...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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...The macro- environment is an extremely influential factor when considering change dynamics within any company. Because of this, it is important that each company learns to adapt to any external changes in the macro- environment that become apparent. To do this companies must be aware of factors such as political, economic, social and cultural and technological that may influence their business and their internal processes. For McDonalds, these four factors are significantly influential. The correct way of dealing with the effects of these factors will ensure McDonald’s success both in the short term and long term. There are many political factors that have the potential to influence McDonald’s in the near future. One of the main things that can be influential is unemployment levels. McDonald’s currently help Australia’s high unemployment rate by providing people with jobs who may not have been given the opportunity to work otherwise. These people may or may not have disabilities, but do however have little experience and qualifications if any. This affects the unemployment rate in Australia as McDonald’s aim to give people opportunities to further their careers (Gould, 2010). For McDonald’s, Australia having a high unemployment rate would mean that more people would be applying and they would have a larger pool of people to choose from when hiring. This would in turn cause the quality of employees to rise within the company which can only improve McDonald’s as a whole (Gould...
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...McDonalds, Fiscal Year 2012 Keith R. Jones Strayer University Accounting I Professor Togbenou November 25, 2013 1. Identify and explain the main sections of the annual report. The main sections of the McDonalds Corporations annual report consist of a 6 year Summary which provides the user with a brief overview of how the corporation has done over the previous 6 years which also includes the current year’s annual report. The report shows items that are on other parts of the annual report such as total revenues, net income, total assets and total shareholders’ equity. The 6 year Summary also shows items such results from company-operated and franchised restaurants giving a total under “system wide restaurants”. The 6 year Summary also shows franchised sales but notes that “franchised sales are not recorded as revenues by the company”. The information is provided to give an understanding of the corporations’ performance financially. The Management’s Discussion and Analysis of Financial Condition and Results of Operations provides the user with an overview as to a description of the business, strategic direction and financial performance for the U.S. and Europe. It also gives highlights from the year, and an outlook for the next or current year (2013) for the U.S. and Europe. The Consolidated Statement of Income provides total revenues through company operated restaurant sales and expenses which includes franchised restaurants-occupancy expenses and net...
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...assignment talks about the strategic management in context to McDonalds. Strategic management is one of the critical issues to be studied by a company in order to understand the causes and solution of the problems and hurdles in the way of the success of the business and its market growth. As we all know that it's a world of globalization and competition and therefore every company has to make certain plans and strategies in order to tackle the problems they face due to the competition in the local and global markets. Every company has to make effective strategies and plans in order to tackle the internal and the external problems faced by the company. Internal problems can be linked with any internal department or process such as HR or Pay role or machinery etc and the external challenges can be competition, changing technologies etc. Globalization on one hand gives benefits to the company to explore new markets and increase its customers in order to make more profits but it also poses different problems and challenges which the company has to tackle to continue its success in the new markets. Company has to design proper strategic plan to point out and tackle the problems curbing the success of the business. Either it's a local or a global market company always needs an efficient strategy to tackle the issues curbing its success in the market. This assignment will discuss the various strategic issues of concern for the McDonalds and plans it has designed to tackle these problems. We...
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...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 / Internal University Of Phoenix We will explain how external and internal factors like globalization, technology, innovation, diversity, and ethics at national and international level will impact the way for McDonald managers apply the four functions of management as we. In addition we will talk about how delegation helps McDonald managers to minimize and manage these factors. Globalization McDonald is a company that is well establish all around the world. These company is a name that when it is mentioned people feel that it can be trusted and its products are of good quality as well. Currently McDonald has activities worldwide; from countries like New Zeal and, Finland, Canada and all the way to Chile basically they have presence in the whole world. According to Sun done McDonald is planning to invest in the Korean business if the market is opened under the free agreement with the United States which would be great. Question, how the plan their globalization. There have been reached many goals thru good planning. Being a well organized company has also pay for McDonald. The company has established six strong businesses in order to grow with the market trends of today and tomorrow. There are several businesses like Wal mart, Sam's. Many leadership is so important to McDonald’s that it has its own space on their main web page. In their home page they show several of their leaders since the year 1900 The top executive leaders in McDonald are from around the world...
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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 understanding of the...
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...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 expanded its...
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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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...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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...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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...Internal and External Factors - McDonalds In today’s business world both internal and external pressures drive the corporate mission. Managers from all levels play an intricate part to the overall success of the business. The functions of management are planning, organizing, leading, and controlling. With globalization, technology and innovation companies must continue to stretch their imaginations to reach greater heights. Even though companies need to make continuing changes, both internal and external customers assist in the company’s overall success. Tami Scurti - Globalization In 1940 in the city of San Bernardino California the first McDonalds hamburger was served. Today there are more than 33,000 McDonalds in 118 counties (about McDonalds, 2011). To take this operation from a tiny bar-b-que drive up, complete with car hop service to the conglomerate it is today, is the essence of globalization. McDonalds restaurant is aggressively globalizing. One of the reasons they are so successful is their ability to create new foods for the market in which they are serving. In India one may order a McSpicy Paneer. A Paneer burger is vegetarian and made of curd cheese, and a very popular item. In Japan one may order a seaweed burger. Occasionally in France one can purchase a rabbit burger and wash it down with wine. Another reason for the success of McDonalds globalization is that they do not try to bring the American McDonalds to each country they bring McDonalds...
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...*Executive summary /Abstract */introduction Critically evaluates the marketing planning process Discusses impediments to effective implementation of marketing plan Introduction The leading exponents of the marketing planning have been warned of the communications factors, operational, cultural and managerial in which frequently impede the effective implementation of the marketing planning programmers in the past two decades. (Cravens, 1998; Doyle, 1998; Greenley, 1982; Leeflang and de Mortanges, 1996; McDonald, 1992a, b; 1995; Piercy and Morgan, 1994; Jain, 1993; Simkin, 1996a, b; Verhage and Waarts, 1988). There have some specific guidance are offered in the recent years to assist marketing managers overcoming those internal organisational and in pre-empting forces (cf. Cravens, 1998; Dibb et al., 1996; Lings, 1999; Piercy, 1997; 1998; Simkin, 2000). Yet, the recent research has shows barriers to the implementation of programmes and marketing strategies. (Dibb and Simkin, 2001; Simkin, 2000). Another key barrier is indicating impeding the deployment of effective marketing practices used to be the lack in most marketing function or either in organisations. (cf. McDonald, 1992a, b; Piercy and Morgan, 1994). The research are shows this is a no longer to the case with the bulkiness businesses professing to have a marketing department undertaking not only promotion and customer research,but are relate to the Kotleresque textbook approach to marketing management...
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...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 of the company in relation to its profit margin. The prices of the low calorie products will be based on target costing whereby other marketing mix factors will be tailored to fit the price set for the market. External factors such as environmental...
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