Creating and Managing Competitive Advantage - Analysis of McDonald's in New Zealand

This report analyses the internal, external and key marketing analysis of McDonald’s in New Zealand with recommendations for managerial and authorities deeds. The report includes SWOT, Pestle and VRIO analytical situations, competitive advantage, strategic choices, and implications. The report summarises the key strategical analysis of the company in association with the management programmes and the internal and external analysis of the country in which the company is operating.

Running head: CREATING AND MANAGING COMPETITIVE ADVANTAGE
CREATING AND MANAGING COMPETITIVE ADVANTAGE
Name of the Student
Name of the University
Author Notes

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CREATING AND MANAGING COMPETITIVE ADVANTAGE
Executive Summary
The report here strives to find out the internal, external as well as key marketing
analysis of McDonald’s in the province of New Zealand with the access to key
recommendations both on the front of managerial as well as authorities deeds. The
key analytical issues of the report deals with the SWOT, Pestle as well as the VRIO
analytical situations. The key findings of the assessment is the competitive
advantage that is there in the organization along with the strategic choices made by
the company. The choices are also inclusive of the implications that are there in the
decision making of the company. There are a number of strategic choices that are
there in the analysis of the organizational structure as well as the management that
is there in the province of the same. There are a number of key recommendations to
be used in the industry analysis of the food sector as well as the management of the
human resource as well as the organizational strategy in the same way. The
company should work on the weakness as stated in the report to have a better future
in terms of the overall business as one of the foremost recommendations in the
section. The report summarises the key strategical analysis of the company in
association with the management programmes and the internal and external analysis
of the country in which the company is operating.

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CREATING AND MANAGING COMPETITIVE ADVANTAGE
Table of Contents
1. Introduction...............................................................................................................4
2. Organization Background.........................................................................................4
3. Macro environmental analysis..................................................................................4
3.1 Political................................................................................................................4
3.2 Legal...................................................................................................................4
3.3 Regulatory...........................................................................................................5
3.4 Economic............................................................................................................5
3.5 Technological......................................................................................................5
3.6 Globalisation.......................................................................................................5
3.7 Socio-cultural......................................................................................................6
3.8 Natural.................................................................................................................6
4. Micro environmental analysis...................................................................................7
4.1 Industry key characteristics.................................................................................7
4.2 Competition mapping..........................................................................................9
4.3 Environmental threat.........................................................................................12
4.4 Potential opportunities......................................................................................14
4.5 Critical industry success factors.......................................................................14
5. Internal environmental analysis..............................................................................16
5.1 Competitive strengths.......................................................................................16
5.2 Degree of competitive strengths.......................................................................17
5.3 Organizational weakness..................................................................................18
5.4 Competitive gaps..............................................................................................20
6. Strategic choices....................................................................................................20
7. Performance measurement framework..................................................................21
7.1 The competitive advantage and the organizational performance of the
company..................................................................................................................21

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CREATING AND MANAGING COMPETITIVE ADVANTAGE
7.2 Managerial implications and limitations............................................................22
8. Summary and conclusion.......................................................................................22
9. Reference list and Bibliography..............................................................................23

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CREATING AND MANAGING COMPETITIVE ADVANTAGE
1. Introduction
In the world of steep competition, it is very important for an organization to
have the competitive advantage in its favour to maximise its business potentials in
the competitive marketing world (Barney, 2012). There are a number of ways to
maximise and find out the business potentials of the firms against the case study of
Mc Donald’s, one of the biggest fast food chain in the global scenario. The purpose
of the report is to find out the competitive challenges of Mc Donald’s in terms of the
world economy and the country of New Zealand.
2. Organization Background
Mc Donald’s is one of the major fast food companies of the United States of
America that was founded by Richard and Maurice Mc Donald in the year 1940. The
company is a 78 year old company which serves the whole global circuit with its
range of products including burgers, sandwiches and salads. The company is based
in Illinois and has an employee strength of over 235 thousand which is one of the
major affirmations of the company. The scope of business for Mc Donald’s is wide
which is focussed on the production and selling of the goods in the different
countries with their own cultural twist.
3. Macro environmental analysis
3.1 Political
Mc Donald’s is heavily influenced by the national and international political
factors that are present in the country in which it is operating. According to the
website of Mc Donald’s New Zealand, (2018) the political influence of the
organization is to be analysed keeping the different kinds of rules and regulations of
the government in mind. The political system of New Zealand is strong and stable
which makes it one of the potential countries to set up the business organization.
The government has an average 95% ranking on the governance indicator
symbolising the excellent political conditions of the organization.
3.2 Legal
The company follows a number of legal implications of the Food Safety bills
and rules. The health and social legal implications are being addressed by the
company in all possible manners to have their level of legal implications of the same

