Question
FAST ANSWERS_PHD
McDonaldEvaluation1.pptxMcDonald Evaluation
Name
Institution
Problems in McDonald
Ineffective marketing
Poor product launch
Slowness to change some of the issues that should be addressed when a new outlet it opened
Low business strategies
Lack of a professionally designed competitive advantage strategy
McDonald's is an American entity and only focused on promoting American recipes. The company faces problems like ineffective marketing, poor product launch, slowness to change some of the issues that should be addressed when a new outlet it opened, low business strategies and lack of a professionally designed competitive advantage strategy
2
How the McDonald applied a competitive advantage
McDonald used cost leadership in order to please customers
Cost leadership is that it allows an entity to sell more for less.
Product differentiation. The company offers its products at minimized prices as compared to the likes of Arby's
Product differentiation brought about the inclusion of various preferences and considerations that customers prefer in McDonald(Bönnelyche & Schönborg, 2020)
McDonald used cost leadership in order to please customers. Cost leadership is that it allows an entity to sell more for less. The company offers its products at minimized prices as compared to the likes of Arby’s. The franchise similarly used product differentiation. Product differentiation brought about the inclusion of various preferences and considerations that customers prefer in McDonald (Bönnelyche & Schönborg, 2020)
3
Poor business strategies in McDonald
Long turnaround plan by Easterbrook
Theoretical business strategies than practical ones put in place
Customer concentration was not highly valued
No form of communication in terms of what customers wanted, what they did not like, nor feedback(Schmid & Gombert, 2018).
The poor business strategies which employed by McDonald included long turnaround plan by Easterbrook. The company employed theoretical business strategies than practical ones put in place. Again, customer concentration was never highly valued. And no form of communication in terms of what customers wanted, what they did not like, nor feedback (Schmid & Gombert, 2018).
4
Value chain in McDonald
Composed of primary activities and support activities
The primary activities include inbound logistics where the franchise owned its pre-defined suppliers
Operations fall under primary activities where McDonalds speed up its orders
In terms of services, the entity offers free Wi-Fi, gift cards and play places for kids to ensure that its customers are well entertained
The value chain activities of the company is composed of primary activities and support activities. The primary activities include inbound logistics where the franchise owned its pre-defined suppliers. The operations fall under primary activities where McDonalds speed up its orders. In terms of services, the entity offers free Wi-Fi, gift cards and play places for kids to ensure that its customers are well entertained.
5
References
Bönnelyche, S., & Schönborg, I. (2020). How Can CSR Give a Competitive Advantage in Accordance with the CSR Stage Model? A comparison between the Swedish company MAX and the American company McDonald's CSR strategies.
Schmid, S., & Gombert, A. (2018). McDonald's: Is the Fast Food Icon Reaching the Limits of Growth? In Internationalization of Business (pp. 155-171). Springer, Cham.
