Strategic Management of McDonalds

Strategic management in McDonalds

Competitive business level strategy and industrial environment

McDonald is the number one fast food chain store with a wide customer base of about 40 million customers who visit it outlets every day . The company has more than 30 ,000 branches in more than 120 countries However it has concentrated most of its operation in the developed and emerging markets . 80 of its operations are positioned in countries like Canada , Brazil , France , Germany , UK , US , Japan , and Australia

There are a number of strategies that have been used by

the company in to position itself in the market . The first important strategy that it has employed is that of creating an image to the people and introducing them to the culture of fast food . This ensured that it created a loyal customer base . This was used as a market entry strategy and has been reemployed in all the new markets that it has entered . One of the strategies that have been used by the company to introduce people to fast food culture is through using humor in its literature . The company has created as corporate system and use of advertisement campaign has created brand image and logo in the minds of the consumers (Flack , 2008

After penetrating the market the company has also using market expansion strategy . In to match the growing number of customers , the company has put in place strategies addressing speed of delivery customer care , and cleanliness of the premises . This ensures fast delivery of services . This has been one of the cultures that have been identified with the MacDonald fast food stores

The brand image is vested in the product which is used to identify the company . Customer knows what to expect when they walk into a McDonald store the product value has been one source of strength of growth . The market strategy has taken into consideration the internal and external environment to form a competitive edge based on product , price and service delivery . There has been a lot of innovation where new products are produced and catch up quickly with the developments in the market It is respond to the changing concerns and taste of the consumers . For example it has developed new recipes to suit the health concerns of the consumers (Kroc 2001 ,

. 2

Another competency of the company has also been based on its diversity of new business ventures . This has helped the company to keep up with the trend in the market amid the rising competition . The company has come up with health food , added salad to the menu , changed the appearance of the stores , and many other strategies that have been aimed at matching the level of competition . The marketing environment is getting competitive everyday with the entry of new players as well . The two main competitors with the company are Burger King and the KFC There are other minor operators who have been competing with the company in the fast food industry but these...