Business Analysis - Part III (THIRD PAPER)



Analysis of Business Environment for “McDonalds”

Introduction

The company's strategy is a set of answers to the question “how to achieve optimal market leadership and sustainability in all situations of business competition and economic challenges”. These questions each company, depending on your situation and goals. In any form of investment market conditions allow even the closest competitors to avoid the twin strategies: some are choosing to reduce costs, while others - the differentiation of goods or services, and others - service niche markets, or meet the needs of customers. Some companies are competing locally or regionally, others - globally (Watson, 2000). There are many ways of doing business and positioning, so the description of the strategy should be very detailed, reflecting the specifics of the company.

Every marketing program should reflect the one (and only one) a clearly stated strategy of positioning. This is especially important when your competitors have set themselves the same marketing goals in order to upbeat competition and stay at a superior position. Positioning strategy only determines how the perception of the buyer (taking into account their needs and requirements) it is desirable for you. Thus, the positioning strategy compares competing ways to meet those needs and requirements.

Review of Strategic Initiatives of the Company

McDonald in their 1995 annual report proudly announces its “strategies for global domination”. McDonald's envisions dominating the global industry of food service. The global dominance means setting the performance standard for customer satisfaction while increasing market share and profits to their strategies of convenience, value and execution. McDonald's applies the same competitive strategy in all countries: be the first in the market and establish your brand as soon as possible through intense advertising. Offering customers the same product with many options reflects as the fast food giant implements a widely-differentiation strategy across the world. Alternative strategies used by McDonald's, include the following:

Intensive Strategies

Market penetration, positioning of the brand as they develop strategies to increase sales, such as promotional activities, “I'm Lovin' it” is the repositioning strategy and penetration into new markets, where they seek to show the human side of business through a more personalized service. For this, the direct marketing training center is part of the strategy. Development of new products recently adding menus to keep the focus on health and matched to the needs and generate global trend for health programs. Changes to the premises to maintain the attractiveness: ensuring that the restaurants are attractive maintaining standardization but adapting flexibly in every market it serves (Vernon, 1966).

Strategies for Growth

Business growth concerns the art of strengthening a risky business, so that it achieves less volatility against economic and environmental pressures. Franchising is a strategic initiative of Mc Donald's, that mitigates risks and generates a win-win relationship; while, choosing talented work force from across the world. This also involves the investigation of the possibility of a global infrastructure of suppliers, their experience in managing complex institutions, food service, choice of locations for restaurants and marketing ...