Mc Donalds: Innovation Strategy and Opportunity Analysis
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Added on  2023/04/07
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This executive summary discusses Mc Donalds' innovation strategy and opportunity analysis. It highlights the company's focus on maintaining high standards and its approach to identifying and capitalizing on business opportunities.
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CORPORATE ENTERPRENEURSHIP 1
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EXECUTIVE SUMMARY Mc Donalds has always believed in developing innovative strategies, undertaking an extensiveproductplanningandproduceproducts.Thecultureprevalentwithinthe organization and the kind of leadership style which is followed throughout the hierarchy is in itself imbibed with innovation. The innovation strategy is based on the principle of starting small and thinking big. The insight of consumers is the primary trigger for commencement of the process of innovation and creativity. Maintaining highest standards is an absolute requirement for the company. The opportunity analysis plan of Mc Donald firstly requires the management to describe the idea and the level of competition existing in the market, followed by an extensive assessment of national as well as global market in the context of specific idea. The techniques of brainstorming, mind mapping and prototyping have been identified as some of the ways for enhancing the current creative process of the company. 2
TABLE OF CONTENTS INTRODUCTION4. 1.Brief background of Mc Donald4. 2.Current Innovation Strategy4. 3.Opportunity Analysis5. 4.Organizational Elements5. 5.Recommendations6. CONCLUSION7. REFERENCES8. 3
INTRODUCTION Corporate Entrepreneurship is a formal term denoting the process of evolution of new ideas as well as opportunities, which can be witnessed within business enterprises. In consequence to this process the level of profitability as well as strategies is improved to a great extent, thereby enabling the entities to improve their competitive position. The core of this concept lies at the notion of innovation. This combination enables businesses to undertake beneficial risks and move in a highly calculated manner. In pursuance to this concept companies like Mc. Donald have the potential to make significant alteration in the position of competition existing in the industry, and also develop an entirely new sector. Brief Background of Mc Donald Mc Donalds is a company which is serving approx. 50 million consumers all over the world in more than 30,000 destinations. The specific industry in which this entity is working is highly demanding and continuously expects innovation and creativity. It is interesting to note that the primary focus of all strategies developed by the company till date has been the endconsumers.Thehistoryoftheorganizationhasbeenextremelyinterestingand innovative, when they first introduced themselves in 1990 to the market. Since then it can be noted that Mc Donalds has never compromised on their brand equity, and have always infused personnel who are highly creative with their ideas. Moreover, the process of innovation has always been a part of their operations, and in consequence to which they have reflected a constant streak of innovation. It can be stated that the entity has always believed in developing innovative strategies, undertaking an extensive product planning and produce products. In consequence to which the effect of changing the industry and gaining a competitive edge in the market could be produced. The ambition which is foreseen by the company is to see beyond what is being sold, and deliver good food through a creative and diversified team of people and stay committed to reduction of their footprint. Inthepastyears,thecompanyhasclearlyestablisheditseyeforpotential opportunities and the key to occupy a high position in its industry. It would not be wrong to say that the performance of a business is highly dependent on various organizational factors of culture, structure and so on. In pursuance to the same it has been observed that the culture prevalentwithin the organizationand the kind of leadershipstyle which is followed throughout the hierarchy is in itself imbibed with innovation. This is the reason every product which introduced in the market or every strategy which is developed is one of its kinds, and 4
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never fails to procure customer satisfaction (Our Ambition – Mc Donalds, 2017). This is the medium through which the company has been defining standards for the industry, since the time of its inception. However, there still lies scope in Mc Donalds, which the management has failed to explore till date. Current Innovation Strategy The innovation strategy of the company is driven from the idea of thinking bigger even at the time of starting small, but scaling at a higher pace. As stated earlier the key to success of Mc Donalds can be given to all the employees who have been associated with its operations. It has been noted that the workforce within the organization is ingrained with the marketingprincipleof5Ps–people,price,promotion,productandplace.Through application of this marketing principle, the entity has been operating innovatively and has undertaken all customer oriented initiatives (Anderson, Potočnik and Zhou, 2014). The utilization of resources as well as varied tool at every level has been for the people. It is interesting to note that primary triggers for commencement of the process of innovation and creativity are the demands of their consumers. One of the important places of this entire chain is occupied by the franchisees, who in essence are the operators of the business. One of the biggest challenges which the management has been facing is to merge the thought process of diversified franchises with organizational objectives, and it is not possible to function in a centralized manner. At this place the company has applied its highly diversified and comprehensive strategies to evolve a decentralized system of operating with the franchisees and encouraging innovation across the entire chain. Moreover, it has been also observed that the owner operators are valued by the company in the same manner as the employees who are working in the headquarters. The only necessity or requirement which the company has imposed on all is to abide by the highest quality of the products. This reflects the fact that maintaining the highest standards is an absolute requirement for the company. Further it has also been observed that the company has implemented a three-legged principle, in pursuance to which it operates on the basis of complete trusts placed upon both the suppliers and the franchises. The interaction with the supplier is extremely close, so as to enable the production team to develop and enhance their products through application of the newest of techniques (Kalyar, 011). Therefore, these stakeholders hold paramount importance for the management of the company. Opportunity Analysis 5
The management of Mc Donalds is highly efficient and has always been undertaking the process of analyzing business opportunities in the market, in order to carve out specific unsatisfiedneedsprevalentinthe market.In pursuanceto thesame, knowledgeand experience has proved to be the key factors for enabling the entity to recognize and analyze the opportunities in a timely manner. This effective usage of its resources and assets has enabled the company to target a niche market and realize profits. The opportunity analysis plan of Mc Donald firstly requires the management to describe the idea and the level of competition existing in the market, followed by an extensive assessment of national as well as global market in the context of specific idea. This step prepares a basic platform for the company, on the basis of which an entire team is developed for further evolving the viability of the business venture. 6