What Strategies Should McDonald's Pursue in 2011-2013 - Essay Example

? WHAT MCDONALD’S SHOULD DO IN What McDonald’s should do in In order to have an organization create and maintain a competitive advantage in the business niche with the competitors, management decisions must be weighed and found sound. Constant actions and decisions are made after analysis. Thus, the strategic management within an organization revolves around conducting an analysis, deciding on an appropriate course of action and finally taking the action. Analysis of strategic management entails the critical evaluation of internal as well as the external environments within which the firm operates. Along these lines, an organization analyzes her missions, visions, goals and objectives as against the other players within the industry. Among these decisions that the organization must make is with what other firms do they compete and through what ways should the competition be? Finally, actions are taken with the aim, of realizing the set goals and meeting the decisions made after the analysis (Dess, Gregory, Lumpkin and Marilyn, 2005, 1) The McDonald’s (MCD) is a trade logo for a group of fast food and burger restaurants; she works like “Burger King Holdings.” The McDonalds are seen to be the dominant players within this industry with the widest coverage of the world. According to past reports, the company has set an ever rising performance in the last nine years with her key operational pillars being founded on; people customers and employees), price, products, promotion and place. Their fundamental operation strategy has been “plan to win” all through. The annual report on investors for the year 2010 reveals a fabulous performance of the company despite the many challenges she faced just like all other firms and especially those in a like industry of the fast foods. By managing deeper insights for customers and proper alignment of business strategies, the CEO says that a 5% rise in comparable sales was realized, 9% growth in operating income and the company’s overall market share around the globe increased. By upholding proper prioritization for the relevance of the firm’s brand and focusing sharply on the customers, the firm managed to keep on top in the year. However, as the CEO puts it, it was the same focus that was to be employed for the following year, 2011. The basic working formula for the firm has been building on and holding onto the basics while at the same time modernize and differentiate their brand. As for the service delivery, the brand was committed to further her excellency by adopting onto favorable technologies, invest in training and adoption of other service enhancement mechanisms that are all aimed at maintaining or improving her performance in the year 2011. Repackaging as part of product differentiation and promotion was to be adopted more so through restaurant re-imaging (McDonald’s Corporation, 2010, 1-3). In a more like manner, the year 2011 saw a fantastic performance of the corporation. The CEO records a 5.6% comparable sales rise a 10% growth in operating income and an increase in the corporations overall market share margin. All these are attributable to the proper forecasts made and policies put in place in the previous year, followed by the right decisions and the correct actions. This therefore has revealed a strong strategic management planning of the corporation over the year 2011. There was even deeper commitment to modernizing the operations of the corporation even further than the previous years with even more innovations on customer oriented products. 2012 was no lesser as the comparable margin in sales shot up by 3.1% while 4% was the income increase. The year marked a continuation of inventions and innovations where new menus’ came into place and the focused decision to become modernized taking shape. In a bid to reach more markets, the report also reveals great strides that have been taken to exploit new markets, especially within even the emerging economies. The strategic management and performance throughout the year 2012 reveal a lot on the course of strategy, decision and actions that are likely to be taken in the year 2013. With this being the sole purpose of this paper, then we intend to compare what is in plan for the corporation regarding this year with own recommendations. Among the 2012’sannual report recommendations is the adoption of technological innovations to aid in service delivery besides product differentiation. However, the competition within the fast food industry is gradually taking shape with other firms like the “Burger King Corporation” intensifying their efforts in targeting the baby boomers generation. Nevertheless, more of the concentration in the industry is shifting from prices to more quality products thou with innovation at hand. However, the corporation is facing some critical threats, which I would propose a quick intervention in order to save her reputation and performance. A SWOT analysis for the year 2013 indicates four major weaknesses of the corporation: publicity, which is negative, unhealthy and improper food menus, notable turnover for the employees and poor product differentiation (Anon, 2013, Para 3). As argued above, I strongly believe that competition has gone a notch hire and thus the need for the world leader in this industry to raise her standard. Innovations in suitable publicity in maintaining the corporation’s legacy is paramount. Proper and healthy food menus are necessary despite the price. A concurrent recommendation in extensive research for newer products would hold and more importantly is many efforts should be put in personnel welfare as opposed to profit maximization while the employee’s turnover declines. Therefore, it is the finding of this paper that The McDonald’s corporation has continuously taken the lead in the fast food industry globally in the past. However, many competing corporations have continuously joined the industry thus threatening the monopoly status of the corporation. Strategic management for the corporation over the years has been seen to bear fruits. Lying up of strategies, deciding on the lawful ways to act and taking the action simply describes the practice of strategic management. From our recommendation, it would be more beneficial for the corporation to put more effort in managing her weakness in this year than adopting other strategies. References Anonymous. 2013. Para 3. SWOT analysis of McDonalds. Strategic management insight. [Accessed on 22/4/2013]. Web: Dess, Gregory G., Lumpkin G.T. and Taylor M. L. 2005. 1. Strategic Management. 2 ed. NewYork: McGraw-Hill Irwin, 2005. 1-2 McDonald’s Corporation. 2010. 1-3. McDonald’s Corporation Annual Report 2010. 1-52 Read More