jeans, Levi's for women, boys' wear, and men's sportswear.

The company's phenomenal growth caught up with it in 1973, when its

European division found itself with huge supplies of jeans in an outmoded style--

straight-legged, as opposed to flared, or bell-bottomed--with more of the same on

order. The problem was the culmination of years of under-management, and cost the

company $12 million as it tried to unload the overstock. For the first time since the

Depression, Levi Strauss & Co. announced a losing quarter and the company's stock

price fell dramatically. The following year, European operations were reorganized, and

the company moved its headquarters from the site it had occupied on Battery Street

for 108 years to new quarters. Seven years later, the company would move again to

Levi's Plaza, a newly built complex.

Major Global Strategies of the Levi Strauss Plan

Global strategies in the Levi Strauss plan require the Firm to tightly coordinate

product, pricing, placement, and promotion planning across international markets

and locations. Today, Levi Strauss & Co. is a global corporation with more than

10,500 employees. The Firm’s business is organized and deployed in three divisions

covering the Americas, Europe and Asia Pacific. Levi sells products in 110

countries, 55,000-plus retail locations and 1,500 brand-dedicated stores. The

following strategic locations are home to Levi Strauss internationally:

San Francisco — Corporate and Americas Division

Headquarters San Francisco is one of the United States’

most progressive and aesthetically pleasing cities, has been the

Firm’s home base since the company’s founding in 1853. It also

serves as headquarters for both the Americas Division,

which includes nearly 4,000 employees in Canada, the U.S.,

Mexico and Latin America, and retail, sourcing, and

manufacturing operations in 15 countries.

Brussels — Europe, Middle East and North Africa Division

Headquarters Recognized as Europe’s center of creativity,

originality, and design, Brussels is the site of the headquarters

for Levi Strauss Europe, Middle East and North Africa. This

division encompasses 3,500 employees, nine sales offices, six

distribution centers and three production

facilities. It markets and sells products in more

than 60 countries.

Singapore — Asia Pacific Division Headquarters Singapore,

renowned for its harmonious blend of culture, cuisine, arts and

architecture, is the site of Levi Strauss Asia Pacific Division

headquarters, established in 1995. The Company employs more than

4,500 people throughout the region, with offices in Australia, Hong

Kong, India, Indonesia, Japan, Korea, Malaysia, New

Zealand, Pakistan, the Philippines, South Africa,

Taiwan and Vietnam, in addition to Singapore.

(“Locations: Levi Strauss,” (2010)

Global management strategy includes brand strategy and

the introduction of the following new product and

marketing campaign:

dENiZEN™ was created by Levi Strauss & Co. as a global jeans

brand for a new generation. 137 years after outfitting the

American West with jeans that became the uniform of the

pioneering spirit, Levi Strauss & Co. is outfitting the new

global citizen for a bright future, supplying jeans and other

essentials for an on-the-go, engaged life.

dENiZEN™ means “inhabitant”: living in a place, living on earth, just being.

Denim is in the name, the heart of the brand. And dENiZEN™ has another

great meaning too: the idea of someone who frequents a particular place,

the idea of belonging to a community of friends and family.

dENIZEN™ takes this generation’s motivated and forward-thinking

mentality and combines it with Levi Strauss & Co.’s iconic jeans-making

heritage to make quality jeans that are fit for everybody.

dENiZEN™ are now available in China, Korea and Singapore.

(“Denizen,” 2010)

Global Management Plan Evaluation: McDonald’s Corporation

McDonald's Corporation is the world's largest chain of hamburger fast food restaurants,

serving more than 58 million customers daily. In addition to its signature restaurant chain,

McDonald’s Corporation held a minority interest in Pret A Manger until 2008, was a major

investor in the Chipotle Mexican Grill until 2006, and owned the restaurant chain Boston Market

until 2007.

McDonald's has become emblematic of globalization, sometimes referred to as the

"McDonaldization" of society. The Economist newspaper uses the "Big Mac Index": the

comparison of a Big Mac's cost in various world currencies can be used to informally judge these

currencies' purchasing power parity. Scandinavian countries lead the Big Mac Index with four of

the five most expensive Big Mac's. Norway has the most expensive Big Mac in the world as of July

2008, whilst the cheapest country is Malaysia.

McDonaldization is a term used by sociologist George Ritzer in his

book The McDonaldization of Society (1993). He explains it occurs when a

culture possesses the characteristics of a fast-food restaurant.

McDonaldization is a reconceptualization of rationalization, or moving

from traditional to rational modes of thought, and scientific management.

