Thriving In the Business World: McDonald, Research Paper Example

Introduction

MC Donald is a fast growing company dealing with preparation and selling of fact food.  It basically deals with the sale of breakfast food, soft drinks, chicken products, hamburgers, French fries, desserts, cheeseburgers and milkshakes.

McDonalds packaging attracts many customers. The packaging material can be recycled and is environmentally friendly. It reassures the customers of hygienic measures taken in production and serving the products.  Decisions are made with regard to the product report and specification of the product design.  Product ideas are developed and used to gather information through a research. The information gathered is important in evaluations during production, marketing and disposal of waste products.  Certain paths have to be followed in production of a new or improvement of an existing product (Breval, 1991).

Product Life cycle

There are four stages of a product life cycle. The stages involve introduction of the product, growth of the market, maturity of market and the decline in profit. Once a product is introduced in the market, the failure rate is very high but this depends with the industry.  Marketing mix is very important in ensuring the success of the product. McDonalds involves itself in intensive advertisement with the aim of creating awareness.  To ensure growth, the company maintains a high brand loyalty. This is by satisfying customer needs and creating trust. At the growth stage, there is a decline in profit. The company overcomes this through offering quality products consistently.  At maturity stage, there is an increase in profit as the company gains customer trust and brand loyalty.  In the last stage, there is a drastic fall in sales. This is referred to as the decline stage.  When this occurs, the company alters, terminates or introduces a new product (Malowr, 2003).

Issues for Product Development

The issues of product development include legal issues, technical and commercial issues. The legal issues in McDonalds include relevance of the product, enforcement practicalities, lifetime, scope of claims and the territory being served (Pegla, 1999). The main technical issue is engineering ability. The company ensures that it has qualified personnel to be able to reach customer expectations. The commercial issues include market timing, risk tolerance, partnership potential and product flexibility.

References

Breval, K. (1995). Thriving in the Business world: McDonald. New York: Twayne Publishers.

Malow, M. (2003).  Products and service Design. Pittsburgh: University of Pittsburgh Press.

Pegla, D. (1999). The Marketing Strategies: Production Industry. Scotland: Addison Public        Administration.