Fall of Enron Essay - 1430 Words

Q1- Who were the key stakeholders involved in, or affected by the collapse of Enron? How and to what degree were they hurt or helped by the actions of Enron management? Ans- The key stakeholders affected by the collapse of Enron were its employees and retirees. Stakeholders and mutual funds investors lost $ 70billion market value. Banks were also affected by the meltdown of the company. They included big banks like J P Morgan Chase and Citigroup. Not only the stakeholder and bondholder lose out, the confidence in the company also fell. This was the major setback for the company. The actions of Enron management left a deep scare for its 4000 employees which lost out their jobs and also impacted others around them. Some blamed Arthur†¦show more content†¦All the above issues that led to the bankruptcy of the company were perpetuated by the actions of Lay, Skilling, Fastow and other executives. They all led to the collapse of the company. Lay did not enquire about the decisions that Skilling and Fastow were taking. He just approved to everything that they kept in front of him. Skilling always wanted to keep up to the Wall Street expectations a nd for this he gave pressure on his executives to find new was to hide the dept. This was the major setback for the company as they didn’t know that in future everything was going to come out and it would have led to bad consequences. Lay did not enquire about all this and approved of all the work Skilling was doing. Q3- What steps should be taken now by corporate managers, stakeholders, and policy makers to prevent a similar event from occurring in the future? Ans- People should not lie about the company’s financial status just to bring it up In the market. Eventually the truth is going to come out one day or the other. Auditors should properly keep track of the finances. Managers, stakeholders and directors should be aware of everything that is happening in the company. Policy makers should think about what steps they are taking and how it will affect other people lives. They should not make policies for the benefits of the big companies who give them finances for their political endeavours. Updated case:- ManyShow MoreRelatedThe Fall of Enron1146 Words   |  5 PagesCase: The Fall of Enron 1. Why was Enron such an admired company prior to 2000? What innovation do they bring to the table? Be specific and support your statement with concrete information. Enron was an admired company prior to 2000 because at that time it surfaced as a frontrunner in the deregulated energy market, making it possible to sell energy at higher prices, thus significantly increasing its revenue. The company, through efficient management team, has built leading businesses in energyRead MoreFall of Enron1160 Words   |  5 PagesThe Fall of Enron 1. Why was Enron such an admired company prior to 2000? What innovation do they bring to the table? Be specific and support your statement with concrete information. Prior to the year 2000, Enron Company, established in the mid-80s, caused the admiration worldwide because of its fast rise of revenue both in the local and international stock market in a short period of time. Enron’s operating income in the year 2000 was stated in $100.7 billion and its after-tax net income wasRead MoreEssay on THE FALL OF ENRON727 Words   |  3 PagesThe Fall of Enron The History Enron began as a pipeline company in Houston in 1985. It profited by promising to deliver so many cubic feet to a particular utility or business on a particular day at a market price. That change with the deregulation of electrical power markets, a change due in part to lobbying from senior Enron officials. Under the direction of former Chairman Kenneth L. Lay, Enron expanded into an energy broker, trading electricity and other commodities. The Business of Enron EnronRead MoreThe Rise and Fall of Enron1170 Words   |  5 PagesThe Enron Corporation was founded in 1985 by Kenneth Lay and based in Houston, Texas. Enron was known as one of the world’s leading electricity, natural gas, communications and pulp and paper companies. By the late 1990s Enron was considered one of the country’s most groundbreaking companies constructing power plants, gas lines, buying and selling electricity and gas, and partaking in a unique trading business; creating whole new markets for oddball commodities. In 1995 annual revenues were aroundRead MoreThe Rise And Fall Of Enron1008 Words   |  5 PagesIntroduction Enron began as an energy company in 1985. After the deregulation of oil and gas in the U.S., Enron lost its’ exclusive rights to natural gas pipelines. The CEO, Kenneth Lay then hired a consulting firm to reinvent the company in order to make up lost profits. He hired Jeffery Skilling, who was in banking, specifically; asset and liability management. Under the topic â€Å"The Beginning Presages the End†, C. William Thomas (2002) writes: â€Å"Thanks to the young consultant, the company createdRead MoreThe Rise and Fall of Enron1532 Words   |  6 PagesMost of the world has heard of Enron, the American, mega-energy company that â€Å"cooked their books† ( ) and cost their investors billions of dollars in lost earnings and retirement funds. While much of the controversy surrounding the Enron scandal focused on the losses of investors, unethical practices of executives and questionable accounting tactics, there were many others within close proximity to th e turmoil. It begs the