Business Strategy - Research Paper Example

McDonald’s Business Strategy McDonald’s Business Strategy McDonald’s is a leader in the quick service restaurant industry andenjoys a remarkable market share. McDonald’s operates in 119 countries and has over 33, 000 restaurants. Through its business strategies, McDonald’s has managed to register remarkable profit margins compared to its close competitors. However, it is critical to assess the restaurant’s business strategy in an effort to determine whether it matches properly to the conditions of the quick-service restaurant industry.

In the recent past, McDonald’s developed a plan-to-win strategy whose purpose was to ensure that the company not only got bigger but also better (Vitasek & Manrodt, 2012). There were several initiatives developed as part of this strategy as will be described and evaluated below. One of the initiatives was ensuring that the company registered improved restaurant operations. In an effort to achieve this, McDonald’s ensured that employees received relevant training to their job responsibilities as well as leadership skills.

Since the company has the Hamburger University, it proved easy for it to offer training programs. In addition, McDonald’s sought to ensure that its products were sold at an affordable price. Notably, the company indulges in research on the emerging economic trends and ensures that it adjusts prices to match the economic situation. The company focused on cutting down costs so that it would succeed in reducing the food prices. However, it maintained its quality of services and food. McDonald’s also increased the variety of its menu presenting consumers a diverse range of beverages and fast foods.

The company was keen to realize that healthy eating has become a priority for many consumers and introduced quick service foods, which are healthy. Worth noting is the fact that the company also increased the number of McCafes as well as operating hours (Weinstein, 2012). In order to determine whether McDonald’s strategy is well matched to the industry conditions, it is critical to consider how its internal and external conditions complement each other and how they are aligned with the industry conditions.

Evidently, McDonald’s has identified and utilized the best opportunities available in the market. It strives to offer its consumers unique products. In addition, the company has ensured that its business strategy conforms to the emerging social and economic conditions as well as buyer preferences. This is made evident by the fact that the company reduces prices when there are economic hardships. Moreover, it introduces healthy fast foods in an effort to conform to the social emphasis on healthy eating.

It also offers a wider variety of foods to match the preferences of consumers (Weinstein, 2012). A closer look at the company strategy reveals that McDonald’s is utilizing its resources, especially human resource to promote its competitive advantage. A second criterion for assessing whether the strategy of McDonald’s is effective is considering whether its initiatives present it with a competitive advantage. Notably, McDonald’s has adopted several differentiating features of its competitors.

It offers high quality foods and beverages, provides a wide variety of foods, and ensures proper customer services. Moreover, the company has focused on offering foods and beverages that present consumers with more value for their money. This means that the company succeeds in satisfying the consumers. Notably, McDonald’s has also introduced products that target a specific niche in the market. Finally, there is evidence that McDonald’s strategy has registered a remarkable performance. If a company’s strategy registered performance after execution, then it means that it is well tailored to meet the conditions of the industry and ensure a competitive advantage (Vitasek & Manrodt, 2012).

McDonald’s registers remarkable profits and is a leader in the industry. This confirms that its strategy fits the quick-service industry.ReferenceVitasek, K., & Manrodt, K. (2012). McDonalds Secret. Leadership Excellence, 29(10), 8.Weinstein, M. (2012). McDonalds Recipe for Success. Training, 49(1), 60-63.