International Journal of Business and Management Essay

Category: Administration
Published: 05.10.2019

Among the most good fast food sequence in the world, through the entire development of McDonald’s, we could easily identify a large number of successful organization strategy implementations. In this paper, I will discuss some critical business tactics, which linked to the company’s structure and exterior environment. This kind of paper can be organized the following: In the initially section, Let me give simple introduction to the success of McDonald’s.

Inside the second section, I will analyze some particular strategies used by McDonald’s and exactly how these approaches are suitable to their business structure. I will in that case analyze why McDonald’s select these strategies in response to the changing external environment. Finally, I will sum up the methods used by McDonald’s to achieve their very own strategic desired goals.

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Keywords: Strategy, McDonald’s framework 1 . Just how McDonald’s organization structure influences its technique? The McDonald’s business structure is based after a geographic structure. When log on the website, you will be asked to choose the region that you are enthusiastic about. Actually, McDonald’s divided the operations in to five geographical divisions. (www.McDonalds.com) International Log of Business and Supervision November, 08 As Sean Skinner, the vice-chairmen of McDonald’s illustrated that ‘if you are looking for a command middle with one particular push switch that function our restaurant in every nook of the world, you won’t discover it’. Nevertheless , their beliefs of QSC&V-quality, service, hygiene and benefit is same for all over the place.

And McDonald’s targets the similar customer segments that require fast service, affordable price and good standard hygiene. So their main products are similar in most countries, where they will provided support, including gound beef, chicken, loaf of bread potatoes and milk. Since the consumers in different countries having distinct foods requirements, McDonald’s keep launching new items for their local consumers. In this instance China and France can be extremely good examples.

There are many reasons to make clear it, one particular important concern which has once been ignored by McDonald’s is that Chinese people are even more prefer chicken breast dishes than beef hamburgers, which are their main items. After recognized this problem, McDonald’s has tried to adapt even more Chinese likes by adding more chicken foods into their menu for bringing in more buyers. (Chinese website) 3. McDonald’s in England: In Portugal, where clients has been exacerbated of the pret a manger chain’s attaque, McDonald’s has boosted that sales by simply remodeling restaurants i. at the. hardwood flooring, wood-beam ceiling, comfortable armchairs, and also by having new menu items including espresso, brioche and more high end sandwiches.

Truly they have efficiently responded to the preferences with the local area. (Richard L. Daft) In the various other countries the situation is the same. For example , canada, McDonald’s has introduced new Canadian feature breakfast. In Belgium, the McCicken Premiere has become added to the menu. Even though McDonald’s has become regarded as the ultimate example of standardization for the earth market.

5. How the technique is motivated by external environment? The external environment can be divided into several areas. In this section, I will only discuss two important parts: competitors, social concept (healthy problem) and uncertainty circumstance, which can significantly influence McDonald’s strategies.

In that case at the previous part of it, I will discuss one particular technique they employed which offered for their foreseeable future development goal. These companies emphasized on giving fresher, hotter, high-quality food at cheap with faster service. On the other hand, McDonald’s decided to close 719 poorly performing restaurants around world.

Many of these simply proved that McDonald’s might not be competitive in the fast-food marketplace. And if McDonald’s cannot adapt external environment change, they could be gradually decreased and even substituted by various other competitors. In order to keep their market share, increasing sales and profits. McDonald’s needs to respond to the threat of competitors. In 2003, McDonald’s offered the McGriddles casse-cro?te in the US and the Canada characteristic breakfast.

In the mean time, McChicken Hottest and a zesty poultry have been presented in the UK, Italy, Italy and Belgium. McDonald’s was trying to satisfy customer’s desire for premium products at inexpensive costs. Furthermore, McDonald’s is providing more choice with respond to present ‘ Happy Meal’ to keep the children. For instance , Happy meal now including chicken selects, and no-sugar –add fruits drink (juice and low-fat drink) as well as to produce McDonald’s coffee which will appeals to adult. Those products have been made to catch the attention of existing customer and develop new customers. (www.McDonalds) Moreover, beyond the innovative menu, McDonald’s is likewise rebuilding and even relocating some of their restaurants to make the environment more attractive.

At the same time, McDonald’s is differentiating itself by simply creating 73 Vol. several, No . 14 International Diary of Organization and Managing more relevant experiences including allowing the shoppers to access the world wide web with the wi-fi technology program. This ground breaking way not merely attracts the teenagers, although also properly fitting the modern professionals’ requirements. Social trouble –healthy problem with the economic development, people’s living requirements have improved dramatically these types of years. People are becoming more concerned about their medical issues. It cannot be denied that McDonald’s features attempted to help to make itself more convenience for the people.

Yet , people also believe that this kind of kinds of junk food are not great for their well being. The world wellness organization‘s record presented that those food not simply can cause the obesity of youngsters, but also is part of the reason of creating cancer. Healthful issues became the biggest obstacle to the advancement McDonald’s.

Clients were switching to healthier offering, just like Subway’s casse-cro?te, or KFC’s mashed potato instead of toast potato. McDonald’s has responded to this healthy trend. In order to compete, McDonald’s has added salads and other brighter options within their menu. If the mother is available in, she is not merely buy the cheerful meal on her behalf children, she is going to also be very likely to buy herself a meal as well. the less heavy options as well encourage existing customers to come back more often, since there is a greater various choices. Focus on Children Regardless of how different the tastes as well as the local needs are, McDonald’s has paid considerable focus on the children in every country.

They will built ‘happy land’ for them, offering great “happy meals” with uniqueness toys to them. Furthermore, McDonald’s just launched pcs with video games that were made to inspire the children’s creativeness at the same time condition their personal characteristics. You will discover three major causes for McDonald’s to focus on the kids: (1) Youngsters are one of the biggest customers groups to McDonald’s. And McDonald’s have been regarded, as their favorite place to go.

The brand lifestyle “happiness” is well known by kids. (2) McDonald’s believe that centering on children can build the stable organization, and will supply the best engine to encourage the whole family to come to McDonald’s. For instance , one happy meal for the child only cost bucks 5 yet McDonald’s will produce more new items in addition to happy meal to offer the entire family. (3) By Building your brand loyalty with the children, McDonald’s more likely to become successfully today and in the near future. In my opinion, McDonald’s is not just selling the content meal to children; it is selling the American traditions to the children – the enjoyable individual life.

Actually this strategy with focused kids segment is usually fully worked for their future development goal. Whatever the way the environment changes this strategy may always develop future generation customers’ loyalty. And the “happy children” may also bring in the entire “happy families”.

Conclusion Fatehi, K. (1996). International Management, New Jersey: Prentice Hall. Geringer, J. Meters. & Hebert, L. (1989). Control and performance of intercontinental joint endeavors. Journal of International Business Studies, Summer, 235-253 Hodgetts, R. M., Luthans, F. (1994).

Worldwide Management, Ny: McGraw-Hi Richard L. Daft, (2005). Corporation Theory and Design, 8th edition, Thomson, south-western(Chapter 10) Mead, R. (1994). Worldwide Management. Combination Cultural Proportions, Oxford: Blackwell. http://baike.baidu.com/view/4676.htm