McDonalds Business Analysis
"In 1990 the managers to recognize their ability to use and maintain the basic skills that will allow growth to be assessed -. Yes, they have a concept of society, are considered forward"
CK Prahalad and Hamel G 1990
Organizations do not exist in a vacuum. You work in a competitive industrial environment. Analyzing its competitors not only enables an organization to identify their strengths and weaknesses, but also help to recognizeOpportunities and risks for the organization from its industrial environment. The SWOT analysis is a systematic analysis of these factors and the strategy that reflects the best match between them.
Let these principles in the basic skills of McDonald's, one of the largest companies in the food chain in the world. Let us start with the strengths and positive aspects that define the performance of the company. How can we define the strengths of the company?Strength is a distinctive competence that the company has a comparative advantage in the market. For example, financial resources, image, market leadership and buyer supplier relations, etc.
McDonald's is n. A chain of fast food stores with 40 million customers who visit every day. He has more than 30,000 outlets in 120 countries. It derives 80% of its revenue from eight countries like Canada, Brazil, Germany, France, Japan, Great Britain, Australia and the United States. The greatest strength has beenCreate an image in people's minds and their introduction to the culture of fast food. delivery speed, customer service and cleanliness are the strengths that have developed these sites. They have created a company logo and their campaigns have been very successful in creating brand and logo in the minds of millions of people. Both generally identified with McDonalds are the main rivals Burger King and KFC. McDonalds marketing strategy isdeals with internal resources, external environment and its basic skills along with their shareholders.
McDonald's product value is also its greatest strength. Customers know what to expect when you go to a McDonald's store. There is great emphasis on human resources in meeting the needs of customers and employees. Next step is the aspect of innovation with new products line-up for new trends and tastes of the people. The diversity inother start-ups can also be seen as its strengths.
How effective are these strengths McDonalds society in the long run? Today is not editable, as it was during its creation. What are the factors that determines its current decline in sales and services? To analyze this factor we look at the shortcomings of the corporate business and marketing strategy. What can generally be described as a weakness of a company? The sameFactors that were seen as strengths are also a weakness, if they hamper the overall performance of the company.
customer trends change and so their decisions. People are generally tired of the same brands have been using over the years, so if you do not see innovation expected, they migrate to new brands. Also, people see McDonalds everywhere, and this exhibition is about abstinence is a reason. Furthermore, given the rules of thatgiant chain is possible and the lack of a high quality service in a business, the effects of the mark.
The secret of a marketing strategy is to reach the target group. And here again the target should be chosen carefully. In the case of McDonalds than projected in its ads, focus groups were children. Demographics and customer financial and psychological aspects define a successful business. Health-conscious women and the elderly fromlarge populations, but soon the children grow into adults. recent actions and documentation have led the latest company and a substantial change in product lines for health and the transition to the needs of today's trends and needs of this has increased the popularity of McDonald's has lost a bit '.
All these factors suggest that the external forces and weaknesses. There are also internal factors that influence the performance and total value of the companycould enjoy. Kids based marketing strategy that used to be a weakness has changed since 2003. Now young people and adults are usually more than the world of McDonalds ads. The research and development that was missing earlier in research and quality of the mark defined options with various research and development work today. McDonald at some point started to focus on expansion and growth in size, missing key factors such as the maintenance of quality and R & D.
An importantThreat to any brand is the relationship between management and franchise dealers. organizational strength is the backbone of any concern and when the crash shook the entire system. But McDonald centers slowdown recovered from these shortcomings, its brand can easily communicate with all managers to compare and improve their services through the most recent technological developments, where they can use the Internet to motivate and to compare and improve otherPerformance.
The full analysis of all internal and external forces and weaknesses of these companies want to create a sustainable plan for the company to further improve the project. For any improvement or expansion of internal resources must be available. And so the analysis of this aspect can result in a change of strategy to meet their vision. Taking into account available resources, the planner should think globally. Therefore, the use of all the key skills ofCompany can definitely keep the market competitive.
The change in top management level has received a new wave has been implemented in its performance and major changes and supported the mark of quality and innovation. Like the new CEO quoted correctly,
"The world has changed. Our customers have changed. We need change."