question- who was really at fault and what has been done to prevent it fromRead MoreThe Rise And Fall Of Enron1900 Words   |  8 PagesThe Rise and Fall of Enron One of the most basic tenets of all companies, whether small or large, is to create a principled corporate culture. Those ethical principles must start with the executives of the organization and trickle down to the individual employees. Leaders affect the employees’ decision-making process, yet they tend to adopt the same rationale as their leaders when reaching a decision. The leadership of a company needs to find a balance between risk and creating opportunity. WhileRead MoreThe Rise and Fall of Enron2970 Words   |  12 PagesThe Leadership of Kenneth Lay 5 Contributing Factors for Enron’s Debacle 7 Power Abuse 7 Fraudulent Accounting Practices 7 Employees and Board members 8 Investors Grief 9 Auditors and external regulatory agency 9 Conclusion 9 The debacle of Enron, led not only the company to bankruptcy but also its employees and shareholders. Unethical leadership and vested interests played a significant role in its imminent failure. Very few had the courage to challenge authority and leave when faced withRead MoreThe Rise And Fall Of Enron Essay860 Words   |  4 PagesThe Rise and Fall of Enron The objective of every company is to maximize profit, become a big player and remain viable. Enron was no exception the key players at the time were Kenneth Lay CEO, Jeffery Skilling who was hired by Lay in 1990 to head the Enron Finance Corporation and by 1997 Skilling was made President and Chief Operating Officer. Andrew Fastow, CFO who was the chief financial officer of Enron. Enron merged Houston Natural Gas in 1985 with another natural gas pipelineRead MoreRise and Fall of Enron Essay872 Words   |  4 PagesThe rise and fall of Enron is a company that was lead to its own demise by it’s own leadership and ill business decisions. The motivational theories explained from the readings of Organization Behavior can correlate with the failure of Enron’s internal organization. Even though a company may appear to display successful business practices, the influence of leadership through management can ultimately lead the company to fail. Enron’s code of ethics prided itself on four key values; respect, integrity

The Between Mass Media And Digital Media Essay - 1501 Words

Convergence can be described as devices that can do multiple media forms. Broadly, convergence is the blending of multiple media forms into one platform for purposes of delivering a dynamic experience. According to Encyclopedia Britannica, media convergence can be described as a â€Å"phenomenon involving the interconnection of information and communications technologies, computer networks, and media content. It brings together the â€Å"three C’s†Ã¢â‚¬â€computing, communication, and content—and is a direct consequence of the digitization of media content and the popularization of the Internet† (Encyclopedia Britannica, 2014). Using print media (newspaper), broadcasting (radio and television), and mass audience to accurately explain how convergence can define a relationship between mass media and digital media. With the advances of technology, people now mainly focus on using smartphones, laptops or internet to access their personal mass media content. Be cause of modern technology being very portable, it is more favourable to use such devices rather than carrying print media. Mass media content still has its place with current times, however, instead of the original flow of produce to distribute to consume, it has been replaced by content to produce to content. Mass media forms are being put onto digital media. There are a number of driving forces that focus attention on the topic of convergence, mainly the digitalization of the media and information technology. Media convergence is theShow MoreRelatedCorrelation Between Mass Media And Digital Media Essay1890 Words   |  8 Pages(2013). In relation to mass communication, media convergence incorporates insights and methods to describe, characterises and understanding of digital media (Latzer, 2013). Convergence adequately describes the relationship between mass media and digital media. Mass media refers to ability to communicate openly and internationally to many receivers within a limited amount of time. The latest digital forms have expanded speed, capacity, and transmission efficiently of mass media platforms (Mcquail, 2000)Read MoreMass Medi The Spread Of Digital Media Communication1701 Words   |  7 PagesIs the mass media likely to survive the spread of digital media communication? The purpose of this essay is to explore if mass media is likely to survive the spread of digital media communication. Firstly, this essay discusses the definition of mass media, as well as when and where it originated in order to gain a better background understanding. It then goes on to discuss the growing popularity of digital media and how mass media communication still prevails despite the new digital media. In theRead MoreThe Effects Of Digital Media On Society s Media1714 Words   |  7 Pagesundeniable that the society is experiencing a mediated culture, where mass media have direct effects on our society. Newspapers, magazines, radios, and televisions constantly give out messages to promote products, attitudes, and ideas in an attempt to influence audiences. The effect is further enhanced when digital media, particularly the Internet, enters the