HI6006 COMPETITIVE STRATEGY ASSIGNMENT 2 Assignment 2 Specifications Purpose: This assignment aims at ensuring that students have familiarised themselves with at least one significant case study (from...

HI6006 COMPETITIVE STRATEGY ASSIGNMENT 2
Executive Summary
This report is on case study that concentrates on an expansion of McDonald's Restaurant's brand and product line. Every year the competitor of the McDonalds’s introduces some of the changes in their product line or service spectrum. However, Macdonald is lacking in this strategy. This action has severe consequences on future growth and development of McDonald. The whole report divided into sex parts. The report Starts from the introduction, brief summary of case study, identification of the strategic issues. Competition dynamic theory and its implementation in the context to case study. A systematic review has done to gain understanding on the important concept.
Table of Contents
Executive Summary    2
Introduction    4
Brief Summary of the Case    4
Identification of Strategic Issues    6
Relevant Competitive Dynamics Concept    7
Application of Strategy Model    8
Conclusion    9
References    11
Introduction
McDonald's has become one of the world's most popular brands and the largest hamburger fast food restaurant chain in the world, serving over 70 million customers a day. In 1940, Dick and Mac McDonald started the company in San Bernardino, California, USA. They have been able to expand their company from an incredibly modest starting point by delivering a high quality product cheaply and easily. The company expansion occurred after Chicago-based Ray Kroc joined two brothers in their venture.
He was easy to understand and had a vision of expanding the company across the USA and beyond. They have expanded across 120 countries and run about 32,000 outlets that employ 30 million individuals globally. As stated by Murdaniel (2019), the secret to such a fast and effective global sales is McDonald's pioneered business model. Company realised by Ray Kroc will achieve massive development by model of franchise. Today more than 70 percent of McDonald's restaurants operate on a franchise model basis. The company succeeded in establishing its business where the majority of Western-based multinationals had previously struggled.
One of the primary reasons for the loss can be due to other MNCs' lack of understanding of the Chinese culture. They attempted to recreate their US operations in China without altering the native population and their preferences. The globalisation process has encouraged many multinational companies to change their strategies to respond to cultural differences. Analysis of McDonald's' international strategy has shown it has pursued a structured globalisation approach. However, the goods have been modified in many cultures to suit the local requirements. In India for example, McDonald particular construct the hamburger recipes.
Brief Summary of the Case
The world's largest fast-food corporation faced an identity crisis. Sales declined in its vital home market, customers opted for healthy alternatives to their pizzas and fries and smaller competitors with fresher menus ate in their market. Due to having been an icon of American capitalism from across globe, McDonald's had begun to embody a lot that could go wrong in a mature company: it was slow to respond to evolving customer preferences and was hesitant to take risks, raising concerns about its relevance. In a multinational company with over 36,000 restaurants in 120 countries worldwide and global revenues of $25.4bn, there are just as many obstacles, which have already been address by those.
Keeping abreast of consumer preferences — whether they relate to food or electronic innovation — is vital in a constantly developing industry. As mentioned by Zhu, Anagondahalli and Zhang (2017), food protection comes close to the top of every public concern league table in China, so McDonald's was badly affected when an investigative television report accused the business of using a continental supplier that repackaged expired beef. Consumers in China are also disappointed with the brand and have not been persuaded that McDonald's is in charge of supply chain problems. The difficulty the company faces in responding to its changed competitive environment, especially the difficulty it has had in attracting millennials, reflects this lack of diversity on this board.
There is a need that McDonald's should treat menu deals more regionally. The company's errors have attempted a one-size-fits-all approach, where the company has products that are rolled out globally; it is called "Squawk Box." They ought to look at local demand, regional tastes, regional consumer preferences, different populations in each region and start making more localised product decisions and localised marketing decisions. Global fast food brands such as McDonald's has long enjoyed a reputation on the mainland for cleanliness, consistency and safety, which in years has faced a series of food quality controversies. These included the tainted milk scandal in infant milk, which killed six babies and sickened hundreds of thousands.
To gain from the growing demand for easy, safe and affordable meals in India, McDonald's should be well positioned. The Western fast-food market is still relatively small, but it is rising increasingly as a young population eats more and more meals and on the go enjoys special events by eating out. A modern American entry into the competitive food market in India, McDonalds has worked for years to overcome a fundamental problem. Its core product range — beef burgers — is a taboo for the Hindu majority Indian population.
Despite finally finding a recipe to appeal to Indian palates — through extensive chicken and vegetarian options — McDonald's is trapped in a resentful legal dispute with a strangled former partner, which has...