Introduction

McDonald is an American oriented internationally operating company having a wide market share in a number of national markets located worldwide. It has acquired a unique position in the fast food industry, having a chain of a restaurant located in different geographical regions. A framework have been presented below in the form of essay writing, to highlighting the concept of strategic Management. The study work presented below includes explaining various theoretical concepts enhancing application as well as the effectiveness of strategies followed by the cited corporation to acquire a positive brand image as a prominent fast food company. McDonald’s extraordinary performance in the food industry can be accredited to its core competence utilized to provide a tough competition to its rivals, attempting to acquire the market share possessed by a cited corporation (Porter, 2011).

Task

Example of strategic management practices

The organization considered in the report has set its image as that of a role model for a number of fast food chains existing in the food industry. Globalization concept of international Marketing has enabled the cited entity to exploit a number of benefits confronted. The effectiveness of unique strategies have been a major reason behind the overall performance of McDonald. Strategies framed by topmost executives focus on enhancing internal strengths as well as considering the impact of strategies followed by competitors. Surviving in the competitive business environment requires a number of procedures to be carried out for providing a higher level of satisfaction to customers by catering their personal needs.

Industry attractiveness

McDonald Company is a part of the fast food industry providing hamburgers, cheeseburgers, french fries, and cold drinks, etc., to its customers. A number of customers follow different ideologies and preferences. However, they are assumed to follow a common liking for fast food items. It has therefore exploited the benefits provided by operating in the food industry to a greater extent. Considering statistics on a global basis, it has been observed that there has been a sudden increase in liking for fast food products by different customer worldwide. Food industry of different regional markets has provided ample opportunities for a cited entity to establish a number of outlets catering needs of its customers (De Wit and Meyer, 2010). Factors prevailing in the industrial environment of the food industry have impacted positively for enhancing the brand image of a number of products served by McDonald.

Resource based view

Analyzing the availability of required resources, capabilities and core competence of McDonald provides a clear picture for highlighting factors behind its current financial stability. A number of resources are required for effectively applying strategies framed by the cited organization. It can be included here undoubtedly that McDonald has acquired a maximum market share of the fast food industry by effectively utilizing available resources and carrying out production as well as promotional activities in an appropriate manner. The cited organization has gathered required financial resource on the basis of earning obtained through royalty and franchising fees paid by a number of the franchise. It also has control over the bargaining power of suppliers of ingredients required for producing quality assured fast food items that can be relished by customers. Moreover, its uniqueness in producing mouth-watering food items including a variety of burgers specially is itself its core competence. Catering to different tastes of a number of customers, it has been introducing a new range of burgers that is one of its core competence. For example, McDonald has introduced Mc Spicy Chicken Fillet for its customers in Hong Kong (Barney, 2012).

Competitive Advantage

In common parlance, Competitive Advantage is all about positioning the current brand image of cited organization with respect to the position of competitors in the market. Michael Porter has provided three aspects for differentiating an organization among a number of competitors existing in the food industry. Starting with cost leadership, McDonald has been providing food products at a very nominal rate so that these can be afforded by medium class customers. Medium class customers dominate the total percentage of the customer, and the fact has been considered by the cited entity. Customers prefer to relish these products during traveling as they can obtain easily on account of drive-thru facilities provided to travelers. Another aspect considered is the uniqueness of products that differentiate the cited organization from other fast food provider companies in the international market. The special crunch provided in french fries along with minimal oil usage has created a liking for other Mc Donald’s product too, as customers are attracted to try them. Lastly, focusing on customization has enabled the organization to create a competitive advantage against its competitors such as KFC, Domino’s pizza, etc. It has fulfilled required taste preferences of different customers.

Influence on strategic management practices

Various theoretical concepts explained in the above sections have impacted list of strategies followed by the cited organization to a greater extent. Competitive advantage and the manner in which resources are utilized by the cited organization is the blueprint of its success in the international market. For maintaining a permanent position in the food industry, McDonald has framed a strategy to deliver quality assured products and services to ensure core competency for leading the market. Analyzing strategies and policies of competitors and acting accordingly to pull potential customers requires a great deal of focus on effectively using various resources. For managing various activities, McDonald considers researching market condition to understand trends prevailing in the market using theoretical concepts of management (Gebauer, Gustafsson and Witell, 2011).

Recommendations

McDonald must focus on enhancing the effectiveness of promotional strategies applied usually. For surviving in a competitive environment, it must increase its level of participation for sponsoring various campaigns and activities to promote brand image. Strategies framed for distribution of financial resources must include investing in functional activities that would enable the cited organization to expand its scope of activities in areas that have not been accessed till date (Wong and Karia, 2010).

Conclusion

It can be concluded here that McDonald has attained a superposition in the fast food industry by applying various theoretical concepts effectively. Moreover, the core competence of providing standard products at a very nominal rate has enabled it to provide a strong defeat to a number of competitors. Thus, the benefits of globalization have been exploited efficiently for securing a position in the international business environment.

References

• Allred, C.R., Fawcett, S.E., Wallin, C., and Magnan, G.M., 2011. A dynamic collaboration capability as a source of competitive advantage. Decision Sciences.
• Barney, J.B., 2012. Purchasing, supply chain management and sustained competitive advantage: The relevance of resource‐based theory. Journal of Supply Chain Management.
• De Wit, B., and Meyer, R., 2010. Strategy Synthesis: Resolving strategy paradoxes to create competitive advantage: Text and readings. Cengage Learning EMEA.
• Gebauer, H., Gustafsson, A., and Witell, L., 2011. Competitive advantage through service differentiation by manufacturing companies. Journal of Business Research.
• Kindström, D., 2010. Towards a service-based business model–Key aspects for future competitive advantage. European Management Journal.
• Porter, M.E., 2011. The competitive advantage of nations: creating and sustaining superior performance. Simon and Schuster.
• Thompson, A., Peteraf, M., Gamble, J., Strickland III, A.J. and Jain, A.K., 2013. Crafting & Executing Strategy 19/e: The Quest for Competitive Advantage: Concepts and Cases. McGraw-Hill Education.
• Wagner III, J.A., and Hollenbeck, J.R., 2014. Organizational behavior: Securing a competitive advantage. Routledge.
• Wong, C.Y. and Karia, N., 2010. Explaining the competitive advantage of logistics service providers: A resource-based view approach — International Journal of Production Economics.