Analysis of Market Entry and Growth Strategies for McDonald's in Maldives

Management

Table of Contents
MAIN BODY...................................................................................................................................3
TASK 1 ...........................................................................................................................................3
Analyse the appropriateness of different strategies relating to market entry, substantive
growth, limited growth or retrenchment for a given organization.........................................3
TASK 2 .......................................................................................................................................4
Justify the selection of strategy.............................................................................................4
TASK 3............................................................................................................................................6
Assess the roles and responsibilities of personnel who are charged with strategy
implementation.......................................................................................................................6
TASK 4............................................................................................................................................7
Analyse the estimated resource requirements for implementing a new strategy for a given
organization............................................................................................................................7
REFERENCES:...............................................................................................................................9
Books and Journals.................................................................................................................9

MAIN BODY
TASK 1
Analyse the appropriateness of different strategies relating to market entry, substantive growth,
limited growth or retrenchment for a given organization.
Organisations expand their businesses so that they can acquire large market area by
offering services in different parts of world (Ismail and Hanafiah, 2019). McDonald is also
planning to expand their branch in Maldives by merging their business with local restaurant
which is Lemongrass restaurant because this location attracts large number of people in effective
manner. There are various strategies relating to entry methods which are as follows:
 Licensing: In this strategy, organisations give rights to other parties to use their products
for sale. McDonald sell the rights to lemongrass restaurant which is located in Hulhumale
face two for the business so that they can earn good amount with expanding of
infrastructure.
 Franchising: Organisations who expand their businesses in effective manner without
excessive cost, they can opt for franchising. McDonald use this strategy because it is best
suitable for food industry. They have various outlets at different locations which serve
same quality of food.
 Joint venture: In this type of strategy, two or more companies agree to work together on
the basis of contract and agreement. McDonald's also plan to create joint venture in
Maldives so that they can share profits and losses with their partners.
Substantive growth
This refers to the growth and expansion of an organisation in limited time frame. There
are mainly four types of substantive growth strategies which market penetration, market
development, product development and diversification. All these strategies help McDonald to
expand their business with the evaluation and identification of taste and preferences of the
customers.
McDonald is following the horizontal integration for some of their products which have
high demand in the market. This refers to the the increment in production services in the same
supply chain. They can adopt this with the help of acquisition of company, merger or internal