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CREATING AND MANAGING COMPETITIVE ADVANTAGE
phenomenon (Wagner III & Hollenbeck, 2014). The legal implications of New
Zealand plays a vital role in the manufacturing and distribution of the food items
which follows the legal code.
3.3 Regulatory
There are a number of regulatory rules that are being followed by the
managers and owners of the company in terms of the national rules in terms of
operating hours and tax regulations (Pomeranz, 2013). The regulations of the
environmental concerns as well as the certificates for the safety of the food items are
of prime importance.
3.4 Economic
The organization is highly affected by the amount of operational cost as well
as the supply chain of the raw materials which have their own share of the cost.
According to Galizzi & Venturini, (2012) the variations in the chain of exchange rate
is also affected in the economic policies. The economic condition of New Zealand is
fairly stable which accounts for the improvement in the business of the organization.
However, during the time of recession, the organization faced a number of hassles
as the people reduced to have food resulting in less business.
3.5 Technological
Mc Donald’s aims at making technological changes in the way of
manufacturing the food items and also to make commercial changes to attract a
large number of people from various stratus of the society (Aurand, 2013). The
technological implications of Mc Donald’s is to analyse the various automated
machines that are there in the economy and also to make sure that the company
implies a number of technological modifications for the serving of the food and
beverages (Jacobes, 2013).
3.6 Globalisation
Mc Donald’s is one of the globally distributed organizations which have a
number of global factors attached to the working of the organizations (Mak, Lumbers
& Eves, 2012). The company operates on a world basis and for which it has to face a
number of implications like world economy and the global issues for the same. The
methods and means for the globalisation factors is to analysed keeping in mind the
global scenes of the place.

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CREATING AND MANAGING COMPETITIVE ADVANTAGE
3.7 Socio-cultural
The company aims to establish their business among the variety of
consumers which makes their social factors a much needed issue. According to
Aurand, (2013) the menu is according to the country in which it is operating and has
been formatted according to the market research of the social factors. In New
Zealand, there are a number of cultures and so the food menu of the country is
aimed at making appropriate food choices for them in the designated manner.
3.8 Natural
The organization has a number of natural implications like the use of water in
an unprecedented way. In addition, the wastage issue also plays a major role which
has serious implications on the organization ways and means. According to Jacobes,
(2013) the environmental codes have to be followed for the easy implications of the
environmental means.
Factor Discussion Strategic Implications
Political Stable political situation
which enables good
business development
95% ranking in governance
indicator symbolising good
environment to set up business.
Economical Fairly stable but with the
recession glitches. The
operational cost is high
though.
The company has a high
economical cost with supply
material cost being on the higher
side.
Social Good opportunity as there
are a number of cultures
Due to the mixed culture, the
number of opportunities is high for
social factor.
Legal Addressing a number of
legal implications and
food safety bills.
Food safety bills and the legal
process of New Zealand makes the
legal laws of Mc Donald’s one of the
major to find.
Regulatory Following of a number of
regulatory rules like tax
regulations and operating
hours.
The regulatory measures of Mc
Donald’s include the food safety
rules and other form of rules.

