Strategic Survival for Burgmaster: An Analytical Essay

Questions

1. Write a brief report that outlines the reasons (both internal and external) for Burgmaster's demise, and whether operations management played a significant role in the demise.

2. Do you think that inadequate strategic planning was a factor that resulted in the company's asking for trade protection?

3. Can you think of a strategy that could have increased Burgmaster's chance of survival? Explain why you think that strategy would have been effective.

Introduction

McDonald Australia is one of the largest fast food retail chains in the country satisfying lot of customer every day. The total market share of the organization in Australia is near about 19.5%, which is the largest in the fast food segment (Mcdonalds.com.au, 2014). The company sells large variety of products to their customer among them pizza and hamburger is the most favorite and profitable (mcdonalds.com, 2015). The company has managed to get the best reputation in the country because of their efficient operation management system. The profitability of the organization has increased the competitiveness of their brand in the market and competitors are not able to match the volume sale with McDonald.

Competitive Priorities of the Organization and Business Level Strategy

Competitive Priorities of McDonald Australia

McDonald has built a great reputation in the global market with their innovative product development and great business process. The company is highly dependent on the franchise business because more that 75% of their business comes through their franchise sale. However, McDonald Australia has operated their franchise with lot of regulation to maintain their service and product quality in the country (Miller, Breton-Miller & Lester, 2013). To achieve their target McDonald Australia has set several competitive priorities for their operations. McDonald Australia maintains the same quality of their product throughout every store whether it is direct store or franchisee. It provides best service to their customer in any situation (Teeratansirikool et al., 2013). The company has introduced many franchisees in the highway so that their customer gets their product everywhere. The average density of their store is also more than the customers. McDonald Australia competes in the marketplace of Australia by reducing the waiting time for the customer in both store and parcel that will also increase the productivity of their employee (O'shaughnessy, 2014). The organization is to increase profit margin to increase the sustainability of the organization as compared to their competitors.

Business Level Strategy of McDonald Australia

The three generic strategies that McDonald Australia follows are categorized as:

Cost leadership: McDonald Australia offers basic fast food at a low price and they keep their costs low throughout division of labor those permits it to employ as well as train inexpert employees rather than the trained cooks.

Differentiation: McDonald Australia provides free WIFI services for their customers and those uses differentiation market segmentation strategy by aiming the family unit as well as kids by providing them happy meal. The company has always introduced new products like McCafe, Shamrock Shake and other innovations include the McGriddle, Snack Wraps, and breakfast on the go, which attract their customer more  (Brandenburg et al., 2014). Their efficiency is established in their meeting line process for production the food along with mechanized processes that need little knowledge or input from a human user.
Focus strategy: McDonald Australia concentrates on limited part of the market. The company focuses on large number of customers with varying of taste (Kerzner, 2013). McDonald’s Australia distributes their products and services in the foreign markets with help of the franchises those are aware of work in their country.