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Business Management Essay

Functional Strategy

McDonalds is considered as one of the most successful fast food industry in the global market. This success can be attributed to the strategies used by the company. In terms of the functional strategies, the company has been bale to have unique core competencies which enables them to attain growth and sustainable competitive advantage. It can be said that functional strategies are used to support McDonald’s growth since it enables the company to be more stable in the global market and it allows the company to produce products and services which is required and demanded by their target market.

The functional strategy used by McDonalds enables them to increase their product sales and operate effectively and competently in the global market. The functional approaches of the company were used from the top management down and allow employees to be more motivated, inspired and guide them to realise the organisational objectives of McDonalds. In addition, the functional strategy in line with its contributors was also used to sustain competitive advantage. The ability of the management to manage effectively their business strategies in the global market and the ability to integrate every function within their operations as one is the key for the success of the company.

 Low Cost Differentiation Strategy

As part of the strategies of McDonalds, the company has been able to use low cost differentiation approach. The low cost differentiation approach used by the company was applied to enhance the goals of global expansion (Porter, 1998). Herein, McDonalds used low cost differentiation it its global branches by adjusting their product prices based on the economic condition of the foreign consumers.

To be able to integrate such strategy, McDonalds were able to adjust their serving portions for their menu items. In the company’s operations in Asian nations, the size of the serving do not only help the company balance the production costs with the prices of the products but it is also considered as an effective means of attracting more Asian customers who prefer smaller serving portions (McDonalds, 2008). 

McDonalds Strategic Control

It can be said that McDonalds engage in strategic control in various ways. For instance, the company has been able to utilise strategies which they knew would be able to enhance their organisational performance and help them achieve competitive advantage. In doing so, McDonalds are engaged in strategic control by focusing on their   core business values ensuring that their goals, objectives, and mission are achieved.  In addition, the company also sustains good relationship with its target market and all other stakeholders and it focuses itself on satisfying the costumers by providing them quality products and services global market.

Vision Statement

The vision of McDonalds is to leverage the distinctive talents, strengths as well as their assets of their diversity in the global market so as to be their customer’s favourite place and way to eat. It can be said that the vision of the company is adequate and has been able to provide efficient explanation of their organisational purpose. The vision of the company is attached with the strategies and approach used by the company like the low cost differentiation approach to attract more customers in the global market. The ability of the management to provide adequate training and development to each of their employees is also a proof that McDonalds is operating to achieve their vision.


McDonalds 2008. Online available at www.mcdonalds.com . Retrieve May 27, 2008.

Porter, M 1998, Competitive Strategy: Techniques for Analysing Industries and Competitors

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