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CREATING AND MANAGING COMPETITIVE ADVANTAGE
Technological Implying of various
automated machines and
other technological
implications.
New modification in technology with
the amount of automated machines
and other factors.
Globalisation The facing of issues like
economic recession and
growth of the sector.
Maintaince of world
economy is important.
The distribution to the whole world
for the betterment of the company
in the span.
Natural Use of water and wastage
of the products is one of
the basic issues
Following the environmental code is
of prime importance.
Figure – Pestle Table
(Source – As created by the author)
4. Micro environmental analysis
4.1 Industry key characteristics
There are a number of key industry organizational and strategic implications
that are being analysed by the organization which are as follows –
Industry size and structure – The industry size of the fast food industry is quite big
and has a number of factors attached to it. The structure of the industry is organized
and serves to encompass a number of sections in it to make the workings in a
detailed manner (Liu & Jones, 2014).
Mc Donald’s is one of the premier companies in the food and beverage
industry which offers a variety of fast food including burgers and sandwiches, both in
the vegetarian and non-vegetarian genre. There are a number of competitors of Mc
Donald’s including KFC, Venky’s and Subway. The Industry size and structure table
are as follows –
Location Revenue Product Number of Sales

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CREATING AND MANAGING COMPETITIVE ADVANTAGE
employees
Mc
Donald’s
Global $2.6
million
approx.
Fast food
and
beverages
More than
50thousand
Better sales
as they are
the leading
in fast food
especially
burgers
Competitor
(All
together)
Global $234
million
approx.
Fast food
and
beverages
Approximatel
y half a
million
Giving
tough
competition
with
innovation
and other
factors.
Figure – Competitor table and industry analysis
(Source – As created by the author)
Industry life cycle and growth trends – The industry life cycle is vast as it
encompasses a number of factors in it and there are ample amounts of growth in the
concerned matter. The industry is prone to growth at a major pace as it is a growth
potential industry.
Profitability potential – There is an immense profitability potential in the fast food
industry as there are a number of customers who are loyal to the industry and serve
to implement the profit at a major rate (Liu & Jones, 2014).

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CREATING AND MANAGING COMPETITIVE ADVANTAGE
Figure – Fast food competition graph
(Source – McCarthy, 2018)
Suppliers – There are a number of supplier in the industry as this requires the
supply of a number of raw materials and special ingredients for the manufacturing of
the products in the concerned time.
Competition – There is an ample amount of competition in the fast food industry as
there are a number of competitors who are there to attract the loyal and potential
customers of a concerned industrial base (Nestle, 2013).
Customers – There are a number of loyal customers to the industry as many people
are fond of the fast food genre especially the youths and children of the modern
world. The customers are immense and there is a major trend of increase in it
(Nestle, 2013).
4.2 Competition mapping
There is a steep competition among the different firms of the fast food genre
working in the industry. The positioning of the firm is a marketing concept that has

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CREATING AND MANAGING COMPETITIVE ADVANTAGE
the description of the business for the marketing of the product to the potential
customers. The positioning of the firm is done through the means of promotion,
price, place and product.
Sustainability in business is defined as the way of conducting the business
causing minimum amount of negative impact on the global and the environmental
aspect with maximum profit to the business.
There are a number of competitors for Mc Donald’s as a firm namely
Starbucks, Venky’s, Subway, Yum Brands and Burger King. The competitors impose
a number of strategies and resources for the working of the opportunities and threats
of the with the organization. The concept of competition mapping which is defined
as the tool for the analysis of the competition threats and potential opportunities of
the organization. According to Heyder, Theuvsen & Hollmann-Hespos, (2012) there
are a number of tools that can be used for the examination of the competitors
strategic tools and position in respect to Mc Donald’s out of which two most
important used in this case are Competitors threat and opportunities analysis for
assessing the strength and weakness of the company as well as the Positioning map
of Mc Donald’s in respect to the competitors.

