Business Strategy for McDonald's: Impact, Analysis, and Evaluation

BUSINESS-STRATEGY

Table of Contents
BUSINESS-STRATEGY...............................................................................................................1
INTRODUCTION...........................................................................................................................1
TASK 1:...........................................................................................................................................1
Impact and influence of macro environment on organisation and its business strategies......1
TASK 2............................................................................................................................................5
Assessment of internal environment and capabilities............................................................5
M1 Critically analyse the macro environment to determine and inform strategic management
decisions...............................................................................................................................10
TASK 3..........................................................................................................................................10
Evaluation of a given market by applying Porter's Five Force Model.................................10
M2 Critically evaluate the internal environment to assess strengths and weaknesses of an
organisation‟s internal capabilities, structure and skill set..................................................11
M3 Devise appropriate strategies to improve competitive edge and market position based on
the outcomes.........................................................................................................................11
TASK 4..........................................................................................................................................12
Applying of theories, concepts, models to understand and interpret strategic directions
available to a company.........................................................................................................12
Valid strategic directions, objectives and tactical actions....................................................13
M4 Produce a strategic management plan that has tangible and tactical strategic priorities and
objectives..............................................................................................................................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................15
Books and Journal..........................................................................................................................15

INTRODUCTION
Business Strategy for an organization is one of the key factors that direct the organization
towards the path of Asset Building for survival in a competitive market to achieve the
Organization's long term goals of an effective growth that lays the foundation of the
organization. The emphasis on Business Strategy here is to put stress on one of the Huge Giant's
Business Strategy that went perfectly well for it and took it so far in the International
Competitive markets (Aubry, and et. al., 2012). McDonald's is one of the well-known fast food
chain. McDonald's strategy of derailing franchisees took the organization to greater heights and
its uniformity in the courtiers is always appreciated because the discipline towards a formulation
of Business Strategy is what was acquired. Founded in 1940 as a restaurant with no dream of
reaching at heights by Maurice and Richard McDonald in California, USA; there was no future
planning but the plan followed a formulated Business Strategy for the short term goals of this
Organization. The content will discuss in an elaborative manner for your perusal the
comprehensive analysis of the Stakeholders and the Business followed by the different
prototypes of Porter's five forces, VRIO Framework, SWOT and PESTLE analysis.
TASK 1:
Impact and influence of macro environment on organisation and its business strategies
Demographic Environment: To study the population with a detailed statistics basis on age, birth,
deaths, disease, etc. is very crucial as it sets the stage for an organization and clears the way for a
cakewalk.
Economic Environment: The state of the economy of a particular country including its economic
policies that withstands in the markets are important as it comprises of the structural behaviour
of economy and is vital to study for an organization.
Natural Environment: The non-economic development of a country is considered as the advance-
ment in technology leads to growth for an organization but that comes up with deteriorating the
natural resources which result in air, water and noise pollutions in the physical environment.
Technological Environment: The technological advancement in the rapidly changing culture and
the demands of customer increases. The culture of technology investment just to withstand in the
markets and to create a brand value is always valuable for an organization.
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Political Environment: The political environment is a commendable factor as policies of a coun-
try set by political persons affect the bearing of a Business in the country. The political environ-
ment of a country is considered as the growth of an organization is a factor which is contributed
by the political policies of the country.
Cultural Environment: The marketing of products becomes crucial if the values of the culture are
not determined. Every Business follows a certain code of conduct and that too is suppressed if
cultural values and environment is not considered.
SWOT Analysis
The Firmness of McDonald's in the SWOT Analysis is deliberately listed as follows:
The Ubiquitous nature of brand pertains to be existing in more than 100 countries. It has a
monster range of products that comes with an unbeatable quality such as burgers, wraps, shakes,
smoothies and various snacks that are served at various places. The firmness to the taste of the
product is brilliant as wherever you eat it remains the same (Burgess, and Radnor, 2013). The
diversity trend is followed by the company in different regions, vegans and non-vegans. For
example, the region where mostly vegans trend is there, the organization has launched products
according to the needs and demands for a better experience. The organization has gone so far
that it doesn't count on a specific region for its earnings. The largest fast-food supply chain is the
tag that it bears now and has become the most acknowledged brand.
McDonald's Weakness
The Company holds a weakness because of its strategic factors and the arising competition in the
market. Having a lot of achievements, the company still pertains to a weakness with a huge
brand value. The SWOT Analysis of the same is expressed as follows:
 Adverse media has played a crucial role in defining anyone's image in front of the general
population. Of late, the amount of adverse media published against McDonald's has
affected it badly resulting in a loss in sales numbers (Cacciolatti, and Lee, 2016). The
media pertained to be defining the various nutrition facts of the products sold by
McDonald's which made customers reluctant towards the brand.
 The cultural changes for the brand that brings economic changes also as the Burger In-
dustry in the United States are collapsing.
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