Where Max Weber used the model of the bureaucracy to represent the

direction of this changing society, Ritzer sees the fast-food restaurant as

having become a more representative contemporary paradigm. Ritzer

(2004. P. 553)

Four Primary Components of McDonaldization:

Efficiency – the optimal method for accomplishing a task. In this

context, Ritzer has a very specific meaning of "efficiency". Here,

the optimal method equates to the fastest method to get from

point A to point B. In the example of McDonald's customers, it is

the fastest way to get from being hungry to being full.

Efficiency in McDonaldization means that every aspect of the

organization is geared toward the minimization of time.

Calculability – objective should be quantifiable (e.g., sales) rather than

subjective (e.g., taste). McDonaldization developed the notion that

quantity equals quality, and that a large amount of product delivered to

the customer in a short amount of time is the same as a high quality

product. This allows people to quantify how much they're getting

versus how much they’re paying. Organizations want consumers to

believe that they are getting a large amount of product for not a lot of

money. Workers in these organizations are judged by how fast they are

instead of the quality of work they do.

Predictability – standardized and uniform services. "Predictability" means that no

matter where a person goes, they will receive the same service and receive the same

product every time when interacting with the McDonaldized organization. This also

applies to the workers in those organizations. Their tasks are highly repetitive, highly

routine, and predictable.

Control – standardized and uniform employees, replacement of human by non-human

technologies With these four processes, a strategy which is rational within a narrow

scope can lead to outcomes that are harmful or irrational. The process of

McDonaldization can be summarized as the way in which the principles of the fast-food

restaurant are coming to dominate more and more sectors of American society as well

as of the rest of the world.

SWOT AnalysisStrengths

McDonald’s is a global company operating more than 30,000 restaurants in 118

countries. By being spread out in different regions, this gives the Firm ability to

weather economic fluctuations which are localized by country. They can also

operate effectively in an economic downturn due to the social need to seek out

comfort foods.

They successfully and easily adapt their global

restaurants to appeal to the cultural differences. For

example, they serve lamb burgers in India and in the Middle East they provide

separate entrances for families and single women.

Approximately 85% of McDonald's restaurant businesses world-

wide are owned and operated by franchisees. All franchisees

are independent, full-time operators and McDonald's was

named Entrepreneur's number-one franchise in 1997. They

have global locations in all major airports, and cities, along the

highways, tourist locations, theme parks and inside Wal-Mart.

McDonalds only serves name brand processed items such

as Dannon Yogurt, Kraft Cheese, Nestle Chocolate, Dasani

Water, Newman's Own Salad Dressings, Heinz Ketchup,

and Minute Maid Juice.

Weaknesses

Their test marketing for pizza failed to yield a substantial product. Leaving

them much less able to compete with fast food pizza chains.

High employee turnover in their restaurants leads to more money being

spent on training.

They have yet to capitalize on the trend towards organic foods.

McDonald's have problems with fluctuations in operating and net profits

which ultimately impact investor relations. Operating profit was $3,984

million (2005) $4,433 million (2006) and $3,879 million (2007). Net profits

were $2,602 million (2005), $3,544 million (2006) and $2,395 million (2007).

Opportunities

In today's health conscious societies the introduction of a healthy

hamburger is a great opportunity. They would be the first QSR (Quick

Service Restaurant) to have FDA approval on marketing a low fat low calorie

hamburger with low calorie combo alternatives. Currently McDonald's and

its competition health choice items do not include hamburgers.

They have industrial, Formica restaurant settings; they could provide more

upscale restaurant settings, like the one they have in New York City on

Broadway, to appeal to a more upscale target market.

Provide optional allergen free food items, such as gluten free

and peanut free.

In 2008 the business directed efforts at the breakfast, chicken,

beverage and convenience categories. For example, hot

specialist coffees not only secure sales, but also mean that

restaurants get increasing numbers of customer visits. In 2009

McDonald's saw the full benefits of a venture into beverages.

Threats

McDonald’s is a benchmark for creating "cradle to grave"

marketing. They entice children as young as one year old into their

restaurants with special meals, toys, playgrounds and popular

movie character tie-ins. Children grow up eating and enjoying

McDonalds and then continue into adulthood. They have been

criticized by many parent advocate groups for their marketing

practices towards children which are seen as marginally ethical.

They have been sued multiple times for having "unhealthy" food, allegedly with addictive

additives, contributing to the obesity epidemic in America. In 2004, Michael Spulock filmed

the documentary Super Size Me, where he went on an all McDonald’s diet for 30 days and

wound up getting cirrhosis of the liver. This documentary was a direct attack on the QSR

industry as a whole and blamed them for America's obesity epidemic. Due in part to the

documentary, McDonalds no longer pushes the super size option at the dive thru window.

