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Mcdonalds

In: Business and Management

Submitted By brianfubar
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McDonald’s (in 2013): How to Win Again?

McDonald is (in 2013): How to Win Again?
The fast food industry seems to be a relatively easy market to compete in with the demand of easy, fast food accommodations. However, the largest of the industry, McDonalds, has experienced some very impactful setbacks. As competition, rises in the quick-service industry McDonalds has had to make several adjustments to stay on the leading competitive edge. As society becomes more aware of health issues and economic opportunities, the restaurant industry has been severely impacted which, has forced menu adjustments with better food at competitive prices. Below we will address how McDonalds strategy through analysis, formulation, and implementation.
Analysis: Focus on External and/or Internal Environments Maintaining a competitive advantage is the most important factor for a business to be successful. Although McDonalds has been in business since 1940 and has formulated the market for the fast food industry, it has come under heavy pressure of competitors. At first, McDonalds focused on burgers, drinks, and fires. However, new entries into the quick-service industry have affected them with more expanded and different menus. This has forced McDonalds to restructure their entire business strategy over time to stay on top of customer demands placing focus on the PESTEL model. External Environments There are several trends that affect McDonald’s ability to sustain a competitive advantage. One of the most important trends is the economic factor, which affect consumer-spending power. In periods of relative prosperity, a consumer income will be high and they are willing to spend more money. However, during a recession spending power decreases making price more relevant. In 2012, Jim Skinner broke from McDonald’s historical emphasis on new growth and assimilation of...

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