McDonald's product value is also its greatest strengths. To analyze this factor we have to look at the weaknesses part of the companies business and marketing strategy. What can generally be termed as a weakness of a company?
Customer trends change and so does their choices.
The secret of any marketing strategy is to reach the target audience. Demographics and customer financial and psychological aspects define a business concerns success. All the above factors point out the external strengths and weaknesses. There are also internal factors which affect the performance and overall benefits the company stands to enjoy. Kids based marketing strategy which was earlier a weakness has changed since 2003. Now more teenagers and adults rule the McDonalds ad world. Our customers have changed.
Now let us analyze the sustainable competitive advantage of the company. What is sustainable competitive advantage? SCA is the advantage a company has which is difficult or impossible for other companies to possess or break through. It can either be the brand, dynamic customer care, cost structure or its patent. McDonalds is presently concentrating on this advantage by concentrating on organizational behavior and managerial expertise.
o Technological, structural and financial assets of a company are excellent market position which helps in the SCA. McDonalds no doubt is abundant with such aspects like structure, technology and finance. The vision was to provide quick service, cheap products and quality satisfaction. Outsourcing boom or doom in today's business environment
General advantages of outsourcing are cheap service, knowledge of markets offshore, flexible resources, speedy operations, expansion in supplier relationship etc. most of all the company can concentrate on its core competencies and outsource rest of its operation. What makes it still strong and ranked among the top business concerns is its core competences and the sustainable competitive advantages both internal and external. The distribution system brings the product or service to the place where in can best fill customer needs. The old concept of marketing focused on the firms existing products and considered marketing to consist of selling and promotion to maximize sales at a profit.McDonalds Business Analysis
Process signifies systematic, sequential, and logical series of activities directed at obtaining a predetermined outcome in an effective manner. Hammer and Champy define business process reengineering as the fundamental rethinking and radical redesign of business processes to achieve dramatic improvement in critical, contemporary measures of performance such as cost, quality, service and speed.
Business Process Reengineering challenges the basic assumptions on which the organizations have been built (hierarchy, specialization, functional; command and control culture, etc.). It firmly discriminating focus on the business process.
Teller's System: The banks introduced teller's system to simplify the money-withdrawal process from the savings bank by the depositors. It has greatly improved the customer's satisfaction and bank image.
The machine supplies the needed money to the depositor.
The business process reengineering effort seeks to change process structure by empowering motivated front-line workers to make decisions by providing access to relevant information.
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