The basic framework for strategy analysis

The basic framework for outline analysis1. To what purpose does McDonalds Corporation achieve a close strategic conniption betwixt its strategy, the characteristics of its external environment, and its internal resources and capabilities? Are changes occurring in its external environment weakening this strategic fit? If so, how should McDonalds adjust its strategy? The discussion of The Basic fashion model for Strategy Analysis (pp. 12-13) emphasizes the importance of strategic fit. McDonalds strategy is based on the human benevolent of like, tightly integrated line of descent systems for the supplying a especial(a) menu of hamburgers, fries, drinks, and several other items that ar produced and served to meticulous standards of speed and physical structure at low prices. The success of McDonalds reflects (a) the appeal of McDonalds offerings to mass-mart preferences of individuals and families for low-priced, dadaular meals. (b) McDonalds ability to realize a set of capabilities that allow the replication of McDonalds restaurants creative activitywide (e.g. highly standardized operational capabilities supported by meticulous human resource upbringing and management). In recent years, changes in the external environment capture bring d decl atomic number 18 this close fitCompetition has increased. A large number of fast-food bonds have developed, most of them utilizing the same franchising model perfected by McDonalds. enlargement by McDonalds and other burger chains has also led to market saturation.In the developed world, consumers have become increasingly health conscious preferences have shifted away from burgers, fries, and milkshakes.McDonalds success has made it a target for a verify of activist groups environmentalists,Opponents of worldwideization, nutritional campaigners.Consumers are assembleking greater variety and freshness in their diets.As a result, McDonalds is in the bring of adapting its strategy. Changes includewid ening its menu.Responding to health concerns with more salads, fruit, and lower calorie items.Moving from global standardization to greater local differentiation McCroissant in France, Rice Burgers in Hong Kong (see p. 383, McDonalds goes orbicular).Not only fostering local initiatives and innovations, but then allowing the world-wide transfer of these initiatives and innovations (e.g. McCafe gourmet coffee bars initiated in Australia, then roll out in US and other countries).2. The discussion of the evolution of business strategy (From Corporate Planning to Strategic Management) established that the characteristics of a firms strategic plans and its strategic readying process are strongly influenced by the excitability and unpredictability of its external environment. On this land, what differences would you expect in the strategic plans and strategic planning processes of Coca-Cola Company and Google Inc.?The shift during the past four decades from incorporated planning to strategic management was influenced, in part, by increasing volatility and unpredictability of the business environment. As a result strategic planning became less based upon forecasts of the future, less formal, shorter margin, and concerned more with innovation and the creation of options rather than with incremental improvements to the status quo. These same influences are likely to make believe differences in the flak to strategy making among firms that face different diligence environments. A company like Google has an industry environment characterized by fast technological change, and the constant emergence of tender market opportunities and competitive threats. A company like Coca-Cola faces a much more stable environment. The world market for soft-drink concentrates is dominated by two giant companies (Coke and Pepsi), and this is likely to stretch forth for the foreseeable future each firms market position is reinforced by long-term agreements with bottlers and mass ive brand equity. Consumer tastes change slowly there is borderline technological change. Hence, each company is likely to have a strategy-making process that differs in formality, precision, time horizon, and scope. For example Coca-Cola GoogleMedium term (e.g. 3-4 years) Short term (12 months?)Precise operational and capex budgets Budgetary processes flexible Strong emphasis on short- and medium- Little emphasis on cognitive operation targets focus term performance targets on first-mover advantage and creating options, Strategic planning based on designate market Strategic planning based on broad market focus soft drinks what is our core business? Emphasis on design, with authorize management Emphasis on emergence, with top management Exerting strong hierarchic control orchestrating bottom-up initiatives3. I have subscriber lined that a firms strategy can be described in monetary value of the answers to two questions Where are we competing? and How are we competing? (Descri bing a Firms Strategy). Applying these two questions, provide a compendious description of Madonnas career strategy (see Strategy Capsule 1.1).Where does Madonna contend?Madonna derives revenue from a number of markets recorded symphony, live concerts, motion picture/video acting, book author, and the management and harvestion of other recording artists. In terms of size of revenues, then, recorded music is her core business. However, this does not agnise the links between the different markets in which she engages or the way in which Madonna positions herself in relation to them. At the broadest level, Madonna competes in the global entertainment business. However, her positioning within this is as a superstar Madonnas repute and appeal transcends the individual markets in which she competes.How does Madonna compete?Madonna is a trend-setter/trend-spotter. In music, fashion, and social attitudes, MadonnaIdentifies emerging trends then positions her in the vanguard. In the early 1980s, she recognized the potential for the music style move New Yorks dance clubs to have an impact on popular music in the slow 1990s, she helped introduce world music into western pop music.Madonna creates integrated multimedia product offers that include music (a new album), a fashion look, an attitude and philosophy (sexual predation in the late 1980s, religious mysticism at the turn of the millennium), and worldwide promotion by dint of a concert tour.Madonna uses a network of collaborators and partners to create her product offerings. These include musicians, song writers, fashion origins, actors, choreographers, vocalists, and dancers. Madonna acts as overall designer and systems integrator for these various contributions.Madonna relies heavily on the press and her own generation of news events to keep her continually in the national eye. such instances include sexual bravado (kissing Britney Spears), high-profile liaisons (affair with Warren Beatty), personal ev ents (adoption of African child), attacks on political and religious authorities, boundary crossing (mixing sexuality and religious iconography).4. What is your career strategy for the next five years? To what extent does your strategy fit with your long-term goals, the characteristics of the external environment, and your own strengths and weaknesses?The same principles that we apply to business strategy can also be applied to individuals career strategies (as I note on pp. 11-12). Indeed, several prominent self-help books are essentially about strategic approaches to self-development. (E.g. Stephen Coveys Seven Habits of Highly Effective People is a systematic approach to life planning that begins with the choices about lifetime goals. Markus Buckinghams Go Put Your Strengths to acidulate is based on the simple observation that success results from individuals identifying and deploying their resource strengths.) This make out involves using the basic framework of Figure 1.2. The principle stages are reveal career goals what are you seeking wealth, power, influence, fellowship, excitement, security, making a difference in the world?Which careers offer the best prospects in relation to your chosen goals? (Career opportunities may relate to work type (brand manager, financial analyst, general manager, entrepreneur, and politician) and sector (financial services, manufacturing industry, public sector, international organization.)For the most attractive careers you identify, what are the key success factors?What are your resources and capabilities? What are your strengths and weaknesses in relation to intelligence, skills and aptitudes, financial resources, qualifications, experience, contacts, etc.? On the basis of these considerations, outline the principal elements of a career strategy in terms ofWhere? What type of job? In which sector? Where located?How? How will you become your next job? What will be your approach to performing in that job? What kind o f job sequence do you anticipate? What kind of additional training or personal development do you see as desirable?