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2. Aim and Objectives
4. Findings / Result and Analysis
4.1 Theoretical Perspective of Strategic Management
4.2 Business Strategy
4.3 Selected Organization (McDonald’s
4.4 Expansion Strategy
7. Appendix (SWOT
Hospitality and Service businesses like fast food restaurants such as KFC, McDonald’s and Pizza Hut are all relatively commonplace in most developed economies. Whatever views you hold as to there worth, they satisfy a demand and employ a large number of people. McDonald’s, for example, is a US company that produces and markets fast food products nationally and in overseas markets. It consists of many outlets in the USA, UK and other countries worldwide. Its corporate strategy is set at HQ level with various business strategies for particular regions.
It is interesting to note that very few of the authors who use the concept of strategy most regularly ever bother to define the term. Sometimes they employ it simply as a synonym for ‘chosen course of action’; while in other cases they use it to signal that some particular decision is of crucial importance. The rational action approach clearly implies that some decisions are more important than others, and indicates why this is the case. There is now a ‘critical mass’ of rational action technique that can be used to analyze strategic issues.
Firms such as McDonald’s typically sell franchises to local individuals, but often have to first prepare an infrastructure in foreign locations in order to provide their foreign businesses with the quality and types of inputs needed before they establish their local outlets (Vignali, 2001). A competitive strategy is about difference, the choice of activities that will deliver a unique mix of value. The essence of strategy is in the activities choosing to perform activities differently or to perform different activities than rivals. A successful industry should rely on adaptation and change to survive (Vignali, 2001). Choices have to be made concerning strategic positioning (conceptual and actual) and the use of particular competencies, capabilities and processes. In making these choices firms will, according to Porter (1980), adopt certain strategic positions that emerge from three distinct sources.
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