Posted at 11.30.2018
McDonald Corporation is one of the largest chain of fast food restaurants in britain. It primarily provides French fires, hen, hamburgers, carbonated drinks and breakfast. This paper draws on the view that McDonalds junk food continue to continue to be competitive in the junk food market topic by virtue of strategic management which views it enhancing the taste of sandwiches as well as producing a menu lost that is new for its customers. To comprehend the success of McDonald over the years, it is important to note the strategic management of the junk food corporation in the united kingdom. Area of the strategic drive of McDonalds to increase its competitive edge has gone to overhaul the machine of food preparation as evidenced in its recent food preparation system dubbed "DESIGNED FOR You", McDonald developed a common relationship using its customers since fresher as well as hotter food are delivered to customers; an aspect that leads to more ingestion of McDonalds food (Stuart et al, 2007). The overall point in the proper thinking and management of McDonalds rests on the enhanced versatility on its customer service, business model, attaining and studying the strategic border in light of competitive benefits and business level strategies. This paper seeks to investigate the wider environment in which McDonalds operates competition within the junk food industry, strategic target, and how to address challenges that happen within the industry.
McDonalds JUNK FOOD Company is among the largest food service retail organization. Known for its hot and fresh fries, hamburgers, burgers and carbonated drinks, McDonalds works about 30, 000 restaurants in over 199 countries. In the UK, most the McDonalds performs on the franchise basis. The strategic concentration and organizational management has placed McDonalds to remain competitive effectively within an already competitive industry and therefore edge a competitive platform in the commercial environment and revel in a market market for its business. Customers visit its shop on the daily basis because of the capacity of McDonalds to make a company's image that enhances people to get accustomed to the culture of fatty acids food (McDonalds Organization, 2010). As such, there can be an apt customer base which McDonalds uses as a market entry strategy. Together with advertising companies that leaves the brand image in the consumer's mind, McDonalds continue not and then penetrate the market but also extend their market size. As a result, there are a number of strategies that McDonald creates on to remain competitive in the industry and achieve t business and organizational target.
McDonalds Company Overview
As one of the largest fast food company in the united kingdom that specializes in burgers, French fries, gentle foods and breakfast, McDonalds has in the most recent introduced salads, snack wraps, fruits and carrot sticks. McDonald is an enterprise that goes back in 1940. It was an idea that grew and became functional as both brothers Mac McDonald and Dick opened a restaurant in the United States (Walsh, 2009). The first McDonalds operated on the process of modern junk food restaurant which later pass on across Europe. The present McDonald is because of this of the successful enlargement of the McDonald into a bunch of junk food markets. The company has become the symbol of globalization and it prominence in the united kingdom is dependant on the concept of consumer responsibility as well as corporate ethics (McDonalds Firm, 2010). Essentially, McDonald functions approximately one million customers every day.
Business Environment and Evaluation of McDonalds
The environment in which McDonalds works is very competitive that professionals have been forced to adopt a strategic framework upon that they exercise their potential to recognize, cultivate as well as exploit the center competencies that ensures that there exists business and market expansion. Thompson (2005) asserts that to be able to arrive as of this proper threshold, McDonalds as a firm has been the target of the tactical policy formulation. In addition, Brown (2002) points out that there is no way in which the organization can can be found in the vacuum. Within this sense, McDonalds operate inside a competitive environment and the foundation of its tactical management rests on its potential to investigate its competitor in the fast food industry. As a result, this not only allows McDonalds to realize its talents and weakness but also make it to formulate a posture which it identifies the opportunities that can be found for the organizations well as the threats it can face from its wider commercial environment. This tactical evaluation best positions McDonalds in its market area of interest and is thus a strategy that shows the best march for McDonalds tactical management.
The competencies exhibited by McDonalds form yet another facet of its overall tactical management. Parsa (2002) contends that among the largest food string companies in the united kingdom, it defines its success from its talents and opportunities. This is the distinctive competitive strategy that improves the corporation's competitive benefits on the market. A case in point is the financial opportunities, market management, image of the company to the market as well as the relationship between your company and its customer varieties the advantages as well as opportunities than McDonald has achieved on its wider strategic management plan.
To achieve an enhanced and more profitable market area of interest, McDonalds creates an effective image in the customers' intellects and draws from it mission and vision statement to present to widespread customers a culture of junk food. This is evidenced by the essential concept that this acts over one million customers in UK per day and continues to add on its menu a new list of fast food items prepared. Furthermore, customer care relations, delivery acceleration as well as high hygienic conditions make the basic strengths on which McDonalds expands on. Cole (2003) articulates that McDonald has generated a corporate sign that is reinforced by the advertisements campaigns in the UK. Accordingly, it builds upon this pedestal to foundationally establish a brand image that has continued to be in the minds of millions of men and women living in the UK. As a result, the brand image positions McDonalds an advantage greater than its major competitor in the meals chain industries and its marketing strategies efficiently addresses important business operations factors such as inside resources and the primary competencies with regards to the external environment where it runs (Kendrick, 2008).
