Domestic companies facing competitive pressure from lower cost imports

McDonald's With Chapter Analysis

The topic is McDonald's

Ch 7 and Ch 8 Company’s Environment and Resources

· Read Chapters 7 Evaluating a Company’s Environment & Ch 8 Evaluating a company’s resources, capabilities, and competitiveness

· Use 2 L.O.s from Ch 7 and 2 L.Os from Ch 8 to analyze the company’s management (each L.O. should have 3 examples at 100 words per example).

Requirement

The topic is McDonald's

Ch 7 and Ch 8 Company’s Environment and Resources

· Read Chapters 7 Evaluating a Company’s Environment & Ch 8 Evaluating a company’s resources, capabilities, and competitiveness

· Use 2 L.O.s from Ch 7 and 2 L.Os from Ch 8 to analyze the company’s management (each L.O. should have 3 examples at 100 words per example).

Ch7 & Ch8 requirements and examples are attached

Rating sheet

Thompson et al. Crafting & Executing Strategy

Chapter Rating Form

Content and Organization of the Presentation.

Organization of material (10 points)

1. Cover Page with Date, your name, and Topic

2. Introduce the topic with 1 paragraph

3. Body

a. Answer should include a minimum of 3 answers in addressing the question

b. clearly states which principles apply to your company (includes spelling, grammar, and full sentences)

4. Select 2 Learning Objectives (L.O.) for a Chapter

a. How are the L.O.’s relevant to your final paper

b. Minimum 100 words each L.O.

Chapter NAME

L.O. 1

L.O. 2

example 1@ 100 words

example 1 @ 100 words

Example 2 @ 100 words

example 2 @ 100 words

example 3 @ 100 words

example 3 @ 100 words

Chapter NAME

L.O. 1

L.O. 2

example 1 @ 100 words

example 1 @ 100 words

example 2 @ 100 words

example 2 @ 100 words

example 3 @ 100 words

example 3 @ 100 words

5. Conclusion … 3 key concepts you talked above

6. Works cited

7. Spell check, grammar check, etc.

TOTAL POINTS ____________________

Example

Media Research Paper

CH. 5 Five Generic Competitive Strategies

CH. 6 Strengthening a Company’s Competitive Position

JOSH

Professor JOSE

MGMT 4505

3/8/21

The Chapter 5 ‘The five Generic Competitive Strategies’ teaches about five generic competitive strategies and in which kind of environment these strategies work better. Also it lay stresses on how low cost plays a vital role in achieving competitive advantage. Competitive advantage is achieved by product differentiation from rivalries. Product differentiation enhances chances of profitability increasing unit sales. Hence an organization has successful competitive strategies if there is no duplication and close substitute of the product.

CH. 5 Five Generic Competitive Strategies

LO.1 What distinguishes each of time generic strategies and why some of these strategies work better in certain kind of competitive condition in comparison with others.

Strategies are long term objectives of an organization and how do you plan to achieve those goals in longer run. A firm competitive strategy aims at ensuring a highlighted position in market with an objective of satisfying customers, decrease the possibility of underlying threats and attain competitive advantage over others.

The five generic competitive strategies such as lowering overall overheads in comparison to competitors total cost.

· Broad differentiation: Offering a unique product from rivals which increases customer’s demands.

· Focused low cost: Focusing on lowering cost to grab consumers who don’t have much affordability.

· Focuses differentiation: Aiming to focus on a buyer section that has limited income with compromising on customer satisfaction with regards to needs and taste.

· Best cost provider: Product with high attributes is offered at low price.

Example # 1 McDonald’s

McDonald’s is one the biggest food chains in the world aiming at achievement of competitive advantage among rivals in the market. McDonald's comes with different competitive strategies that focus on growth and maintaining a better position in the market place. McDonald's primary focus in ‘Cost leadership’ that means they aim towards minimizing cost for the products offered to the public. They continuously strive for product differentiation by offering unique product e.g. McCafe. McDonald’s has expanded its branches all over the world as their prices are low but quality is high that is why they are able to grab markets easily. Through these competitive strategies organizations like McDonald’s can be able to penetrate market and develop a massive range of buyers by increasing sales and decrease cost per output.

