Harvard Case Study McDonald’s

Question 1 Which company orientation (product, production, selling or market) can best describe McDonalds activities? What makes you animadvert so? In the national of McDonalds activities the company orientation is selling and I will explain why. In first Ill explain what is the selling orientation, and in stand by why its 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 pull ining the customers and its 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 nigh McDonald lets see the history of Ray Kroc and his dream. The dream of Ray Kroc was to become rich and make money, care we can read in the suit of clothes he starts to sell milkshakes and the most than he could sell. The way of life and t he 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 man with a lot of restaurants and to avoid the potential competitors.It worked during a long time but today its not the case because the customers postulate 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, McDonalds has avoided diversification into unrelated food retail operations as well as non-food options. Discuss the desirability of such diversification efforts. McDonalds has avoided diversification into unrelated food retailing operations as well as non food options cause of different things.The image of McDonald in consumers minds is related to food and especially fast food, maybe McDonald didnt exact the skills to manage new products unrelated to food and to finish its more easier for McDonald to focus the resources on one way and the best way for them its modify the system. Lets talk about more generally about the diversification and especially about the advantages and disadvantages. The advantages are different by activitys sector but lets see some example.The diversification can make a growth relay (after specialization) (Ex alliance Med in Club Med World or Club Med Gym in the past and now in a real estate program). It could reduce risk (Fram and hotels Framissima). It alike could steady a seasonal activity. The disadvantages are a management more complex, news environments and competitors, it could make a dilution of the identity and image in consumers mind and workers and a dispersion of companys resources. Question 3 How do you explain the reluctance of competitors to imitate the successful efforts of another firm in their industry? chthonic which circumstances is imitation likely to be considered? Generally companies are reluctant to emulate the successful efforts of a company in their industry because it requires significant coronation that does not necessarily guarantee a positive result. Moreover, it does not let the consumer realizes the imitation so as not to pass an imitator in consumers mind. But its possible to imitate in this way when there is a monopole on a sector to put some competition. In this case the company who imitates if she has a competitive advantage regarding the other firm can take a place in market.In the case of high technology like in mobile phone market (imitations of the I phone). In the case the competitors comes in the market cause of the weaknesses of McDonald and the need of consumers. Question 4 What do you moot is McDonalds short-term and long-term potential? What makes you think so? McDonald is a really important brand all around the world and everyone knows it. Its the second most important in term of number of restaurant all around the world behind Subway. Even if some persons criticized this firm I think its impossible for it to disappear even on long time.The fact is in short term if McDonald doesnt react to the consumers inescapably and the needs of the franchisees the firm will continue to loose money. They were too much time the number one and they have ignored the consumers needs. Now competitors appear on the market and win some market share. We can notice that McDonald was the first real fast food in consumers mind and thats also why McDonald is the target of consumers associations and movies like Super size me. But every time McDonald reacts and is still alive. So in long term McDonald should be more attentive to the consumers need and it will be ok.