Moreover, business analysts have taken care of that the product value of McDonalds has contributed to the tactical concentration of its businesses. With regard to the, customers know about what to expect from the McDonalds restaurants whenever they visit the McDonalds. Thus giving emphasis on the actual fact that human source draws their satisfaction from gratifying their customers and helps to keep the employees prepared to adopt the innovative strategy of the business where they create newer products in the market in a bet to remain on border with the newer preferences and movements of its customers and market size. The diversity of McDonalds into other related business forms the framework which economists consider the McDonalds as the successful corporate and business group within the junk food industry (Enz, 2009).
Competitive Environment within the Businesses of McDonalds
Every junk food restaurant working whether as a business or individual business is aimed at creating a new influx in the performance; all targeted towards implementing and sustaining the brand quality and the creativity of the business plan. Many fast food restaurants in the UK continue to examine the external as well as internal business opportunities and for that reason develop marketing strategies that see them with a significant market stocks. These make food string industry an extremely competitive industry in the united kingdom. Matching to Hetrick et al (2006), McDonalds appreciates that competition for market place is stiff and has tasked its management to constantly connect, compare their services with those of other fast food restaurants and finally improve on their service delivery and incorporate the innovations of technology such as the internet to basically motivate their clients and improve on the overall center performance.
In addition, many junk food organizations undoubtedly enhance their food production rendering it futile to make use of the merchandise quality alone as the online marketing strategy. As this may create a scenario what your location is ranked average, McDonalds has truly gone a notch higher in edging its competitive advantages by modifying every marketing and business strategy to suit its perspective statement. So, Heath and Palacher (2008) argues that considering the already available resources is one point towards success but making use of all the principal competencies has enabled McDonalds to support its place in the competitive market. Consequently, as the principle executive officer of McDonalds said, "the globe has extensively transformed therefore have the customers. This calls for a dire dependence on any business company to improve in light with the clients change" (Walsh, 2009).
McDonalds Competitive Position within the Food Chain Industry
McDonalds has achieved the subject of the best and largest fast food restaurant in the UK from its overall strategic management concept of ecological competitive market. With emphasis, this strategic insurance plan has been behind the McDonalds potential to make it problematic for other food chain industries to permeate its stronghold market place. Hill and Jones (2007) describe that McDonalds competitive position is attributed to its dynamic customer care relationships, brand imaging, cost framework as well as its patent. In regards to to the, the organizational as well as the managerial process has devoted to writing coordination and integration to formulate plans that drives the McDonalds on the pedestal of success. Believing in the customer and product value, McDonalds has created a situation where every worker strives to benefit the normal goal.
Similarly, McDonald, through its proper management has shown its power in being able to learn and do changes based on the needs of the market segments. From this conceptualization, it offers commanded a competitive position by being flexible to change within the milieu of technical trends and customer tendencies (Stuart et al, 2007). So, Kendrick (2008) further postulates that a case in point for McDonalds success and market position falls on the paradigm of its long time organizational culture of focusing on its advantage such as organizational actions as well as expertise to have success in every aspect of its objective. Before, McDonald paid little attention on the idea of competitive advantage and so even though it opened many retailers across Britain, its income did not change to the better.
The structural, technological and financial resources are the excellent market position of McDonalds. It therefore follows that McDonalds not only identifies but also implements these property in the right direction in a bid to improve the services of the company on the market. Bordering the advantage on the eyesight which guides the company, McDonalds attracts its strengths to achieve the competitive position by being committed to the sustainability of its vision. For example, bearing in mind a brand or product revolves around the company's eye-sight, McDonalds works instead with this concept and thus attributes its competitive benefits on its faithfulness to the objective, eye-sight and goals as well as aims of the organization (Thompson, 2005). In light of this, McDonalds performs on the guideline of serving those people who have little or no time to prepare an therefore provides a solution of a proper restaurant. In cases like this, the eyesight provides not only quality products but also quick service and desirable satisfaction among its customers.
The sustainable competitive advantage has undoubtedly intended well for the McDonalds and applying these strategies is based on incorporating the best value strategies which will make McDonalds unique and hard to be emulated by its rivals. It is noticeable that competitive advantages has helped and continue to help McDonalds to understand a great investment through an integrated, sensible and dynamic human resources as well as tactical management (brown, 2003). Because of this, McDonald caters for the situation where risk attitudes change and completely vary environmentally friendly doubt and volatility. This predicated on the product, price, advertising and place has provided a good starting place for the competitive position of McDonalds. Towards applying the marketing function, the management of McDonalds constantly utilizes components of marketing mixture to appropriate plan how to achieve the popularity on the market place (Enz, 2009).
McDonalds Marketing Strategy
McDonalds is known for its market entry which it introduces people to the culture of fast food through the career of emotive and highly persuasive advertisements promotions. As Hetrick et al (2006) point out, McDonalds uses well structured advertisement campaigns to make a corporate system that penetrates the market as well as expands it. In regards to to this, Parsa (2002) notes that McDonalds have put in place strategies that deal with the growing number of fast food customers in the united kingdom. Towards reaching this, McDonalds emphasizes on customer support, velocity in the delivery and high hygienic conditions around the McDonald premises. Linked to the idea of market access strategy, McDonalds equally develops on its brand image; one factor that recognizes it as an independent company. Accordingly, the business has considered business environment to accomplish a competitive advantage predicated on the service delivery, product and price.