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CREATING AND MANAGING COMPETITIVE ADVANTAGE
Figure – Value Matrix of Mc Donald’s
(Source – Mc Donald’s Statista, 2018)
The major competitors of Mc Donald’s are Starbucks, Subway, Yum brands,
Venky’s and Burger king. Subway is included in manufacturing salads and calorie
less items which can be a potential threat to Mc Donald’s as they are involved in the
manufacturing of fast food including burgers and French fries. Burger King is one of
the direct competitors of the brand as it is involved in the manufacturing of the
burgers and same genre stuff as Mc Donald’s. The opportunity of the company lies
in making healthier options for the customers and also to make sure that their
weakness are being reduced in a considerable amount of time (Herschdoerfer,
2012). The competition from the potential strength of Starbucks in being one of the
closest competitors makes sure that Mc Donald’s have the least amount of potential
benefit when compared to the cases. The competitor opportunity has to do with the
weakness and the competitor strength has to be dealt as a strength of the company.

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CREATING AND MANAGING COMPETITIVE ADVANTAGE
Positioning map is defined as the tool that is used to market the products
manufactured by a company with the perception of the product in the certain span.
The positioning mapping needs to analyse the perception and needs of the
customers and represent it in a diagrammatic way (Herschdoerfer, 2012). The
diagram help the marketeer to come up with the solutions of the product and the
company and also to analyse the scope of the product in the required time.
The positioning map of Mc Donald’s deals with the three aspects of the
market strategy namely segmentation, targeting and positioning. The segmentation
of the marketing strategy is defined as the way in which the potential customers are
divided into groups that can make sure to have the similar level of characteristics
features.
Mc Donald’s divides the products according to the market segments of
geographical, demographical, behavioural and psychographic traits. These
characteristics features can be used by the company to make sure that their
segment of customer is clear and they can expect to have better business from them
According to the views of Rosin, (2013) the targeting of the positioning
map implies choosing the appropriate customers group that the company targets to
sell their products. The company target groups that can be fruitful to them and also
to analyse the ways and means in which the company can get the greater amount of
profit. In the case of Mc Donald’s the target group is the youth and the modern
people who are into fast food consumption.
Positioning of the marketing structure is defined as the selection of the
customers’ base for the selling of the products in the most suitable manner. The 4Ps
of the marketing mix are associated with the positioning part of the strategy and help
to make sure that the company is engaged with the right amount of people for the
conduction (Gamble, Thompson & Peteraf, 2013). Mc Donald’s has an appropriate
positioning strategy that helps to make sure that their sell of the product with apt
business is there.

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CREATING AND MANAGING COMPETITIVE ADVANTAGE
4.3 Environmental threat
Mc Donald’s is one of the major companies that produces a large amount of
fast food of both veg and non-veg genre. According to the views of Gamble,
Thompson & Peteraf (2013), the company for the huge production needs has to
maintain and sustain a number of environmental hazards which can prove really
harmful to the ecological balance. Other than the potential environmental threats,
there are a number of other threats which are as follows –
Potential Threat Analysis Degree Favourable
Rivalry There is potential
threat for Mc
Donald’s in terms
of rivalry
High No
Entry It is difficult for
new companies to
mark their
presence but entry
is possible as the
market is
expanding
Medium Kind off
Substitutes There is a major
issue as the
customer can shift
from one place to
another
High No
Buyers Major threat as the
buyer can choose
what to buy
High No
Suppliers Supply of raw
materials is
dependent
Medium Kind off
Figure – Porter’s Five Force analysis

