Competitive Policy of McDonalds-Free-Samples-Myassignmenthelp.com

Question: Give a brief Description of the Organisation, justification for why you have selected it and why it is perceived as being excellent in its field. Answer: McDonalds McDonald's is a fast food restaurant chain incorporated in America. It was founded in 1940 as a barbecue restaurant. The company operates in the restaurant industry and is one of the worlds leading restaurant chains. The organisation has more than 36,900 franchises, as of 2016. The firm has revenue of $24.622 billion in 2016. McDonalds in one of the fastest growing franchise and has its outlets worldwide. The company has focused on providing high-quality hamburgers at a low price. The reason for selecting McDonald's is that the company has more than 36 thousand franchises but it still maintains a level of quality and standardisation between them (McDonalds 2017). Competitive Strategy Every company can have two kinds of competitive advantage over their competitors: cost advantage and differentiation advantage. McDonald's has received significant success in their franchise business. The company is known for its quality food at low prices. The organisation is a giant player in franchise market. The firms have advantages over its competition due to its lower prices, convenient locations, and efficient cooking process. The business model of McDonalds is a three-legged stool, consists of Franchisees, suppliers, and employees. The franchisees of McDonald's bring the feeling of entrepreneurship and obligation to the outlets. The supplies of the company are dedicated to providing the highest level of quality and security. McDonalds provide education and sharing throughout their outlets to promote the values in society. These are the values of McDonald's, giving them an advantage over its competitors. Even after being an international brand, the majority of McDonald's franchises (more than 80 percent globally and approximately 90 percent of the United States) are owned and maintained by nearly five thousand independent, small and medium-sized businessmen and women. The franchisees are part of the society they served, and they help create a positive influence locally by providing good quality food, better services and job opportunities to local charities (Baye and Beil 2006). McDonald's uses various resources and skills in order to deliver their core values, such as convenience of customers, quality of food and optimal operations. The company updates its manufacturing system, such as better inventory control, planning the manufacturing process and controlling the unnecessary expenses, with each outlet. The entire McDonalds restaurants throughout the world have similar features, for example, an American customer can easily book their order at a McDonalds of Germany. The customers appreciate the standardisation between the restaurants, providing McDonald's a competitive advantage over its competitors (Kaufmann 1994). McDonald's restaurants have certain qualities such as, energy efficiency, minimum odour and noises, better disposal of solid waste and maintaining clean environment near the restaurant. The customers of McDonald's appreciate its qualities and values. McDonald's is known for its fast food format that increases the customers service while maintaining the quality of products. The company changes their products with different markets, for example, McDonald's removed beef from their menu while entering Indian markets. These strategies adopted by McDonald's will assist them in sustaining their unique value in the market (Vignali 2001). Atlassian Atlassian is an Australian software company, incorporate in 2002. The company operates in the software industry and create team collaboration software for organisations. The firm has more than thirty thousand clients including giant players such as Facebook, NASA, eBay, and Netflix. Till July 2017, the organisation has earned revenue of AU$619.9 million and its valuation is $3.3 billion. The companys application JIRA and Confluence has been significantly successful. The reason for choosing Atlassian is that they have gained substantial success in previous 12 years without using a sales force to sell their products. The company spends less than 21 percent of their revenue in sales and marketing which is significantly lower than compared to its competition. Competitive Strategy Atlassian competitive strategy is to focus on providing quality products at low prices. The company operates in the software industry and develop software applications for team collaboration tools. The organisation has developed and acquired several products such as Confluence, JIRA, Trello, HipChat, and FishEye. Atlassian is known for their values and customer satisfaction. Atlassian provides their products at a lower price as compared to its competition and focuses on satisfying their customers needs. The organisation has a high customer satisfaction rate (Mahroum 2016). Atlassian business model contains following steps (Atlassian 2017): Building a great product Keeping the price low for customers Pursue large number of customers each day Selling the products online Maintaining transparency in pricing and easy availability of trials Atlassian was founded by Scott Farquhar and Mike Cannon-Brookes with a credit card debt of ten thousand Australian dollars. The company has adopted an upside-down strategy, by not using a sale team to market or sell their products. The companys business model focuses on creating a great product, pricing it correctly and making it easily available on the web. The organisation spends less than 21 percent of their revenue on sales and marketing compared to its competitor who spends around 40 percent. The company did not take any debt or funding from venture capitalists for their operations. The company does not have to focus on satisfying outside managements since it did not take any funding, compare to the competitor companies who have obligation to satisfy their investors. Atlassian spends this fund on enhancing the quality of their products, giving them an advantage over their competitors (TechRepublic 2017). Atlassian business model rapidly increases their customers and give them an advantage over its competitors. The companys products are built with the latest technology to reach a wider audience. The organisation disrupts high-priced incumbents and establishes big future expansion opportunities. Atlassian serves a diverse set of customers with a wide portfolio and serves their critical needs. The company collect the data of their customers and provide them offers relating to their requirements. The company core values include transparency in operations, passion in production, customers supremacy, team work, and innovation. These policies help the organisation in rapid growth compare to its competitors (Carlson 2017). References Atlassian., 2017.Company values | Atlassian. Retrieved from https://www.atlassian.com/company/values Baye, M.R. and Beil, R.O., 2006.Managerial economics and business strategy(Vol. 5). New York, NY: McGraw-Hill. Carlson, R.M., 2017. Atlassian: Analysis and strategic recommendation. Kaufmann, P.J. and Lafontaine, F., 1994. Costs of Control: The source of economic rents for McDonalds franchisees. The Journal of Law and economics, 37(2), 417-453. Mahroum, S., 2016. Atlassian in Sydney: Beating the Tyranny of Distance. InBlack Swan Start-ups(pp. 215-231). Palgrave Macmillan UK. McDonalds., 2017. An Iconic Brand, Moving Toward the Future. Retrieved from https://corporate.mcdonalds.com/mcd/our_company.html TechRepublic., 2017.Atlassian's upside-down business strategy: Could it work for you?. Retrieved from https://www.techrepublic.com/article/atlassians-upside-down-business-strategy-could-it-work-for-you/ Vignali, C., 2001. McDonalds think global, act local- the marketing mix. British Food Journal, 103(2), 99-111.