Strategic Operation Issues

Daniel V.

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Strategic Operation, Issues, McDonald and Kentucky

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Abstract

Conducting competitive differentiation in contemporary business environment is becoming a challenging target to run into for most organizations, with the rivals speedily closing the previously existing gap. In practice, enterprises must now deal with the potential threat arising where competitors are gradually eating into their market shares. This call for incremental innovations to strategically sustain service excellence in the highly competitive market as opposed to radical changes that often fails to meet the anticipated returns. Of great concern is the new approach of doing things in the food industry, previously dominated by a few players such as McDonald and Kentucky food chains. This has forced McDonalds to review their strategic operations under an approach of innovative market leader and fast follower of proven techniques.

Although McDonald's strategic operation has continually emphasized speed, affordability excellent quality and standardization in service delivery, incremental innovations are vital to eliminate recurrence of lacklustre performance. Organizations operating in the service industry lines are presented with an unforgiving environment where survival is only guaranteed to firms satisfying their clientele with excellent services beyond competitors' knack.

Introduction
McDonald's Food Chain
McDonald's Operations in Domestic and International Market
Analysing the Challenges Affecting the McDonald's
Conclusion

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Extract

[...] Consequently, the company maintains a leading resource center heavily relying on consumer complaint and satisfaction surveys to identify present and future customer trends. This allows sustenance of excellent services matching the changing needs of consumers in the market. Organization of any nature will through its senior management strive to create congruence between its internal structures and the external demands. Subsequently, McDonald's management has continually emphasized the need to conform its operations to the environmental shifting patterns when implementing new strategies. [...]

[...] Firstly, the restaurants have recorded moderate growth in 2012 emerging from the slow recovery and fragile consumer confidence. The performances of the restaurants are recording the lowest figures given the five years (2007-2012) financial crisis and the Euro area sovereign debt crisis squeezing it out while leaving the revenue of high-priced Starbucks (Strauss, 2012). The new trend has been associated with strategic decisions undertaken by the top management such as failure to spread aggressive tactics in all international units. This is felt to squeeze from both the top and bottom lines. [...]

[...] Operations strategy. London: Cengage Learning EMEA. WEIHRICH. (2010). Management. Tata McGraw-Hill Education. [...]

[...] As a result the restaurant through its various outlets has harmoniously re-examined its pricing strategies relative to the demand in its franchises. Following its slip in its total sales, McDonald's responded in replacing the U.S division head Jan Fields with another long-time McDonald's executive, Jeff Stratton (Rothbort, 2012). Lastly, McDonald's management has resolved to quell the international threat by redesigning STRATEGIC OPERATION ISSUES 5 its menus and encouraging vertical acquisitions in the Boston market while targeting competitors' markets such as Starbucks. [...]

[...] This has forced McDonalds to review their strategic operations under an approach of innovative market leader and fast follower of proven techniques. Although McDonald's strategic operation has continually emphasized speed, affordability excellent quality and standardization in service delivery, incremental innovations are vital to eliminate recurrence of lacklustre performance. Organizations operating in the service industry lines are presented with an unforgiving environment where survival is only guaranteed to firms satisfying their clientele with excellent services beyond competitors' knack. Conforming to such market demands requires alignment of proven tactics with the changing needs of the customer base to lock out new entrants in the market. [...]

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