STRATEGIC MANAGEMENT Essay Example | Topics and Well Written Essays - 2000 words

STRATEGIC MANAGEMENT - Essay Example Table of Contents Executive Summary 2 Introduction 4 During CEO Jim Cantalupo Management 4 Strategic Vision 4 Core Competences 5 Competitive Advantage 5 Resources Used 6 Successful Management Strategy and the Reasons and Elements of Jim Cantalupo’s Strategy 6 After CEO Jim Cantalupo Management 9 The New Strategic Approach McKinsey’s 7-S Framework 9 New Strategic Approaches through the Application of Ansoff Growth Matrix 13 Conclusion 16 References 17 Bibliography 20 Introduction McDonald’s has been operating in the US market for many years and has grown internationally by establishing its brand value in the world. There were various challenges during the development phase of the company and there were problems related to business strategies implementation in expanding the stores of McDonald’s. The study reflects the business strategy that was implemented by CEO Jim Cantalupo during his tenure in McDonald’s. During CEO Jim Cantalupo Management Strate gic Vision Strategic vision of a company is the representation of the core values, beliefs and philosophies (Air University, 2010). Jim Cantalupo’s strategic vision was upon developing new customers and not increasing the numbers of the restaurants. Since the market was focused upon targeting the competitors’ customers, he concentrated upon new customers. Jim Cantalupo’s vision was upon offering healthier food. For existing customers, his vision was to enhance the level of service with hygienic environment and commitment to deliver service within stipulated time. His vision was upon innovation and introduced new products for all categories of customers. Core Competences Core competencies are the unique attitude, skills, knowledge and behaviour that contribute to excellence (University of Nebraska–Lincoln, 2002). McDonald’s core competence is in its operations and infrastructures. The organisation is competent for production and timely delivery of a ffordable foodstuffs to wide range of customers. The company has developed its core competency through low cost foodstuffs, high speed service and consistent quality strategy. These factors influence the customers to be attracted and being loyal towards the company. The core competency of the company is supported through its brand image, relationship between customers and suppliers, strong financial resources, market leadership and product value (Zamarripa & Wylie, 2000). Competitive Advantage According to Investopedia, â€Å"The advantage that a firm has over its competitors assisting in generating margins and sales and retaining customers than its competitors is firm’s competitive advantage† (Investopedia, 2010). McDonald’s competitive advantage is gained in the industry of fast food restaurants. The company’s innovative menu and introduction of wide range of foodstuffs have made the company gain competitive advantage over others. The food is affordable and value for money offerings aid in retaining the customers. Its franchisee based model has been able to strengthen its financial position and played a significant part in their global expansion. It is a ‘penny profit’ business but still with hard work, it has been successful. Through the global presence, economies of scale operations have led McDonald’s to gain competitive advantage over others in national and international markets. Resources Used