Assignment 1: Strategic Management and Strategic Competitiveness

Strategic Management and Strategic Competitiveness
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Strategic Management and Strategic Competitiveness
McDonalds’s Company is the leading fast-food company with more than 35000 outlets across 100 countries. The company primarily focuses on selling hamburgers, french fries, chicken, soft drinks, milkshakes, and burgers. Also, McDonalds’s provides employment opportunity to about four million people in these countries and serves about 70 m million customers daily. The company has achieved its large market base by adopting a franchise model, whereby about 80% of its outlets are owned and operated by independent entrepreneurs across the world. Indeed, McDonalds’s is a perfect example of globalization as its impact is felt across the world. McDonalds’s has fully benefited with the advantages brought by globalization, such as sharing of ideas, enjoying large market share, a vast source of labor as well as a competitive advantage. Therefore, the paper analyzes how globalization and technology has affected McDonald’s performance and how its mission and vision statement has influenced corporation will be discussed.
Globalization
In a globalized world today, MacDonald has adapted to meet the demands of is clients while capitalizing on the positive impacts and mitigating the negative impacts of globalization. Globalization has resulted to rapid economic growth, improved cost of living, and favourable financial policies that have consequently triggered new emerging markets, and string consumer purchasing power. McDonald’s has taken advantage of this favourable economic condition around the world to expand their reach into the new emerging markets such as Singapore, Korea Indonesia, China, and some countries in Africa such South Africa. For example, McDonald has stepped into the Asian market by opening up more than 300 outlets in China and South Korea over the last 3 years. As a result, the company has seen the company reporting an increase of over $ 5.4 billion revenue in the first quarter of 2018. On the other hand, globalization has set in competition for the Company since the competitors ate pushing into the new and old markets as well. Rival companies such as Subway, Burger King, Wendy’s and Yum! Brands are also focusing their way into the emerging markets as well. Although, McDonald’s strategic planning that involves franchising and affiliation approaches has helped in minimizing the impact of these competitions.
Technology
Technological advent has prompted business to adapt new ways of trading to match the dynamism of the consumers and the market at large. Technology is known to add aspects of efficiency and effectiveness into a business by eliminating errors and blunders. The Company’s executive says the technology has enabled significant changes in the manner in which it serves its customers. The company is planning to launch its online ordering platforms that will allow customers to place orders at the comfort of their living room. Also, with the aid of cloud computing, the Company now has shifted from the traditional data saving approaches to the new mode of saving in programs, and thus making it for its stakeholders to access nec...