•from the E-Activity, Evaluate the Situation of the Organization You Researched. Create a Program Outlining Steps the Organization Might Take to Build Better Public Relations.

1716 Words Dec 17th, 2013 7 Pages
Diversification Strategies

Strayer University

Dr. Akpan

Bus 508: Contemporary Business

November 4, 2013

Diversification Strategies

Companies that sell a product must have a strategy for product growth. Implementing growth strategies will improve a company’s business during challenges of consumers changing demands. Consumers behavior can and will dictate a company’s diversification strategies as well as overall success. Well planned diversification strategies are very essential for a successful company in today’s rapidly growing society.

Diversification strategies help companies maintain a steady income during economic recessions. Successful companies find ways to expand using
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United Kingdom, France and Germany collectively account for 50% of Europe’s revenues and China, Australia and Japan account for over 55% of Africa (APMEA’s) revenues” (www.forbes.com). In 2011, McDonald’s reported company revenues “consisting of sales by company operated restaurants as well as fees from restaurants operated by franchise of $27,006 in millions” (www.McDonalds.com). I feel that the company justifies its successful revenues with their focus on brand, company and industry diversity strategies.

McDonald’s core business is fast food, fast service with consistent quality at every location. The company’s core business has produced billions in global sales and net income over the years and has proven to be a reason for success. The company’s success can be seen as going back to the basics of their core objective. The move would be a market departure from the firm’s diversification strategies of “banking on Boston Market and Chipotle Grill restaurants to obtain better future growth opportunities in the mature fast-food market” (www.forbes.com). Although this diversification strategy didn’t pay off for McDonald’s it allowed them opportunity to focus on their core business. Moreover, it took them back to the basics of what they started the brand/company with.

The company found themselves on the chopping block with their expansion and use

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