Introduction
Strategy is defined by different authors in different manners. Strategy in business is how the organization wants to achieve its aims and objectives and what actions the organization would take to achieve these objectives (Anderson, & Atkins, 2001). Strategy is a term which is used by most of organizations to reform their policies and rules for future implementation. Scientifically this term was described by many business authors (Grant, 2009). Mintzberg has defined the term ‘strategy’ using 5Ps. The 5Ps of Mintzberg are:
- Plan
- Ploy
- Pattern
- Position
- Perspective
Each P has its own importance and by understanding each of the Ps of Mintzberg, one can formulate an appropriate and effective business strategy that could further improve the strengths of the organizations. This report discusses about 5Ps of Mintzberg and analyzes the strategy adapted by McDonalds using these 5Ps.
- Plan
The first P of Mintzberg’s strategy is Plan. Plan means to take action for further procedures. Plan plays an important role to maximize the results if it is properly and consciously defined. Plan also improves the opportunities for goal achievements. Plan provides the directions to handle the situation or uncertainty (Grant, 2009). McDonalds has adapted a growth strategy “The Plan to Win” and the plan of this strategy is to create new restaurants and outlets. Moreover, McDonalds is working to improve the existing restaurants. McDonalds uses different strategies to grow and further expand their offerings and for this the company uses market penetration, which is to further enter or penetrate in the market where the company is operating, and product development which is to come up with new products and offer them in the same market where it is operating.
- Ploy
Ploy is defined as intended action, which would be helpful for future gain, minimize the frustration of situation and give optimum results and at the same time help in gaining competitive advantage (Grant, 2009). The campaign launched by McDonalds Healthy Living has been helpful in creating awareness and letting consumers know to eat healthy food thus this ploy has allowed McDonalds to create goodwill among consumers. This ploy has been helpful as it has given a message to the consumers that the company cares about the health of the consumers and they are working hard to meet to needs to the consumers and their health.
- Pattern
Pattern has been defined as the consistent actions in deliberated exercises (Johnson, Scholes, & Whittington, 2011). McDonalds has adapted a similar and consistent pattern which is to expand its number of restaurants. The company is not only focusing to increase the number of restaurants in the country where it is operating but it is also been expanding in more countries and thus it can be said that a consistent pattern has been followed by McDonalds.
- Position
Position is the brand image or brand identity of the company in the mind of customers. Position can also be defined as how the company wants to show their image in front of the stakeholders (Johnson, Scholes, & Whittington, 2011). The positioning of McDonalds is to be loved by everyone. The restaurant has a slogan of “I’m lovin’ it” and this shows that the company wants everyone to love what the restaurant is offering.
- Perspective
Perspective can be defined as the ideology or the values that the company has in the way it operates. McDonalds has emphasized on being efficient and effective and this has been the way the company has operated over the years.
References
Anderson, A. R., & Atkins, M. H. (2001). Business strategies for entrepreneurial small firms. Strategic Change, 10(6), 311-324.
Johnson, G, Scholes, K & Whittington, R. (2011). Exploring corporate strategy: texts and cases, 9th edn. Financial Times Prentice Hall, Harlow, England.
Grant, R. (2009). Contemporary Strategy Analysis. London: Wiley Higher.
