Business-Level and Corporate-Level Strategies Essay

Business-Level and Corporate-Level Strategies - Essay Example A wide range of products are offered through the McDonalds stores like food items, coffee, soft drinks and other types of beverages (Yahoo Finance, 2012a). The analysis of the competitive business environment of McDonalds would also be discussed in this study. These strategies that are taken up by McDonalds at different levels would be compared and contrasted to help in the overall strategic analysis. Business level strategies A business level strategy can be defined as an action plan that is developed by a business organization which gives a description about the various means through which it would compete in a given industrial or market segment (Ireland, Hoskisson, and Hitt, 2008, p. 88). The primary objective of a business level strategy formulated by any organization is to create increased value for its customers in a consistent manner. There can be five different types of business level strategies that can be employed by an organization. They are: a) Cost leadership, b) Focused cost leadership, c) Differentiation, d) Focused differentiation, and e) Integrated differentiation or cost leadership (Ireland, Hoskisson, and Hitt, 2008, p. 88). The business level strategies employed by McDonalds Corporation have been discussed in this section. ... The business strategy employed by McDonalds is competitive in nature in a number of different categories like quality, price, employee training and management. McDonalds serves its customers globally who are of different ages and comprises of various demographics as well. The company's strategy is to satisfy the needs of its target customers by providing them with good quality food products that are less expensive and in quick time. The company offers different variety of food items to its customers through its restaurants located in different parts of the world. McDonalds operates its business in nearly 119 nations of the world and its strategy is to provide different kinds of products in accordance with the specific needs and wants of people staying in different countries. This type of knowledge base and flexibility of McDonalds helps it to achieve its global objectives and targets and sustain the existing competition in the market. According to Hin (2008), the business structure o f McDonalds has a significant impact on its business strategies. Corporate level strategies In corporate level strategy companies can adopt three types of models. a) Directional Strategy (focusing on growth of the business, managing market share of the company to a stable platform, b) Portfolio Strategy (analyzing market in terms of strength, opportunities, weakness, threats), c) Parenting Strategy (companies transfer resources and maintain workforce in the foreign country). Corporate level strategy is a strategy which is aimed at the long term position of a business. McDonalds operates its business in the global fast food industry. The company has its presence in nearly 119 nations of the world (McDonalds Corporation, 2012). The corporate level strategies of McDonalds are