Strategic Management And Business Policy

981 WordsMar 18, 20174 Pages
Per the text Strategic Management and Business Policy, a business strategy “describes a company’s overall direction in terms of its general attitude toward growth and the management of its various businesses and product lines. Corporate strategies typically fit within the three main categories of stability, growth, and retrenchment.” (pg.19) Also mentioned in the text business strategy is “usually occurs at the business unit or product level, and it emphasizes improvement of the competitive position of a corporation’s products or services in the specific industry or market segment served by that business unit. Business strategies may fit within the two overall categories, competitive and cooperative strategies.” A business strategy is…show more content…
To retain its customers McDonald’s has adjusted their menu options. The menu now offers healthier options such as salads, lettuce wraps, and yogurt. With swiftness being an issue with the capability to deliver healthier options, McDonald’s is faced with the challenge of developing new healthy menu items, which leads us to menu standardization. This is done by primarily focusing on its classic menu items such as the Big Mac and the McChicken. i. What are the strengths and weaknesses of the current strategies? Conducting a SWOT analysis should be mandatory for most companies. Initiating a SWOT chart will help identify the areas that need to be improved upon and the areas that can be utilized as part of a company 's competitive advantage. McDonald’s internal factors include its strengths and weaknesses. One of McDonald’s primary strengths is its multiple revenue streams. McDonald’s currently has several sources of income from a variety of products and global market expansion. Not depending on one single source of income allows them to stay competitive against its rivals. McDonald’s has two primary sources of income that comes from company-owned and franchised stores. With company sales at $16 billion and franchisee sales at roughly $8 billion, McDonald 's has a combined total revenue of $25 billion in sales. There are a limited number of competitors that can compare to the success of McDonald 's. Another strength for McDonald 's
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