...Contact: Prepared by : ACCA Registration no : Word count : Submission Date : 7485 words Table of Contents Part One: Introduction and Overall Framework of the Research ................................................................. 4 Introduction .............................................................................................................................................. 4 Topic Selection and reasons for its selection............................................................................................ 4 Company selection and reasons for its selection ..................................................................................... 5 Aim of the Research Report ...................................................................................................................... 5 Research Objectives .................................................................................................................................. 5 Research Questions .................................................................................................................................. 6 Research Approach ................................................................................................................................... 6 Part Two: Data Sources and Business and Accounting Techniques.............................................................. 8 Sources of information for research work .....................
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...EXTERNAL AND INTERNAL ENVIRONMENTAL ANALYSIS External Analysis There are two conditions that are most significant in McDonald’s external environment that are: 1. The new trend in which customers are changing fast –food restaurants to healthier ones. 2. The arising competition to achieve growth in this industry. The fast-food industry is very complex and saturated. The key success factors in APPENDIX 1 show that in order to be able to compete there is a need for research and development, achieve differentiation with your competition, create quality with your products, and be price competitive. Large capital is needed to be able to develop new products in order to differentiate among competitors. The creation of quality is very important because the switching costs majorly in this industry are very low. This explanation is supported in APPENDIX 2: Five forces of competition. Although the environment is very competitive it is very difficult to enter because of the need of capital, the regulation faced by the government, and especially because of the customers loyalty towards other restaurants. The new trend that has being evolving during the years has also created areas of distress among competition. Nowadays customers want to change fast-food restaurants to a healthier one. That increases costs, because companies will have to change their operation and ingredients in order to satisfy their customers; nevertheless there is a good side, McDonalds will reach another...
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...McDonalds Case Analysis Chandra Stevens Manda Roth Erica Jones Kaitlin Vincent Carole Hockeborn Ferris State University Table of Contents Abstract 4 Introduction 5 Situational Analysis 7 Demographics 7 Socio-Cultural 7 Political-Legal 8 Technology/Industrial 8 Economic 9 Global 9 S.W.O.T. Analysis 10 Strengths 11 Weaknesses 12 Opportunities 12 Threats 14 T.O.W.S. Analysis 15 External Strengths/Internal Opportunities 16 External Weaknesses/Internal Opportunities 16 External Strengths/Internal Threats 16 External Weaknesses/Internal Threats 16 Porter’s Five Forces 17 Threat of New Entrants 18 Bargaining Power of Suppliers 18 Bargaining Power of Buyers 19 Rivalry Amongst Existing Firms 19 Threat of Substitute Products or Services 19 Financial Ratios 20 Liquidity Ratio: Cash Ratio 21 Debt Management Ratio: Total debt Ratio 22 Profitability Ratio: Profit Margin 22 Balanced Scorecard 23 Balanced Scorecard Diagram 27 Strategy Formulation 28 Plan of Action and Recommendation 31 Highlights From This Year 31 Budget and Time Line Expectations Summary 31 Citations 33 Abstract This report reviews the McDonald’s corporation profile to include; an introduction to corporate history a time menu and current franchise information. The strategic Profile will provide a complete analysis of economic, socio-cultural, technology and global synopsis...
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...BALANCE SCORECARD INTRODUCTION: A Conceptual Framework for Managing Lodging Brands: A Balanced-Scorecard Approach Abstract: The issue of brand management remains a formidable challenge for lodging organizations and lodging brand managers. This challenge is partly due to the fact that effective brand management requires an all-inclusive and comprehensive organizational approach. This paper proposes a framework that uses the balance scorecard (BSC) as the basis for brand management. The framework proposes both a proactive and reactive approach to brand management through the use of performance measures or perspectives, which form the underlying components of the BSC. These are the financial perspective, the customer perspective, process perspective, and the learning perspective. The paper enhances and expands this BSC framework by including a brand maintenance and enhancement component. The concept of balance scorecard was introduced by Kaplan & Norton (1992, 1996, 2007) and they argued that that balance scorecard is a useful tool that tells managers how organization is performing in relation to strategic objectives of organization. Kaplan & Norton(1992) state the four perspectives which are financial perspective,customer perspective,internal business process perspective and learning and growth perspective.These four perspectives are used by managers in order to measure and analyze information. Kalpan and Norton explain these four perspectives which are effective...
