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    Internal Assessment Empirical Factors/indicators

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    Rafael Capunpon Vallejos
    McDonald's possesses several rare resources that enable it to achieve a competitive advantage: 1) Its human resource development practices, including efforts towards inclusive excellence, are rare among competitors. 2) Its efficient food production systems that support its low price strategy are difficult for competitors to replicate. 3) Its expansive global supply chain, which increases the size of its international operations, is rare among restaurant businesses. 4) Its globally recognized iconic brand and portfolio of trademarks are core competencies that are rare in the industry and cannot be easily imitated by competitors.

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    Internal Assessment Empirical Factors/indicators

    Uploaded by

    Rafael Capunpon Vallejos
    71 views2 pages
    McDonald's possesses several rare resources that enable it to achieve a competitive advantage: 1) Its human resource development practices, including efforts towards inclusive excellence, are rare among competitors. 2) Its efficient food production systems that support its low price strategy are difficult for competitors to replicate. 3) Its expansive global supply chain, which increases the size of its international operations, is rare among restaurant businesses. 4) Its globally recognized iconic brand and portfolio of trademarks are core competencies that are rare in the industry and cannot be easily imitated by competitors.

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    McDonald's possesses several rare resources that enable it to achieve a competitive advantage: 1) Its human resource development practices, including efforts towards inclusive excellence, are rare among competitors. 2) Its efficient food production systems that support its low price strategy are difficult for competitors to replicate. 3) Its expansive global supply chain, which increases the size of its international operations, is rare among restaurant businesses. 4) Its globally recognized iconic brand and portfolio of trademarks are core competencies that are rare in the industry and cannot be easily imitated by competitors.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    71 views2 pages

    Internal Assessment Empirical Factors/indicators

    Uploaded by

    Rafael Capunpon Vallejos
    McDonald's possesses several rare resources that enable it to achieve a competitive advantage: 1) Its human resource development practices, including efforts towards inclusive excellence, are rare among competitors. 2) Its efficient food production systems that support its low price strategy are difficult for competitors to replicate. 3) Its expansive global supply chain, which increases the size of its international operations, is rare among restaurant businesses. 4) Its globally recognized iconic brand and portfolio of trademarks are core competencies that are rare in the industry and cannot be easily imitated by competitors.

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    Internal Assessment

    Empirical Factors/indicators

    It is said to be an advantage of a firm if it pursues a strategy that is not currently being


    implemented by any competing firm. According to the Resource-Based View, managing
    strategically involves developing and exploiting a firm's unique resources and capabilities, and
    continually maintaining and strengthening those resources. A resource is valuable if it
    possesses empirical indicators that will enable a firm to implement strategies that improve its
    efficiency and effectiveness and lead to sustainable competitive advantage.

    In the case of McDonald's, it is the largest global foodservice retailer, with over 31,000
    restaurants in 118 countries serving more than 58 million customers each day. The number of
    restaurants held and operated by McDonald's in 2008 and 2009 indicates steady growth in
    every country of operation and exhibited strong financial performance by geographic segment
    between 2008 and 2009, even as the worldwide economic crisis negatively impacted
    McDonald's key competitors. McDonald's Plan to Win strategy is composed of the 5 P's which
    pertains to people, products, place, price, and promotion. They view it as fundamental to its
    business success and to become better rather than just bigger.

    RARE

    One of the Empirical indicators of resources is being rare. Rare resources are resources that
    other competing firms do not possess or can only be acquired by one or a few companies. If
    many firms have the same resources, then those firms will likely implement similar strategies,
    thus giving no one firm a sustainable competitive advantage. McDonald's organizational
    resources and capabilities that are rare include effective and efficient human resource
    development. McDonald's has been recognized for its efforts in inclusive excellence with
    respect to employing and creating opportunities for minorities.

    Another McDonald's rare resource is the efficient food production systems for cost efficiency
    and low prices. McDonald's process and capacity design is centered on efficiency for cost-
    minimization that supports the company's strategies. McDonald's production line method
    focuses on maintaining process efficiency and adequate capacity to fulfill market demand thus
    providing low prices products.

    McDonald's operates an expansive supply chain which is considered to be rare. The firm's
    global supply chain supports its various locations around the world which increases the size of
    international operations and restaurant franchise network. McDonald's has a strategy of supply
    chain diversification for this decision area of operations management which involves getting
    more suppliers from different regions to reduce McDonald's supply chain risks.

    McDonald's globally recognized iconic McDonald's brand and Portfolio of popular trademarks
    are also the core competencies that satisfy the empirical indicator of being rare. McDonald's
    brand has high value and is rare in the industry. Competing restaurant businesses cannot
    imitate the brand nor readily create an equally strong brand. The McDonald's trademark
    portfolio sustains the company's strategic ability to legally protect proprietary designs and
    information. Even though competitors' products may be similar, McDonald's trademarks,
    including food and beverage names, are a strength that creates an image of uniqueness.

    The more a resource is rare, the stronger a firm's competitive will be and the longer it will last.
    McDonald's utilizes its rare resources and capabilities to compete against strong multinational
    foodservice firms and address market-specific issues. Thus strengthen McDonald’s competitive
    advantage.

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