competition for the limited supply of audience attention. The saturated mass media industry no longer has the benefit of reach it u sed to have, especiallyRead MoreMedia and Mass Communications Development on a Healthy Mature Culture1200 Words   |  5 PagesMedia and Mass Communications development on a Healthy Mature Culture This argumentative essay is specially made to discuss the possibility for media and mass communication to nurture the development of a healthy, mature culture. Overall, the process of media and mass communication media development has already caused changes in the public sphere. The digitalization of media dramatically increases the chances of the people to get an access to the information, which is transferredRead MoreThe Effects Of Mass Media On American Culture777 Words   |  4 Pages Effects of Mass Media Amanda Shock Media Influences on American Culture (HUM/186) 10/19/2015 Allyson Wells Effects of Mass Media There are many different effects of mass media. Where would the world be today without mass media? The world has evolved so much. From the written era all the way to the digital era, communication has changed so much. For instance, when the radio was invented it changed the way the news was communicated and provided entertainment. The television came soonRead MoreNetworking Systems1077 Words   |  5 Pagesinfluences of the rapidly expanding networking systems at our lives, cultures, beliefs, politics, and even at our identity formations. Thirteen years ago, at her various researches, she underlined probable risks as well as facilities. This new age media, or mean of communication, brought the necessity of reconstruction, negotiation and redefinition of some concepts within the context of socio-cultural structures such as community, liberation, nationalism and identity. Unsurprisingly, extensive usageRead MoreMidterm Review Essay963 Words   |  4 PagesMComm100†©Ã¢â‚¬â€œÃ¢â‚¬ ©Mass†©Communication†©in†©Society†© Midterm†©Review†©Ã¢â‚¬â€œÃ¢â‚¬ ©12th†©Ed†© (Chapters†©1†©Ã¢â‚¬â€œÃ¢â‚¬ ©9)†© †© Understand†©the†©definition†©of†©Ã¢â‚¬Ëœencoding’†© What†©is†©Ã¢â‚¬Ëœnegative†©feedback’?†© Characteristics†©of†©a†©mass†©communication†©audience†© What†©is†©a†©Ã¢â‚¬Ëœmedia†©vehicle’?†© Characteristics†©of†©mass†©communication†©organizations†© What†©vehicles†©have†©increased†©the†©mobility†©of†©the†©mass†©media?†© Trust†©in†©the†©media†©is†©considered†©what?†© Definition†©of†©Ã¢â‚¬Ëœsurveilance’†©Ã¢â‚¬ ©with†©regard†©to†©individual†©media†©use†© Consequences†©of†©relying†©on†©mass†©media†©for†©interpretation†© Read MoreThe Internet And New Media1504 Words   |  7 Pagesservices encouraged over time the materialization of many computer programs, with features that help create numerous digital extensions of the man, giving birth to the online generation. 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Reinventing Business Growth Franchising

Question: Discuss about the Reinventing Business Growth Franchising. Answer: Introduction The business operations are taking a new direction in the developed nations considering the huge inflow of FDI i.e. Foreign Direct Investments by the means of Franchising. There has been a vast literature presented by focusing on the franchising business in several developed countries. The focus of this study is over the literature presented on the Australian fast food industry and franchising. The business of franchising is usually accepted in Australia and yielded higher revenues for the domestic operators. Therefore, franchising in the Australian fast food sector is a growing business which is satisfying the needs of Australians in terms of revenue generations as well as job creation (Hussain and Windsperger, 2010). There is presence of intensified global competition; earlier ten local organisations that use to dominate the domestic market at home now find the global competitors to compete with abased on their arrival by the means of franchise as an entry and distribution strategy for entering and gaining in the new markets. As per the researchers Cavusgil, Knight, Riesenberger, Rammal and Rose (2014) franchising is recognized as a robust source for the distribution and marketing of the services and the products which are employed by the franchisors for marketing their services and products. It has been illustrated by Doherty (2009) that since the period of 1960s, there has been observed a significant growth in the international franchising and that is because of the pull and push factors. The aspects such as diminishing profits, increased competition and domestic saturation have forced the franchisors to inspect the business opportunities available in the international regions as there are supp orting political conditions, demographic factors and favourable macroeconomic aspects which have pulled the interest of the franchisors (Hoffman and Preble, 1991). The researchers and the industrial analysts have observed franchising as one of the key strategy incorporated by the MNCs i.e. the multinational corporations for expanding and prompting their business operations in other untapped regions and this has touched diverse sectors comprising the fast food sector which is primarily the key area for this study. And therefore the primary intention is to focus upon the opening of a new Subcontinent-style fast food franchise in Australia (Dant, Grnhagen and Windsperger, 2011). In last few decades, the interest in the franchising business is growing with an increasing