Mcdonald Company Essay

5840 words - 24 pages

Title: McDonald Company

Content

Introduction
Section 1 - How McDonald put value on itself
1.1. Value for customers
1.2. Resources and Capability
1.3. Core Competences
1.4. Does resources allows competitive advantages
1.5. Organization structure and culture
1.6. SWOT and PESTEL
Section 2 - Jim Cantalupo’s strategy
2.1 What was his strategy and why introduce them?
2.2 Porter 5 Forces
Section 3 - What has change and has not after Jim Cantalupo
3.1 Problems and Solutions using Jim Cantalupo’s strategy
3.2 Problems that have no solution yet and What they should do or should had done
3.3 Strategic Management Theories

Reference

Introduction

This report aims to ...view middle of the document...

And not only that it is a reliable resources due to the fact that McDonalds makes about a average of $5.57 billion a quarter year (from http://www.kgbanswers.com/how-much-profit-does-mcdonalds-make-a-year-on-average/4170716 by kgb agent Chelsea on 2009-0-26) in which it mean that they earn about $22.28 billion a year. With the profit
, they are free to invest in new projects and if they didn’t have enough money, than banks are happy to lend them money since based on their profits, McDonald is capable on repaying the load.

Machinery is a resource because it can help increase production by using less material and time but also enable to produce the same amount which help keep with the competitor in terms production from machinery. Not only that but it also decrease cost even more due to the fact that it will cost less in maintenance which helps save up cost.

Market is growing for McDonald, because of this other competitors start to enter the market trying to earn the profit and trying to get some of the market share, but despite the growing competitors, our brand is the best in the current fast food market. Now the reason on why market is a resource is because, revenue is generated from the market in which than we obtain money to be able to invest in new product.

Manpower which are employees, for McDonald is also a resource because they help the company to generate profit by keeping McDonald running and providing services.

Make-up for McDonald is fairly good which means we may have enough for future development in the future and keep up with the competitor, take for example our diet coke which is basically sold for a dollar plus but it takes a cost of 4cent to make for each cup ( from http://caloriecount.about.com/mcdonalds-diet-coke-ft60262 a review by pchca). Make-up is a resource because it can help predict on what to spend on future production, if there isn’t enough money to purchase resources for example, the bank will be willing to loan the money to fund the project due to the fact that the banks knows that McDonald is able to pay back the loan.

Finally materials, comparing the cost with our competitor, we are able to get it fairly cheaper than them due to being partners or owning a few of the distribution channels such as supply. Which is a resource due to the fact that without these materials, McDonald is production will come to a hold.

1.3. Core Competence

As for McDonald’s core competences, it is the QSCV vision as it has always been since Ray Kroc. QSCV stand for “quality food, fast and friendly service, clean restaurants and value for money”. This vision has always been there to guild the business to success.

1.4. Does resources allows competitive advantages

Do resources allow the company to have a competitive advantage over the competitors, the answer is yes. One of the main advantages that McDonald has is branding which had been so good that just by the “Mc”, everyone thinks of McDonald. So far no fast...

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