Influence of regional strategic management on global business

Corporate Strategy and
Governance

Contents
Introduction......................................................................................................................................1
Literature review..............................................................................................................................2
Concept of regional strategic management.................................................................................2
Importance of regional strategic management over the performance of McDonald's................4
Regional expansion strategies that McDonald's can adopt for global leadership.......................5
Discussion on primary and secondary research...............................................................................6
Critical review of the research of the research.................................................................................8
Recommendation and action plan..................................................................................................17
REFERENCES..............................................................................................................................20

Title: Influence of regional strategic management on global business.
Introduction
McDonald is one of the leading brands of fast food, it has the largest chains of restaurant
across the globe. Since, its establishment, the company is provided a flexible customer service
and this has enhanced the image of the company as compared to other firms (Frynas and Mellahi,
2015). Attaining such success is only being possible through strategic thinking because it
provides company with a leverage to think beyond their product and service for remaining in the
market for a longer period of time. This research will put an insight on the impact of regional
strategy used by the McDonald company for managing the performance of the company.
Research aim
The main aim of present research is to examine the impact of regional strategy of
McDonald's Fast Food.
Research objectives
 To determine the concept of regional strategic management.
 To identify the importance of regional strategic management over the performance of
McDonald's.
 To examine the regional expansion strategies that McDonald's can adopt for global leadership.
Research questions
 What is the concept of regional strategic management?
 What is the importance of regional strategic management over the performance of McDonald's?
 What are the regional expansion strategies that McDonald's can adopt for global leadership?
Rationale of research
Current research is based on examine the impact of regional strategy of McDonald's Fast
Food. This research provides vast information to investigator that may improve personal and
professional growth. In relation to this, skills and abilities of researcher in personal and
professional aspect. With the help of this, researcher can collect detailed information on the basis
of particular topic and area (Lasserre, 2017). In professional context, investigator acquire
knowledge and also enhance researcher skills that assist in undertaking future study in an
effective manner and also get positive outcomes.
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Literature review
Concept of regional strategic management
According to the views of Barnes (2018), the operation management helps in increasing
position of company. An example of this is McDonalds which is one of the largest fast food
restaurants across the world and it is concluded that this is having effective operational
management system. It enables to manage the decisions of operations management. These
represent different strategic areas of the business operations. There is need to coordinate and
manage optimal productivity and performance so that targets can be attained. For any form, it is
essential to have an effective strategic management process and system. Global business of
McDonalds entails wide variety of strategic requirements and needs for the operational
management. Supply chain and strategic HRM are related to each other and they are involved in
developing the new and effective ways of functioning. A regional expansion strategy is defined
as an essential factor for growth of company. This helps a company in establishing presence of
entering into new and international market. It is essential for a company to choose effective and
strong strategy by examining both region which a company is considering to move in and
experience of the company. There is need to manage the effectiveness of the strategy so that
McDonalds is able to attract more customers. Operational management system has to be efficient
so that company can make profits and money.
The home base strategy is one which is associated with starting international expansion. These
are involved in serving foreign markets at home base and allocate research and development.
The portfolio strategy consists of setting up and acquiring of different operations which are
involved within home region and reporting is done directly to the home base. The main
advantage of this approach is that it includes faster growth for non home regions and there is
significant position which generates lot of cash as well as opportunities for averaging out of
economic shocks.
Operations management plays a major role as it is a basic and most important function of
an organisation. This consists of planning, organizing, directing, coordinating and controlling all
the resource to produce quality products and services for the company.
McDonald's is the largest fast food chain operating all over the world, serving various fast food
outlet. The operation management of McDonald's planned strategies, coordinate with
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management and take strategic decision, which increases their productivity and enhance the
performance.
McDonald's operates globally and for that their operation management needs to have
strategic HR and supply chain management as it needs to give a tough competition to their
competitors like KFC, Subway etc (Barnes 2018). For this McDonald's have 6 decision areas
where they need to apply these strategies and policy which maximise their revenue and
productivity and make it a top brand serving throughout the world which are illustrated below:
Design of Goods and services: in this area McDonald's aim is to make the product unique as well
as affordable as compared to their competitor, so that consumer can avail it and meet with their
expectations. They design it in such a way which seems worthy to the price paid and the quantity
received. They reduce the size of the product which is more affordable and satisfies customer
cravings.
 Location strategy: in this decision area of operation management McDonald's set up their
location where it can reach and attract more customers. Mostly, it operates near to malls,
porch areas where crowd is more so that it can reach to more customers. McDonald's has
their mobile application, delivery facility to reach more ad maximize its revenue.
 Job Design and Human resource: the objective of McDonald's is to provide product and
services which meets the demand of the customer. For the same, it is necessary to train
employees, develop skills which is required to production line. Human resources team
need to make strategic policy, train their employees well develop necessary skills so as to
increase revenue (Reid and Sanders, 2019).
 Quality management: providing good quality to customer is priority of McDonald's so as
to maintain consistency this they focus on operating strategies which focuses on
minimize product cost and increase product quality for high productivity. Product quality
consistency helps to satisfy consumer expectations and it helps in building and
maintaining a brand image in the competitive market.
 Layout design and strategy: McDonald's operation management emphasis more to
increase the size and occupy more space to operate in restaurants instead of focusing on
comfort. Its strategy is to provide vast area so that lots of customer can enjoy the meal
rather than waiting for their turns in queues for their orders or for payment.
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