rate as it has been recognized as a new market entry approach and a pioneering distribution paradigm in the marketing environment. The increasing attention has given birth to varied literature and view-points by practitioners, scholars and authors. According to the author, Franchising can be explained as an agreement among the two organisations where the service or product producer grant the rights of conducting the business as independent business in a particular manner, for a certain period of time and at a designated place to a franchisee. Franchising is not a business in itself but a specific way of performing business. As per the FCA i.e. Franchise Council of Australia, the franchising is a business association under which the franchisee attain the rights from the franchisor to distribute and market the services as well as goods, and to take use of the business name for a specific time pe riod (Awoseila, 2011). Australia is considered as one of the regions which have the highest number of fast food franchising. The opening of a new sub-continental fast food franchise in Australia is considered both as a good as well as a bad decision for the organisations. As per the studies, the Australian market is considered as the most profitable market for the fast food companies as there is increasing rate of consuming fast food among the Australians. There are gigantic fast food chains which have established by the means of franchising such as McDonalds, KFC, Subway. These three fast food chains entitle for 65 percent of the total fast food market share in Australia (Brailsford, 2003). The country is a hub for the MNCs who are seeking business and trade options in the fast food sector through franchising, the legal laws and regulation relayed to franchising are also extremely supported which acts as the pull factor for the foreign direct investments. There are continuously increasing rate of the indi viduals as well as the children suffering from obesity in Australia which shows the dietary habits of the people in Australia. There are other numerous advantages of Franchising business in Australia as discussed by several authors related to the availability of the effective and trained management, easy capital loan from the banks without much issues and regulatory frameworks, higher brand recognition, less risk associated, rapid expansion, higher profits, franchisee has the knowledge of the host country, franchise royalties, favourable macroeconomic factors, etc. As per the trade theory explained by various authors and researchers, the multinational companies get involved in the international business operations to achieve monopoly as well as high return to scale. There are several domestic factors which pressurises the companies to move to global world for increased sustainability and growth. The factors include lack of opportunities, upsurge competition and consistency in the market. The opening of a sub-continental style fast food chain in Australia is relatively a beneficial option for the companies to initiate trade in the regions of Australia and to have a recognized existence in such developed nation. But oppose to the views of the above researchers and authors, there are certain arguments which restricts the organisations to have opening of a sub-continental style fast food chain in Australia (Hussain and Windsperger, 2010). As per the views of the author, the Australian market is already a fully groomed market in consideration with the fast food sector. The big giants like McDonalds and KFC have their high monopoly in the Australian market which restricts the new entrant to enter into the fast food industry and give competition to the domestic placer as well as these large scale franchisees (Weaven and Frazer, 2007). The next argument given by the authors is that, since few years, the people are moving towards to a healthier life because of the rapidly increasing diseases such as obesity, diabetes, harmonise imbalance, etc. (Reed and Elliott, 1999). Among the individual who have more of fast food consumption. Therefore, as per the views and opinions of the researchers opening of fast food is relatively a bad idea because of the fact that people are stepping head towards the healthy and nutritious food habits. The changing habits of the individuals and the influence of the preens on the children to have a balanced diet instead of fast food results in decrease in the demand for the fast food in the Australian regions. Because of extensive amount of pressure laid down upon the domestic and local retailers of the fast food industry, the Government is also restrict ting the multinational corporations to have a market entry in the Australian fast food industry by the means of franchising. The source of income is getting squat with time because of the increased presence of the multinational companies through franchising, joint venture, merger or acquisitions (Frazer, Weaven and Wright, 2002). Australia is recognized as the fat nation because of the factors that the presence of fast food outlets it incaresing with a rapid rate. There is a significant role of these outlets in the increasing demand for the fast food among the Australians (Paik and Choi, 2007). There is vast demand for hamburgers, pizza, fried chicken, ice-creams, etc. The high demand for fast food fetches the attention of the companies but the regulatory frameworks somehow restrict the increasing presence of the multinational companies