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    McDonald's Business Straegy

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    Hello,

    I need two pages on Mcdonald's business strategy. Also, compare one of Mcdonald's competitors strategies as well.

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    https://brainmass.com/business/business-policy-and-implementation/mcdonalds-business-straegy-562622

    Solution Preview

    McDonald's has established a business strategy that is not unlike other fast food chains.

    Cutting costs, adjusting prices, and improving restaurant operations are the three pillars of a strategy

    adopted by COO Ralph Alvarez (Adamy, 2009). Replacing older gas guzzling company vehicles with

    more fuel efficient models is one way the company is cutting costs. Improving drive through process

    efficiency is another way of reducing costs. When processes become more efficient, employees become

    more productive and able to serve more customers. While this strategy is effective in many regions of

    the globe, some weaknesses in sales, such as in Eastern European, German, and Chinese markets, must

    be balanced by increased revenues in other regions, like Japan, Australia, and the UK. Roughly two

    thirds of McDonald's revenues are generated from overseas markets (Adamy, 2009).

    Though much of the organization's revenues come from overseas markets, McDonald's must

    still maintain a competitive edge in U.S. markets. Though pricing strategy is often tied to marketing

    efforts, McDonald's uses customer demand to determine which products should be reduced or

    increased in price. High demand products or menu items can be reduced in price, due to larger

    quantities of sales. However, the organization relies heavily on automated ordering systems, which

    also track sales, to adjust prices in specific markets. Offering products customized to cultural

    expectations, such as high end coffee drinks in U.S. markets, ...

    Solution Summary

    The discussion focuses on the business strategies of two popular fast food chains. The discussion explains specific methods each company has utilized to improve profit. Both strategies are compared for potential effectiveness.

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