• Describe McDonald’s business strategy? What are the foundations of its competi
ID: 396263 • Letter: #
Question
• Describe McDonald’s business strategy? What are the foundations of its competitive advantage (what are the sources of its success)?
• Discuss McDonald’s business strategy and how it aligned with its business, human resource, and staffing strategies?
• What are some possible talent-related threats that could eat away at McDonald’s competitive advantage? Would higher turnover or a tight labor market in which it is difficult to find talented people be a problem? What would you recommend the company should do to maintain its competitive advantage over the next five years?
Explanation / Answer
The business strategy of McDonald's is to provide instant service at competitive prices. They follow a cost leadership model whereby they minimize costs to offer a low pricing to the customers. They have a front attack approach (Brand positioning) in marketing and customers have a perception of McDonald's brand image for good reasonably priced food and instant service, easily available online and through strategically placed outlets. They also follow a partial product quality approach, good quality product at a great price, many TV and online promotions, offers and food coupons, good locations, and constant offline and online advertisements. Easy availability through convenient drives through, great locations and online orders delivered in a short while.
The foundation of their competitive advantage is as follows:
Their business strategy is aligned with the staffing and human resource strategies as follows:
The main threats related to talent would be as follows:
Yes, the high turnover and tight labor market could shift out good talent for better compensation, easier job role, and better growth prospects. McDonald's can handle the talent issues by the following:
To maintain their competitive advantage over the next five years can be achieved as follows:
To summarize McDonald's can continue their market penetration and market development strategy by targeting new markets, new product development, and aggressive marketing.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.