Running head: BUSINESS LEVEL AND CORPORATE LEVEL STRATEGIES 1

Business Level and Corporate Level Strategies

Kiana McMican-Charles

Strayer University

November 16, 2014

BUSINESS LEVEL AND CORPORATE LEVEL STRATEGIES 2

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
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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
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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.
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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
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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
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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.

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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.

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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.