Business Strategy and Corporate Strategy of McDonald's in Australia

This report discusses the business strategy and corporate strategy of McDonald's in Australia, including their background, pestle analysis, porter analysis, and innovative services. It also provides recommendations for improvement.

Running head: BUSINESS STRATEGY AND CORPORATE STRATEGY OF MCDONALD’S IN
AUSTRALIA
Business strategy and corporate strategy of McDonald’s in Australia
Name of the Student
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1BUSINESS STRATEGY AND CORPORATE STRATEGY OF MCDONALD’S IN AUSTRALIA
Table of Contents
1. Introduction of McDonald in Australia.......................................................................................3
2. Background of McDonald...........................................................................................................3
3. Pestle Analysis of McDonald......................................................................................................3
4. Porter Analysis of McDonald......................................................................................................4
5. Business Strategy in Australia.....................................................................................................5
6. Corporate Strategy in Australia...................................................................................................5
7. Innovation in Services.................................................................................................................5
8. Conclusion...................................................................................................................................6
9. Recommendation.........................................................................................................................6
References........................................................................................................................................7

2BUSINESS STRATEGY AND CORPORATE STRATEGY OF MCDONALD’S IN AUSTRALIA
Executive Summary
The discussion in this report focuses over the brief discussion of McDonald that have made their
big presence within the business market of Australia. The company highly focuses on bringing in
innovative services for the betterment of the customers and improvising the services of the
sector. This discussion focuses over the major kind of impacts that have been made by different
associated factors. In the concluding part of the report, the recommendations put forward by the
company are also widely discussed.

3BUSINESS STRATEGY AND CORPORATE STRATEGY OF MCDONALD’S IN AUSTRALIA
1. Introduction of McDonald in Australia
McDonald Australia Limited is defined as an Australian public company that holds
primarily responsibility for putting an influence of the customers. It is also considered as a
franchise business that accompanies more than 70% of the restaurants that would be owned by
Australia. They would be operated by individual businesses. The remaining restaurants are
mainly operated and run by the company (Edgar, 2014). The primary restaurant of McDonald
was firstly opened in the suburb region of Sydney based in Yagoona. This store was opened in
the region after 16 years of the opening of the company in USA.
2. Background of McDonald
The primary launch of the first Australian store was opened on 30 December 1971. It was
considered as a big event that was accompanied with double-decker bus that was responsible for
conveying the customers to the restaurant (Mialon et al., 2016). From the profit generation of the
company, it has been seen that more than 46 million people would be visiting the store of
McDonald on a single day. There are more than 31,000 restaurants that are located in 119
countries and which are spread over six continents.
3. Pestle Analysis of McDonald
Based on the understanding of the business conditions of McDonald, it could be
considered that different kind of factors would be considered within the business. The discussion
over political factors affecting McDonald is that they face major kind of opportunities based on
the increasing form of agreements based on international trade. This would also help them in
enhancing the global chains. From the consideration of the economic factors, it can be
considered that the economic growth of the company is slow but they have a stable growth

4BUSINESS STRATEGY AND CORPORATE STRATEGY OF MCDONALD’S IN AUSTRALIA
within the developed countries (Cadle, Paul & Turner, 2014). The social factors that affect the
company is that most of the people lead a busy lifestyle and hence would like to visit the store of
McDonald. This would provide a huge opportunity to serve a refreshing treat to their customers.
Based on the consideration of proliferation of technological aspects, it can be considered that
technology would make them highly efficient to bring success within the industry. The company
could increase their sales operations by allowing their customers to book meals with their mobile
devices (Aithal, 2016). The environmental factors that need to be considered is that they should
consider the use of biologically degradable packets and serve to the customers. This would
further help them in increasing the attention over environmental factors. The company would
also have to consider the different legal factors based in different countries.
4. Porter Analysis of McDonald
The Porter Analysis of McDonald could be discussed as follows: The Company faces a
tough kind of competition as the fast food market would be saturated. There is a growing kind of
competition based on the competitive rivalry within the company. The company should address
the power that would be provided to the customers. The primary elements of the analysis would
mainly deal with influencing the demands for the customers. The suppliers within the company
also have a major kind of influence based on the increasing the production capacity for the
company (Eva et al., 2014). This factor would be entirely based on the proper availability of raw
materials. Another significant concern for the McDonald Corporation is the broad availability of
substitutes within the market. Different external factors act with the threats gained from
substitutes. This includes: the lower switching costs, high availability of substitutes and higher
performance. The lower switching costs would be allowing the customers to shift from
McDonald to any other company.