In addition, McDonalds have used the diversity strategy in its businesses. Hill and Jones (2007) contends that McDonalds uses this plan to venture into other business; one factor that has helped the business to talk to the market movements a mid the rising conclusion in the meals chain industry. Towards this, McDonald's emphasis on health food, intro of new items such as salads on the menu, transformed the entire appearance of the stores among adopting newer strategies. In light of the, McDonalds is able to achieve a competitive position in the marketing environment that is getting more competitive by day s a result of entrance of new players in the industry.
Heath and Palacher (2008) further assert that a lot of enhancements where McDonalds produces new products show another strategy used for the McDonalds to meet up with the latest market development. As a result, with the ability to respond to the ever changing likes and concerns of customers. For example, McDonalds continues to develop new recipes as part of it proper formulation to cater for medical issues and concerns of the clients in UK.
McDonalds continue with the franchising model and uses over 60000 employees in about 1200 restaurants. The success behind all theses is typical of the effective marketing strategies that lead to the creation of high demand for fast food (Cole, 2003). The purpose of successful marketing rests on making superfluous sales. Understanding the client as well as the merchandise that fits them has definitely created the building blocks of McDonalds online marketing strategy. As opposed to other junk food restaurant whose entrance on the market somehow takes the client for awarded and ends at providing quick service, McDonalds exploits the underlying idea of marketing which attracts on the notion that customer satisfaction is the principal business main concern.
Comparatively, many fast food restaurants in the united kingdom are motivated in making profit and although they offer quality services, they lose out on adding their customers' satisfaction on the fist concern. McDonalds has created business strategies that purpose at gratifying the creation of client satisfaction. Fundamentally, McDonalds has committed to understanding the needs of an organization or sets of customers in what is called market segmentation (Brown, 2002). Therefore, McDonalds defines these music group of customers in terms of demography such as their age, region and gender such that each band of customers have a effectively and specifically tailored products and a marketing blend.
Future Advancements in the Fast Industry
It is important to notice that following the market trends of excess fat food industry, outsourcing of employees might not exactly be effective. It is clear that everything in the present business community outsources but McDonalds should be ready to be mindful when outsourcing because in future, outsourcing will stop in its value following a whole sale idea of outsourcing competencies of the fast food string store (Hetrick et al, 2006). Towards cushioning the result of the, McDonald can outsource other business functions however, not its core competencies. As a result, it'll keep abreast with the fact that the advantages of outsourcing which includes understanding of market offshore, provider relations and growth of business procedure. By doing this McDonalds will have set up an order center to pillow itself against competition, business failing and reduced profit percentage.
In addition, the question of increased competition will be a future development due to the extensive admittance in the fast food industry. Consequently, McDonalds must face a range of market risks as well as other business setbacks. However, what will make it strong and continue to enjoy the position of a leading junk food company is the constant formulation and implementation of strategic guidelines predicated on its knowledge of the customer needs. In other words, the taste, choices and satisfactions of the client should be their continuous priority to handle this challenging situation (Parsa, 2002). With the near future market function taking a consumer oriented strategy, the marketing decisions are care going to be influenced by the careful recognition of the needs of the clients. Therefore McDonalds will need to devise marketing strategies that meet the customers needs and a business circulation system that bring the brands nearer to the needs of the client.
Recommendation for McDonalds Future Strategy
McDonalds should in future design a business plan that addresses the cultural changes spearheaded by the government and consumer teams which border stimulating a well-balanced diet and thus put together types of foods that on the nourishment of the client as well as their healthy standards of living. Essentially, additionally, it may develop a joint venture with other organizations such as the supermarkets in that a few of its food is sold in the supermarkets. This comes with the marketing repository which will help it to more effectively get in touch with specific target sets of consumers. The customer identification could be based on modeling and buyers profiles; a factor which will improve the prevention of music group switching. Furthermore, McDonalds should focus on the corporate social responsibility and advantage nearer to those organizations with a value effect on the contemporary society (Enz, 2009).
Similarly, McDonalds should recognize that advertising of its products is not only an advertising function. It should come up with both advertising campaigns and promotional strategy that is defined by the type of the market, how big is the marketplace and the preferences as well as tastes of the clients. By doing this, McDonalds should design on the promotional blend that address the aspect of price, product and market in the manner the customer will feel appreciated to consume the merchandise.
From the above talk, it is visible that the tactical management plan of McDonalds has located it as the major fast food firm in the UK. Which means that its business model is evidently different form other fast food chains. . Part of the strategic drive of McDonalds to increase its competitive edge has been to overhaul the machine of preparing food as evidenced in its recent food preparation system dubbed "DESIGNED FOR You" McDonalds developed a shared relationship with its customers since fresher as well as hotter food was sent to customers; an aspect that led to more intake of McDonalds food. The entire point in the tactical thinking and management of McDonalds rests on the improved overall flexibility on its customer support, business model and studying the strategic border in light of competitive advantage, business level strategies amongst others.