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McDonalds Strategic Management Essay Example

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McDonalds Strategic Management

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McDonalds Strategic Management. Technological- quality improvements in health products propositions, flexible supply chains and information systems have urged the need of integrating technology into core business processes. This demands huge investment and recruiting expert employees which can be cost extensive.Threat of entrants- though the fast food industry offers a plethora of opportunities to players to enter and capture the unmet market demands, yet cost of entry and development and research costs are high. In this regard, high end firms like one of McDonald’s find it easy to present a sort of blockage to new entrants by placing stiff competitive criteria.Competitive rivalry- there is cut-throat competition in the market, especially from large established firms.

First it started with McCafe and then it entered into breakfast section. Rivals like KFC, Wendy’s and Burger King are adopting aggressive strategies to enhance their local and global market share.Substitutes- substitutes are immense in this category. People can either go for burgers or dairy products or beverages or simply a meal cooked at home. Thus, uniqueness and innovation alone could avoid substitutes.McDonald’s has been successful in registering its global presence through more than 31000 restaurants in almost 120 nations. Moreover, location of its outlets at airports, highways, parks and tourist places also imparts a strategic touch.McDonald’s fares well in the social responsibility and food hygiene category due to its preparation styles, nutrition facts and food safety by adhering to health standards. This gives it a clean image in the eyes of the customers.Healthy eating has always been a vulnerable point for McDonald’s due to its ‘cradle to grave’ marketing strategy. Children tend to continue the fast food trend to their adulthood which affects their health. Even health standards, emergence of various diseases and such other issues have cropped up due to its fast food trend.McDonald’s makes use of different bases to implement its strategies that provide a combined effect to the business in terms of greater satisfaction, profitability and competitive edge. As quoted by Corporate Social Responsibility Report (2004), “At McDonald’s, making customers happy is what our business is all about. And we know it takes a lot to make that happen. We work hard to provide every customer with a choice of meals and an experience that exceeds their. McDonalds Strategic Management.

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Chase, R., Jacobs, F., Aquilano, N 2004. Operations Management for Competitive Advantage (10th Edition). McGraw-Hill Irwin; Boston.

Han J 2008. The Business Strategy of McDonalds. International Journal of Business and Management, vol.3 (11) [online] available from http://www.ccsenet.org/journal.html. [Accessed Oct 14, 2010]

Kerin, R., Berkowitz, E., Hartley, S., Rudelius, W 2003. Marketing (7th Edition). McGraw-Hill Irwin; Boston.

“McDonald’s Worldwide Corporate Responsibility Report 2004.” Accessed online on October 14, 2010 at: <http://www.mcdonalds.com/corp/values/socialrespons/sr_


Mead, R. (1994). International Management: Cross Cultural Dimensions, Oxford: Blackwell

“Restaurant Management.” McDonald’s Restaurant Management Careers. Accessed online on October 14, 2010 at: http://www.mcdonalds.com/usa/work/manage.html.

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