McDonald's Case Study Example | Topics and Well Written Essays - 500 words

McDonald's - Case Study Example This is in line with its strategy of product re-imaging. McDonald’s know that at some point in time, products have a life cycle. In terms of pricing, McDonald’s is careful on setting the price for its product, as they consider the customer’s perception of value. Their philosophy behind this is that when their food is priced too low, customers may think that low price is indicative of low quality. Promotions play an important role in the marketing strategy of McDonalds. Most commonly used are TV, billboards, and a mix of marketing tools to get people’s attention, be interested, desire for the food and finally to act and buy. As to place, McDonald’s can be found in almost all areas around the world, which are 32,748 as of 2009. Location is part of re-imaging policy of the company. The bonus compensation plan of McDonald’s is the share-based compensation plan that grants executives various equity-based incentives that includes stock options and restricted stock units (McDonald’s Annual Report 2009) One of the problems of stock options is the upside and downward risk of price of stocks. Stock options have vesting time so that when stock option vests, the executive exercises option whether to buy the stock or not.