Business Management and Strategic Management

Running head: BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT
Business Management and Strategic Management
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BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT
3.3 Development of Strategy at a business, functional, and corporate level
The emerging competition in the business field has becoming much challenging for the fast
food chains. This challenging scenario is not an exception for McDonalds as well. The company
has undertaken the effective business strategies for strengthening the sustainable position in a
competitive market. The following strategic developments have been undertaken by McDonalds.
 Competitive Advantage and Sustainability
Sustainable competitive advantage is sometimes quite difficult for the firms due to the
extensive competition. While expanding business in the international market, McDonalds has
been concentrating on the business integration and coordination between the managerial and
organisational process. McDonalds believes in investing more on the technological innovations
during the merger and acquisition (Thompson, 2017). For example, Starbucks coffee is
concentrating on business innovations by offering the customers the superior quality burger of
McDonalds while they take sip of their coffees. The comparatively lower prices of the food items
in McDonalds have also achieved the greater customer base worldwide.
 Impacts of Merger and Acquisitions of McDonalds: Strategic Alliance
Currently, it is reported that McDonalds is looking for expanding business in the Far East
Zone. The establishment of the fast food chain in Japan is quite a remarkable strategic movement
adopted by the company. However, the current food safety scandal also impacted negatively on
this business expansion strategy. Another most successful approach undertaken by McDonalds is
the remarkable strategic alliance with the internationalized companies like Wal-Mart, Coca-Cola,
Disney, and Amoco. Wal-Mart, the largest retail chain is significantly allied with the company.
McDonalds is available in the stores of Wal-Mart due to which the customers receive the

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BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT
excellent low cost fast foods in a convenient way (Sandu, 2018). Another most commendable
alliance took place between McDonalds and Disney. McDonald received the sole rights to sell
the fast food in the theme parks of Disney. There is the mutual contract between these two
corporations that informed about the promotional process of Disney. Disney can promote their
films through the advertisements of McDonalds. These successful strategies allies between these
companies ensured competitive advantage for McDonalds at the international level.
 Strategic Implementation and the Importance of Leadership
The leadership and management of McDonalds are much creative in nature. They focus on
establishing the creative problem solving skills by using the organisational resources. The
leadership team of McDonalds concentrates on the appropriate planning process to meet the
business objectives and mission. The vision statement of the company is to create the linking
between the employees worldwide. In order to improve the internationalized positioning of the
company, the leaders are continuously providing efforts on improving technologies and business
technicalities. The transformational leadership strategy is followed to improve the personal and
professional skills.
 Organisational Structure, Controls, and Corporate Governance of McDonalds
The internal organisational structure of McDonalds focuses on coordination, division, and
control of tasks as well as the flow of information. In this centralized structure, the managers
distribute the job responsibility to authority job holders. A rigid structure sometimes undermines
the creativity level of the employees. However, the management encourages the work practices
of the employees and assists other franchisees to deliver the commendable customer services.