Example # 2 Starbucks

Starbucks is an American Multinational organization that has large number of chain of coffeehouse all over the world. It produces variety of products in addition to the primary product such as Smoothies, Sandwiches, Snakes, baked products etc. Starbucks has expanded its business by following generic strategy mainly highlighting on product differentiation. Starbucks has set a coffee house, distinct from its rivals. Starbucks is able to attain competitive advantage by providing unique product and services with no duplication. It is able to penetrate more market share by uniqueness of the product offered. The competitive like McDonald’s have used the strategy of low cost while Starbucks have used the strategy of warmth and ambience.

Example # 3 Al-Tahur limited company

Al-Tahur is a company dealing in the production and processing of fresh milk and other dairy products. It works under the brand name ‘Perma’. Prema main tagline is providing 100% fresh pasteurized cow milk that grabs attention of large number of buyers who believe in quality and zero hormones and preservatives in milk. Prema is a growing company that has increased its sales up to 70% and attained market share by providing quality products without any preservative at low prices without compromising on quality. They have differentiated these product form rest of rivals by ensuring 100% organic cow milk without any additions. They believe on serving from right from the farms to the glass of milk. Thus Prema is a growing market that is providing its consumers with high quality in low price. In addition to milk, it also offers smoothies, yogurts and chocolate milk.

LO.2 The attributes of best cost provider strategy a hybrid of low cost provider and differentiation strategies.

Best cost hybrid approach is a merger of providing best quality, features and services with aim of charging low prices in comparison to rivals. Thus this approach believes in increasing efficiency of products by lower down their prices. The consumer’s needs are satisfied and at the same time low cost is achieved by buyers.

Example #1 McDonald’s

McDonald’s the largest chain of fast food restaurants which has expanded its operations all over the world has followed the best cost provider strategy. McDonald’s charges low cost for the product offered to their customers in comparison with its rivals like Arby’s that charges almost double prices than McDonald’s. Thus McDonald’s increases their profitability by expansion of their business worldwide through reducing prices and differentiating their product quality from rivals. They provide best quality product in lower prices than their competitors.

Example #2 Starbucks

A giant house of coffee shop and snaked called Starbucks has outsourced its call center operation to provide 100% customer satisfaction. It has outsourced its operation in order to ensure flexibility and obtaining constant feedback from customers. As customer loyalty is its once of the prime objective Starbucks has spent huge investment on outsourcing its operation. They have added value to the products by constantly aware of their shortcomings mainly through customer’s feedback and tackling their queries. Thus outsourcing has bought huge profitability and customer satisfaction as addressing customer’s needs day and night has improved efficiency and enhanced customer loyalty.

Example #3 Unilever

Unilever is a multinational organization that produces wide ranges of food products, energy drinks, baby food, ice-cream etc. The organization is based on London. Unilever has outsourced its HR services to gain value addition. In order to focus more on providing good quality services it outsourced its human resource department. Through outsourcing its HR services to a company called ‘Accenture” it will be able to provide efficiency and increased quality in its HR services. HR services mainly includes department of recruitment, administration, management services and payroll services. Accenture made sure the provision of these services through a network that operate globally and comprises of various centers across the world.

CH. 6 Strengthening a Company’s Competitive Position

The Chapter number 6 ‘strengthen a competitive position: Strategic moves, timings and scope of operations focus on how to improve market position by applying defensive or offensive techniques. The role of mergers and acquisition aids to expand scope of a firm. Outsourcing is subletting task to vendors outside the firm. It is the most advantageous when it is done by outsides on low price in comparison to what is done internally by organization’s employees. Whereas strategic management principle deals with obtaining competitive advantage on others by focusing on primary value chain activities.

L0. 1 The Conditions that favor outsourcing certain value chain activities to outside.

Outsourcing is an arrangement where a company decides to sublet its work to other person or organization where it can achieve low cost benefits, a lot of innovation and efficiency in work outsourced.