Any contamination of the food supply, especially e-coli.

Major competitors, like Burger King, Starbucks, Taco Bell, Wendy's, KFC and any mid-range sit-

down restaurants.

Risk Factors and Management of Risk

Over the years public pressures and legal issues have been among the greatest

of risk factors for McDonald’s. The Firm has been involved in a number of lawsuits

and other legal cases, most of which involved trademark disputes. The company

has threatened many food businesses with legal action unless they drop the Mc or

Mac from their trading name. In one noteworthy case, McDonald's sued a Scottish

café owner called McDonald, even though the business in question dated back

over a century (Sheriff Court Glasgow and Strathkelvin, November 21, 1952).

On September 8, 2009, McDonald's Malaysian operations lost a lawsuit to

prevent another restaurant calling itself McCurry. McDonald's lost in an appeal to

Malaysia's highest court, the Federal Court. It has also filed numerous defamation suits.

For example, in the McLibel case, McDonald's sued two activists for distributing

pamphlets attacking its environmental, labor and health records. After the longest trial

in UK legal history, McDonald's won a technical victory for showing that some

allegations were untrue. The McLibel Case was also a massive public relations disaster

for McDonald's, as the judge also found that while more than half of what was on the

pamphlet was truthful, much of the information simply the

opinions of the activists and therefore non-prosecutable.

McDonald's has defended itself in several cases involving

workers’ rights.

In 2001 the company was fined £12,400 by British magistrates for

illegally employing and over-working child labor in one of its London

restaurants. This is thought to be one of the largest fines imposed on a

company for breaking laws relating to child working conditions. In April

2007 in Perth, Western Australia, McDonald's pleaded guilty to five

charges relating to the employment of children under 15 in one of its

outlets and was fined AU$8,000. Possibly the most infamous legal case

involving McDonald's was the 1994 decision in The McDonald's Coffee

Case.

Management Strategies to Offset Risk Factors:

In response to public pressure, McDonald's has sought to include more healthy

choices in its menu and has introduced a new slogan to its recruitment posters: "Not

bad for a McJob". (The word McJob, first attested in the mid-1980s and later

popularized by Canadian novelist Douglas Coupland in his book Generation X, has

become a buzz word for low-paid, unskilled work with few prospects or benefits and

little security.) McDonald's disputes the idea. In 2007, the company launched an

advertising campaign with the slogan "Would you like a career with that?" on Irish

television, outlining that their jobs have many prospects.

In a bid to tap into growing consumer interest in the provenance of

food, the fast-food chain recently switched its supplier of both coffee

beans and milk. UK chief executive Steve Easterbrook said: "British

consumers are increasingly interested in the quality, sourcing and ethics

of the food and drink they buy". McDonald's coffee is now brewed from

beans taken from stocks that have been certified by the Rainforest

Alliance, a conservation group. Additionally, milk supplies used for its

hot drinks and milkshakes have been switched to organic sources which

could account for 5% of the UK's organic milk output.

In April 2008, McDonald's announced that 11 of its Sheffield

restaurants have been using a biomass trial that had cut its waste and

carbon footprint by half in the area. In this trial, waste from the

restaurants were collected by Veolia Environmental Services and used

to produce energy at a power plant. McDonald's plans to expand this

project, even though the lack of biomass power plants in the U.S. will

prevent this plan from becoming a national standard anytime soon. In

addition, in Europe, McDonald's has been recycling vegetable grease by

converting it to fuel for their diesel trucks.

McDonald's announced on May 22, 2008 that, in the U.S. and

Canada, it will be introducing cooking oil for its French fries that

contain no trans- fats. The company would use canola-based oil

with corn and soy oils by year's end for its baked items, pies and

cookies. With regard to acquiring chickens from suppliers who

use CAK or CAS methods of slaughter, McDonald's says they need

to see more research to help determine whether any CAS system

in current use is optimal from an animal welfare perspective.

Sustainable Competitive Advantage and StrategyDeveloping and continuing to offer quality products and services that satisfy the needs and

wanted of local consumers would be my global strategy and it is central to McDonald’s sustaining

competitive advantage all over the world. McDonald's predominantly sells hamburgers, various

types of chicken sandwiches and products, French fries, soft drinks, breakfast items, and desserts.

In most markets, McDonald's offers salads and vegetarian items, wraps and other localized fare.

