The Concept Of Aaa Triangle ( Adaptation, Aggregation And Arbitrage ) Essay

The author of this paper’s intention is to present and examine a multi-national corporation. Dissect the how’s and what’s about it, and simply discuss its processes. The author will be giving a brief background on the company to easily elaborate how it is that the company is successful compared to its past. Its products and services will be conversed and the company’s industry will be discussed as well as its competitors and its market. Basically everything that has to do with the company will be

McDonalds was founded in 1943, and 1967 British Colombia was its first international expansion, advertising to middle and upper class. McDonalds decided to expand internationally, due to the enormous success in America. There was heavy research involved in the expansion. Through globalization and internationalization, McDonalds were able to develop marketing strategies according to cultural needs, to serve specific target markets. McDonalds enter India’s foreign market and 1996 and is a tough foreign market to enter, but with McDonald’s success they were able to earn high revenue in India. The success strategy is researching and the development of food. McDonalds thoroughly analyzed the preferred taste, especially to not offend locals. Their key to success is to “think global, act local.”

The relationship between an organization’s strategy and structure are extremely important because it “directly impacts a firm’s performance” (Rothaermel, 2013, p. 309). Also, as an organization grows, it should reevaluate the current strategy and structure to ensure that it remains the optimal choice for the organization (Rothaermel, 2013). The four types of organizational structures, listed in order of least to most complex according to Rothaermel (2013), are: (1) simple, (2)

Chapter 6 – Strategy Formulation: Situation Analysis and Business StrategyChapter 7 – Strategy Formulation: Corporate StrategyChapter 8 – Strategy Formulation: Functional strategy and Strategic Choice

Hentry Mintzberg and James A Waters give various types of strategies to improve business and business organizations. Their strategies can be summaries into eight. They are planned strategy, Entrepreneurial strategy, Ideological Strategy, Umbrella strategy, Process Strategy, Unconnected Strategy, Consensus Strategy and Imposed Strategy. The strategies can be briefly explained below.

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.

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:

According to Slack et al. The corporate strategy or business strategy is the guide lines for the whole corporation’s businesses in relation to its markets, customers, and the competitors (2007). In the same context, the same authors discussed the link between the corporate strategy and

A competitive strategy, or business-level strategy, is the way a business used to successfully enter and penetrate into a market (Eastwood et al, 2006), and also, to succeed in this chosen market against its competitors (Johnson et al, 2014). A company needs to develop and apply appropriate strategy to help the company to generate distinctive competences (David, 2007). Compared with the strategies implemented in other levels of operation, competitive strategy is more focused on the competition against other competitors and strategic choices to better attain market share (Harrison and St. John, 2009). According to

Overview of the concept of corporate level strategy Corporate level strategy is to the basis for strategic business decisions made by the top management to influence the corporation as a whole. Concentration strategy is used when the company focuses on one business field. Vertical integration occurs when the company controls the supply chain that produces products by itself or distributes the products directly to the markets. Diversification, also known as, horizontal integration is related to acquiring or merging different or similar businesses to increase market share.

Corporate-level strategies are liable for market definition; they address the entire scope of the business. This strategy helps a business to diversify its service. It gives them direction in which geographic region they should operate and which service markets to strive in. “Thus, an effective corporate-level strategy creates, across all of a firm’s businesses, aggregate returns that exceed what those

Corporate Strategy is defined as the overall scope and direction of a corporation and the way in which its various

One more strategy is Alliances ; There is a very small line between alliances and collusion . So it should be taken a good care from crossing this line . Collusion is when two organizations within the same industry work together in the same field mostly in order to make control on prices . Alliances is like joint ventures of the business . It's used in pooling the resources also in the detriment of different contenders not in the partnership .

The organisation I have chosen to examine from an operations management and decision making standpoint is McDonald’s, a worldwide chain of fast food restaurants, which are run either by a franchise, an affiliate or by the corporation itself. There are over 31,000 branches of McDonald’s worldwide1. It is estimated these restaurants serve a collective 47 million customers daily2. The restaurants mainly sell customers traditional fast food fare such as burgers, cheeseburgers, French fries, fizzy drinks and milkshakes, in addition to breakfast, dessert items and (in response to growing health concerns in the consumer marketplace) healthier items such as salads and

Since McDonald’s is the most well know fast food chain in the world with a market cap of 69.35 billion, brand recognition is their biggest strength. The secret of McDonald’s success is its willingness to innovate and maintain consistency in the operation of its many outlets. In recent years McDonald’s has introduced Premium Salads, Snack Wraps, fresh Apple Dippers in the United States, and Corn Cups in China. Also, McDonald 's products are priced so low that economic conditions are almost insignificant.