Theory on selected topics Essay Example | Topics and Well Written Essays - 1500 words

Theory on selected topics - Essay ExampleThese products are usually categorized concord to their characteristics of trade growth rate and market allocate. A typical BCG matrix is shown in the figure belowAs we all know that McDonalds mint is made up of world-wide business, such as McDonalds USA, McDonalds Europe, McDonalds Asia and McDonalds America. We are going to use the lens of BCG matrix to determine the space of each of these businesses in a BCG matrix for McDonalds Corporation. (QuickMBA, 2009)STARS Stars are those products that have a large market share in a rapidly emergence fabrication. In simple words, these are successful products that need continuous investment to maintain their dominating position in the market. According to the statistics given in McDonalds Corporations annual report, McDonalds USA is a star. It has a high market share in the market which is booming rapidly. However, due to change magnitude competition in the market, McDonalds Corporation shoul d invest in McDonalds USA heavily, so that they do not lose out market share to other competitors like Burger King or KFC. (Daft, 1997).A question-mark is a business that has low-market share in the rapidly growing industry. In order to increase the market share, the business will need more and more resources. However, it is not guaranteed that the business has enough potential to become a start. In the case of McDonalds corporation, McDonalds Europe falls under the category of a BCG Matrix Question Mark. McDonalds Europe has found it tough to break into the food industry which is already congested with various firms in the industry. The culture diversification in the different parts of Europe has also resulted in low-demands and cash returns for McDonalds Europe, do it a question mark. The only way to cure the problem is that McDonald should carry out a market research to find out what people