Portugal is the only country with McDonald's restaurants serving soup. This local deviation from

the standard menu is a characteristic for which the chain is particularly known, and one which is

employed either to abide by regional food taboos (such as the religious

prohibition of beef consumption in India) or to make available foods with

which the regional market is more familiar (such as the sale of McRice in

Indonesia).

In summer of 2008 McDonald's introduced Fish Fingers with

tartar dipping sauce as a side entrée. A Chicken Big Mac, which is

the same as a standard Big Mac, though it is made with breaded

chicken the same thickness as a Big Mac patty. In 2001,

McDonald's introduced the McFalafel sandwich in Egypt. Another

menu item is the Fish Mac, with two fish patties. Also introduced

to the Cairo McDonald's in early 2010 was Egyptian Cookies.

Implementation and Measurement:

Nike Inc., Levi Strauss & Co., and McDonald’s Corporation

The most common method used to measure business success is financial worth. The more

the business is worth the more successful the Firm is considered to be. The extreme of this

would be the valuation of the business if it’s publicly traded. The Firm’s market value would be

recorded daily in the newspaper. Management could look at the stock quote and compute the

company’s financial value each day, if so desired.

The measure of worth is given great weight by society. We see this from the popularity of

the Forbes’ Top 500 list, which records the Top 500 Companies in the world. We see this by the

desire of so many Firms to make such a list someday. There are many ways to measure success,

but the following five basic measurements should be central when measuring a business’s

success:

1. Profit – is the company profitable?

2. A growing customer base – is the customer base growing?

3. Customer satisfaction – are customers satisfied with our

products and services?

4. Employee satisfaction – are employees satisfied with working

conditions and benefits?

5. Owner satisfaction – are owners of the firm satisfied with

profits and growth of the business?

Firm Global Implementation and Success Measurements

Nike Inc. – is the world's leading supplier of athletic shoes and apparel and a major

manufacturer of sports equipment with revenue in excess of US$18.6 billion in its fiscal year 2008

(ending May 31, 2008). As of 2008, it employed more than 30,000 people worldwide. Nike and

Precision Castparts are the only Fortune 500 companies headquartered in the state of Oregon.

(“About Nike,” 2010).

Nike has contracted with more than 700 shops around the world and has offices located in 45

countries outside the United States. Most of the factories are located in Asia, including Indonesia,

China, Taiwan, India, Thailand, Vietnam, Pakistan, Philippines, and Malaysia. On March 3, 2008, Nike

acquired sports apparel supplier Umbro, known as the manufacturers of the England national

football team's kits, in a deal said to be worth £285 million (about US$600 million).

In 2009 Nike announced total worldwide sales of just under $19.2

billion. Nike had a global reach, with 34% of its total 2009 revenue

coming from the United States and EMEA (Europe, the Middle East,

Africa) accounting for an additional 29%. As of November 30, 2010 Nike

reported financial results for its fiscal 2011 second quarter. Earnings per

share for the quarter were up 24 percent on 10 percent higher net

revenue as Nike, Inc. brands continued to experience strong sales in the

marketplace and benefit from clean inventory positions while better

leveraging SG&A expenses. (“NIKE Inc. Reports Fiscal 2011,” 2010).

Levi Strauss & Co. – is a worldwide corporation organized into three geographic

divisions: Levi Strauss Americas (LSA), based in the San Francisco headquarters; Levi

Strauss Europe, Middle East and Africa (LSEMA), based in Brussels; and Asia Pacific

Division (APD), based in Singapore. The company employs a staff of approximately

10,500 people worldwide, and owns and develops a few brands. Levi's, the main

brand, was founded in 1873 in San Francisco, specializing in riveted denim jeans and

different lines of casual and street fashion. (“Levi's (Europe),” 2010).

By 2007, Levi Strauss recorded total annual sales, of just over $4 billion. After

more than two decades of family ownership, rumors of a possible public stock offering

were floated in the media in July 2007.

Today, Levi operates in 110 countries and approximately half of its net revenues

come from outside the United States. The Firm associates its success with creating truly

global distribution of products and a record of responsible business practices. The

Company believes its practices, combined with respect to local communities, has helped

build a brand that people love and trust. Levi’s worldwide leadership team includes the

CEO and 11 executives, and they set the company’s overall direction and are responsible

for all major strategic, financial and operational decisions.

As of 2009, Levi Strauss & Co. had net revenues of $4.1 billion, a 7 percent decrease

versus the prior year. The Firm’s net income was $152 million, down from $229 million

the previous year. (“Levi Annual Report,” 2010). The fastest growing market for Levi

globally is Asia.

