Question

1. what are mcdonalds" core competencies ?

2. What is Mcdonalds Business Model? How does MacDonald's make money?

3. Which trends in McDonalds external environment are likely to have the greatest impact on the company's ability to sustain a competitive advantage?

4. What is McDonalds' strategy? How it changed over the last few decades and if so, how?

5. How should Easterbrook adapt the organizational structure of Mcdonalds to achieve his strategic plan?

Answer 1

What are McDonalds" core competencies? Following are the core competencies of McDonald stated below Product line enhancement , they basically offer variety of products and segmentation in the product line across various demographics, also the recipes of McDonalds vary from country to country those are influenced by social and cultural factors, Core Intellectual assets: Biggest asset for any organization is Human beings, where they keep trained staffs and experienced staffs for driving best with maintaining applicable standards, Secret Recipes: they provide unique recipes for their consumers Others core competencies like cost leadership, large scale economy, Brand value imposition and recognition, Market leadership, maintaining strong value chain, choose good location for presenting outlet, utilize financial, technological and physical assets

What is McDonalds Business Model? How does MacDonald's make money? McDonalds established a common goal and spread among franchisees, suppliers and Employees, It also established its brand value and recognition for serving best food quality and they are also quick service providers, The business model include franchisees who use entrepreneurial role and work on achieving community goal and objective, The suppliers provide various inputs related to this sector with very high quality and considering safety factor, the company McDonald’s has more than 35K Restaurants where they enjoy sharing of learning through evolution McDonalds a global brand, they have more than 82% restaurants and specifically 93% restaurant in United state of America are owned and operated by largest number of independent, small to medium sized business people, Franchisees take challenge to share the common goal and become part of communities and do impact positively in the vicinity by providing better food services, Job opportunities and customer services, further they have created freedom for all stakeholders within framework which work on community work, local business development and marketing Following are the way they earn money, by operating in various market like International led market, Corporate Market, High Growth Market, Foundational markets, Franchisee services and leadership by employee and team work which help them to generate heavy revenue, also the bottom line growth which contribute to their earning as they enjoy keeping high margin which also lead to earning more money,

Which trends in McDonald’s external environment are likely to have the greatest impact on the company's ability to sustain a competitive advantage? Lets explain about the trends in McDonald’s External Environment, those contribute greatest impact on the company’s ability to sustain a competitive advantage like Million people like to eat at fast food restaurants and choose fresh and healthy food, the people basically key demographic for fast food industry or outlets, because there are people who like will go to this place several times, McDonald use to follow the trends where people come and take the healthy and tasty food want hassle free services, get fresh food at their need which will have greatest impact and bring up company’s ability to sustain a competitive advantages,

What is McDonalds' strategy? How it changed over the last few decades and if so, how? McDonalds strategy took part of various initiatives as they also introduced velocity growth plan and kept specific direction for their up surging The strategy Include gaining customer service more often, providing delicious food very quick and meet the value for money that spent by customers, following are the key pillars of McDonalds like Retain, Regain and Convert for taking better competitive advantages, also they have put contribution in the market though digitization, Delivery excellence and by elevating customer experience by consuming their food products, Following are the areas they have created most important debut, first one is leadership and Heavy franchising , all the changes are inevitable they have tackled and recaptured leadership position across the worlds, the traffic trends took key role to generate sales revenue, over the years McDonalds applied Re-franchising policies by working on independent owner concepts who will give the customer service by maintain the standard of McDonald and meet the organizational goal

How should Easterbrook adapt the organizational structure of McDonalds to achieve his strategic plan? As a CEO of the organization he should work on SWOT analysis which further will help to know about the current status of the organization and the future state to implement the strategic plan and such can help further to organize the company Strength: Safety and Quality Food Brand name Local Market Improvement CSR activity Weakness: Price Competition Employee’s Turnover Failure of the management Opportunity: Healthy life style imposing Tax reformation and contributing to GDP’s of various Countries R and D facilities Wealth gap minimization Threat: Competition Alternative Products Local health issue and Complaint Using this analysis Easterbrook will be able to identify all applicable driving force which will meet the needs of various stakeholders range from Consumers to employee and suppliers, also strength can be maximized and opportunity can be exploited whether all the applicable weakness converted into threat can be further mitigated by taking appropriate action