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CREATING AND MANAGING COMPETITIVE ADVANTAGE
(Source – As created by the author)
Threat of Rivalry – There is a potential threat for the rivalry as there is a great
amount of competition among the firms operating in the market. The threat of rivalry
is related to the fact that in the concerned span, there are a number of firms willing to
get the same share of market (Tanwar, 2013).
Threat of Entry – There is a potential threat of entry of new firms in the market as
the industry is growing making space and interest for the emerging bands to make
their presence felt.
Threat of Substitutes – The threat of substitutes is another major problem that is
there in the fast food chain. The food of Mc Donald’s can be substituted by the
healthier options and even homemade food (Tanwar, 2013).
Threat of powerful buyers – The threat of powerful buyers is also major as the
buyers are the major people for whom the products are being made. The buyers
make sure to have the greater strength when it comes to fast food or other type of
product industries.
Threat of powerful suppliers – The threat of powerful suppliers are there in the
major part of the fast food genre which means that with the lack of supply, there will
be potential void for the industries stuff which means less production and less profit.
4.4 Potential opportunities
The company is known for the manufacturing of all the junk food items which
has its own customer base leading to the popularity of the brand in a major circle
(Ibrahim, 2013). However, the company has the potential opportunity to dive into the
healthy food genre which is getting popular with more number of people believing in
the healthier form of life. The invention of the new food items in the healthier section
will attract customers from all over the globe who are into healthy food.
Rivalry – According to Ibrahim (2013), there is a potential opportunity in the rivalry of
the company as with the rivalry of the company, it will know how to impress the
customers and how the other companies are interested in satisfying the customers.
Entry – The entry of new and innovative firms can help the company to be
potentially aware of the new innovations and strategies that it needs to adapt.

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CREATING AND MANAGING COMPETITIVE ADVANTAGE
Substitutes – The substitutes makes sure that the company has the access to
manufacture a number of products for the benefit of the customers in the concerned
time span.
Powerful buyers – The potential buyers have the required amount of the
opportunity to choose between the companies which also gives the company the
required benefit for the analysis the requirements of the customers (Schrempf,
2014).
Powerful suppliers – The powerful suppliers makes sure that the company has the
required opportunity for the negotiation and to find the cheapest supply which
can result in the reduction in price of the items.
4.5 Critical industry success factors
There are a number of future outlooks that are there in the fast food industry
operating in Mc Donald’s. According to the opinions of Arneson, Rothwell &
Naughton, (2013) the future outlook of the company is quite bright in response to the
potential achievements that can be made by the company. According to Schrempf
(2014), Mc Donald’s in New Zealand can look for better opportunities for their
product and service sector which can make sure to possess great business and
financial success to the company with required innovation and strategic functions.
Key success
factors
Identification of the
company’s
competitors
Implications Comments
Technology Automated
technology which
is present in most
of the companies
The technological
advancement of
the competitor is
way better than
the Mc Donald’s
The company
needs to focus
more on the
technological
advancement of
the way in which
the food is being
manufactured.
Loyalty There is apt brand
loyalty among the
people of the
The brand loyalty
must be increased
to maintain the
The company
needs to gear up
to give multiple

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CREATING AND MANAGING COMPETITIVE ADVANTAGE
stores level of business
among the regular
clients
benefits to the
company for
increasing brand
loyalty.
Product There is innovative
and varied
products among
the people
The competitors
make better,
innovative and
healthy food items.
Mc Donald’s
should
manufacture food
items that are
healthy and
innovative.
Service The service given
is of great
importance to the
people
The service of the
competitor is
improving as they
are on the
production of more
sustainable food
items.
The company
should improve the
service given to
the clients.
Figure – Critical industry success factors
(Source – As created by the author)
5. Internal environmental analysis
5.1 Competitive strengths
There are a number of competitive advantages of Mc Donald’s in the following
ways –
Resources – The resources of Mc Donald’s is meant to be both the physical and
human resources for the company which can help to analyse the potentiality of the
brand (Campbell, Coff & Kryscynski, 2012).
Capabilities – Mc Donald’s is capable to have the best of the both the working as
well as financial resources to measure the capabilities.
Core competencies – There are a number of core competencies of Mc Donald’s
which is aimed to make sure that the company has the best of the capabilities.

