Mc Donalds Strategy
Mc Donald’s Strategy
Strategy is a plan of action that channels an organisations resources so that it can effectively differentiate itself from competitors and accomplish unique and viable goals. (cavusgil, knight,, 2008)
McDonald's brand mission is to be customers' favorite place and way to eat and drink. In order to achieve this, its global operations are aligned to work for a “Plan to Win” strategy which entails the 4 Ps – People, Products, Place, Price and Promotion. http://www.aboutmcdonalds.com/mcd/our_company/mission_and_values.html When we consider business strategy, it entails many aspects, such as entry mode strategies, competitive strategies, marketing strategies, etc. In international context, strategy is a plan for a firm to position itself positively from its competitors and configure its value adding activities on a global scale. (cavusgil, knight,, 2008, p 315).
As an entry mode strategy, Mc Donald’s has considered franchising as About 80 percent of Mc Donald’s 30 000 plus restaurants world-wide are owned and run by franchisees. Also Entrepreneur magazine ranks Mc Donald’s # 9 on Top Franchises for 2013. The stats prove that there is vast amount of experience and a good success rate that supports selecting franchising in Vietnam too. The franchise business model allows its franchisee-members, management and shareholders to share the risks and rewards from the discovery and exploitation of new business opportunities—McDonald’s model has become the norm for other franchise organizations. There would be a detailed discussion in the entry mode part of the analysis on the various advantages involved with franchising in Vietnam and the reasons why this proves to be an appropriate entry strategy.
Think Locally, Act Gloabally:
Moreover, on individual country basis, Mc Donald’s undertakes a “think locally and act globally” strategy that would bring it in accordance to its global strategy. This is also referred to as a transnational strategy in
Strategy is a plan of action that channels an organisations resources so that it can effectively differentiate itself from competitors and accomplish unique and viable goals. (cavusgil, knight,, 2008)
McDonald's brand mission is to be customers' favorite place and way to eat and drink. In order to achieve this, its global operations are aligned to work for a “Plan to Win” strategy which entails the 4 Ps – People, Products, Place, Price and Promotion. http://www.aboutmcdonalds.com/mcd/our_company/mission_and_values.html When we consider business strategy, it entails many aspects, such as entry mode strategies, competitive strategies, marketing strategies, etc. In international context, strategy is a plan for a firm to position itself positively from its competitors and configure its value adding activities on a global scale. (cavusgil, knight,, 2008, p 315).
As an entry mode strategy, Mc Donald’s has considered franchising as About 80 percent of Mc Donald’s 30 000 plus restaurants world-wide are owned and run by franchisees. Also Entrepreneur magazine ranks Mc Donald’s # 9 on Top Franchises for 2013. The stats prove that there is vast amount of experience and a good success rate that supports selecting franchising in Vietnam too. The franchise business model allows its franchisee-members, management and shareholders to share the risks and rewards from the discovery and exploitation of new business opportunities—McDonald’s model has become the norm for other franchise organizations. There would be a detailed discussion in the entry mode part of the analysis on the various advantages involved with franchising in Vietnam and the reasons why this proves to be an appropriate entry strategy.
Think Locally, Act Gloabally:
Moreover, on individual country basis, Mc Donald’s undertakes a “think locally and act globally” strategy that would bring it in accordance to its global strategy. This is also referred to as a transnational strategy in