Lesson-1

Compare and contrast conventional strategic planning concepts with those of strategic intent and skill-based strategic thinking. Explain how the differences in these concepts can lead to better business strategy practice.

Conventional Strategic Planning: It refers to such strategic planning which is formulated and made by the head or board of directors to direct the company’s future: Vision, Mission and objectives. It basically deals with such planning activities that are formulated, directed and controlled by the top authorities of the company.

Strategic intent: Strategic intent is the act of thinking as a strategic leader in the future by defining its clear activities and taking such strategic moves toward its vision and mission of the company. It can be said that strategic intent is more concerned with future direction of the company as a market leader by analyzing the internal and external environment of the company(Hamel, Gary; Prahalad, C. K., 2005).

Skill-based strategic thinking: Skill-based strategic thinking is more concerned with competitive and strategic way of doing things pattern of being competitive and specialized on what the organization is reach and have competitive advantages. If the company is good on manufacturing steel, it should manufacture steel not other. Skilled-based strategic thinking helps in identifying the impact of the decisions on various segments of the organization, including internal departments, personnel, suppliers and customers(Kabacoff, 2014). Additionally, strategic thinking goes beyond looking at what is, it involves imagining what could be. It's a fresh point of view on a market, a unique take on the future, or a capacity to imagine new answers to old problems.

Conventional strategic planning, strategic intent and skilled-based strategic thinking are different approach and model of business operation. All the approach carried long run goal and objectives associated with vision and mission of organization. When the organization is able to implement the right approach from time and need analysis from department to department, it will help to land on the ground of success. All the approaches are very important from different time and situation.

References

Coulter, M. (2013). Strategic Management in Action (6 ed.). New Jersey, USA: Pearson Education, Inc.

Hamel, G., prahalad, C. K., & Prahalad, C. K. (2005, July-August). Retrieved from https://hbr.org/2005/07/strategic-intent

Hamel, Gary; Prahalad, C. K. (2005, July-August). Retrieved from https://hbr.org/2005/07/strategic-intent

Kabacoff, R. K. (2014, February 07). Retrieved from https://hbr.org/2014/02/develop-strategic-thinkers-throughout-your-organization/

McNamara, C. (2015). Retrieved from http://managementhelp.org/strategicplanning/models.htm

The case study of "McDonald's Corporation"

Overview of the Case “McDonald’s Corporation”

This paper will attempt to highlight the ups and downs of McDonald’s corporation after the beginning of 21^st century. In the early of the first decade, the company faced some of strategic challenges due to improper strategic decisions, and untimely consecutive deaths of two experienced, competent and passionate CEOs (Jim Cantalupo in 2004, and Charlie Bell in 2005) (Coulter, 2013). Although later the world economic crisis hit around 2008/9, the company’s did very well with the help of Company’s CEO, Jim Skinner and now it is doing better than ever before.

Strategic Issues

               While it is true that the company, McDonald was considered as the best for the fast food industry, it faced a lot of strategic challenges that affected the successful operation of the company. Some of the strategic issues are: Poorly Planned Product design/changes, Lack of effective marketing plans, and Changing customer taste and preferences.

Analysis & Evaluation

             McDonald has been affected by its strategic issues as mentioned above as it started to resolve these challenges with a view of “being better, not just bigger” (Coulter, 2013). It is also clear that it has made some of strategic plans in order to cope with these challenges by emphasizing on key Success Factors (KSFs)-Marketing, business expansion, Human capital, operational management and ethics/CSR.

·         Marketing: It has been long recognized as one of the world’s best and most valuable brands, and it was ranked as the number one brand in the fast-food market segment in 2011. Some of the important strategies used in the marketing are putting the real people on packaging, product innovation by offering a variety of menu to attract new customers, developing new products, customized taste and preferences to its local people, and a global commitment with a local approach. Once it was criticized as its low nutritional quality but later it was recovered with Active Lifestyle (BAL) by showing up its nutritional information on its packaging. In short, it basically focuses on 4Ps of Marketing-Product, price, place and Promotion to gain more market popularity and success in the marketplace.

·          Business expansion & life extension: McDonald attempted to go beyond its sole reliance on burgers to McKids line of clothing and toys to make its brand image even stronger. However, only a few number of products remained in this product line and most of them were also found online at Wal-Mart, Amazon.com, and target.com.

·         Human Resources Management Practices: McDonald has always been a major focus on its people to motivate and provide rewards to them. It mainly focuses on five principles such as resource & recognition, value & leadership behavior, comparative pay & benefits, learning, development & personal growth, and sufficient resources to get things done. Furthermore, its people are provided $ 1 billion a year on training and development so as to recognize and spread out its image all over the world. Likewise, the company was ranked as one of the best places to work in 2008 (Coulter, 2013).

·         Operational Practices: CEO, Jim Skinner always focuses on the performance and efficiency of the company’s all (33,000) restaurants all over the world. The company is operated under the belief of “serving customers is job number one at McDonald”. In order to improve its services, food will be delivered to its customers’ home or offices. Some of the other strategies used for operational excellence are fully redesigning of its restaurant format, installing computerized systems in many locations to allow price adjustments. Other operational excellences include energy saving and effective supply chain management of the company, and collaborating with its key suppliers to ensure the quality raw materials at a reasonable price.

·         Responsible Business Practices: The philosophy of McDonald is to serve the diverse community by doing well and giving back to its society. Its commitment to corporate social responsibility (CSR) includes community, environment, people and marketplace.

Summary, Conclusions & Recommendations

         In a nutshell, it can be known that McDonald’s golden arches have been continuously getting more gleams. It has been serving nearly 68 million customers in 119 countries each and every day.  It is true that there were some of the strategic issues-Poorly planned activities, ineffective marketing, and ever changing customer taste and preferences. However, the company would be able to manage these strategic challenges with better and bigger market coverage so that its sales reached $27.5 billion in 2011. In addition, McDonald has intensively worked on five major areas-marketing, human resources, operational excellence, business expansion and ethics or CSR activities in order to achieve a competitive advantage in the fast-food industry. Some of major recommendations are:

·         McDonald should make a good relationship with its stakeholders so that company is viewed as the good enough to lure key people towards the company.

·         McDonald should continuously work on improving its operation and supply chain activities so that cost can be reduced and efficiency will be increased hugely.

·         Lastly, McDonald should strive to come up with innovative products or food by investing even more money on R&D and innovation.

References

Coulter, M. (2013). Strategic Management in Action (6^th ed.). New Jersey, USA: Pearson Education, Inc.

Pearce II, J.A.,& Robinson, R.B. (2014(14th Edition)). Strategic Management: Competing for Domestic and International planning. New York: McGraw-Hill Irwin.

 (n.d.) Retrieved from http://www.aboutmcdonalds.com/mcd.html