McDonald's Corporation Essay Example | Topics and Well Written Essays - 2000 words

McDonalds Corporation - Essay ExampleAlso McDonald is already considered the market leader in the betting food industry in the world, with a total market share of nearly 34 share followed by Burger King that has a total of 13 percent of the market share (Iqbal, 2011). This, therefore, suggests that McDonalds is and has been a very(prenominal) successful organisation. 2. Strategic Reasons for the Success of McDonalds The key reason for the success of McDonalds success has always been the populate or employees that work in all the various franchises of the business organization across the world (McDonald, 2012 Elbel et al., 2011 Holmes, 2010 Coombes, 2004 Boyle, 2004). This sums up the huge number of employees that McDonald employs on regular basis. The ac follows policy of employing only the local mickle of where it is located seeks to promote the company from within its own internal customers. This policy of employing local people is to get under ones skin managers that unders tand the business and domestic cultures within which they are operating (Ritzer, 2007 ). The second factor that contributes to its success is the companys products (McDonald, 2012, Mottram, 2011, Holmes, 2010, Adams, 2007). One of the cardinal objectives of McDonalds is to design and build a uniform set of items that are invariable in taste and quality across the globe. It also believes that adapting to changes, especially with respect to local condition is inwrought to the success of the company. The differentiation of the companys products and services also form the basis of McDonalds matched strategy (Adams, 2007). Indeed, to sustain growth and development, McDonalds has differentiated its products by targeting children and the elderly as its core consumers. The company offers an assorted line of foods so as to attract customers across the various levels of society. Building credible inciter equity finished effective promotion, sustainable business practice and quality servi ce has also been springy part of its success. McDonalds promotional maxim of marking globally and advertising locally offers the company the luck to design promotional activities specific to each marketing environment. This is to focus on the building of trust and brand loyalty in the eyes of its numerous customers that are spread across the globe. McDonalds recently introduced mantra Im lovinit which the company is using to bring its products closer to families is an effective promotional strategy (Holmes, 2010). Most importantly, expanding globally through franchising and creating a strong network of business network and relationship has been a major element of its success. more than 80% of its business is run on the franchise basis. (McDonald annual report 2011) Under a McDonalds franchise, McDonalds products, with same quality and taste are sold. McDonalds receives a monthly rent, which is calculated on a slide scale based on the restaurants sales (McDonald, D.2008). Franchi sees across the world follow the same standard love seat infrastructure, ambience, quality, taste and customer service. as such, the success of the company can usually be related to macrocosm able to become accustomed to a specific environment. (Holmes, 2010) 3. Strategic framework of competitive advantage Kanter (2001) has strongly asserted