Evaluation McDonalds Strategy
Follow the instructions for the Assurance of Learning Exercise 9A on page 306 of the textbook. Create a minimum two-page APA formatted paper evaluating McDonald’s strategy. Choose at least one of McDonald’s competitors and discuss its position relative to McDonald’s. Comment on McDonald’s prospects of success against this competitor.
Assurance of Learning Exercise 9B
Evaluating My University’s Strategies
Purpose
An important part of evaluating strategies is determining the nature and extent of changes in an
organization’s external opportunities/threats and internal strengths/weaknesses. Changes in these
underlying critical success factors can indicate a need to change or modify the firm’s strategies.
Instructions
As a class, discuss positive and negative changes in your university’s external and internal factors
during your college career. Begin by listing on the board new or emerging opportunities and
threats. Then identify strengths and weaknesses that have changed significantly during your col-
lege career. In light of the external and internal changes that were identified, discuss whether
your university’s strategies need modifying. Are there any new strategies that you would recom-
mend? Make a list to recommend to your department chair, dean, president, or chancellor.
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In 2008, most organizations around the world were having a hard time in performance. McDonald’s was one of the few firms that were interestingly doing fine at this time. For instance, its revenue increased to $23.5 billion in 2008 compared to $22.7 realized in the previous year. The company, whose headquarter is in Oak Brook, realized an almost double net income from 2.4 billion dollars to 4.3 billion dollars, an impressive achievement. In fact, the company was rated by fortune magazine in 2009 as the 16th most admired companies globally.
One of the most effective strategies that helped Macdonald excel above others during this time is its low prices and expanded menu, which caters for its diverse customers (David, 2012). In marketing, low price strategy is effective in stimulating demand and acquire market share. This explains to the reason why McDonald had a large market base, despite a bad economical situation at this time. Low price strategy makes the most economical sense on the part of the seller especially in the case of the notable economies of scale that can be realized from high volume production. It is also important in a situation when the buyers are sensitive to price and when the seller has no significant competitive advantages.
MacDold’s diversification of food items in its menu was also an important factor for its success. This is because they made sure that those customers with different preferences and tastes are satisfied and enjoy their experience in this restaurant. Indeed for global restaurants to flourish, they are expected to view the purpose of their menu in a comprehensive and broad role. The type of menu produced b...