Management discussion and analysis of McDonald Company (MD&A) - Essay Example

McDonald Company is a US based company and has branches worldwide. The company has opened several branches in order to reach out to an ever growing number of customers in other countries. The company aims in opening the branches are to achieve long-term goals, which are maximization of profits and competitiveness in the market (Connolly, 2007 P. 109). When the company has several branches, it is at a better stage of producing products at low cost of production and, therefore, maximizing their profits.

In addition, opening several outlets means that other companies will not imitate the company’s product and implement them in their own countries. This enables the company to stay relevant in the market since their products will be unique due to lack of competition. Reference Connolly, B. M. (2007). International Business Finance. New York, NY: Taylor & Francis Fried, G., Shapiro, J. S. & DeSchriver, T. (2008). Sport Finance-2nd Edition. New York, NY: Human Kinetics. Question 2 I choose to take an overview of the Management Discussion and Analysis of McDonald Company (MD&A).

There are several fascinating things to learn from the company. First, The Company perceives itself as a franchisor and assumes franchising is significant to providing great, locally pertinent client experience as well as driving profitability. Second, McDonald’s revenues include sales by Organization-operated restaurants as well as fees from restaurants managed by franchisees Third, the firm is operated as separate geographic sections.. A, NJ: Pascal Press Question 3 Coast leadership, differentiation, as well as, focus strategies are applicable separately regarding any organization or environment.

Any attempt to combine as well as reconciling the three strategies would lead in organizations being stuck along the way. The main reason why the three may not work together is because they differ on various dimensions and brings different requirements. These include resources, industry arrangement, skills, control procedures as well as management method. However, both cost leadership and differentiation strategies are unable to coexist in some firms while reconcilable in other industries. According to various studies done by scholars on manufacturing firms, it is clear that differentiators also engaged variables commonly linked to cost leadership strategy (Brigham et al, 2011 P. 87). Cost leadership strategy on the other side, also showed characteristics normally associated with differentiators.

It suggests that there are no pure strategies and that both differentiation, as well as cost leadership, must be taken into consideration. McDonald company is one of American firms that have utilized differentiation strategy. The strategy calls for the creation of both product and service, which offers exclusive attributes, which are treasured by customers. The company learnt that the parent based there purchasing decision mostly on price. The McDonalds marketing executive, therefore, did what was seen as ingenious.

They attached a $.50 toy in several of their products including the hamburger, French fries as well as coke. They went ahead, named the product a happy meal, and marketed it to the children. The industry knew that some clients visit its stores only to take a short break from their days work and not