Case study number 1
Question 1: Which company orientation (product, production, selling or market) can best describe McDonald’s activities? What makes you think so?
In the case of McDonald’s activities the company orientation is selling and I will explain why. In first I’ll explain what is the selling orientation, and in second why it’s the McDonald orientation.
If we look at the definition in the book “Marketing Management” the selling philosophy or orientation is “a focus on making sales rather than understanding the customers” and it’s based on an “aggressive selling and promotion effort”. So we can understand that the selling philosophy is to sell, sell and sell and make money. Now that you know the definition, take a look on McDonald. Before to talk directly about McDonald let’s see the history of Ray Kroc and his dream. The dream of Ray Kroc was to become rich and make money, like we can read in the case he starts to sell milkshakes and the most than he could sell. The way of life and the wishes of Ray Kroc has been transmitted in his firm. When he created McDonald with the brothers they tried to impose McDonald all over the world with a lot of restaurants and to avoid the potential competitors. It worked during a long time but today it’s not the case because the customer’s needs change and McDonald has some difficulties to continue in this way. So we can see that McDonald uses the selling philosophy.
Question 2: To date, McDonald’s has avoided diversification into unrelated food retailing operations as well as non-food options. Discuss the desirability of such diversification efforts.
McDonald’s has avoided diversification into unrelated food retailing operations as well as non food options cause of different things. The image of McDonald in consumer’s minds is related to food and especially fast food, maybe McDonald didn’t have the skills to manage new products unrelated to food and to finish it’s more easier for McDonald to focus the...
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