Analysis of the I/O Model on McDonald’s

McDonald’s is a gigantic fast food industry whose services reach out to as far as every continent of the world. And in as far as trade is concerned, McDonald’s is facing several issues concerning business either relating to economic or geographic factors. In that case, McDonald’s success counters external and internal pressures that come from many aspects of entrepreneurship.

To start with, competition from other firms dealing with services in the same line is the most outstanding external pressure as of now with the company. Several emerging industries are trying to win over McDonald’s. Some are international, while some are local industries posing a great danger to the scope of McDonald’s services.

McDonald’s, also, is a company just like any other, and as such, its operations and ideologies are vulnerable to other companies. As for that, the idea of globalization was initially its creativity, but so far, quite a number of its competitors are using the concept. All the latter in the hope that these companies may outshine the pioneer of the idea; the McDonald’s.

However, the fact that some aspects of company operations are mobile, then the issue of labor is mobile in the case of McDonald’s. Employees can shift from one company to another since the experience is more or less the same. Ideas and strategies, too, can change or increase ownership. The idea of globalization, for example, belonged to the McDonald’s before its ownership extended to McCafe and the likes.

In general, McDonald’s, apart from the idea of globalization, it has employed the idea of economies of scale. Its branches all over the world tend to operate on a large scale platform giving the competitors a hard time rising to the level. These strategies, however, have seen the company rise and sustain its competitiveness over time.