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Thinking Strategically

Thinking Strategically

Thinking Strategically

  • Type of paperCoursework
  • SubjectBusiness
  • Number of pages2
  • Writer qualityStandard
  • Format of citationAPA
  • Number of cited resources2

The class is Business Policies & Strategies.

Unit 2 DB(1)

The McDonalds Company has in the recent times been grappling with reduced sale volumes, a tarnished public image and a failed relationship with franchisees. In response, the company is preparing to unveil a strategic plan that is sure to solve the current dead-end that the company is enmeshed in. The following are some of analytical outcomes of the changes that the company seeks to put in place under the leadership of one Steve Easterbrook (Böhm,2009).

Strengths

To start with, the company wishes to increase customer service delivery by not only cutting on the menu simplification but also by reducing the workload on the workers to enable them focus on what matters in as much as customer service is concerned. Secondly is reduced promotion; the company has increased the dollar menu and has started serving free coffee in the wee hours of the morning to that effect.

Weaknesses

The company has increased the contents of its menu up from 85 to 121 items. This has proved to be counterproductive since the now heavy menu lowers the customer service rate which accounts for 3-4 minutes waiting by customers which is the longest with respect to other companies.

Opportunities.

The changes also come packed with opportunities, the upgrading of the stores for example is one such an opportunity. With the upgraded stores, the customers will flock the company due to the appealing atmosphere created as a result of this change. Secondly, the company seeks to get new products to the market while ensuring that the customer service delivery remains optimum, a move that will increase the sales volumes.

 

Threats

A common threat that bedevils the company is the upward revision of the employee wages that has backfired sine it was extended to employees and franchisees with less than 90 % ownership of the company. This was mainly because such expenses were being shouldered by the franchisees who now see it differently and are opposed to such a change.

Trends

The company is planning to improve the quality of food that is available to its customers; this will be done through reduced GMOs and hard to pronounce food stuff from their menu. In addition, the company has started offering breakfast 24/7 and not only for specific times of the day.

The strategies the company has instituted are bound to succeed. First, with the increased customer service delivery, more customers will be served to their satisfaction and preferences. Secondly, with reduced promotions, the company will cut on the production costs which translates to high profit earnings for the company. Third, the improved company store system will attract more customers due to the appealing value associated with it. In addition, the introduction of new products to the market will increase the customer base due to increased food options in the company’s menu. Finally, the serving of breakfast around the clock is also likely to appeal to more customers because of the popularity of the company’s breakfast items (Hoskisson et al, 2012).

However, these strategies may as well be counterproductive. As observed earlier, increasing the contents of the menu will most likely serve to slower the service delivery process to the customers. In addition, increasing the salaries of the employees, especially the new one with less than 90 % company ownership will definitely backfire since the wage costs will now be on the shoulders of the franchisees who may disapprove of it (Böhm, 2009).

References

Anja Böhm (2009). The SWOT Analysis. GRIN Verlag, Pg. 17.

Michael A. Hitt, R. Duane Ireland, Robert E. Hoskisson (2012). Strategic Management Cases: Competitiveness and Globalization. Cengage Learning, Pg. 330.