Competitors and Strategic Performance Management Essay

Competitors and Strategic Performance Management - Essay Example Competitors and Strategic Performance Management is one of the crucial strategies for the success of organizations operating in competitive environments. McDonald has built a competitive edge through robust Strategic Performance Management that aligns the performance of its employees to the corporation’s strategic objectives and organization’s vision. McDonald is without any doubt making significant strides in innovation, business expansion, and cost reduction to outmatch its competitors and increase its market share. Proactive approach in managing its business threats keeps McDonald remain valued in the market. In addition, the corporation understands that, there is a need to keep continuing monitoring its business external environment (competitors) to ensure that it formulates the most relevant strategies to promote and cope with stiff competition (Love, 1999). In order to understand its business environment, McDonald analyses its business competitors as those that co mpete with its â€Å"customers spending power.† Some of the identified competitors are; brand competitors, industry competitors and form competitors. The industry competitors are regarded as the most critical ones since they offer almost similar products and services. The corporation further analyses competitors’ characteristics as serving the same customers, having superior or same technologies in products preparation, similar distribution channels, and same target market. McDonald further recognizes the need to examine their competitors existing strategies and objectives. The corporation analyses competitors’ strengths and weaknesses in regard to its business (McDonald, 1996). By undertaking competitors’ analysis, McDonald understands that it will be able to do business forecasts on the competitors’ plans and strategies. Based on the Cohesion Case analysis of MCD, its three major strengths include; large/strong customer base covering approximately 118 countries. For example in Europe, there is an increase in the number of restaurants from 6,650 to 6,485 which reflects a considerable increase in customer base.