Question 4 - Make a recommendation regarding the future strategic direction if the company. According to the SWOT analysis, MD is regarded as a star taking the BCG matrix. Therefore MD should hold its position within the market. In order to do this, we have recommended a few strategies for MD to maintain its position. To maintain its star position, MD needs to be proactive and be constantly aware of its environment. Currently there is an opportunity in the Chinese market. MD has plans to penetrate this market. In order to be successful, MD needs to thoroughly analyse this market and tailor its products to the target market. Due to the growing industry and increasing competition, MD needs to also integrate a differentiation strategy. According to the weaknesses, MD is currently having problems with delivering excellent customer service. Whilst MD has invested in employee training and values customer service within the organisation, this may be an area MD needs to strengthen on. This will help differentiate itself from competitors such as Wendy's and Burger King and hence continue to hold its position within the market. 3. DEVELOPMENT and RECOMMENDATIONS FOR IMPLEMENTATION OF STRATEGIC OPTIONS Strategic options:
Reduction of employee training spending (lowering employee turnover); Taking advantage of organic food industry popularity (develop new products for new segments); Advantage of human health problems (improvement of products).
1 Reduction of employee training spending (lowering employee turnover). In order to reduce of employee training spending and to lower turnover, we would like to suggest: To give the job just for highly motivated people. It means, that they are going to be loyal and not to leave job so fast; To train new employees using ’’Big Brother’’ principle. New employees would be trained by employees, who are working longer. In this way, company reduces training spending, new employees are trained by the people, who are working inside the company and do the same things every day. To motivate employees and always take care about their expectations. It can be money premiums for good working in the end of the month (or year), some employees parties, ’’Employee of the week (month)’’ competition and etc.; also employer should take a look of what employee is expected from employer and try to solve that, ex. Maybe employee is not expected to get premium every month, but for good and loyal working he would like that the company would pay his child studies fee after 5 years. 2. Taking advantage of organic food industry popularity (develop new products for new segments); McDonald’s is not that company, who suggest the most organic food, so they can try: To make a line of organic food in their menu and take a look what is more popular and healthy for their customers. If it is going more popular than usual menu food, it is more worth to make all food in organic way, even it is more expensive. First of all, people like what is natural, and then they are interested in the price. To be in a partnership with scientists and doctors in order to take care of their customers heath. Everybody knows that organic food makes people feel better and healthier; also it affects nature in a good way. McDonald’s declares that ’’everything is for customer’’, so it must take an advantage of organic food popularity and ’’make’’ their customers to live healthier and in more natural way. To make big advertisement companies declaring organic food pluses and make it more popular in such way. Many people loves McDonald’s food, so it has an authority and can show good example of necessity of organic food in people life and compare how organic and usual McDonald’s food effect customers’ health and all the nature about them.
3. Advantage of human health problems (improvement of products) McDonald’s is big food supplying company, and all of us know, how food affects our health. It is one of the main factors, what built our body and...
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