Business Level and Corporate Level Strategies

Business Level and Corporate Level Strategies

Kiana McMican-Charles

Strayer University

November 16, 2014













Business Level and Corporate Level Strategies

Business Level Strategies

McDonalds Company is the world's largest company that has a chain of
hamburger fast foods restaurants in 119 countries worldwide. The strategies
that this company takes, either on business or corporate perspective, will
likely determine how it achieves both its long term and short term goals.
The effectiveness of the strategy implementation is crucial in determining
the outcome of marketing planning. Marketing planning simply clarifies the
core marketing elements of a business entity and maps out objectives,
directions and activities for both the business and employees. For McDonald
as an international business entity, having a marketing plan draws a
broader perspectives outlined in the company's business plan. Having a
business plan is crucial as it states how the company will take the product
idea and subsequently transform that into a commercially viable proposition
(Arnould & Thompson, 2005, p. 70). In addition, the marketing plan focuses
on specific issues that are related to product, promotion, price and place.

Addressing the above issues as well as putting them to a written form
can be highly useful for a business outfit which in this case is the
McDonalds. Marketing planning forces the company to analyze their business.
This can be good for the employees since the marketing plan can
subsequently provide them with the necessary orientation, and also be a
real source of motivation (Strauss 2008, p.32). The McDonalds franchise can
greatly benefit from the marketing plan.

There are four elements that define the business strategy for the
McDonalds Company in its long term goals plan. The four elements include;
product, price, promotion and place, which are the major players in the
marketing planning of any company intending to be prominent in the entire
business. The marketing plan simply identifies the hook for the service or
product. Price is a strategy that McDonalds as a company that deals with
fast foods will pre-plan from time to time. The main reason for such
planning of pricing of the product is usually considered crucial for any
company that needs to maintain its relevance in a competitive market
(Arnould & Thompson, 2005, p. 72). It is essential for McDonalds to fully
determine how each of its diverse products will be sold and equally
maintain the company's relevance in a competitive market.

Marketing plan draws the broader perspectives of having promotions,
which are typically bases on advertising platforms. In order to stay
relevant on a very competitive market, McDonalds should ensure that several
adverts are regularly run on different avenues possible. The promotions
should address various products as well as any special offers within a
specified period (Strauss 2008, p. 34).

Marketing planning also defines the specific place where products
would be distributed. In addition, the element of place in a marketing plan
should also address the particular places where the products would be sold
as well as whether they will be sold through retail stores or direct
marketing. In addition to this, the marketing planning should also be
assessed with SWOT analysis in order critically to address the company's
Strengths, Weaknesses, Opportunities and Threats.

There are a number of essential ingredients that are useful in market
planning of any business entity. In marketing planning, there are various
steps that should be strictly followed when making an ideal plan that would
enable the business to thrive in a competitive market. A company like
McDonalds should utilize the various steps in order to remain highly
relevant in the competitive market of the Fast Foods across the globe. The
first step should be identifying the requirements of the customers and
equally responding to their thoughts, perceptions and feelings about the
company's good service or products. Secondly, anticipation of the
consumer's requirements at all time is critically important for a company
in a highly competitive market as it is the case with McDonalds. Satisfying
the consumers is another requirement that should be met at all times
(Strauss 2008, p. 35). Lastly, profitability of a business venture is
critical and should always involve a better marketing planning that
incorporates making a profit margin.

Corporate level strategies

In regard to Corporate-level strategies, McDonalds has a built
environment, which is an essential strategic tool to the company that
increases the quality of its stores' design, lighting, furniture, layout
and furnishing. These factors are used for the reinforcement of the fine
coffee products, which are the primary tools of specialization. The primary
strategy of this company is to maintain the consumer experience that
constitutes of the services received by consumers. These services include
coffee aromas; coffee customers drink, the right relationships exhibited
among the employees, background music, and the general ambiance of the
company stores. This company is well-connected with professional, young and
upwardly mobile market across the globe (Arnould & Thompson, 2005, p. 73).
Consumption is a subjective feeling that is experience by the people who
are in then setting.

Service-scape draws its validity from marketing, cognitive, environmental
psychology, and ergonomics, which lay the foundation for the study about
the effect of built environments. These environments affect the consumer
thought, actions and emotions. McDonalds exhibits unique service-scape
that has a high impact on local consumption, practices, lifestyles, and
tastes. McDonalds has been contemplating on whether to become an agent of
imposition of standardized codes or not. Standardized codes are codes of
behavior that criticize practices, voices, lifestyles, and the natural
experience of consumption. The recent research that was conducted by
neurologists has depicted that people's thoughts and beliefs are far below
the level of consciousness (Arnould & Thompson, 2005, p. 72). Those who are
within the scope of reaching the level of consciousness represent a small
sample of the whole population of the research sample.

In this study, several interviews and photo-taking were done to
ascertain the validity of the proposed hypothesis that McDonalds was making
the best service escapes in the current global markets. The photo-elicited
interview used demonstrated a high cooperation among the interviewees.
Content analysis can be used as the data to be collected was complicated
and expensive. The study scope would have involved several themes that were
geared towards the achievement of a good answer. These include McDonalds as
a consolidation of personnel spaces, McDonalds as exotic, and McDonalds as
home.

