Question

Critically discuss MacDonald’s Business –Level, Corporate-Level and international strategies. What is the challenges MacDonald’s might face to continue stay ahead of competitors?

Business Level is a cost leadership, differentiation strategy.

Corporate Level is high level of diversification with related-constrained

challenge face MC

international, multi-domestic strategy. emphasis on aligning with local taste

Answer 1

Critically discuss MacDonald’s Business –Level, Corporate-Level and international strategies. What is the challenges MacDonald’s might face to continue stay ahead of competitors?

The business level strategy that is being used by the MacDonald is cost leadership and also a differential strategy. MacDonald effective uses the economies of scale in its production where the production prices of every burger is very less making the prices be competitive and also favourable for the consumers to consume the goods for. Having a unique taste and also the special MacPuff or MacBurger offered by the MacDonald offers a different taste in the market creating an effective differential strategy in the economy where consumers have the name and brand positioned inside their minds because of its brand equity and loyalty towards the consumers since so many years.

The corporate level strategy that is being used by the MacDonald is the is the high level of diversification having with the related constrained. Diversification with the related constrained means that less than 70% of the revenue comes from the dominanr business of the MacDonald that is the services and products it serves and also all the businesses under the brand share same product, distribution linguistics and also a technological strategy and outlook where a standard is prepared that everywhere you go, MacDonald looks the same. Having work with this strategy, MacDonald shares activities and resources both effectively and efficiently between its businesses.

The international strategy that is being followed up by the MacDonald is having a multi domestic strategy. In the multi domestic strategy, the business tries to achieve the maximum local responsiveness of various countries by customising their product and the offers they make while using the marketing strategy to match different national conditions of various countries. While in some Western Countries, MacDonald offers a beef and hamburger, in south Asian countries like India, beef isn't served and chicken is substituted instead of beef to match local responsiveness.

One of the main challenges that is being faced by the MacDonald is both the local competition and also emphasis on aligning with the local taste. MacDonald has many competitiors, biggest being the Burger King. Both the companies more or less offer the same products with no or less difference in prices and difference in tastes. Other competitiors are Wendy's, Subway etc. MacDonald has to make sure to keep its strategies, the products and services it offers to be different and unique so that it stands on a strong guard beating its competitors. Another challenge is the emphasis that is put to allign with the local taste. Serving in most of the countries around the world, the biggest challenge is to understand how different countries have different cultures and these cultures would make the tastes of the consumers to be different as well. Thus, the company has to adapt and learn to work in such an environment where targeting the global consumer would make the company learn about various cultures and produce and market the product accordingly.