MCDONALD'S STRATEGIC PROSPECTS

MCDONALD'S STRATEGIC PROSPECTS
Name
Institution Affiliation
Course
Date of Submission
McDonald’s is one of successful fast food outlets in the world due to appropriate development and implementation of its business strategy. The business structure and external environment are some of strategies employed by McDonald’s for their business structure in response to the dynamic external environment to achieve their strategic goals. Having originated from the US, McDonald’s is the most recognized brand in the fast food industry with more than 30000 outlets in 119 countries and serving more than 47 million people every day (Han, 2008).
McDonald’s has formulated many strategies for their success such as the porter’s five forces strategy that constitute differentiation and low cost leadership and the miles and snow’s typology strategy that define the prospector, defender analyzer and reactor strategy. Analyze is the strategy that provides the most strategic position to develop their business in the extreme complex and competitive ever changing market (Han, 2008). This strategy maintains a stable business while innovating on periphery in between the prospector and defender. The strategy targets towards the stable environment where efficiency keeps current customers while on the other hand targeting new environments where there is possible growth. The application of these strategies has enhanced McDonald’s the interaction with business structure and the external environment.
Since McDonald’s business strategy is based on geographic structure which is the most strategic approach that enables the firm to maintain its leading position while expanding business to new emerging markets. Nevertheless, the different consumer groups have different tastes and preferences and therefore, McDonald’s responds to these geographic units by producing and marketing its products through the regional structures to satisfy the needs of local consumers r...