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CREATING AND MANAGING COMPETITIVE ADVANTAGE
Distinctive competencies – The distinctinctive competencies of Mc Donald’s is to
make sure that the company has distinctive marketing skills for making its mark in
the company.
The SWOT analysis of Mc Donald’s is as follows –
Strength – One of the major strengths is the brand value and business value of the
company with the amount of business. In addition, the organizational culture as well
as reputation are strengths (Liu & Jones, 2014).
Weakness – The fast food and the lack of the interesting food items is the major
weakness which cannot attract the people who are health conscious or vegan.
Opportunity – The opportunity to make lack of the interesting food items on the food
items and to attract new customers is the potential opportunity (Liu & Jones, 2014).
Threats – The lack of the interesting food items in the market with the innovation is
the threat of Mc Donald’s in the sector.
Factor Strengths Weakness
brand value and business
value
lack of the interesting
food items
Opportunities Threats
lack of the interesting
food items
lack of the interesting
food items
Figure – SWOT analysis
(Source – As created by the author)
Value chain analysis is the tool to measure the internal analysis of the firms
as to maintain which is important for the firm in the business sector. The importance
of the value chain analysis is done for the inbound logistics in the fact of operations,
conventional franchising, developomental licensing and affiliates. In the outbound
logistics section, the marketing and sales as well as service of the firm is there in the
value chain analysis.

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CREATING AND MANAGING COMPETITIVE ADVANTAGE
5.2 Degree of competitive strengths
The use of VRIO for Mc Donald’s are as follows –
Value – There are a number of competitive advantage of the company for which the
company has value in its sources. There has been cases when the company has
achieved higher levels of business value.
Rarity – The Company has been rare as it is of great value and has its branding in
the terms. There is a lesser possibility for the other companies to be as great as Mc
Donald’s in the fast food chain.
Imitability – Due to the brand reputation of Mc Donald’s, it is difficult for the
company to have the desired brand reputation as much as Mc Donald’s which
makes the company imitable (Troll et al. 2014).
Organization – There has been a higher level of organizational efficiency including
management which makes the brand a valuable thing in Australia. It has been a
leader in achieving the goals in the desired cases.
Positive Negative
Value Yes
Rarity Yes
Imitability No
Organization Yes
Figure – VRIO analysis
(Source – As created by the author)
5.3 Organizational weakness
There are a number of organizational weakness which are as follows –
Product – The product of Mc Donald’s is limited to only fast food which does not
cater all customers making it a weakness of the organization.
Technology – The organization has not upgraded the technological knowhow to a
greater level and so this is one of the weakness.

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CREATING AND MANAGING COMPETITIVE ADVANTAGE
Financial – There are certain financial constraints of the company in New Zealand
which is one of the principle reasons for the weakness.
Human – The lack of improved HR management in some of the times accounts for
the weakness.
Organizational culture – The organizational culture though strong can be improved
for the better working of the enterprise.
Infrastructure – The infrastructure should be improved to a huge amount making
the infrastructure a potential weakness.
R&D – For a fast food chain, R&D is really important which is not always followed in
Mc Donald’s which is a weakness (Galizzi & Venturini, 2012).
Intellectual – There is a lack of intellectual inputs from the management and lack of
involvement from the authorities which is again a weakness.
Factor Weakness or not Why
Product Yes Product of Mc Donald’s is
limited to only fast food
which does not cater all
customers making it a
weakness of the
organization.
Technological Yes The organization has not
upgraded the
technological knowhow to
a greater level and so this
is one of the weakness.
Financial Yes There are certain financial
constraints of the
company in New Zealand
which is one of the
principle reasons for the

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CREATING AND MANAGING COMPETITIVE ADVANTAGE
weakness.
Human Yes The lack of improved HR
management in some of
the times accounts for the
weakness.
Organization No The organizational culture
though strong can be
improved for the better
working of the enterprise
Infrastructure Yes The infrastructure should
be improved to a huge
amount making the
infrastructure a potential
weakness.
R&D Yes For a fast food chain,
R&D is really important
which is not always
followed in Mc Donald’s
which is a weakness
(Galizzi & Venturini,
2012).
Figure – Organizational weakness
(Source – As created by the author)
5.4 Competitive gaps
There are a number of competitive gaps in the organization like the production
of a single type of food item which can make for the loss of customer and
deterioration in the innovation process. According to Troell et al., (2014) There are
also lack of customer and authorities’ involvement with the lesser involvement in the

