Question

1. Which trends in McDonald’s’ external environment are likely to have the greatest impact on the company’s ability to sustain a competitive advantage? 2. What is McDonald’s’ strategy? Has it changed over the last few decades, and if so, how? 3. How should Easterbrook adapt the organizational structure of McDonald’s to achieve his strategic plan?

Answer 1

The greatest impact that hampers the ability of Mc Donald's to sustain the competitive advantage is :

The youngsters these days are adopting healthy eating habits and prefer healthy food choices as opposed to junk food. Mc Donald's burger, colas fall into the junk category as a result of which people shy away from eating out at these outlets. This change will have the greatest impact on Mc Donald's ability to sustain its competitive advantage. Plus the young population preferred eating out at outlets that promote social awareness which Mc Donalds rarely is able to keep up with.

Mc Donald's is trying to win its customers back great tasting food, enhanced experience as it redesigned its menus and these Redesigned menus met the demand for healthier quick service meals. It has introduced more salads, more chicken items but stopped chicken made from birds and also introduced apples in happy meals. It redesigned its outlets to appeal to people as people prefer establishments which are nicely decorated. It also started Mc cafe items, introducing which it gave a heads on competition to Starbucks.

Easeterbook should focus towards maximising it's strenghts and opportunities in the market. He should try and minimise its weaknesses and threats and focus on the strenghts instead. The strenght of Mc donalds lies in it's brand name, the good quality food, the ability to adapt to the tastes and preference so the local people. It's weaknesses lies in the price competition , the failure of the management. The threats is the increased competition, substitute products and the changing tastes and preferences towards heath food of the youngsters.

Hence, Easterbook should adopt the organisation strategy where he should outweigh the strenghts over the weaknesses and opportunities over the threats.