The informants postulated that they felt comfortable in transacting their
businesses with McDonalds. They demonstrated a feeling of warmth, security,
haven, and privacy that could be associated with the similar services that
they got at their home places. While inside McDonalds buildings, the
informants were seen comfortable, relaxed, and at peace. There were
informants who demonstrated contentment with the type of glass doors that
were at the entrance of McDonalds's buildings. This feeling of home serve
to increase loyalty of customers and as confusion is left at the entrance
door. According to the informants who were interviewed outside the
buildings, outside environment was a hell to them. This is because the
feeling of home was increased and enhanced in the buildings of McDonalds.
There were several measures that had been taken by McDonalds' management to
make sure that the feeling of home was felt by the customers who had
maintained loyalty for a long time (Arnould & Thompson, 2005, p. 75).
McDonalds had also engaged in online advertising to create a broad market
base that could be achieved through sensitization of the virgin market and
other places across the globe.

Analysis of a competitive environment

Based to the explanation regarding a Business-level strategy and
Corporate Level strategies, Business level strategies seem to be highly
viable for McDonald's Company. It is crucial to acknowledge that McDonalds
is a multinational food company with branches across different regions of
the universe. Its progress and success can be attributed to the strategic
review that the company constantly under looks in order to maintain its
relevance in a competitive market. A macro environmental analysis considers
reviewing all factors that the company is unable to control. The main
reason for conducting this macro analysis is to stay updated about the
issues in the contemporary or current marketing environment. In most cases,
the PESTEL analysis is used among different companies to determine the
stability of social and government welfare policies that could be imposed
on a specific company (Strauss 2008, p. 38). This analysis is usually
useful in companies that are based in different regions or countries, as a
political outfit varies from one country to another.

McDonald Company should have its goals realized through the use of
SMART objectives platform. SMART objectives are usually based on addressing
Specific, Measurable, Achievable, Relevant and Time-Oriented objectives in
a conclusive way. Specific objectives in this case involve knowing what
needs to be done, how it will be done and subsequently describes the
results of the work that would be done. Measurable w/Measurement objectives
typically answer the question of how a company would know that their
products meet the expectations of the consumers. A company like McDonalds
should always strive to establish whether specific products meet the
expectations of the client in all of its diverse outlets across the world.
Achievable objective answers the question of whether a person can do a
certain task. The Relevant objective addresses how different tasks in a
company such as McDonalds should be done, as well as understand their
impact to a specific faith. Time-Oriented objective is concerned with when
a specific task would be done (Strauss 2008, p. 39).

Impact on Slow cycle and fast-cycle markets

Since the choice of a strategic plan for McDonald is Business-level,
it mainly entails extensive marketing mechanisms that, on the other hand,
are expected to increase the company's competitiveness. Essentially, the
chief objective of McDonalds is to expand its market base by creating
awareness to the consumers of its products. This goal should be integrated
with that of increasing the market share by outweighing its competitors
with the strategies that will be implemented. These goals can be achieved
through in-store advertising, mobile communications, social media, and
online advertising. The company should also increase the avenues and
mediums for communicating with the customers to allow direct interaction.
This will increase the loyalty of the customers hence translating into a
wider market base and market share. The main target customers of McDonalds
are those couples aged between 25 and 50 years. This is because they spend
most of their time together by relaxing in hotels (Perry 2009, p. 45). The
changing and unpredictable economic condition calls for the maintenance of
customers' loyalty and increased market base for the company's survival.

The main strategies that will be used in the execution of the
objectives include mobile communications, Facebook, in-store advertising,
and online advertising. These strategies will be executed through
utilization of a QR code, in-store sampling, a Facebook page, and a
Facebook ad. According to an independent survey that McDonald did, many of
the couples used to interact through the social media and in social
avenues. This called for the utilization of such an opportunity to market
its products. Those who interact through the social media were either in
the semi-literate or in the literate category. The modern couples are fully
aware of the dynamics of the new technology and would like to be associated
with it. Facebook will be a tool of paramount importance in providing
testimonials, providing measurable feedback, promoting consumer engagement,
and promoting company's slogan. The consumer loyalty will be enhanced by
engaging the consumers in a platform where their questions can be answered
instantly.

Ultimately, Facebook page may not adequately serving the company in
providing for the services it plans to give to its customers. This will
call for the creation of a site that can assist in the execution of the
secondary objectives. The site will be an essential tool in maintaining
inter-media consistency and promoting the products. The website will
increase inter-media consistency by continually promoting the tagline and
aligning the objectives with the dynamism of the markets. The site will
also help in obtaining the consumers' testimonials and views on how to
promote its products.











References

Arnould, E. & Thompson, C. (2005) 'Consumer Culture Theory (CCT): Twenty
Years of Research', Journal of Consumer Research, 31(March): 68-92

Perry, B. (2009). Enterprise operations. Oxford, CIMA.

Strauss, R. E. (2008). Marketing planning by design: Systematic planning
for successful marketing strategy. Chichester, England: Wiley.