5BUSINESS STRATEGY AND CORPORATE STRATEGY OF MCDONALD’S IN AUSTRALIA
5. Business Strategy in Australia
The strategy adopted by McDonald to have a major form of influence within the market
is entirely based upon a geographic structure. The customers would be asked to choose the
location of their country. McDonald also focuses on different customer groups over which they
could produce their major kind of impacts. With the broad form of economic development, it has
been seen that the living standards of people have increased in the recent years as they are more
concerned with the issues based on their health (Omar, Leach & March, 2014). Hence, they
prepare their dishes in such a manner that would be suitable for the customer to consume while
also putting a good impact on their health. They also consider the environment of their
competitors and thus design their new strategies in a continuous manner.
6. Corporate Strategy in Australia
The primary corporate strategy followed by McDonald is that they mainly enhance their
services based on focusing over the welfare of the customers. The delivery services based on
food served to the customers have been highly increased and they have been designed in such a
manner that would be able to put a major kind of impact over the business (Bereznoi, 2015). The
delivery service and the various corporate strategies have been designed accordingly to the
suitability of the customers.
7. Innovation in Services
The rising competition in the market has forced McDonald to transform their business
services and thus majorly impact the progress of the business. The menu served at the restaurant
have been improvised, which would provide them a refreshing treat to the customers (Thompson,
Strickland & Gamble, 2015). The company could also make use of IT services based on
providing the customers with a fast opportunity of ordering of food from the restaurants.

6BUSINESS STRATEGY AND CORPORATE STRATEGY OF MCDONALD’S IN AUSTRALIA
8. Conclusion
Based on the discussion over the above factors, it can be considered that the company
follows different kind of innovative strategies based on impacting the customers. The company
would include different kind of innovative factors based on bringing transformation of the
business. Such kind of innovative strategies would be highly helpful in bringing better forms of
impacts for the company.
9. Recommendation
From the conclusions drawn from the above discussion, it could be recommended that
McDonald could make improvement by bringing innovative strategies in terms of bringing
technological services within their industry. The use of innovative strategies such as technology
and bringing changes in the menu of the restaurant would help them in impacting the industry.

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References
Aithal, P. S. (2016). Study on ABCD analysis technique for business models, business strategies,
operating concepts & business systems. International Journal in Management and Social
Science, 4(1).
Bereznoi, A. (2015). Business model innovation in corporate competitive strategy. Problems of
Economic Transition, 57(8), 14-33.
Cadle, J., Paul, D., & Turner, P. (2014). Business analysis techniques. Chartered Institute for IT.
Edgar, B. (2014). An intergenerational model of spatial assimilation in Sydney and Melbourne,
Australia. Journal of Ethnic and Migration Studies, 40(3), 363-383.
Eva, M., Hindle, K., Paul, D., Rollaston, C., & Tudor, D. (2014). Business analysis. D. Paul, D.
Yeates, & J. Cadle (Eds.). BCS, The Chartered Institute for IT.
Mialon, M., Swinburn, B., Allender, S., & Sacks, G. (2016). Systematic examination of publicly-
available information reveals the diverse and extensive corporate political activity of the
food industry in Australia. BMC Public Health, 16(1), 283.
Omar, A. T., Leach, D., & March, J. (2014). Collaboration between nonprofit and business
sectors: A framework to guide strategy development for nonprofit
organizations. VOLUNTAS: International Journal of Voluntary and Nonprofit
Organizations, 25(3), 657-678.
Thompson, A., Strickland, A. J., & Gamble, J. (2015). Crafting and executing strategy:
Concepts and readings. McGraw-Hill Education.