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CREATING AND MANAGING COMPETITIVE ADVANTAGE
management. There is a lack of interaction between the sections of the authorities
segments in the organization and also the lack of new product innovation in the form
of research and development.
The gaps can be improved by the implementation of the following strategies
like innovation of new products, to look at the planning and strategies of the firms
and also to analyse the competitive strength of the company in the majority of the
time.
6. Strategic choices
The strategic choice of Mc Donald’s in the light of weakness are as follows –
Product differentiation – The products that are manufactured by Mc Donald’s
should be divergent and different from the regular fast food brands with the inclusion
of healthier options as well as the twist of the classical cultural taste.
Cost leadership – The cost leadership of the organization should be analysed
based on the amount of cost of operations in the lowest possible manner. The cost
of operation of Mc Donald’s should be reduced to a specific amount to maximise
profit.
Diversification – The product of the company should be diversified and should
adhere to the requirements and needs of the clients and customers in the required
span of time (Galizzi & Venturini, 2012).
Backward vertical integration – The backward vertical integration should be done
and merged with the supply chain and suppliers which can make the cost of the
operations way lesser as well as result in cost savings of the firm.
Forward vertical integration – The forward vertical integration of the company is to
analyse the business activities of the firm to include the direct distribution of the firm
in the supply of the company products (Rosin, 2013).
Strategic alliance – Accoridng to Hossain and Hossain, (2012) the strategic alliance
of Mc Donald’s is the agreement that is being set by the two parties for the objective
identification in spite of being the independent institutions. Mc Donald’s has a
strategic alliance with a number of company including the Coca Cola and Pepsi co.

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CREATING AND MANAGING COMPETITIVE ADVANTAGE
Acquisitions – According to Rosin, (2013) there are a number of acquisitions by Mc
Donald’s in New Zealand which is one of the basic criteria for the success of any
firm. Mc Donald’s in New Zealand has acquired a number of firms.
Mergers – Mergers which are the collaboration of two bodies are there in Mc
Donald’s of New Zealand for a number of products.
Joint ventures – There are a number of products that are created by joint ventures
in Mc Donald’s of New Zealand.
7. Performance measurement framework
7.1 The competitive advantage and the organizational performance of
the company
Financial – Mc Donald’s being one of the biggest companies has a financial
advantage over a number of issues and companies which make it one of the
financially independent brands.
Customer – There are a number of loyal customers of Mc Donald’s which maintain
the level of customer inflow in the eateries. In addition, the newer customers are also
welcome (Hossain & Hossain, 2012).
Internal processes – The internal processes of the organization are at part with any
other company of the times which make it one of the well-established organization.
Learning and growth – The learning and growth in Mc Donald’s of New Zealand is
of great value as there is much to learn and grow in the company.
7.2 Managerial implications and limitations
There are a number of managerial limitations and implications of the brand
which accounts to better framework of work organization as well as the better human
resource management strategies. The better association of the managerial
implications and limitations mount to the better management of the organization with
better infrastructure, technology as well as communication within staff.
8. Summary and conclusion
In conclusion, summarising the above report, it can be stated that there are a
number of key marketing structures and plans that are being associated for the

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CREATING AND MANAGING COMPETITIVE ADVANTAGE
working of Mc Donald’s operating in New Zealand. The report summarises and
analyses all the key organizational framework of the organization along with certain
recommendations whenever needed. The report finds the information about the
working of the managerial implications and focusses on the key analysis of the both
internal and external findings of the organization. There is the SWOT, Pestle and
Porter analytical model that is being analysed in the report which is also one of the
chief analytical tools of the working of the organization. Mc Donald’s has competitive
strengths and organizational weakness that is there in the other organizations
including the steep competitors that are there in the market of the firms. Mc Donald’s
has a number of competitive advantage that is being included in the firms for the
working and the betterment of the brand in the concerned span of time. The
organization has the enabled items for the better organizational management
including the strategic means.

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