in Australia. The Trade Practices Act 1974 and the Trade Practices Regulations 1998 have their strict laws and legal frameworks as per which the organisations can enter in franchising agreement. There are other issues such as franchisee failures which also restrict the organisations to involve in franchising. As already discussed, fast food industry is a mature business industry of Australia, thus, the chances of franchising failures are much high because of higher market comp etition, decreased sustainability, few or no untapped markets or regions to cover with the fast food business operations (Fleischhacker, et al., 2011). There is a vast impact of franchisor failure on the franchisees as there can be collapse of the franchisees business or the failure of the franchisors business. In number of researchers, the failure is of the franchisee unit which is acting independently. In, Fast food nation: The dark side of the all-American meal, Schlosser, have explained the impact of franchising failures in an in-depth manner, where not only the positivism of franchising is targeted but also the disadvantages and negative implications of franchising have also targeted (Schlosser, 2012). Australia is a developed nation with dynamic environmental factors and highly fluctuating economy. The opening of a sub-continental fast food restaurant is both a risky and beneficial decision. There can be attained several advantages from the opening of fast food restaurant through franchising agreement such as trained management, low risk, high control, balanced approach, applied theories and practices, increase brand value, in creased sales, higher market share, presence in untapped region, etc. But at the same time, scholars demonstrate the negative outcomes too including control issues, franchising failure, entrance in a fully developed sector, increased competition, tough entry, management issues, etc. (Combs, Michael and Castrogiovanni, 2004). Conclusion In this paper, it has been review that how rapidly the fast food sector and the franchising business operations are rapidly increasing in the markets of Australia. The country is a well-known and well-established place for the inflow of foreign direct investments. The literature presented on franchising shows that there are both pros and cons of involving in the franchising agreements. The Australian market are the competitive markets which support franchising and foreign direct investments but still for saving the local retailers, there is firmness in the legal frameworks. From the perspectives of various authors and researchers the advantages of performing franchising business in a good decision but when it is in consideration with fast food industry of Australia, the same observes as a less effective because of the increased competition and high number of fast food outlets already existing in the nations. The literature shows that people are moving towards healthy and nutritious d ietary patterns because of increasing health issues among the adults as well as the children. Therefore, the opening of a sub-continental-style fast food franchise in Australia have numerous benefits which acts as the push factor to initiate the business operations but at the same time some factors also acts as the restricted forces. References Awoseila, F., 2011. Reinventing business growth through franchising in developing economies: A study of the Nigerian fast food sector.International Journal of Marketing Studies,3(1), p.162. Brailsford, I., 2003. 'US IMAGE BUT NZ VENTURE': AMERICANA AND FAST-FOOD ADVERTISING IN NEW ZEALAND, 1971-1990.Australasian Journal of American Studies,22(2), pp.10-24. Cavusgil, S.T., Knight, G., Riesenberger, J.R., Rammal, H.G. and Rose, E.L., 2014.International business. Pearson Australia. Combs, J.G., Michael, S.C. and Castrogiovanni, G.J., 2004. Franchising: A review and avenues to greater theoretical diversity.Journal of Management,30(6), pp.907-931. Dant, R.P., Grnhagen, M. and Windsperger, J., 2011. Franchising research frontiers for the twenty-first century.Journal of Retailing,87(3), pp.253-268. Doherty, A.M., 2009. Market and partner selection processes in international retail franchising.Journal of Business Research,62(5), pp.528-534. Fleischhacker, S.E., Evenson, K.R., Rodriguez, D.A. and Ammerman, A.S., 2011. A systematic review of fast food access studies.Obesity reviews,12(5). Frazer, L., Weaven, S. and Wright, O., 2002.Franchising Australia 2006 Survey. Griffith University and Franchise Council of Australia. Hoffman, R.C. and Preble, J.F., 1991. Franchising: Selecting a strategy for rapid growth.Long Range Planning,24(4), pp.74-85. Hussain, D. and Windsperger, J., 2010. Multi-unit ownership strategy in franchising: Development of an integrative model.Journal of Marketing Channels,17(1), pp.3-31. Paik, Y. and Choi, D.Y., 2007. Control, autonomy and collaboration in the fast food industry: a comparative study between domestic and international franchising.International Small Business Journal,25(5), pp.539-562. Reed, R. and Elliott, P., 1999. The valuation of fast-food outlets: analysis, methodology, and reliability.The appraisal journal,67(4), pp.359-369. Schlosser, E., 2012.Fast food nation: The dark side of the all-American meal. Houghton Mifflin Harcourt. Weaven, S. and Frazer, L., 2007. Expansion Through Multiple Unit Franchising Australian Franchisors Reveal their Motivations.International Small Business Journal,25(2), pp.173-205.

