How Would You Describe Mcdonald's Business Strategy?

1286 WordsOct 30, 20116 Pages
1. Answer the questions for the case “integrating McDonald 's Business, Human Resource, and Staffing Strategies" page 49, Chapter 2. [ 15 Marks] Questions 1: How would you describe McDonald 's business strategy? What are the foundations of its competitive advantage? Answer: McDonald’s business strategy is a specialization strategy. The organization is built on a foundation that gives it a competitive advantage and a business strategy that is consistent, flexible, and specialized. McDonald’s niche market is people. According to the case study, people are the company’s most important asset and its success depends on the satisfaction of its customers which begins with workers who have the attitudes and abilities required to work…show more content…
The dimensions along which a firm can differentiate include the image of the firm’s product, product durability, quality, safety and usability. Organizations pursuing this type of business strategy try to develop a competitive advantage based on product innovation. The strategy requires employees to continually develop new products and services to create an organization’s advantage in the market. These companies create and maintain an environment that encourages employees to bring new ideas into the company. III. Specialization Strategy A specialization strategy focuses on a narrow market segment or niche and pursuing either a differentiation or cost leadership strategy in that market segment according to Jean Phillip and Stanley Gully. To be successful, businesses following a specialization strategy are required to know their market segment very well, and often enjoy a high degree of customer loyalty. The company can be successful using this strategy if it results in either lower costs than competitors serving the same niche or an ability to offer customers something that other competitors cannot. Firms pursuing a specialization strategy often try to develop a competitive advantage based on customer intimacy and try to deliver unique and customizable products or services to meet their customer’s needs and increase their
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