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...McDonald How would you define the industry to be analysed? Is the industry global? Is the organisation mentioned Australian or overseas base? What are the key product and services segments in the industry that are mentioned in the article? Are you able to identify the stage of the industry life-cycle from the facts in article? McDonald’s Corporation operates in fast food industry with a large chain of restaurants in various countries. Unlike other restaurants, McDonald’s serves fast foods including hamburgers, soft drinks, desserts, milkshakes and French fries. McDonald’s was formed by two brothers: Mac and Dick McDonalds in California. The company experienced a fast growth, expanding to all the states in the United States before moving out to other countries. Today, McDonald’s is present in more than one hundred and twenty countries, serving the world market in fast foods. This article does not give much detail information about key product and service segments in the industry. Generally speaking, the key product in Fast food industry would be Hamburger, Fries and soft drink. And the services segment is general public. The stage of the industry Industry – Fast Food industry (Globally, based in USA) 1. Key product – 2. identifying the key service segment- Geographic – US, Europe, APMEA and Other countries (119 countries) Product segment- Hamburger, 3. What type of Organisation is McDonald McDonald is the world leading global food service retailer...
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...McDonald’s (in 2013): How to Win Again? McDonald is (in 2013): How to Win Again? The fast food industry seems to be a relatively easy market to compete in with the demand of easy, fast food accommodations. However, the largest of the industry, McDonalds, has experienced some very impactful setbacks. As competition, rises in the quick-service industry McDonalds has had to make several adjustments to stay on the leading competitive edge. As society becomes more aware of health issues and economic opportunities, the restaurant industry has been severely impacted which, has forced menu adjustments with better food at competitive prices. Below we will address how McDonalds strategy through analysis, formulation, and implementation. Analysis: Focus on External and/or Internal Environments Maintaining a competitive advantage is the most important factor for a business to be successful. Although McDonalds has been in business since 1940 and has formulated the market for the fast food industry, it has come under heavy pressure of competitors. At first, McDonalds focused on burgers, drinks, and fires. However, new entries into the quick-service industry have affected them with more expanded and different menus. This has forced McDonalds to restructure their entire business strategy over time to stay on top of customer demands placing focus on the PESTEL model. External Environments There are several trends that affect McDonald’s ability to sustain a competitive...
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...McDonalds Business Organizations do not exist in vacuum. They operate within a competitive industrial environment. Analyzing its competitors not only enables an organization to identify its own strengths and weaknesses but also help to identify opportunities for and threats to the organization from its industrial environment. SWOT analysis is a systematic analysis of these factors and the strategy that reflects the best match between them. Let us analyze these principals in relation to the core competence of McDonalds, one of the largest food chain companies in the world. Let us first start with the strengths and the positive aspects which define the performance of this company. How can we define the company's strengths? Strength is a distinctive competence that gives the firm a comparative advantage in the market place. For instance financial resources, image, market leadership and buyer supplier relations etc McDonalds is the no: 1 fast food chain stores with a 40 million customers visiting it per day. It has over 30,000 branches in 120 countries. It derives 80% of its revenues from eight countries like Canada, Brazil, Germany, France, Japan, UK, Australia and US. The greatest strength was creating an image in the minds of the people and introducing them to the fast food culture. Delivery speed, customer care and cleanliness are the core strengths on which these stores expanded. They created a corporate symbol and their advertisement campaigns were highly successful in establishing...
