The paper "Coffee Initiative as a Strategic Management Technique Used by McDonald’ s" is an outstanding example of a management case study. This paper analyses the coffee initiative as a strategic management technique used by McDonald’ s chain of restaurants. Both companies specialize in the food industries and hence provide the best case study of strategic management techniques. McDonald's was established in 1955 in Illinois and has since undergone through a series of expansion in different parts of the world. The restaurant started as a hamburger outlet, but it is currently offering a wide variety of products.
On the other hand, McCafe was established as a beverage outlet that operated mainly in conjunction with McDonald's. McCafe outlets are located at McDonald’ s restaurants as coffee bars at the entrance. The company has, however, expanded its market share in the food industries and currently operates independently. This paper gives a SWOT analysis of the two food and beverage outlets focusing mainly on mergers and globalization as a major strategic management technique that contributes to their success. The food industry is one of the most competitive industries in the world.
These restaurants face competition from the upcoming, organized and market hungry establishments. These establishments are using all the available technology to reach the highest number of consumers. It should be noted McDonald's strategically merges or acquires most of the upcoming food outlets especially Canada and the United States in the United States and Canada to minimize competition levels in the industry. McDonald's is diversifying its products from specialized food services to include beverages. Mergers are not, however, successful in elimination competition from established food outlets like Burger King and Triccon Global restaurants which is rapidly expanding its operations to Africa, Asia and South America.
This paper concludes by giving establishing the problems facing the companies and giving out recommendations on how they can improve their management as well as a marketing strategy to maximize profits and optimize the respective market share (McDonald’ s Investors, 2013). Introduction McDonald's has not been able to keep in pace with rapid growth of the food industry regardless of the fact that its snacks and breakfast sales have been increasing since its establishment. Coffee quality remains a major obstacle for McDonald’ s growth in Canada.
The company has been attempting to improve their coffee quality and brand in Canada since its establishment but all in vain. This was due to stiff competition from other established firms like Higgins and Burke. McDonald’ s efforts to merge its coffee brand with that of Higgins and Burke were futile. McDonald's, however, revolutionized its coffee brand through the introduction of McCafe, which operates alongside its stores in Canada. This was done to respond to the increase in coffee production across Canada (The New York Times, 2012). McCafe is a full-service coffee stand located inside McDonald’ s restaurant.
Establishment of McCafe was mainly meant to increase snack and breakfast sales through the elimination of coffee as its main competitor. McCafe main objective was to assist McDonald to acquire a lucrative share of the coffee market. McCafe’ s initial sales were overwhelming despite struggling to establish this coffee brand in Canada. The introduction of McCafe led to an increase in breakfast and snack sales at McDonald’ s stores in Canada. This is the best management strategy adopted by McDonald to establish a brand in Canada (Blaxill, 2009, 1).