Mcdonalds Internal Analysis and Business Level Strategy

Internal analysis

McDonalds Company operates by controlling many McDonald restaurants all over. It acquires food from various suppliers, maybe individuals or companies. It offers food at affordable prices, which is always available at any time of the day. It has many restaurants in very many countries. Due to that, it has become widely recognized all over.

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Considering that it has a mission, which is to provide the best quality food, it is necessary for the Company to have a mission statement. The mission statement helps the organization and its employees to work towards the achievement of a common goal. All the various individuals working or associated with the organization are bound by the common mission. Since it deals with food, the company’s mission statement is related to what it deals in. The mission statement of the company is, therefore, to provide the best for its companies, and to also be the best place for its customers to eat and drink. Through that, the employees and the heads of the company work together towards the achievement of that goal.

Various values help in the good operation of McDonald’s. The company believes in teamwork. Through teamwork, it has been able to establish itself globally since teamwork helps in coming up with the best strategies that benefit the organization. Another value that helps in the relevance of the organization is a community. It plays a huge role in the community, by even giving back to the community. Through that, it not only wins the hearts of many but also attracts more customers (Noe, 2003). The other values that it upholds are integrity and respect. They help the employees associated with the company to relate well to the customers. Integrity and respect also help the employees in relating well to each other. That enhances the overall performance of the organization.

Various factors make the country to be outstanding, compared to other businesses that are related to food joints. First, the company is a recognized globally. Due to that, it is effective regarding competition. The other strength is that it obtains income from many countries, and due to that, it does not rely on only one source of income. Due to that, it has continued growing drastically. Those strengths, therefore, make the organization to have a competitive advantage compared to its rivals. Regarding efficiency, the organization is efficient operationally. It has many customers attached to it, which makes it relevant and efficient. It also provides the best regarding quality. It has food associated with the best nutrients. It also considers hygiene very much, and that has made it possible to have very rare health cases associated with the organization. Products associated with McDonald’s are therefore of the best quality. Various innovations are also associated with the organization. The innovations aim at providing good quality products. Some have even led to the differentiation of products. For example, one of the latest innovations in the company is the development of technologically advanced straws. The innovation involves the integration of ideas from various engineers and specialists. Through that, the company will have invested heavily in the straw industry, and it will be expecting the best returns, given a large number of customers attached to it. Regarding customer responsiveness, McDonald’s has a huge number of customers related to it. Most of the customers are even teenagers all over, who are highly attracted by the good quality of products in the company. Although those might sound advantageous to the company, some like innovation has become very costly to the company. For example, investing in straws is very expensive, and it will also see the company compete with other big companies associated with straws. One of the opportunities associated with McDonald’s is the ability to have the capacity to expand, due to its popularity. Weaknesses and strengths associated with McDonald’s involve competition and high employee turnout. Given that the employees in the company don’t have to be highly skilled, they end up turning up in large numbers, and the company, therefore, has to do everything possible to satisfy them (Love, John, and Arthur, 1995).

Competition appears as a threat since there are very many retailers associated with food products, which have come up.

Business-Level Strategy

McDonald’s, just like many other big companies, is associated with other various businesses. The small firms can help in determining the overall performance of McDonald’s. For example, if they don’t perform well, then the performance and efficiency of McDonald’s as a whole are affected. Some of the smaller businesses owned by McDonald’s include, Panera Bread, Dairy Queen, Threshers, SPAR, Londies, Millie’s Cookies, Martin McColl and Krispy Kreme. All these companies work together with a common goal. Their performance determines McDonald’s performance. All the companies are very necessary, and therefore none appears to be dominant over the others.

One of the companies, Krispy Kreme, has played a very important in ensuring the performance of McDonald’s has been enhanced. It has differentiated its products in various ways to attract more customers. Although the company boasts good returns from the doughnut industry, it has emphasized on the coffee it produces very much. Various adjustments and advances have been made on the coffee produced at Krispy Kreme. Apart from operating as a retail company, it has gone ahead to supply doughnuts to other retailers. This also plays a role in increasing its profit margin very much. Looking at another company, Dairy Queen, we see that a while before, many people thought that the company was only associated with ice creams. However, that has not been the case. The company has applied various strategies to ensure that its ice creams are widely consumed all over. It has introduced various brands of ice creams. However, it also participates in providing meals and drinks to its customers. This has made it be one of the most competitive companies associated with fast food.

Dairy Queen also participates in market segmentation, so does McDonalds. The companies aim at providing food and beverages. These are products that can be consumed by a large portion of the population, including young teenagers, the middle-aged and even the old. Children can also consume such products. Krispy Kreme has segmented its products. Considering that it majors in doughnuts, we can conclude that demographically, the company targets the young people, considering that they are less prone to diseases (DeCelestino and Christina, pp. 225, 2006).

Considering that McDonalds and the smaller companies associated with it most directly deal with customers, it becomes good for the company to provide the best for its customers. It is because consumers are the main driving force of McDonalds. They widely determine the overall performance of the company, given that its profits depend on the number of customers. Another business-level strategy that McDonald puts into consideration is the maximum utilization of the available resources. That also includes maximum utilization of the available human resources, such as labor (Hambrick and Donald, pp.567-575, 1980).

However, various advantages and disadvantages are associated with the given Business-Level Strategies. One of the advantages is that company performance is improved through the given Business-Level Strategies. The community also benefits from the employment of various personnel to work in the companies. The disadvantages might include the costly nature of applying the various Business-Level Strategies. There is also the disadvantage of high competition and lack of the necessary skills to implement the various strategies.

Works Cited

Love, John F., and Arthur W. Miller. “McDonald’s: Behind the arches.” (1995).

Noe, Raymond A., et al. Gaining a competitive advantage. Irwin: McGraw-Hill, 2003.

Celestino, Christina Michelle. “Krispy Kreme, Sarbanes-Oxley, and Corporate Greed.” U

. Miami Bus. L. Rev. 15 (2006): 225.

Hambrick, Donald C. “Operationalizing the concept of business-level strategy in research.” Academy of management review 5.4 (1980): 567-575.

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