Competitive Strategies and Government Policies

Brenda Ocampo, Eileen Pool, Bernardo Villegas,

Roderick Phipps, & Mohammed Alodeh

ECO 365

February 4, 2013
Gregory Czarnecki

McDonald’s

The fast food industry is a highly competitive environment. For a leading chain such as McDonalds they always need to be thinking ahead about the competition and how the economy affects their industry. Although McDonalds is one of the biggest fast food chains they have to be aware of new companies entering in to the market, mergers, globalization, pricing, and how to continuously sustain their profits. By being aware of these main points they stay ahead in their market. Next McDonalds must regulate themselves in regards to global
These regulations are not always the best for business but if products are replaced or changed than this can offset the products that cannot be sold. Including a variety of drinks can also help the sales and offset the soda tax. All of these choices are part of externalities because they affect the population who visits these places, as well as the wallets of thee people, and the business. These are rules and regulations being enforced to help people realize that we need to eat healthier. But this is not always seen as a positive thing from the public because this means that we’re being deprived from taking our own freedom in choice as to what we eat and what we do. Global competition. McDonalds has been one of the initial companies that emerged into the global market. Its brand has reached various parts of the world making its culture part of society’s day to day events. Their management style and effective decision making has been able to strategically create a demand for their products. This focus on consumers has also been able to dictate preferences which in turn provide a larger perspective of how the company thinks out of the box. Forbes, Markets, McDonalds’s Winning Strategy, At Home And Abroad, (2012)stated, “In the 1970s and the 1980s, the company rode the globalization trend by transferring the American way of life to many countries around the world. At the same time, it