Final answer:
The correct answer is option c. the I/O model.
Step-by-step explanation:
The enhanced performance of McDonald's despite the general perception of the fast-food industry can be best attributed to its use of the resource-based model. This model emphasizes a company's internal resources and capabilities as sources of competitiveness and above-average returns. In the case of McDonald's, these resources include product innovations, revitalization of existing facilities, and strategic global expansion. These assets are valuable, rare, difficult to imitate, and organized to capture value, thus allowing McDonald's to succeed in a market otherwise viewed as unattractive.
Globalization is a relevant factor, but it does not fully explain the superiority of McDonald's performance compared to its competitors. Similarly, while the I/O model (Industrial Organization model) considers the external environment in explaining company performance, it does not fully account for McDonald's success, as many competitors share the same external environment yet do not achieve similar results. Hypercompetition describes market dynamics but does not provide a foundational reason for McDonald's sustained success.
The use of strategic resources allows McDonald's to not only adapt to but also shape consumer preferences and market dynamics, increasing its global presence with the concept of McDonaldization. Although 'McDonaldization' is associated with increased efficiency and predictability, it has also been criticized for reducing the diversity of products and creating a uniformity that can lead to a loss of local character and quality. Nonetheless, McDonald's has managed to modify its approach to fit local cultures while maintaining its core business model, thus benefiting from both standardization and adaptation.