McDonald's Corporation – is the world's largest chain of hamburger fast

food restaurants, serving more than 58 million customers daily. (“McDonald's

posts sizzling,” 2010). The first McDonald's restaurants opened in the United

States, Canada, Costa Rica, Panama, Japan, the Netherlands, Germany,

Australia, France, El Salvador and Sweden, in order of openings.

With the expansion of McDonald's into many international markets, the

company has become a symbol of globalization and the spread of the American

way of life. Its prominence has also made it a frequent topic of public debates

about obesity, corporate ethics and consumer responsibility.

McDonald's restaurants are found in more than 100 countries and territories around the world

and serve 58 million customers each day. (“Corporate Overview 2008,” 2010). McDonald's operates

over 31,000 restaurants worldwide, employing more than 1.5 million people. The company also

operates other restaurant brands, such as Piles Café. (“McDonald’s Annual Report 2009,” 2010). As

of December 2010, McDonald’s announced global comparable sales growth of 4.8%.

Performance by segments and other global statistics (2010) was as follows:

1. U.S. up 4.9%

2. Europe up 4.9%

3. Asia/Pacific, Middle East and Africa up 2.4%

4. Number of Global Restaurants: More than 32,000

5. Number of Countries: 117

6. Number of worldwide employees: 1.7 million

McDonald’s Corporation posted earnings of $1.09 billion, or $1 per

share, during the first quarter of FY2010, up from $979.5 million, or $0.96

per share, of earnings in Q1 FY2009.

These earnings results were impacted by a $0.03 charge relating to

closings of some locations in Japan. Revenues for MCD rose to $5.61 billion,

an increase of 10% from Q1 FY2009, and also ahead of analyst expectations

of $5.53 billion. Same-store-sales also went up 4.2%, with US same-store-

sales up 1.5%, 5.2% in Europe and 5.7% in Asia, Pacific Islands, Middle East,

and Africa. (“McDonald’s Global Revenue,” 2010).

ConclusionNike Inc. found that the external environment can be a strategic management’s dream. The

Firm seized upon opportunities to market products in ways that speak to community concerns

and needs of people all over the world. Nike achieved strategic competitiveness and earned

above average returns by becoming more socially and environmentally conscious which has left

much of its competition stuck in the starting gates.

Global Strategic planning is critical to Firms that market internationally. A company like Levi

Strauss that operates globally must formulate successful strategy to take advantage of global

opportunities. The newly introduced dENiZEN™ brand is an example of Levi management mind

set to compete globally and to retain competitive edge in both new and mature markets.

Additionally, Levi has found diversification through acquisition and restructuring strategies an

expediently direct route to success internationally and domestically.

Global Strategic planning should be evaluated and adjusted as an ongoing process.

McDonald’s Corporation understood and benefited from corporate governance and that

corporate governance is very important in national and international settings and fosters ethical

strategic decisions and behaviors on the part of top executives that result in sustainable

competitive advantage.

Global Strategic planning requires deep understanding and analysis of a Firm’s situation in

each market and the development of a plan by strategic managers that will be right for each

individual country and each individual community. Nike Inc., Levi Strauss & Co., and McDonald’s

Corporation are masters of global strategic planning. They understand the importance of putting

in place the right organizational structure and controls so decisions can be made promptly and

actions can be implemented quickly to gain or maintain competitive advantage.

Firms competing on the global stage know the value of corporate

governance and cooperative strategies so that they may be citizens in all

environments and compete no matter the competition, local tradition or

obstacles. At the end of the day businesses like Nike, Levi, and McDonald’s

measure success via review of their bottom lines (are we profitable?), and

their strategic planning enables continued success worldwide.

References

About Nike http://www.nike.com/nikeos/p/nike/en_US/ Retrieved 2010.

NIKE, Inc. Reports Fiscal 2011

http://www.morningstar.com/news/business-wire/20101221006313/nike-inc-reports-fiscal-

2011-second-quarter-results.aspx Retrieved 2010.

Emerging Textiles February 2008. : //www.emergingtextiles.com/?q=stu&s=TI-green-

textiles&c=stu080423-&peu=eu395&pus=us632 retrieved 2010.

Wicked Local http://www.wickedlocal.com/lexington/news/business/x883026486 retrieved

2010.

Locations: Levi Strauss http://www.levistrauss.com/careers/locations Retrieved 2010.

Locations: Levi Strauss http://www.levistrauss.com/careers/locations Retrieved 2010.

Denizen http://www.levistrauss.com/brands/denizen Retrieved 2010.

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