Understanding Strategies

Understanding Strategies

Introduction

The term Strategy is always linked to the ability to lead and coordinate actions to achieve a goal, and has a positive connotation so it is often used with a bit of pomposity or exaggeration in areas where idea, concept, plan or tactic would be both more accurate and honest. Initially, it is the art of coordinating the action of all the forces of a business organization to conduct its operations and managing a crisis or preserve strengths and opportunities. The strategy aims to create or re-create the potential for your business. It commits the company in the medium and long term. The first activity that comes to mind is the strategic approach is the strategic assessment of the situation of the company (Andrews, 2009).

In Food Chain industry the strategy is commonly regarded as the prerogative of the business executive. The purpose of the business strategy of a food chain industry is to achieve a competitive advantage, that is to say the ability to generate a sustainable profit higher than competitors, although the case of companies whose performance remains persistently above market remains extremely rare (Ansoff & McDonnell, 2008). It refers that setting strategic goals based on the configuration of the environment and resources available within the organization and the allocation of these resources to achieve a sustainable and defensible competitive advantage is known as an organizational strategy. In restaurant and food chain industry it is necessary to develop a sustainable business strategy to maintain competitive advantage and customer loyalty with the increasing innovative patterns and changing customer preferences and dynamic environment (Dean & Sharfman, 2007, pp. 368-392).

Discussion

McDonald's-An Organizational Overview

Abdu works as a Senior Manager in Marketing (Sales & Promotion) Department of McDonald's Corporation. The report is a deep analysis of market research conducted to understand the strategic management of company.

The McDonald's Corporation is an American operator of the world represented fast food restaurants. It is the top-selling fast food chain in the world. McDonald's is a company of restaurant chains and currently operates more than 34,000 restaurants in 119 countries. 1.8 million People are employed by McDonald's Corporation or one of its franchisees. The company was founded originally in 1940 and on an average it serves 69 million customers each day (Kaufmann & Lafontaine, 2011, p. 417).

A McDonald's restaurant is operated by a commercial network, by a member or by the company itself. The company revenues come from the rent, royalties and fees paid by commercial networks, as well as sales in company-operated restaurants. McDonald's revenues grew by 5.5% during the two years ending in 2007 to $ 21.6 billion along with earnings growth of 36.2% of operating income to 3.5 billion dollars.

McDonald's primarily sells burgers of beef, chicken and fish as well as fries, menus for breakfast, soft drinks, milkshakes and desserts. The company has expanded the offering with salads, wraps and fruit (Kaufmann & Lafontaine, 2011, p. 417).

Mission

Mission o f McDonald's is to be the favourite place for its customers and the way to ...