Analysis of Business Strategy and Market Position of Mc Donald’s

Business Strategic Plan

Running Head: Report
Executive Summary
In order to understand the future of any business and the direction in which it is steering itself
is decided by the strategies a company frames and follows. These strategies help to
understand the company’s position in the market. An effective business strategy helps to
identify the Strengths, weaknesses, opportunities and threats that a company is exposed to.
The present report aims at analysing the present business strategy of Mc Donald’s company,
a leader in fast food industry. It also aims at analysing the environmental forces viz a viz,
competitors, technological advances, legal issues that impact their business to a large extent.
Moreover, this report will try to suggest some strategies that can be applied to improve their
present performances and the leadership styles that Mc Donald’s need to adopt in order to
make the strategies successful and to achieve a long-term sustainable future for itself and its
stakeholders
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Running Head: Report
Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................3
Analysis of present business strategy and market position of Mc Donald’s..............................3
Overview of the environmental forces and their impact on Mc Donald’s business..................5
Strategy recommendations to improve present performance.....................................................6
Leadership style and behaviours to enable the implementation proposed strategy...................8
References................................................................................................................................10
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Running Head: Report
Introduction
Mc Donald’s is a fast food company with its outlets spread over more than one hundred
countries across the globe. This company, based on successful business franchise pattern has
succeeded in segmenting its market by careful use of demographic, geographic and
psychological variables along with the understanding of customer’s changing tastes and
preferences (KVitasek & Kling, 2012). Moreover, its success has largely come from its quick
responsiveness to these variables viz-a-viz, demographics, tastes and preferences and
innovations in supply chain management. Mc Donald’s has succeeded in opening of around
thirty-six thousand outlets around the world. The present report is an analysis of the
management strategy of Mc Donald’s and the impact of various environmental forces on its
business. The report also aims at proposing new strategies to improve its current business in
terms of H.R practices, organisational culture, and business operations and suggest a
leadership style suitable for implementing the new business strategy (New, 2015).
Analysis of present business strategy and market position of Mc Donald’s
Since its inception, Mc Donald’s has evolved its positioning strategy from being product
oriented to value-based positioning. It has been using a differentiated target strategy to cater
to the varying customer needs since their buying behaviour and consumption patterns are
ever changing. Its strategy is also evident from its marketing mix which consists of various
core elements that help in achieving its marketing objectives (Heart of Codes, 2018).
The first and foremost element is the menu or the product portfolio. Mc Donald's is a leader
in the burgers arena and the reason behind its success is its ability to diversify its products as
per the country it is serving. Thus, the menu in the USA would be different than the menu in
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