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MacDonald's and Its Critics - Essay Example

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Case study - MacDonald's and its Critics Table of Contents Introduction 3 Establishment of Competitive Advantages 4 Sustainable Growth 5 Rapid Growth of McDonald’s 6 Profitability through History 8 Conclusion 9 References 10 Introduction McDonald’s is one of the leading fast food restaurant chains in the world…
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MacDonalds and Its Critics
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Download file to see previous pages The company implemented various promotional planning in order to increase competency of the company (McDonald’s Restaurants Limited, 2008). The company is also known as the “Penny Cost” business. It usually means to control cost and on the other side, to increase sales. McDonald’s implementation of penny cost in their marketing strategies helped increasing the sales and profitability of the company. Presently, the company is dealing with 30,000 restaurants all over the world (McDonald’s, 2011). The main aim of this paper is to recognize the competitive advantages attained by McDonald’s through the implementation of effectives strategies related to marketing, human resource as well as other organizational aspects. The discussion of the paper further emphasize on the evaluation of sustainable growth, profitability and the rapid growth achieved by the company through its performance over the past years. The Key Strategic Decision of McDonald’s Establishment of Competitive Advantages To gain competitive advantages, McDonald’s has implemented various strategic decisions into practice. Competitive advantages are known as the reward gained over the competitors by contributing towards customer values and perceptions along with other fundamental aspects of business management. Competitive advantages tend to mark the performance level of a firm in a highly competitive market that can be gained through the generic strategies as proposed by Michael Porter, i.e. cost leadership, differentiation and focus (Porter, 1998). McDonald’s adopted the theory of expansion to offer customers with highly efficient services. Their main target was to attain customer satisfaction and also attain competency through expansion. McDonald’s executed various strategies in order to expand the business and attain sustainable growth through competitive advantages. In 1940s Ray Kroc started the business with milk shakes and few other items. In 1968, when Mr. Turner was the president of the company, he implemented changes in its organizational structure. Regional offices were established, in different countries and market regions. At that time quality control was not quite significant in the fast food industry, but McDonald’s implemented the quality control strategies which assist to improve the company’s brand image (Bartone & Wells, 2009). McDonald’s provided high quality services to its customers and planned the business structure in a systematic order and attractive manner. McDonald’s implemented strategic alliances which majorly intended differentiating the products, increasing the sales along with the profit. McDonald’s also introduced “happy meal” chart, which included new recipes. The execution of this procedure attracted new customers. The company also focused on increasing its sales with an addition of 1,200 restaurants in its worldwide chain (Bartone & Wells, 2009). All these factors, such as expansion of target market area, customer base and increase in the customer satisfaction along with increased sales rewarded the company with greater competitive advantages. Sustainable Growth McDonald’s implemented strategic plan such as differentiation, and quality control. This assisted the company to gain competency and long term profitability in the market. McDonald’s executed differentiation of the products, as these strategies were expected to help gaining higher profit along with increasing ...Download file to see next pagesRead More
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