Competitive Strategy Business Model Strategy

Question: Discuss about theCompetitive Strategyfor Business Model Strategy. Answer: Business Model Innovation Business model innovation is the process of the development of unique and new concepts that supports the financial viability of an organization. It also includes the process of converting those ideas into fruition along with its mission. The prime goal of the innovation is the realization of the sources of new revenue by the improvement of product value and the delivery of the product to its customers (Massa and Tucci 2013). With the progression of the digital age, business model innovation has evolved as the technology that has changed dramatically the process of delivery and operation of services to the customers. Several Australian organizations are undergoing a business model transformation as part of innovation that has significantly increased their revenue generation capabilities (Amit and Zott 2012). From the e-learning material, the key ideas that have been extracted consist of innovation, competitive advantage, limitation and commodity and the process of the application of i nnovation includes initiation, ideation, integration and implementation. McDonalds Australia (MDA) is a public company in Australia that is unlisted and two-thirds of its business is operated and owned by franchisee business in the country. The company serves more than one million customers everyday and therefore, it is the priority of the company to maintain the integrity and trust. The corporate values and vision of the organization are customer based that has grown the company in over 118 countries with a total of more than 34,000 restaurants that serves more than 50 million people everyday globally (Kane et al. 2015). MDA contributes about 0.2% to the GDP of Australia by serving 1.7 million Australian customers daily across its 869 restaurants throughout the country (Nadolny and Ryan 2015). The existing business model of the company is based on its value proposition of delivering food of consistent quality to its customers that are also served quickly. The targeted customer segments of the company include the youngsters, families, business and elderly people. Its franchise holders are its main strategic partners that cover up to 80% of its restaurants and follow a three-legged stool of MDA, franchisees and suppliers (Emerson and Prang 2015). Selling and marketing of its beverages and food are the key activities of the business with its key resources being its restaurants and the employees. The customer relationship activity is an online activity on the customer preferred device. The cost structure includes the marketing costs, raw materials procurement, restaurants and the employee loans and the generation of revenue takes place from the restaurants that are owned by the franchisee holders and the company itself. MDA can undergo business model innovation to further increase its business, generate greater revenue and improve customer satisfaction. The company can build a strong partnership with the suppliers for creating shared market values and sustainable development. Business Model Strategy Business model strategy is the process by which the business achieves the desired objectives with a long term planning. The prime resource issues of business strategy are concerned with the scope of the activities of the business, financial considerations and allocation of the resources. Growth and globalization are the outcomes of the appropriate implementation of innovative business model strategy which will be further discussed for MDA in the form of its digital strategy. Innovation can be brought about in the business model of MDA by the application of innovative digital strategy. Presently, the company lacks a digital holistic approach that misses the aspect of the customer journey and service out of the restaurant (Mohapatra and Singh 2012). This can drastically improve the customer experience by making the food delivered to the customers place and increase the customer engagement in designing the mobile app that has greater customer customization according to their preferences . The digital strategy will also improve the in-restaurant experiences that will also make them skip the queues and customize their food from their cars. Drive-ins can also be facilitated to increase the in-car experience of the customers along with the food anywhere strategy that will enable the delivery of the food from the restaurants to apparently anywhere according to the customer requirements. This can give an innovative makeover to the largest restaurant chain in the world by making it digitally minded. These innovations can take the restaurant and its customers to the next level of food delivery and provenance with real time supply chain for the food preferred by the customer. These innovations can provide increased competitive advantage to the business over its competitors based on the strategies of focus, differentiation and cost leadership. This business model innovation of MDA will make its products and services different from its competitors