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Competitive Priority
Competitive Priority
Organizations need to be able to effectively use strategies that can take advantage of
new opportunities. In addition, they should be able to respond to complex situations
in an effective and efficient way.
McDonald’s is an industry leader in the fast food industry. Its key competitive
advantages include nutrition, ease of use, accessibility, innovation, quality, hygiene,
and value-added services. The success of an organization has been its ability to
harness its key strengths in overcoming weaknesses.
MCD strive to be cost leaders and offer their food at prices that cannot be matched
by their competitors. In order to do this, they keep the stores efficient and everyday
operations costs as low as possible. Doing so, they allow their stores to be superior
to other fast food restaurants and can serve the food at lower prices than any other
fast food company.
Also, In 2016, Gartner’s named McDonald's Supply Chain System # 2 in the Major
Supply Chains. One of the main reasons McDonald's supply chain is successful is the
legitimate interest model. It's a model where suppliers get bigger chunks of the
proverbial pie by doing business with McDonalds.
Engaging suppliers with a plan to help them make more profit and steady growth
McDonalds can ensure the supplies they need and keep costs low while making their
own profit. For example, suppliers do not have to worry about asking for price
increases for products that are already in the contract. Just as restaurants do well, so
do suppliers. Rather than seeing producers as mere suppliers, they are seen as
business partners and employees.