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...Public Relations Paper McDonalds has made several changes to their menu since its opening in 1940. Adapting to the consumers demands delivering high quality products to maintain a presence in a competitive market. The McCafe campaign intents to target the young generation and adults by offering coffee products for a fraction of the price that Starbucks does. The purpose of this paper is to discuss the impact of the campaign on the internal and external stakeholders. It will identify the stakeholders’ needs specific to each category and it will finally provide recommendations to the existing campaign. Internal and External Stakeholders McDonald’s is a company “committed to providing choices, assuring quality and safety, delivering great taste, and sourcing in an ethical manner” (McDonalds, 2008). The main goal of the company is to earn the public’s trust. Every change or addition McDonald’s makes to its menu has an impact on its stakeholders. The company works with internal and external stakeholders to equilibrate a difficult set of social, ethical and ecological considerations. The stakeholders have a vested interest in the organization. The internal stakeholders are directly affected by the company’s stability and wages. The external stakeholders are a proactive part of the company but not employed in a direct way by it. In the big scope of things the McCafe campaign will add a new image to the existent one. The campaign does not impact all of the stakeholders...
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...McDonald's vision McDonald's vision is to become its customers’ favourite place and way to eat and drink McDonald's Missions to grow market share by achieving its three global priorities. 1. Optimising menu: Maintain popular core products and continually introducing new innovative localised products Differentiating its brand, for example, as a beverage destination by growing McCafe Develop healthy and balanced meal options to enhance its food image and to satisfy customers’ needs 2. Modernising our customer experience: Achieving operational excellence through technological innovation Reimaging shop look by remodelling restaurants with new designs 3. Broadening accessibility: Making it more available in the term of price, location and operation hours. To strengthening brand recognition by going over economic performance and pursuing commitment to sustainable business practices of all aspects of business and community Be the best employer for our people in each community around the world * Deliver operational excellence to our customers...
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...the key external environmental issues that can affect a firm’s strategy. 2. To examine how a reevaluation of strategy involves assessment of internal activities and resources. 3. To discuss the decisions and actions that a firm has to undertake to sustain a competitive advantage, especially when pursuing growth. See the table below to determine where to use this case: |Chapter Use |Key Concepts |Additional Readings or Exercises | |1: Strategy Concept |Strategic management; vision, mission, strategic |Visit McDonald’s website to evaluate its mission.| | |objectives |See an embedded video of a 1967 McDonald’s TV | | | |commercial. | |2: External Environment |External environmental forces; Porter’s five forces |Visit investor commentary on MCD, view embedded | | |model |video about current coffee strategy; read about | | | |healthy foods controversy, watch video re | | | |SuperSize Me, FastFoodNation | |3: Internal Analysis |Value...
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...NOTES TO MY POWER POINT ANALYSIS OF EXTERNAL ENVIRONMENT Factors that happen outside of the company which can lead to improper functioning of a company is termed as external environment. The first factor is economic factor. Economic factor is a type of factor which affects how a company markets its product, how much a company can spend on the success of the business and even the kind of target market a company will go after. Economic crisis has made McDonalds increase its prices because its supplies are becoming more expensive. Furthermore, the economic differences in different parts of the world have made a significant influence on price setting. The second factor is political factors which are that influences and limit businesses in a community. These include laws, agencies, groups etc. Research shows that McDonald is great political stability which has enabled the company make investments. One excellent thing about McDonald is that it is mostly based on Western countries where political and legal activities are stable. Socio-culture environmental factor: McDonalds is now operated in different countries. Therefore, as McDonalds operate it has to take into consideration the country their operating in food’s culture. For instance, Portuguese people are being offered a soup while people in Indonesia are enjoying something called McRice. Tecnological Context: McDonald have introduced new technologies in their cooking methods to minimize the fats and cholesterol in their...