and can make its customers b elieve in the same concept with increased accessibility to the commodities of food and beverages. The negative sales of few of the outlets can have a turnaround with the menu simplification and its locally relevant facet (Weber and Prodromou 2015). Although this business model innovation has several advantages, it has the limitation in its application on the franchisee level. Since majority of the business of MDA is based on franchisee outlets, appropriate implementation of the concept may not be possible in every outlet managed by the franchisee holders. In addition, the mobile strategy might face the hazards of online threats that can potentially hit the business as the customers might choose to opt out of the digital purchase system (Coursaris et al. 2014). Although the strategy aims to remove the physical boundaries of time or place and enable the customers to stay connected and place orders, it might miss the cordial feelings of the restaurant that the customers are provided by the staff members. However, with the business model innovation of digital strategy, the company will have to aim the local customers and restructure its local stores to generate maximum revenue out of its commodities at each level of its business. Implementation of the business model innovation of digital strategy will follow the steps of initiation, ideation, integration and implementation. The initiation step will allow MDA to analyze the existing business model and identify the potential loopholes. The need for the digital strategy will be surfaced in this step and with the targeting of the customers and what the company will be offering them with the digital strategy. This step is also crucial as it will discuss the value proposition and the generation of revenue. In the ideation step, the digital strategy business model will be compared with the other possible business models and establish the suitability of the proposed business model innovation of digital strategy (Tomlins 2 014). This comparison will enable MDA to thoroughly examine the proposed business model and identify the limitations of the innovation. Matches are tried to find out between the digital strategy of MDA and the digital strategy adopted by the other organizations of similar capacity and business. The basic assumptions are challenged along with the dominant logic of the digital strategy as an innovative model. The integration step will investigate the business model consistency and examine the aspects of organizational fit to determine how the innovative digital strategy will fit into the business policies of MDA. The final step is the implementation where the business model will be thoroughly revised. A business model is designed in iterative cycles where a pilot model for the application of the digital strategy will be built and tested with qualitative and quantitative data and on success, the design phase will be considered where the implementation blueprint will be designed (Grant 2016). The assumptions are testified with the output of the new business model and the soft factors of innovation are also considered in this step of digital implementation. The digital strategy of MDA is targeted for the next generation of customers with its holistic approach of going beyond the television commercials to engage its customers at every step from social and mobile to advertising. A seamless ecosystem will be formed by tightly integrating the digital platforms with the rest of the organization. New apps will be developed to market the new services and products of MDA and taking them to the market with a huge opportunity to increase its revenue and avail competitive advantage of the mobile platform. References Amit, R. and Zott, C., 2012. Creating value through business model innovation.MIT Sloan Management Review,53(3), p.41. Coursaris, C.K., van Osch, W., Balogh, B.A. and Quilliam, E.T., 2014. Social Media Marketing: Investigating Empirical Links Between Purchase Involvement, Strategy, Content, And. Emerson, L. and Prang, Y., 2015. Compensation and Benefits: Company-Provided Benefits at McDonalds. Grant, R.M., 2016.Contemporary strategy analysis: Text and cases edition. John Wiley Sons. Kane, G.C., Palmer, D., Phillips, A.N. and Kiron, D., 2015. Is Your Business Ready for a Digital Future?.MIT Sloan Management Review,56(4), p.37. Massa, L. and Tucci, C.L., 2013. Business model innovation.The Oxford Handbook of Innovafion Management, pp.420-441. Mohapatra, S. and Singh, R.P., 2012. IT Strategy for McDonalds. InInformation Strategy Design and Practices(pp. 299-318). Springer US. Nadolny, A. and Ryan, S., 2015. McUniversities revisited: a comparison of university and McDonald's casual employee experiences in Australia.Studies in Higher Education,40(1), pp.142-157. Tomlins, C.T., 2014.What's Your Business?: Corporate Design Strategy Concepts and Processes. Gower Publishing, Ltd.. Weber, L. and Prodromou, P., 2015. The digital consumer: Building attractive digital environments to increase engagement, views, shares and sales.Journal of Digital Social Media Marketing,3(2), pp.103-113.