The paper "Business Strategy of McDonald's" describes that the overall business strategy of McDonald's is based on offering good quality products delivered through excellent customer services. Customer satisfaction, therefore, is the key strategic alternative available to McDonald's to achieve competitive advantage. …
By combining its resources with its core competencies, McDonald's has actually achieved a combination of strategic options which allows it to dominate the market in which it operates. What is also critical to understand that it has been able to leverage its business strategy through its employees? One of the key success principles for McDonald's is to offer its products and services to employees which can deliver such services according to the established standards. To achieve this, McDonald's therefore has been able to develop its hiring and staffing process in such a manner that it is always able to attract the right type of employees to provide the required services at its restaurants.
The sources of its competitive advantage, therefore, are the better product, quick delivery, effective service and highly trained crew members which deliver such services according to the standards developed by McDonald's.
Strategic human resource management principles require that the firms must align their business strategy with that of the human resource strategy to achieve their strategic objectives. McDonalds’ seem to have been able to achieve the same through aligning its business strategy with its human resource and staffing strategy.
To successfully align all three, McDonald has identified the key drivers of growth and believes that customer satisfaction- its key business strategy variable- can only be achieved through the efficient human resource. In order to achieve this alignment of both the strategies, it has been able to outline its key philosophy for motivating the employees and meeting their needs and requirements. By addressing the key requirements of their employees through providing them value, growth opportunities, resources, as well as defined career paths and compensation plans, McDonald's has been able to align its business strategy with that of its human resource strategy. ...
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(Business Strategy of McDonalds Essay Example | Topics and Well Written Essays - 500 Words - 26)
“Business Strategy of McDonalds Essay Example | Topics and Well Written Essays - 500 Words - 26”, n.d. https://studentshare.net/business/490197-case-study.
McDonalds, specially known for Hamburgers and Big Mac items, is one of the world’s most famous brands. It is the dominating fast food restaurant chain in its industry, having the most frequent expansion rate. McDonalds was the first company which introduced fast food to the world out of USA.
This paper presents a brief report on the management strategy of McDonald’s and gives detailed analysis of both the internal as well as external environments. In order to analyze the business environments, various business analysis tools such as SWOT, PESTEL, Porter’s Five Force analysis etc will be included in the paper.
The machine metaphor of organizations is one of the more commonly used Morgan’s organizational metaphors. It is when we start thinking of organizations as being machines that we begin to truly understand them as being rational enterprises that have been well structured and designed so as to achieve certain given predetermined ends.
CSR is about how firms or organizations areable to manage operation of the business to produce positive impact on the wider society. Social responsibility is very vital in creation of wealth by a company in that if managed properly should improve the competitiveness of business and maximize the value of creation of wealth to the community.
The company has also expanded its menu to include wraps, smoothies and salads to cater for the increasing customer base. The customer base is approximately 68 million with a scope of 119 countries. It is headquartered in the United States. According to a 2009 corporate FAQ publication, most of the company’s revenues are derived from royalties, rent and restaurant sales as well as fees paid by the franchisees.
Essential research regarding the consumers and proper marketing tactics are required by a company to sell its products effectively and gain consumer loyalty so that sales remain steady and increase overtime. McDonald’s keeps in check if it’s target audience is reducing or increasing.
The author of the essay emphasizes that McDonald's was the first real exponent of the fast food principle, trading on a platform of limited menu choice, fast service, high volumes and low prices. Admittedly, this strategy allowed the company to develop swiftly, which it achieved through issuing franchises.
Ever since the company has been growing to become the world's largest fast food retailer, operating more than 30,000 stores in 119 markets.
Today, the face of the fast food market is very different from what it was more than fifty years ago. It has become highly competitive, and companies are pressured by high costs and deliver increasingly similar menus with little space for differentiation.
This essay follows the establishment of McDonalds brand and explores it's business strategies. It also uses SWOT analysis, Porter’s Five Forces model and Related Key Points analysis to determine the strengths and weaknesses of the company. This essay also suggests some alternative strategic plans for McCafès, which is a part of McDonalds.
5 Pages(1250 words)Essay
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