Good Case Study About Prepare Two Matrices To Justify The Recommended Strategies

Type of paper: Case Study

Topic: Strategy, Business, Company, Growth, Products, Market, Competition, Customers

Pages: 5

Words: 1375

Published: 2020/12/07

Assignment 2

McDonalds is a “star”, because it has rapid growth and high share being the market leader. It brings considerable profit due to its competitiveness, but also need funding to maintain a high proportion of a dynamic market.

Discuss the Advantages and Disadvantages of At Least Two Alternative Strategies

Two alternative strategies are differentiation strategy and market development strategy.
Differentiation strategy is to attract customers by maximizing the differences between the company’s products from similar products of competitors. Successful differentiation allows establishing a higher price for the goods; increase sales (since the majority of users attracted to the distinctive characteristics of the goods); and win customer loyalty to brand image (some buyers become very attached to additional characteristics of the goods). Disadvantages of the strategy are that there is no guarantee that differentiation will bring a competitive advantage; and the ability to quickly copy successful distinguishing features (Kotler & Armstrong, 2012).
Market development strategy involves moving the company into new areas of the market with existing products or services. Its benefits include built on existing power, skills and capabilities; relatively low business risk; implementation of the strategy can provide significant income at relatively low cost; and sufficient income for new product development. Disadvantages are in the limited scope of the strategy (it is generally appropriate when the product is in the early stage of its life cycle); requires considerable market research; is likely to be difficult to identify specific segments of the market, for which it is necessary to direct efforts; and organization may not be able to meet the needs of the identified market segment due to lack of capacity, or for other reasons (Kotler & Armstrong, 2012).
Recommend Specific Strategies and Objectives For The Firm to Follow Over the Next Three Years Including An Itemized Estimate of Costs For the Next Year
McDonalds is recommended to apply differentiation strategy and growth strategy. Thus, the main competitive advantage of the company that chooses differentiation strategy is reflected in the uniqueness of products and services, which cannot be copied by competitors. McDonald’s is always within the fast-food industry, but frequently markets new burgers. Frequently, when a firm creates new products, it can gain new customers for these products. Hence, differentiation strategy can be a crucial business development strategy for firms to stay competitive. McDonalds objectives can be:
Growth strategy is the direction of the company, implying a permanent increase in indices of the previous period of its activity. The objectives consider:

Compare and Contrast Your Recommendations To the Actual Strategies Planned by The Company

McDonald’s Corporation recently provided an update on its “Plan winning” strategy, which includes targets for profitability of funds on a 3-year period. The company’s “Plan winning” strategy involves tasks such as optimization of the menu, improving the quality of customer service and increase the availability of the brand. As a result of the last strategy update, the company stepped up its actions to implement customer-oriented strategic line. Meanwhile, the company also decided to re-provide about 1,500 franchise restaurants mainly in the Asia-Pacific region, the Middle East, Africa and Europe during the same period. Despite frequent menu changes and a focus on customer value, McDonald’s fights for an increase in sales amid weak consumer spending in the environment and stiff competition from other leading fast food chains. The company is sure that the latest update of strategy will help it win the competition and significantly increase revenues (McDonald’s, 2015).
Therefore, provided recommendations on growth and differentiation strategy relate to company’s updated strategy plan as regards changes in menu and increase of brand awareness. However, the company is aimed at improvement of customer service quality, which recommendations do not concern.

Specify How Your Recommendations Can Be Implemented And The Results You Expect Including A Recommended Timetable For The Action Items

Recommendation of differentiation strategy can be implemented through the modification of the company’s menu. The following measures can be taken:
Recommendation on growth strategy must consider what company’s key priorities will be. This is a part of the rational process of planning. Substantive growth provides a key advantage to business strategists in making their steps clear. Goals can be prioritized based on the extent to which they will achieve substantive growth and how long this will exactly take (David, 2011). Growth strategy will be implemented within the following steps and deadlines:

Explain In Detail How You Will Review And Evaluate The Success Of The Strategies You Recommended

Using different monitoring procedures, namely checking the effectiveness of promotional campaigns once per month during a year, controlling budgetary expenditure once per month, presenting necessary reports to the management once per week, measuring staff efficiency by proper assessments once per quarter and assessing distribution channels’ operation will help to review and evaluate the success of the recommended strategies.


David, Fred R. Strategic management: Concepts and cases. New Jersey: Prentice Hall / Pearson, 2011. Print.
Kotler, Phillip & Armstrong, Gary. Principles of Marketing, 14th edition, New Jersey: Pearson Prentice Hall, 2012. Print.
McDonald’s, 2015.Web.

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"Good Case Study About Prepare Two Matrices To Justify The Recommended Strategies," Free Essay Examples -, 07-Dec-2020. [Online]. Available: [Accessed: 30-Nov-2023].
Good Case Study About Prepare Two Matrices To Justify The Recommended Strategies. Free Essay Examples - Published Dec 07, 2020. Accessed November 30, 2023.

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