...University of Jordan Faculty of Business Strategic Management “McDonald's” Case Study STRATEGIC MANAGEMENT Prepared By Fathi Salem Mohammed Abdullah 2009 Table of Contents Topics Introduction History analysis Vision, Mission, Value The Five Forces Framework PESTEL Framework External Audit CPM-Competitive Profile Matrix External Factor Evaluation (EFE) Matrix Financial Ratio Analysis Internal Audit Internal Factor Evaluation (IFE) Matrix SWOT Matrix SPACE Matrix Grand Strategy Matrix The Boston Consulting Group (BCG) Matrix The Internal-External (IE) Matrix The Quantitative Strategic Planning Matrix (QSPM) Recommendations Page 3 3 4 5 6 7 8 9 10 12 13 14 15 16 17 17 18 20 Introduction: 2 McDonald's Corporation is the world's largest chain of fast food restaurants, serving nearly 47 million customers daily through more than 31,000 restaurants in 119 countries worldwide. McDonald’s sells various fast food items and soft drinks including, burgers, chicken, salads, fries, and ice cream. Many McDonald's restaurants have included a playground for children and advertising geared toward children, and some have been redesigned in a more 'natural' style, with a particular emphasis on comfort: introducing lounge areas and fireplaces, and eliminating hard plastic chairs and tables. Each McDonald's restaurant is operated by a franchisee, an affiliate, or the corporation itself. The corporations' revenues come from the rent, royalties and fees paid by the franchisees...
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...(1.1) 2 The importance of a written vision/mission statement for a company 4 If a student is able to provide an overview of findings using the following queries as guide (M1) 6 Select four organizations and find their mission Statements and complete the following exhibit by identifying stakeholders that are mentioned and evaluate the differences between firms in the private sector and those in the public sector (M2) 7 Explain the significance of stakeholder analysis (1.2) 8 Managing and partnering with external stakeholders and clear delineation of traditional management tactics and partnering tactics are illustrated (M3) 12 An environmental and organizational audit of your selected organization (use EFE and IFE matrices) (1.3) 14 Prepare EFE and IFE Matrices for your selected companies 19 Estee Lauder 19 Revlon 20 Avon 22 Construct a CPM and provide interpretation and analysis of the results (D1) 24 Application of strategic positioning techniques to the analysis of the organization (1.4) 24 List five strategic positioning techniques company or business had used and discuss how do they benefitted from those strategies (D2) 25 Conclusion 29 References 30 Introduction Johnson and Scholes (n.d.) defined strategy as the direction and scope of an organisation over the long-term: which achieves advantage for the organisation through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfil stakeholder...
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...Acknowledgment Alhamdulillah, thanks to Allah for giving us the strength, patience and interest in preparing this assignment. We are very grateful to a number of people who has contributed significantly to the success of this project paper, whether directly or indirectly. We would like to thank to our lecturer, Madam SARINA for her advises kindness and guidance in the process of preparing and completion of this assignment for MGT657 (Strategic Management) Possible thanks to classmate for their advice and help towards the completion of this assignment. Lastly to family, who have always offered their prayers towards the success of this studies, we are express a grateful thanks, to all May Allah S.W.T reward you accordingly. 1.0 EXECUTIVE SUMMARY It began with Colonel Harland Sanders. He discovered his penchant for cooking when he was only 9 years old. Through the years he grew up to become a personage the world knows as Colonel Sanders, founder of KFC. He reached celebrity status in 1952, when he decided to franchise his famous Kentucky Fried Chicken recipe blends of 11 herbs and spices to the rest of America. By the early70's, that special recipe reached Malaysia. KFC Holdings (Malaysia) Bhd, which is held by KFCH. Through its subsidiaries, engages in restaurant, poultry production and processing, and property holding businesses. It operates a chain of KFC and RasaMas restaurants. The company also engages in the retail of chicken and chicken-based products; and integrated...
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...used by McDonald’s Corporation. The paper begins with a brief overview of the company, its history and operations, and analyzes the internal and external environments that it currently operates in. With a Competitive Profile, External and Internal Factor Matrixes, this paper examines the relative strengths, weaknesses opportunities, and threats in McDonald’s’ mass business operations. The paper also examines Corporate Social Responsibility (CSR) and business ethics, and the steps and initiatives McDonald’s takes in regards to consumer satisfaction. Lastly, the paper concludes that the strategy used by McDonald’s is a cost leadership approach, and provides methods in which the business strategy could be used to capitalize on the strengths and opportunities and eliminate the weaknesses and threats. McDonald’s- The Corporation McDonald's is the globes largest chain of fast-food restaurants, serving more than 58 million customers daily in over 119 countries. It first opened its doors in 1940 by brothers Richard and Maurice McDonald in San Bernardino, California, and their creation of the "Speedee Service System" in 1948 created the blueprint of the present day fast-food restaurant. In 1955, McDonald's Corporation credits its true founding to the opening and operations of a franchised restaurant by Ray Kroc, in Des Plaines, Illinois. Kroc later purchased the McDonald brothers' equity in the company and led its global expansion with the Franchise Model. McDonald’s has...
