Assignment
Report of case study on Management Strategies
of
McDonald's Corporation
Jun 2006
Table of Content
INTRODUCTION 1
ORGANIZATIONAL BACKGROUND 1
LOW THREAT OF ENTRY 2
Economies of scale, Learning Curve and Experience Curve 2
Brand differentiation 3
Cost and technology advantage 3
Access to distribution channels 4
HIGH THREATS FROM SUBSTITUTES 4
Price and quality 4
Better performance/service 5
Different industry(Similar product) 5
HIGH THREATS FROM THE BARGAINING POWER OF BUYERS/CUSTOMERS 6
Forcing down prices 6
Customers’ wants and needs 7
Healthy life style 7
Fast-and-Convenient Service 7
LOW THREATS FROM THE BARGAINING POWER OF SUPPLIERS 8
Forward integration 8
LOW RIVALRY AND COMPETITION AMONG COMPETITORS 8
Competitors 8
Industry growth 9
Product/Service 9
HIGH THREATS FROM STAKEHOLDERS 9
Local Communities 10
Social Welfare 10
Interest Groups and Suppliers: Environmental protection 10
RECOMMENDATION 11
CONCLUSION 12
REFERENCES 13
APPENDIX 14
Introduction
This report is to study McDonald's Corporation using Michael Porter's Analysis on strategies used to deal with the competitive environment.< ...