Business Policy and Strategies

Business Policy and Strategies

Product Positioning and McDonald’s Corporate Strategy

The perceived product positioning maps of the McDonalds line up with the corporate strategy of the company. The company carries out its business activities under the strategic motto that “plan to win:” The one way of winning for fast food restaurant and business is to win masses of customer traffic into the business wither through quality services and products or proper marketing. MacDonald’s do this very well. This strategy is made by continued growth of the company in US and foreign markets, being able to exist in business as a sustainable company, introducing new items, redesigning its business model, and ensuring that it has remained very competitive (David, 2011).

In the positioning map, the company takes the lead in terms of convenience, and it is only second to Burgher in terms of quality. McDonald strategy focuses on offering friendliest customer service, best quality, healthiest option, and the most serene and comfortable environment. The company’s corporate strategy is ensure there is continued improvements the product positioning map indicates that the company is doing well than other in convenience which is made up of such elements as quality, price, taste, speed of service, and healthy choices. This is in line with sales objective of the company. As such, with a corporate strategy that is aimed at making splendid plan in order to win the market, the product map positioning of MacDonald’s illustrates how well the company has succeeded in implementing this strategy.

Weaknesses in Positioning

There exist different areas for improvement in retain to the direct competition of the company in every town for the McDonalds chain of fast food restaurants. Burger King wins in the fast food market, when it comes to offering quality fast food. In these areas, it would be a major strategic change in their business model such that they may never make effort to win in these area. Changing its products to compete in this area would lead to customer loss possibly due to changes in pricing strategy which they have. Howver, the company has recognized it needs to make some changes in in healthy issues and they have tried to do so with changing the type of oil that they use offering lower calories fries, and providing apples instead of fries at the request of the customers. However, these changes have done little in changing the mindsets of its customer base.

Relevance of the EPS/EBIT chart

The relevance of carrying out EPS/EBIT analysis in comparison to the strategy implementation of the McDonalds coincides very well. With the strategy of the company to grow in USA market and in foreign markets……………………

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