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...HISTORY Domino’s Pizza was founded in 1960 and since then has grown to become the largest pizza delivery company in the United States. It has grown from a mom-and-pop pizza store to a network of company-owned, franchise-owned stores in the United States and across the globe and was recently ranked number 1 in Forbes magazine’s “Top 20 Franchises for the Money” list (David, R 2013, p. 372). Domino’s Pizza was the brain child of the brothers Tom and James Monaghan who grew up in foster care and had dreams of success. In 1960 the brothers opened their first pizza store in Ypsilanti, Michigan named Domi-Nicks with a nine hundred dollar start up loan. In 1961 Tom acquired full and sole ownership of Domi-Nicks by trading his brother James a car, a Volkswagen Beetle to be specific, for his half of the business. He then changed the name to Domino’s Pizza Inc. During the period from 1965 to 1978 Domino’s experienced steady growth and had increased from the initial mom-and-pop store, to having 200 locations nationwide. The 1980’s saw continued expansion of Domino’s and its brand. They grew to more than 5,000 locations in the United States, Canada, United Kingdom, Japan, Australia and Columbia (David, R. 2013, p.372). In 1986 Domino’s Pizza launched its Pizza Partners Foundation which is 100% funded by team member and franchise contributions and has disbursed nearly $12 million to aid team members facing crisis situations. Company founder Tom Monaghan eventually retired in 1998...
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...McDonald’s Internal Factor Evaluation (IFE) Matrix: Key Internal Factors | Weight | Rating | Weighted Score | Strengths | Providing training and education for employees | 0.10 | 4 | 0.40 | Strong focus on the employees’ benefits and rewards | 0.10 | 4 | 0.40 | Providing a variety of promotions for customers | 0.05 | 3 | 0.15 | Well-built brand image that reaps loyalty from customers | 0.12 | 4 | 0.48 | Extensive market share | 0.04 | 4 | 0.16 | Various franchise locations | 0.04 | 4 | 0.16 | Expanding range of menu choices | 0.05 | 4 | 0.20 | Affordable cost of food | 0.07 | 3 | 0.21 | Weaknesses | Unhealthy food image | 0.08 | 2 | 0.16 | Competitive wages provided to employees | 0.06 | 2 | 0.12 | Lack in Customer Relationship Management (CRM) | 0.12 | 3 | 0.36 | Elevated staff turnover | 0.05 | 2 | 0.10 | Poor quality of ingredients in food causing health problems | 0.06 | 2 | 0.12 | Contributes to the obesity epidemic | 0.06 | 1 | 0.06 | Total | 1.00 | | 3.08 | What strategies do you think would allow McDonalds to capitalize on its strengths? 1. Enhance and Employ Current and New Employee Training Programs. * Currently, McDonalds has many programs in place to train employees such as the Business Leadership Practices Training and the Restaurant Leadership Practices Training. * McDonalds needs to continue to promote and employ these training programs. * When employees take advantage of these programs, they will get a better...
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...TABLE OF CONTENT 1. Case Abstract 2 2. Statement of Vision and Mission (Actual) 3. External Audit: 6 i. The Five-Forces Model of Competition 7 ii. Competitive Profile Matrix (CPM) 10 iii. External Factor Evaluation Matrix (EFE) 11 iv. BCG Matrix 12 4. Internal Audit: 15 a) Financial Ratio Analysis 15 b) Internal Factor Evaluation Matrix (IFE) 18 5. SWOT Analysis 19 6. SPACE Matrix 21 7. Grand Strategy Matrix 23 8. Internal-External Matrix (IE) 24 9. Quantitative Strategic Planning Matrix (QSPM) 25 10. Recommendations and Justifications 27 11. References 28 | 1.0 Case Abstract This report is a comprehensive strategic management case which overview of improving a Muslim restaurant with Islamic compliances like what been done by Radix Fried Chicken (RFC) under HPA Industries Sdn. Bhd. As we all know, RFC is a product of the Muslims. Moreover, RFC is not so very famous and known very familiar to Malaysian citizen. So, this case study hope can open the eyes of all Muslims to support the Muslim products and boycotting Israel products. This report may not be entirely credible and may not be very detailed. This is due to the fact that we have difficulty obtaining information and details on Radix Fried Chicken as the information we gather online is limited...
