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The Need for Innovation at McDonald

   

Added on  2021-04-21

13 Pages3156 Words415 Views
Running Head: Business StrategyMC DONALDBusiness StrategyManagement Report

Business StrategyPage | 1Executive SummaryThe assignment here on McDonald gives insights on the Need for innovation at McDonald in context of the industry rivalry and PESTLE framework. Both the factors point towards an urgentneed of competition to ensure the sustainability of McDonald. BCG Matrix has been used in the assignment to evaluate the options available for the innovation along with the McKinsey GE framework. Towards the end it has been suggested that McDonald gives higher weightage to its digital innovation strategy to increase the engagement with the consumers, create a digital restaurant for the future and improve the customer experience, the same has been support by the MACS framework.

Business StrategyPage | 2Table of ContentBrief Introduction............................................................................................................................................................3Need for Innovation........................................................................................................................................................4Threat Identified from Analysis of Porter Model...........................................................................................4Threat identified from the PESTLE model........................................................................................................4Identify and evaluate the current growth (Innovation) strategy of McDonald......................................5BCG Matrix.....................................................................................................................................................................6McKinsey GE Framework for McDonald............................................................................................................7Evaluation of one of the Innovative opportunity using the MACS Framework......................................8Conclusion........................................................................................................................................................................10References........................................................................................................................................................................11

Business StrategyPage | 3Brief IntroductionMcDonald is an American Fast food company which was founded in the year 1940 as a restaurant which was operated by Richard and Maurice McDonald in California. It was Ray Kroc,a businessman who purchased the chain from the brothers and started opening the stores across the globe(McDonald & Wilson, 2016) The fast food chain company at present has over 36,900 stores across the globe and employees over 375,000 people. The fast food chain whose product offering include Hamburgers, chicken, French fries, salads, desserts, wraps, coffee, breakfast earned a revenue of over US $ 24 billion in the year 2016. The sustainable strategy of McDonald is to customize its menu according to the country in which it is operating and providing fast delivery to millions of its customers (McDonald, 2016).The underlying purpose of the assignment here is to understand the strategic innovation and threats posed to McDonald in its highly dynamic business ecosystem, and to understand how the business organization is responding to the threat and the opportunities. In order to assess the threat to McDonald an analysis of PESTLE model will be done and its current growth strategy will be analysed using the BCG matrix and McKinsey GE frameworks. Towards the end using the MACS model one innovation opportunity the company is pursuing will be analysed.

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