What to Do?
Imagine that you are the CEO of McDonald's Family Restaurants (Australia)with hundreds of franchised fast-food outlets throughout Australia.The success you have experienced in the last five years has you thinking of what to do next with the business.Should you expand the business at the current rate? Open new and different restaurants? What would be your next step?
-Refer to What to Do? (Scenario).If, because of the good profits and a fear of growing too fast, you decide to keep McDonald's in the same business and also do not change the menu, hoping to retain the same market share and return-on-investment record, this would be considered a ________ strategy.

Question

Quizplus · Accepted Answer

The scenario states that the CEO fears growing too fast and wants to retain the same market share and return-on-investment record. This indicates a desire for stability in the business strategy. Choosing to keep McDonald's in the same business and not changing the menu aligns with a stability strategy, which focuses on maintaining the current business and market position. Option B, growth, would not be the best choice in this scenario as the CEO is hesitant about expanding too quickly. Option C, combination, and D, diversification, involve changing or expanding the business, which does not align with the CEO's desires. Option E, status quo, is similar to option A and could be a possible alternative answer, but stability is a more commonly used term in business strategy.

What to Do? Imagine That You Are the CEO of McDonald's Family Restaurants