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...employees, up 2.4%. In accordance with Porter’s Five Forces framework, the forces that shape competition in the restaurant industry have a moderate to high impact on competitiveness. There is a moderate threat of new entrants and a high threat of substitutes. Buyers have a high degree of bargaining power and suppliers have a moderate degree of bargaining power. The restaurant industry is highly competitive and experiences intense rivalry. In terms of macro-environmental factors, emerging markets around the world over are having an impact on how restaurants execute strategy both domestically and abroad. The growth of the middle class in emerging markets, such as China and India, presents a new demographic and an opportunity for quality growth in an industry that is simultaneously experiencing levels of maturity in the US and European markets. Internal analyses of the industry’s top players yields an in depth look into McDonald’s, Yum Brands, Burger King, and Darden Restaurants. McDonald’s is the industry leader in terms of revenues with $89B in 2013 systemwide sales, more than double of nearest competitor...
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...Starbucks Industry Profile and Organization Analysis Spring 2013 MGMT-4900-01 Lindsay Holleman, Alex Lawson, Garrett Pinciotti, Russell Pellichino Starbucks |2 Table of Contents Section I Environmental Profile ........................................................................ 5 Current Environment .............................................................. 5 Future Environment ................................................................ 11 Assessment of Relevancy ...................................................... 13 Section II Industry Profile .................................................................................. 14 Historical Performance ...................................................................... 14 Fast Food Industry.................................................................. 14 Coffee and Snack Shop Industry ............................................ 17 Projected Performance...................................................................... 17 Fast Food Industry.................................................................. 18 Porter’s Five Forces .......................................................................... 19 Rivalry Among Competitors .................................................... 20 Potential Entry of New Competitors ........................................ 25 Potential Development of Substitute Products........................ 31 Bargaining Power of Buyers .....................................
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...Introduction The aims of this assignment is evaluate Starbuck’s internal and external environment and by doing so, provide strategic recommendations based on the analysis. The following table is a summary of the cooperation. Name | Starbucks Corporation | Industries served | Coffeehouses, Restaurants | Geographic areas served | Worldwide | Headquarters | U.S. | Current CEO | Howard Schultz | Revenue | $ 14.9 Billion (2013) [25% Profit Gains] | Total no. of retail stores | 20,184 (2013) 13,279 in the United States | Employees | 200,000 (2013) | Main Competitors:Around the world | McDonald's Corp., Dunkin' Brands Group, Inc., Nestlé S.A., Green Mountain Coffee Roasters, Costa Coffee, Caribou Coffee Company | Starbuck’s Global Footprint Table 1 SOURCE: The Washington Post, (2013), A coffee giant’s global footprint [ONLINE]. Available at:http://apps.washingtonpost.com/g/page/world/a-coffee-giants-global-footprint/514/ [Accessed 12 March 14]. Starbucks’ External Environment Porter’s five forces Threat of new entrants: Medium-High New entrants could include local coffeehouses and companies like 7-eleven (more convenient than Starbucks) that offer new blends of coffee drinks. The entry barrier for the coffee industry is relatively low, even for premium coffee like Starbucks. Any large and well-funded company could be potential entrants. McDonalds, for instance, is able to quite easily add specialty coffee to their existing services and enter...
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...Courtney Parker c.energizerbunny@gmail.com Courtney Parker c.energizerbunny@gmail.com Abstract Case Analysis and Three year Plan for Starbucks Abstract Case Analysis and Three year Plan for Starbucks Module 7 Final project Case Analysis - Starbucks Module 7 Final project Case Analysis - Starbucks Courtney Parker Strategy Final Project Case Analysis – Starbucks For my case study I have chosen the corporation of Starbucks. The intention of this paper is to introduce the mission and vision statement of Starbucks along with a presentation and review of their code of ethics. These statements and the code of ethics will be compared to and evaluated with the second chapter recommendations and concepts within Strategic Management: Concepts and Cases by Fred R. David. Starbucks does not have a vision statement but rather a mission statement in conjunction with a value statement of sorts. Interestingly, Starbucks mission statement is fairly far removed from coffee, their main source of profit and business venture. It states: “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks.com, 2013). While the statement is inspiring, as a mission statement it fails when held to the standards put forth by Fred David. Although the mission statement for Starbucks addresses some of these, it only lightly highlights some and completely misses others. According to Strategic Management Concepts and Cases, a mission statement must...
