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

McDonalds Corporation - Essay ExampleAlso McDonald is already considered the commercialise leader in the fast food labor in the world, with a total market share of nearly 34 percent 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 successful organisation. 2. Strategic Reasons for the Success of McDonalds The key reason for the success of McDonalds success has always been the people or employees that puddle in all the various franchises of the communication channel 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 companys indemnity of employing only the local people of where it is located seeks to promote the company from within its own internal guests. This policy of employing local people is to have managers that understand the comm erce 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 invariant set of items that are consistent in taste and quality across the globe. It also believes that adapting to changes, especially with respect to local condition is intrinsic to the success of the company. The eminence of the companys products and services also form the basis of McDonalds competitive schema (Adams, 2007). Indeed, to sustain growth and development, McDonalds has differentiated its products by targeting children and the patriarchal 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 brand equity by effective promotion, sustainable business practice and quality service has also been vit al part of its success. McDonalds promotional maxim of branding globally and advertising locally offers the company the opportunity 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 figure on a sliding scale based on the restaurants sales (McDonald, D.2008). Franchisees across the wo rld follow the same standard vis-a-vis infrastructure, ambience, quality, taste and customer service. as such, the success of the company can usually be related to being able to become accustomed to a specific environment. (Holmes, 2010) 3. Strategic modelling of competitive advantage Kanter (2001) has strongly asserted