Definition: Economic sustainability can be defined as the organization’s orientation to using a range of strategies in order to utilize all the available resources for addressing the current business needs, preserving the economic vitality, and creating the conditions for the further effective development of the company within the competitive environment (Collier & Evans, 2011, p. 18).
Thus, the company’s strategic management and business goals are accentuated with references to the resources which can be used to contribute to the company’s constant growth. From the point of operation management, economic sustainability depends on such resources and notions as the company’s performance excellence, financial management, resource management, and emergency preparedness in order to guarantee realizing the long-term goals and receiving long-term benefits (Collier & Evans, 2011, p. 18).
Role: Economic sustainability is important for the company because the orientation to it provides the company with good opportunities to compete within the industry during a long period of time, to operate within the expanding markets. Moreover, the focus on the economic sustainability is necessary to provide jobs within the company with references to the stable and effective economic development (Collier & Evans, 2011, p. 18).
Economic sustainability can be measured and analyzed with the help of referring to the financial audit results, some legal and governmental sanctions, and measurements on certain strategic initiatives to achieve the long-term financial success (Collier & Evans, 2011, p. 51). Furthermore, economic sustainability is significant because it is based on the shareholders’ position, and it can be discussed as a kind of the organizational strategy (Collier & Evans, 2011, p. 76).
Applicability: The concept of economic sustainability can be applied to the strategy used by McDonald’s in order to compete within the industry successfully. McDonald’s determines a range of corporate goals the completion of which is directly connected with the notion of economic sustainability because the orientation to these goals makes the managers and strategic specialists of the company work out the approaches to contribute to the company’s further economic growth.
Thus, McDonald’s is the leading company in the industry of quick service restaurants, and it intends to preserve the first position with references to a lot of new strategies and approaches. The accents are made both on the service and on quality of products to support the brand’s image (Collier & Evans, 2011, p. 78).
From this perspective, McDonald’s Corporation’s goals are to contribute to the profitable growth of the company, to concentrate on the operational excellence as one of the priorities, to focus on the innovation and technologies in order to compete successfully within the frequently changing environment, and to pay attention to the diversity and environmental sustainability (Collier & Evans, 2011, p. 78).
The mentioned goals can be discussed as significant to correlate with the notion of economic sustainability because the completion of these goals is necessary for providing the company’s further development.
The accents on the profitable growth can be discussed as crucial for developing the company’s strategies (McDonald’s economic footprint in Europe, 2011). Moreover, it is important to note that the principle of the economic sustainability as the organizational strategy can be realized effectively with references to the organization’s social responsibilities, and McDonald’s pays much attention to addressing the needs of the social community to succeed within the market.
McDonald’s implements all the necessary strategies to support the company’s efficiency in relation to the economic sustainability and refers to the important technical innovative changes to expand the possibilities in relation to the effective competition (Collier & Evans, 2011, p. 78).
References
Collier, D. A., & Evans, J. R. (2011). OM 3. USA: Cengage Learning.
McDonald’s economic footprint in Europe. (2011). Web.