Please I need it today The four questions are 1-What are the key forces in gener
ID: 434396 • Letter: P
Question
Please I need it todayThe four questions are
1-What are the key forces in general and industry environments that affect McDonald’s choice of strategy? (You are required to cover the External analysis- mainly General Environment analysis and Porter’s five forces)
1-What are the key forces in general and industry environments that affect McDonald’s choice of strategy? (You are required to cover the External analysis- mainly General Environment analysis and Porter’s five forces)
2-What key internal resources and assets does McDonald have that might help it support its competitive advantage and sustain it over long period of time? (You are required to cover the Internal analysis- mainly Value Chain Analysis and Resource based view)
3- How did McDonald pursue its business level strategy? (Reference is chapter 5, generic strategies)
4-What other strategies did McDonald’s formulate to achieve a competitive advantage? What steps did Skinner take to fix the problems that McDonalds faced? (You are required to cover the corporate level strategies focusing on diversification)
Case 5 McDonald's Even in maht of a global economic slowskwn, areas whneret.. ula" er of 2008 and announced plans to add 650 more outlets said Skinner in a cent v by the end of 2009 (sce Exhibets 1 and 2) The Fast food chain's performance was particularly impressive as rivals ing in order so make sare d such as KFC and wondy had mol managed so cope as well o hiring the firm's prof-map wiih the spending downturn Same-store sales, a key indi to wrestle with cost incrases, Mcona cator of the irm'S health, actualy rose by 7.2 percent dur the pricing on its Dollar Men,whih ing the last quarter from the Figures reported a year carlier 15 percent of total sales ln December Responding to McDonald's performance, CEO Jim Skin-did decide to replace its 51 douhe ner remarked. "We continoe to be recession-resistant Al the sane time, Skinmor has b McDouble, a similer burger tati Analysts attribute the continsed success of McDon- because it has less cheese. Steven K ald's to its "Plan to Win" strategy, which was first outlined Goldman Sachs, mphasized the by James R. Cantalupo o ffordable Dollar Menw "When son caused the chain to lose focus. The core of the plan valuc,these guys have a very powarfal compe was to increase sales at existing locations by improv ing over six years ago after overexpan- frsa Nevertheless, there arr ng cmu? the menu, refurbishing the outlets, and extending hours McDonald's will continue to be squoczed The firm also added snacks and drinks, two of the few trends that are threatening to leave it s by chaim is facing a rapidly fragmenting marke changes in the tastes of consumers have made the aiance f P l Paey foods likc sushi and burritos evaryday optionsMa its fast-food customers continue to switch to Sood Exhibite Stdiny 2007 22,786,600 9.819.000 12.967,600 otal revenu 23 522 400 of revenu 4 502 eprofit Operaing axpenses Seling, general, and administrative oneing Operating lncome or loss ncome from continuing operations ,429,400 ,774,800 3,763,400 4445 00 Total other income/expenses net Earnings before interest and taxes interest expense Income before tax income tax expense Net income from continuing ops 237,700 ?40 6,158,000 ,844,800 313,200 410,100 3,572,100 ,237,100 293 432 Nonrecurring events Discontinued operations 60,100 71 200 Net income 313,200 2.395,100 Source McDonald's
Explanation / Answer
Answer 1:
1. Political Factors: There are certain groups in Europe and United States, that protest to the state pertaining to the health implications of consuming fast food. They claim the harmful elements present in them like Cholesterol adverely effect body leading to obesity.
2. Economic Factors: As McDonalds have global presence, therefore are affected by the changes in inflation and the exchange rates. The economic factors also determine the supply and demand relationship of the raw materiala within the organization.
3. Socio-Cultural Factors: International strategys of McDonalds seem to act on several fields to guarantee lucrative returns for the organization. The organization improves on establishing a positive mindset from their core customers.
4. Technological Factors: The mail tool for company's marketing is by television advertisments. The intergration of technology in the operations of McDonalds tend to add value to their products.
5. Environmental Factors: The social responsibility of McDonalds on a region is influenced by the operations of the company in that specific regions. These entails accusation of environmental damage. Reason why company is charged with these claims is the employment of the non-biodegradable substances for glasses and the styrofoam coffers, which is offered for the meal.
6. Legal Factors: legal aspects like tax obligations, employment standards, and quality requirements are only a few among the other equally important legal factors on which the company has to take into consideration.
Answer 2:
McDonalds constantly deals with very active and rigorous competition. Statistics and resuls show that there is always the threat of new competitor. The key results for sucess of McDonals are-
1. Quality of service: McDonalds are very committed towards achieving customer satisfaction. It consistantly look to improve its product range.
2. Quality of product: Another important are within customer service and customer satisfaction is quality of product. It is a very well known fact that sucess of food industry depends on the quality of products provided. McDonalds lead in the market share for such along period of time demonstrates its quality.
3. Internal management: Internal management is a key area in the oraganization and is mainly controlled by its IT systems. Their development within these environment are in the following sectors - Reports, Base, Forecast, and Setup.
Answer 3: McDonalds has adopted a strategy based on the three sections. This strategy has emphasizing on customer importance and customer satisfaction. As the company has increades using the information technology, it has developed new ideas to improve its operational activities of the business. With the introduction of stock control data base system, it avoids unnecessary ordering, keep the stock upto date in store. Stockrooms are directly attached to point of sale system and the manager knows what product is moving fastand how much more products need to be ordered.
Answer 4: Diversification is a strategy for company growth through starting up businesses outside the companys current products. By starting McCafe , McDonalds is offering new products that were not available in traditional McDonalds store. McCafe spacialize in serving cafes to customers who usually don't come to McDonalds to eat fastfoods. McCafe has its own section of store and clearly distinguish itself from traditional McDonalds store.