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What business level strategy does McDonalds appear to be using? (ref Chapters 5 & 6) What niche (cost, differentiation, focus) do they fill in this highly competitive industry, and is it sustainable?

23 / 01 / 2019 New Essays

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Strategic Management and Case Analysis of McDonalds

Second Strategic Analysis Case # 17, McDonalds and the McCafe Coffee Initiative

This case is brief and focused as it is presented by the text/authors. However, there is much more to it than meets the quick first reading. For this case analysis, use the information in the text to define the part of McDonalds` business you will examine. Use the company`s Internet site to supplement your understanding of the issues presented in the case - which still exist today.

Using APA format and succinct commentary, prepare a 6 to 7 page analysis of this case by addressing the following questions: (You can use attachments to supplement the paper)

1. What business level strategy does McDonalds appear to be using? (ref Chapters 5 & 6) What niche (cost, differentiation, focus) do they fill in this highly competitive industry, and is it sustainable?

2. Using the Porter`s 5 Forces model, explain the new venture`s relative position in relationship to industry competitive forces.

3. Identify McDonald`s corporate strategy as it applies to McCafe in terms of (i) direction (ii) composition and (iii) size, explain McDonald`s corporate strategy.

4. How does McDonald`s corporate strategy create value? Identify the factors that fueled McDonald`s growth.

5. Is McDonald`s current corporate strategy the best one it can have? Justify your answer.

6. Assume that McDonald`s McCafe initiative hit a plateau in terms of its growth. What should McDonald`s do to overcome such a roadblock?

7. Summary - summarize what this case has illustrated in terms of the strategic principles you have been learning.


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