Example #1 McDonald’s

The largest food chain working globally named as ‘McDonald’s’ has outsourced its food chain completely. Almost 70% of the branches of McDonald’s are franchised. This multinational organization has outsourced its franchise to remove unnecessary workload on the managers. The food chain is outsourced so that it can be handled through outsiders with utmost efficiency and care. It ensure value addition by outsourcing by introducing innovative idea like ‘Drive thru’, primary shifting focus on high interest area tasks. This value addition thus give greater change of promoting growth, offering flexibility to staff and increasing profitability.

Example # 2 Nestle

Nestle is a multinational company that is Switzerland bases. In the term of revenue, it is said to be the largest food company in the world. I offer a variety of food products like milk, coffee, baby food, Sterilized water, ice-cream, yogurt and what not.

Nestle choose great quality of raw materials for the manufacturing of products it offers in the market. They have to achieve low cost strategic technique by managing inventories and research and development. One of the biggest rival of Nestle is Hershey’s. Nestle is able to achieve competitive advantage over Hershey’s by lowering its cost. It is able to penetrate more share of market. They differentiate in products against their rivals by selling more products in powdered form that can be easily stored.

Example #3 Amazon

Amazon is a multinational organization that is America Based, Its main focus is digitalization of services and e-commerce. Amazon is said to world largest organization that operate online. It best cost strategy is offering low price service and product without compromising in quality as it has an advantage of low overhead costs, it is able to achieve competitive advantage by selling low prices products to consumers. It provide broad differentiation by using innovative use of technology and human resources that are skilled. IT has an honor to serve large number of customers online and virtually.

LO.2 Whether and when to pursue offensive or defensive strategies involves to improves a firm’s market position.

Offensive strategy focus on pursuing changes within an organization actively. Thus larger amount of research and development in needed to make this strategy successful. White defensive strategy that focuses on retaining customers by using techniques like enhancing the quality or product or services provided, increasing market and advertisement.

Example #1 McDonald’s and Burger King

McDonald’s the world largest chain of fast-food operating worldwide. As a biggest fast food chain on offensive strategy McDonald’s and Burger King are the biggest rivals to each other. Burger king offensive techniques and pursed changes in its product line by copying McDonald's. Burger King did the greatest hit to McDonald’s by making its advertising and marketing more active and thus it was able to grab more consumers. This strategy helped Burger King in increasing its Sales and profitability.

Example #2 Starbucks

Starbucks one of the larger coffee house has made uses of defensive strategy by working on its internal operation. It has improved its internal operation by increasing its efficiency. It has improved that quality of supply chain and has reduced the operations of some of its stores to majority focus on improvement of supply chain. Another defensive technique Starbucks used is cutting down its prices in comparison to rivals in the market.

Example #3 Amazon

Amazon an online organization that globally offers its product and services by acting as a virtual assistance. Amazon played an offensive strategy by cutting keywords of competitor’s hand. Thus opportunity helps to grab competitors Customers when they search for the competitors.

The ultimately goal when targeting keywords of rival is to increase your sales. So this increase the chance of driving sales without even advertising. An example is Ridge Wallet and Amazon. Thus Amazon had targeted the keywords of Ridge wallet and Amazon products are shown up when searching for rival.

Conclusion

Thus an organization outsource its tasks if its benefits exceeds its cost and aids in value addition in the products. Moreover in order to be successful and remain alive in the market an organization male use of offensive and defensive techniques to grad customers from the competitors and enhance its profitability.

Work Cited

GREGORY, L. (2017, February 5). McDonald’s Generic Strategy & Intensive Growth Strategies - Panmore Institute. Panmore Institute. http://panmore.com/mcdonalds-generic-strategy-intensive-growth-strategies

Levy, J. (n.d.). Starbucks Plans to Beat the Competition with Product Pricing Strategy. Business 2 Community. https://www.business2community.com/strategy/starbucks-plans-to-beat-the-competition-with-product-pricing-strategy-0503952

Matyszczyk, C. (2019, April 1). Burger King Just Launched a Shocking Offensive Against McDonald’s. Here’s the Huge Catch. Inc.com. https://www.inc.com/chris-matyszczyk/burger-king-just-launched-a-shocking-offensive-against-mcdonalds-heres-huge-catch.html