An Argument for Business Diversification: An Assignment

2. Determine the need for the new product or service. Next, provide an overview of the market you intend to enter, and defend why this market is ripe for the introduction of this product or service at this particular time.

2. Determine the need for the new product or service. Next, provide an overview of the market you intend to enter, and defend why this market is ripe for the introduction of this product or service at this particular time.

McDonald's has successfully met the demands of its customers by gradually adding to their menus. Breakfast meals, hamburgers, chicken, salads, salads and even desserts are provided by the restaurants which aids in the success of McDonald's. The organizational structure for McDonald's

McDonald’s is not some ordinary fast food restaurant with its trademark logo advertised almost everywhere in the U.S., many people all over the world know about these famous golden arches. The McDonald’s franchising started in 1955 and in less than fifty years, McDonald’s was introduced all over the world in countries such as, China, Japan, Great Britain, Sweden, France etc. McDonald’s global expansion has intermingled with cultural traditions because these countries are becoming more westernized. Since East Asia is becoming more westernized it also means that there is a cultural difference because of the influences from outside the country. The cultures are being changed because of how ideas are expressed by people and not by their

Novartis, a large multinational pharmaceutical company, recently diversified by buying Alcon, in a £24.8bn deal. Alcon is a producer of eye care products such as contact lenses. Google has diversified by investing £124m in a wind power business. To what extent is diversification the best strategy to achieve profitable growth? Justify your answer with reference to Novartis, Google and/ or other organisations that you know. (40 marks)

McDonalds was first incorporated in the year 1955 in USA with a single restaurant. Currently, McDonald has transformed to be the biggest and the fastest growing in the industry of fast food services (Employee handbook, 18). The corporation sales are now at a staggering $30 billion an year contributed by the 21,000 stores that are located across 101 different nations around the world. The success of the corporation has been as a result of a great contribution by the company’s management where there has been application of new ideas to give the corporation an upper edge in the market. On analysis of the company’s blueprints, a projection has been made where the corporation

Furthermore, McDonald’s is not a normal fast food chain, it is versatile. For example, it has spreaded into the

McDonald’s has been in business since 1955. Through many years of great strategic and financial planning, it has become one of the most successful food chains in the world. In order to continue its great success, McDonald’s must continue to adapt to change. In this paper we will discuss the strategic and financial planning that would be necessary to keep McDonald’s on top of the food chain.

Diversification is when a business introduces a new product to a new market. It is one of the great ways to seek the profit by introducing new products and hoping to sell. Diversification

In the story it said “The key to a successful franchise: “uniformity” p. 5” which proves that most fast food restaurants use uniformity in order to be successful because in the book it also goes on to say ““We have found out…that we cannot trust some people who are nonconformists,” declared Ray Kroc, one of the founders of McDonald’s, angered by some of his franchisees.” This supports my quote because with uniformity it means that some things can’t be changed and need to stay consistent. In the book, it says that in order for a business to be successful, the individual must rely on the business, and I believe that this is a uniform for all restaurants, not just mcdonald's. Will find more evidence in the stories

The corporate strategy of the business diversification is to create a synergy to achieve more performance under a single umbrella rather than diverse business units (SNU, 2016). A business diversification is to build the company shareholder value when the independent business units can perform under a single corporation as an umbrella organization instead of independent parents or a corporation. A diversified organization has many business units and each business units have its own business level strategy irrespective of whether they are related or not. A successful business diversification not only spreads the business risk across the diverse units but also adds a long term economic value to the company. The strategy for starting a new business is based on industry attractiveness test, the cost of entry and the better off test (Thompson, Peteraf, Gamble, and Strickland, 2016).

Due to globalization and increased competition in the fast food industry, a very complex environment is created for McDonald’s. There are various internal and external environmental factors affecting the functions of McDonald’s corporation and demands for new innovations. The factors are as follows:

2. At the beginning of building a business I would recommend Niche marketing because our main product is the Matrix spectacle and which is mainly focusing on one product we are looking for product features, production qualities, demographics and price range to satisfy specific marketing needs. Is a high-specialized

Among the different industries none have seen the effects of McDonaldization as much as the service industry, which incidentally instigated the process McDonaldization. There have been radical changes in the service industry as a result of McDonaldization. This is due to the fact that in order for many organisations in the service to remain competitive they must employ some form of rationalisation into their structure in order to achieve maximum profit minimum waste. This is evident when we look at catering, the fast-food restaurant, the

McDonald’s has combined Taylor’s, Weber’s, and Fayol’s theories picking out some of the components that best fit their mission. These components include Taylor’s supervision practices, emphasis on efficient specific tasks, and employee placement practices, which represent the mechanistic organization theory. Weber’s hierarchical authority structure, merit based promotion principles, and impersonal management practices. In addition to, Fayol’s bureaucratic management style that stresses planning, organizing and coordinating. Common principles among these three theories like the shared belief in the division of labor, order, and extensive policies are part of McDonald’s management style. In essence, McDonald’s has gathered the components it believed would allow them to accomplish