James R. Cantalupo, Chairman and CEO of McDonald's, 2003
Now we want to analyze the company's sustainable competitive advantages.What is a sustainable competitive advantage? How can you be McDonalds? SCA has the advantage of a society that is impossible for other companies to own or difficult or break. It may be the brand, customer care dynamics, cost structure or the patent. Whatever the benefit to the sustainable should be owned or distinctive to be considered. In addition to these three aspects that help to SCA,
o The management andshould share a good process of organizational integration and coordination. The much needed "value" is like any attempt to work toward a common goal created. The organization should learn and effect change on the agenda and must be flexible to environmental changes such as customer trends, governmental or legal restrictions and developments in technology. McDonalds is currently concentrating on this advantage by focusing onOrganizational behavior and management skills. Previously, this benefit has been ignored since the organization was an extension of its outlets around the world as to strengthen its main advantage. As a result of revenue is not a big change, while newer stores were open. The company suffered a huge loss for the first time in their supply of materials, leading to a change in leadership heads.
O technology assets, structural and financial powers of a company are excellentmarket position, the McDonalds helps SCA. Sure, a lot of aspects such as structure, technology and finance. To identify and implement these activities in the right direction to improve society is all that is needed. After 2003, the company has really started to focus on its major advantages.
or, especially, the main advantage of the vision or the dream started with the company. To support this dream over the years, eachgreatest benefit of the Company. A brand revolves around such conservation vision of this vision and to work with him instead of SCA is great. McDonald's Restaurant was started to help right a people, had little time to cook or too busy to get in to. The vision was to provide faster service, quality products at affordable prices and satisfied. In this context, the vision of the company, which is a bit 'decreased because of incompetent franchisee eliminated and people new and betterI'm here as a torchbearer of the company to maintain and to live and share the vision.
So we are all SCA implementation of best value strategy means all the advantages that are unique to the company and not be copied or replicated by other competitors. The importance of this SCA is responding to the large investment guru Warren Buffet was asked if, as he clearly values its investment portfolio. He replied simply "sustainable competitiveAdvantage. "This dynamic is based on the integrated and intelligent staff, can only reliable and sustainable SCA.
Outsourcing boom or destiny in the world of work today
Today, everything is coming out of the appointment of employee participation to finance and support. No organization is more than sufficient to handle all types of work. Moreover, by focusing on every detail not possible with a great concern especially as McDonalds. But do not beThe outsourcing of basic skills. Advantages of outsourcing are cheap, knowledge of the offshore markets, flexible resources, operations smoothly, the expansion of supplier may, etc., above all, focus the company on its core competencies and the rest of his Business activities. Recently McDonald has tested its drive through order. Where to place the order ensure that only with the socket. The order from the outsourcing company has acquiredreturned to the restaurant at home. This call center equipped with a digital camera that takes the wheel of the vehicle through the delivery man and returned home for the order and the person who put it with the image of the machine to be integrated. Outsourcing helps to increase as external suppliers and fills the difficulties caused by the lack of modern technologies and innovation in the face.
What started as a success story with McDonalds was the first of a series of previousRisks, competitions and major setbacks. What makes it even stronger and is ranked among the top companies in terms of core competencies and sustainable competitive advantage, both internally and externally. Of course, keeping up with changing times, the company has also set foot in outsourcing, but the point is to keep an eye out there run by outsourcing mania. The company has begun to return to his golden glow by recent large-scale transformation of theirorganizational and structural changes implemented.
Conclusion:
No specific competitive strategy is guaranteed to succeed at any time. risk attitudes can change, depending on the volatility and uncertainty of many environmental and internal conditions might be involved. Thus the "four Ps" of marketing (product, price, place and promotion) provides a good starting point for examining the requirements for the implementation of the strategy in the marketing function.The mixture of these elements should be reasonable and marketing plans for each of the elements must be reasonable.
The marketing function is the consumer-oriented marketing decisions, and therefore the accurate determination of the needs of consumers and design of marketing strategies to meet those needs based. The distribution system takes to fill the product or service to the place in the best possible customer needs. Access to distribution can mean the difference between successand the failure of a new product. How many products to support the sales channels in the form of quick service, fast order processing, the choice of distributors, wholesalers and jobbers need is extremely important.
The promotion is more than advertising. The location, size and type of markets that should be the business strategy to drive down the promotion mix decisions and to indicate the content of advertising material as well. The price is a complex issue because it is relatedCost, volume, etc and compromise, because it is often used as a weapon of competitive advantage. changes in pricing policies are likely to cause the reaction rival. With prices for the position of price wars that are in violation of the rule of all parties concerned leading jockey.
Marketing has always received more attention in the competitive sector, since the early modern period. The old concept of marketing existing products of the company and as a focus of marketing to insist on the sale and promotionto maximize profitable sales. The new approach focuses on existing businesses, however, potential clients and tries to earn profit through customer satisfaction with a program of integrated marketing.
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