McDonald's Strategy - Assignment

FULL STRATEGIC
APPRAISALS OF
MCDONALD'S COMPANY

Table of Contents
FULL STRATEGIC APPRAISALS OF MCDONALD'S COMPANY.........................................1
INTRODUCTION...........................................................................................................................3
PART I ............................................................................................................................................3
External analysis.....................................................................................................................3
Part II...............................................................................................................................................8
MacDonald value chain analysis-...........................................................................................8
VRIO Analysis of MacDonald's...........................................................................................10
SWOT analysis of McDonald's............................................................................................10
Part III ...........................................................................................................................................11
Bowman's Strategy Clock of MacDonald's..........................................................................11
Part IV............................................................................................................................................13
The issues and challenges of MacDonald's and its strategic options for growth explained with
the help of Ansoff Matrix.....................................................................................................13
Part V.............................................................................................................................................17
Evaluations of the strategic options for growth and implementations. ...............................17
CONCLUSION..............................................................................................................................20
REFERENCES..............................................................................................................................21

INTRODUCTION
McDonald's is one of the fast food American company. It was founded by Richard and
Maurice McDonald's in 1940. McDonald's is one of the largest chain by revenue. It is serving 69
million customers daily in 100 countries. McDonald's is known for the number of it fast food
products such as- hamburgers, cheeseburgers, French fries, chicken products, breakfast items,
soft drinks, milkshake and desserts. It is founded in 120 countries.
Mission of McDonald's is to become the favourite place and ways to eat and drink. And
vision is to move with the velocity from the profit maximization and become and even better
serving more customer favourite food every day around the world. This file discusses about the
external analysis and internal analysis of the organisation, and what are the company's business
strategies and issues, challenges and strategic options for growth. Evaluation of strategic option
of growth and implementation.
PART I
External analysis.
McDonald's PESTEL analysis-
Political factor affecting the
business of McDonald's-
Political effects refers to the government policies and
actions on the economy and business of the McDonald's.
Government internation helps to determine the path and
rate of business development. Nowadays government is
controlling the marketing and the fast food production of
the company just because of the health issues are coming
such as- Cholesterol and obesity issues among the children
and young person. Government of county also controlling
the licences for the fast food. MacDonald has good
relationship with government(Žabkar and et.al., 2018). This

type of mutual relationship helps to create benefits of the
company as well as government such as – TAX,
Employment. There're are many external political factors'
ion fast food restaurant chain. And these factors written
below-
1. Governmental guidelines for health- it can be a
opportunity and threat for the MacDonald
company so this factor can affect in both the ways.
2. Evolving public health policies- public health
policies made by the government for the fast food
companies. There are some limitations for every
fast food company for their productions of fast
food. So this factor can also affect in both the
ways.
3. International trade agreements increasing-
MacDonald is expanding its business across the
world and it is improving the international trade.
Economic factor affecting the
business of McDonald
 This factor directly and indirectly affect the
performance of business. Because
somewhere global, national and local
economy affect the business of
MacDonald. There are some economic
factors which are affecting the business in
both the directions (positive and negative)
of MacDonald and these are written below-
 Slowdown of Chinese company- it can be a
threat for the company because there is big
contribution of Chinese companies in
MacDonald revenues.
 Stable but slowdown growth of developed

countries- it is a big opportunity for the
company to expand its business in
developed countries for the stability of
them business chain restaurants.
 Continuous growth of the developing
countries- MacDonald is expanding its
business ij the developing markets such as-
Asia.
Social factors affecting the
business of MacDonald.
 Change in the customer preference and
taste can affect the business of any
company. For the example- MacDonald has
developed Mac-cafe menu to provide an
alternative to Starbucks.
 Socio- culture factors are written below-
 Rising disposable income- this factor is an
opportunity which is based on the rising in
the disposable incomes. So MacDonald has
the opportunity to increase the numbers of
customers to buy the food products of the
company instead of cooking food at home.
 Busy life style- this tendency is also
affecting the business because there are
some people in the society who has very
busy schedule. So busy lifestyle in urban
environment also affect the business of
MacDonald.
 Increase in diversity of culture and health
lifestyle trends both factors are affecting
the business in positive and negative both
the ways. People are being health

conscious. So it can be a threat also.
Technological factor This factor is mostly affecting very positively just because
of the research and development activities for the
production, business automation, and marketing of
business through the different media devices.
Environmental factor This factor helps to rise interest for MacDonald
environmental preprograms. This factor also helpful for
emphasis to create new business strategies. But some
times change environment and climate can be affect
negatively.
Legal factors This factor is affecting because of new laws. Health
regulations ad laws are increasing for the workplace and
in school. And increasing in legal minimum wages. Both
the factors can affect negatively
SWOT analysis of MacDonald-
Strength-
 MacDonald has its strong image,
reputation and its brand name In the
market.
 MacDonald has its large market share.
Company is world famous. And
spending a large amount of money
Weakness-
 MacDonald is also known for the
unhealthy fast food.
 Health issues of customers.
 A number of laws and regulations and
legal actions.