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...I. Executive Summary Coca Cola is one of the largest leading beverage company that produce products such as water, juice and juice drinks, sports drinks, energy drinks, teas and coffees. Coca Cola products are distributed through restaurants, grocery markets, street vendors, and others, all of which sell to the end users: consumers. Coke is increasing investments in bottling investments, front-end capability, equipment and people. Coke’s long –term bottling strategy is to reduce ownership interest in bottlers and sell the companies interest to investee bottlers. Coca – Cola Company has two major rivals: PepsiCo and Cadbury Schweppes PLC. PepsiCo is a fierce competitor in the beverage industry’s two fastest growing categories: water and sport drinks. Cadbury Schweppes PLC is the world’s largest confectionery company and has a strong regional beverage presence. In order for Coca – Cola to compete with PepsiCo, Coke should also focus in making a sport drinks. Consumers now a day is so conscious of their health that they buy sport drink in order to energize them to exercise more. Coca Cola should produce beverage such as sport drink in order to attract consumers to but their product instead of PepsiCo. This case answers, How can Coca – Cola produce healthy products in order to lessen health problems that consumers are facing today, the use of plastic bottles in order to help the environment and to have a new line of energy drink that is less unhealthy...
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...owner of Burger King. Burger King was the second largest fast food hamburger in the world with the measure of total number of restaurant and system wide sales. The revenue of Burger King is mainly from (1) retail sales that owned by company restaurants (2) royalty payments on sales and franchise fees (3) property income from restaurants leased to franchisees. Management of Burger King planned to boost the growth with international expansion on three different categories of countries. There are countries with growth potential, countries with potential where firm has small presence and attractive new markets. Burger King is categorized as quick service restaurant (QSR) segment of the restaurant industry. Their primary competitor is McDonald’s followed by Wendy’s and...
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...SCENARIO PLANNING 56 SCENARIO NO.1 58 SCENARIO NO.2 59 SCENARIO NO.3 59 SCENARIO NO.4 60 SCENARIO NO.5 60 SCENARIO NO.6 60 SCENARIO NO.7 61 SCENARIO NO.8 61 Competitors Objectives 62 Competitor's Current Strategy 63 Competitor's Resources and Capabilities 64 Competitor’s Assumptions 66 Regional Factors 67 Value chain activities: 68 Key competitive advantages: 72 Solutions: 82 Weights of Key success factors in five airlines: 86 COMPETITIVE ADVANTAGE 92 FIVE GENERIC COMPETITIVE STRATEGIES: 92 LOW COST PROVIDER STRATEGIES: 92 DIFFERENTIATION STRATEGIES: 95 BEST-COST PROVEDER STRATEGIES: 96 FOCUS (MARKET NICHE) STRATEGY: 96 STRATEGIC ALLIANCE AND PARTNERSHIP: 97 MERGER AND ACQUISITION STRATEGIES. 98 VERTICAL INTEGRATION. 98 OUTSOURSING. 98 OFFENSIVE AND DEFENSIVE STRATEGIES. 99 APPROPRIATE FUNCTIONAL AREA STRATEGIES. 100 THE IMPORTANCE OF LINKING STRATEGIES TO COMPANY VALUES AND ETHICAL STANDARDS. 100 FIRST MOVER ADVANTAGE AND DISADVANTAGES. 101 TWOS Matrix 102 Strength-Opportunity 102 Weakness-Opportunity 103 Weakness-Threat 104 Space Matrix 105 Financial Strength 106 Score 106 Average 106...
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...Part 1: General information 1a. Company Profile Major Cineplex Group Plc (MAJOR) is Thailand’s leading Lifestyle Entertainment Company with core business in cinema, bowling, karaoke and ice skating rink, rental and services, advertising media and movie content. MAJOR was listed on the Stock Exchange of Thailand (SET) in May 2002. Product and Service: 1. Cinema Business (Providing Entertainment Services) Major Cineplex, EGV cinemas, Paradise Cineplex, Mega Cineplex, Hatyai Cineplex, Esplanade Cineplex, and Paragon Cineplex 2. Advertising Business CineAd Co.,Ltd (Providing advertising services and media) 3. Movie Content Business M Pictures Co., Ltd. (Providing film programming services), MVD Co., Ltd. (Providing home entertainment Distribution services) 4. Rental and Services Business (Providing rental spaces) 5. Bowling, Karaoke and Ice Skating Business Blu O Rhythm & Bowl (Providing bowling and karaoke services), Major Bowl Hit Providing bowling services), Sub – Zero Ice Skating Club (Providing ice skating services) Major Cineplex Group Public Company Limited page 1 Revenue Structure: As illustrated above, the majority of the revenue or 53 percent of the revenue is generated from its cinema business sector, followed by its Concession, Advertising, Movie Content, Rental and Service and Bowling, Karaoke and Ice Skating business sector, with a percentage of 15, 14, 6, 6 and 6, respectively Customers: Cinema Business The business is targeting on a wide range...
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