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...SWOT ANALYSIS SWOT analysis is an analytical tool used to assess the strategic capabilities of an organization. This tool is bi-focal as it focuses on both the internal and external business environment, though it can be criticized for doing so from the perspective of the organization. In this analysis, we are looking at the core competencies, or the strengths of McDonalds, the areas of weakness or where competitors have an advantage over the organization, opportunities presented by the business environment to McDonalds, and threats or any aspect in the business environment that can hinder their plans. S McDonalds is an iconic brand, which can be seen as one of its strengths. It was founded in 1940, and from then to now, McDonalds has already achieved global dominance, by becoming the world’s leading ‘fast food’ retailer. In achieving global dominance, McDonalds operations are designed to assure consistency and high quality through its restaurants design, layouts and products offered, assuring the customers of its quality. These factors have led to customer loyalty and customer trust. Another Strength is that McDonalds has a large market share. It has the largest “slice” of the pie in relations to it’s competitors, allowing McDonalds to become a market leader. Another major strength is that McDonalds has diversified income streams. Unlike some of it’s rivals, McDonalds doesn’t rely on one key source of income, as revenue flows in from company owned restaurants & franchises...
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...Article Review: McDonald and Leppard (1993) The Marketing Audit The Marketing Audit Model Any marketing plan will only be as good as the information on which it is based, and the marketing audit is the means by which information for planning is organised. A marketing audit is a systematic, critical and unbiased review and appraisal of all the external and internal factors that have affected an organisation’s commercial performance over a defined period. By providing an understanding of how the organisation relates to the environment in which it operates, the marketing audit enables management to select a position within that environment based on known factors. Any organisation carrying out an audit will be faced with two kinds of variable: those over which if has no direct control and those over which it has complete control. The former include economic and market factors, while the latter usually concern the organisation’s resources, or operational variables. This suggests that the marketing audit should be structured in two parts: * External audit—the uncontrollable variables (business and economic environment, the market, the competition). * Internal audit—the controllable variables (organisation’s strengths and weaknesses, operations and resources in relation to the environment and competitors). Chapters 1—6 McDonald and Leppard’s The Marketing Audit Model is a comprehensive set of exercises that a company can go through to develop insight into all aspects...
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...Leigh For Ms. Janet Bradley 1 Madeup Street Melbourne VIC 3000 Australia 7th February 2014 * Executive Summary The establishment of a low calorie fast food chain in Australia requires an in-depth analysis of the food industry. Fast food industries internal and external environments require comprehensive research to ascertain the viability of establishing a new healthier alternative in the fast food market. Research into the buyer behaviour has found that consumers pursuing a healthy lifestyle are Singles, Couples and Families between the ages of 14 - 40 years old. They are physically active, health orientated individuals who are body, image and appearance conscious. Internal micro factors in establishing the new chain include sourcing Australian suppliers who can provide locally grown fresh produce and intermediaries such as logistics management who assist with identifying suppliers and distributors. Key public are important in providing communication such as government regulations, the general public’s views in regards to the new product and media coverage of the new differentiated product and the impact it is having on societies new health conscious consumers. The current competition from major fast food outlets such as direct competitors McDonalds, Oporto and Subway and indirect competitors Sushi Train, Eagle boys Pizza and KFC may impact on the new low calorie fast food chain The company’s overheads and expenses should be aligned with the overall objectives...
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...organization (Chawla, 2003). Kotler and Keller (2008) outlines the core definition of marketing, which says that ‘Marketing is the analysis, planning, implementation and control of carefully formulated programs designed to bring about voluntary exchanges of values with target markets for the purpose of achieving organizational objectives”. Marketing can be described as a strategy based analysis on planning that are used to combine experience, education and perspectives of the whole management team of the organization effectively by all means of developing focus in management and competitive advantage in the market arena. Gilligan and Wilson (2009) define Strategic Marketing Planning as “a typical development of strategies that are based on the planning team’s assessment of the market and perceptions of managerial expectations and organizational capabilities”. Therefore, the nature of strategic marketing planning and the development of the marketing plan show an in-depth understanding of the knowledge of thinking about the organization’s environment, managerial objectives, organizational capabilities and things that affect the process of planning and implementation. This report highlights the different perspectives of writers with regards to the perspectives taken by Kare- Silver on tactical and strategic marketing. An extensive, in-depth analysis and understanding of competitive advantage, marketing excellence and its research, organization’s market environment and the significance...
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