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Critical Analysis How Mcdonalds Spread In Other Countries

Added on - 28 Jan 2020

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CRITICAL ANALYSIS: HOWMcDonald’s SPREAD IN OTHERCOUNTRIES
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1Global strategy of McDonald's...............................................................................................1Market growth strategy...........................................................................................................2International expansion measures...........................................................................................4Global Branding strategies.....................................................................................................5CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................7APPENDIX......................................................................................................................................9Value added services..............................................................................................................9Issues Faced By the company.................................................................................................9Competitors of McDonald's..................................................................................................10
INTRODUCTIONMcDonald'sis one of the largest and successful fast food companies in the world. Itestablished its business operations in the year 1955 and has been providing best fast food in theworld. McDonald's was originally started in USA but now they are serving 118 countries with31000 restaurants in the world (Arnold, 2003). On an average, 1 in every 4 American eats inMcDonald's. From decades, American citizens enjoy fast food chain. Quick services and qualityproducts are the core focus of the generation today (Howard, 2009).McDonald's is facing fierce market competition from retail food giants such as Domino's,KFC, Burger king, Subway, Pizza Hut etc. In addition to this, high risk of new market entrant isalso posing high business challenges for the business. However, the cited company has adoptedthe process of continuous improvement and they develop new products and concepts whichprovide the customers with more personal experience and also give value to their money(McDonald’s Corporation UK, 2008). In the current market, competition has been increased andthe basic problem is small food centres are copying the idea. McDonald's has adopted measuresof continuous innovation and development to enhance consumer and experience for the productsand services offered by the business unit in the present competitive market. The stated strategyhas helped the company in building a competitive advantage within the economy.Global strategy of McDonald'sMcDonald'sincorporates various strategies which help to derive wide success measures.It operates on continuous emergent strategies by analysing the environment on global and locallevels, mainly by introducing new items and defending its existing products (McDonalds, 2015).The strategy of McDonald's is to remain competitive in the global market while maintaining anedge in the economy. Products like BIG MAC and EGG Muffin are the successful innovativeproducts of the company and they are also very successful in the market. These products havehigh demand in the consumer market (Shen and Xiao, 2015). Another successful innovative ideawas the happy meal which captures children market. The menu of the company is consistent andit includes variety of hamburgers, cheeseburgers, fries, desserts, shakes etc. In addition, there arealso products like salad and juices and chicken based snacks which adds spark to the monotony.It also offers breakfast meals which helps the business to compete with the brands like subway.Moreover, the company regularly tests its new products and sells wide range products on offers(Pinedo, 2013). The target market for McDonald's is children and young individual. There are1
some issues raised against the company however company is in the process of innovation andcompetition, the organization is improving the performance and the company have used multiplestrategies to attain the competitive advantage in the market. There are certain issues about thecompany which needs to be developed.The mission statement of the firm is to become modern and progressive burger companywhich delivers modern customer services and experience. The company focuses on deliveringgreater taste and high quality along with the world class experience to their customers so thatthey can feel valued and welcome. Moreover, to sustain the competitive advantage, McDonald'shas divided its strategy into three forms (customer value, customer convenience, optimaloperations) (Sharma, 2013). The company also improves its manufacturing system so that it candevelop its overall operations of the company and also give support to the staff.Hence, it can be effectively analysed that the global business strategy of McDonald's is tomanage competition while managing its competency through innovation and development aswell as strategic planning.Market growth strategyIllustration1: Ansoff's Growth Matrix(Source: Arnold, 2003)2
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