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Managing Business Strategy

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Added on  2022/12/29

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This document discusses the importance of managing business strategy for structural innovation and growth. It focuses on the analysis of McDonald's operations, including PESTLE and 5 force analysis. The document also provides recommendations for the company's future strategies. Study material for managing business strategy is available at Desklib.

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Managing Business Strategy

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Table of Content
INTRODUCTION................................................................................................................................3
About Mc Donald’s..........................................................................................................................3
Company current mission................................................................................................................4
PESTLE analysis and 5 force analysis............................................................................................5
SWOT analysis................................................................................................................................8
Current strategies...........................................................................................................................11
Recommendations..........................................................................................................................12
CONCLUSION..................................................................................................................................12
REFERENCES...................................................................................................................................14
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INTRODUCTION
Managing business strategy can be understood to be highly essential for structural
innovation, profound working growth and new scale functional aspects to evolve towards
professional commercial aspects on which keen targets can be reached on. MC Donalds company is
an American Fast food company operated within various parts of world and having larger range of
quality rich food options, beverages which has been commercially raising goodwill and revenue
standards. The report will be explaining about company operations, products services and vivid
range of global expansion where focus shall be pertained on digital marketing, enhanced business
reach and commercial functional horizons. Research done in report will be analysing swot and
pestle model emphasising on internal and external analysis, usage of porter model analysis to
evolve on new scale aspects for keeping up larger work growth targets at frame. Report will be also
discussing further present working strategies within business aspects where there is profound
developed connectivity towards larger operational efficacy avenues. The research will be also
analysing varied aspects of recommendations which MC Donald can identify to evolve towards
higher strategic work aspects and also raise up commercial work target aspects. The research will be
also productively bringing forward new skilled efficacy paradigms for evolved new competitive
industry horizons and new scale aspects for generating stable functional scale connective domains
and work growth targets. The report will also in detail analyse new determinants evolving within
keen perspectives evolving within food service industry aspects on which commercial growth will
be analysed in detail. MC Donald’s mission and long term vision for up scaled working parameters
have long term goal positioning higher specific working performance horizons for enhanced vision
domains, also to raise on keen domains of functional expertise (Dzwigol, Dzwigol-Barosz and
Kwilinski, 2020).
About Mc Donald’s
MC Donald’s is one of the biggest American food company founded in 1940, bringing on
varied scale best fast food services with its brand value of 143.8 billion U.S. Dollars pacing seventh
on list, the company reportedly has been spending over 440 million U.S dollars on advertising
worldwide in 2019 where it is fastest pacing company in global food service industry where
operational strategy decided by company has been successfully achieving higher performance
scenarios. Punctual delivery of products to customers and continuous rise in overall performance
aspects have been positively impacting revenue targets, goodwill standards profoundly for higher
scale advanced functional targets. The brand aims to evolve on new process and capacity design
management procedures, with best advanced digital marketing strategies, layout designs and job
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designs where human resources within supply chain management have high focus. The inventory
management and high range of innovative branding, larger vivid range of dynamic marketing has
been found to be widely essential for wider business evolving efficacy on long term. MC Donald’s
has best workforce for larger scale consumer’s satisfaction, strategic management and profound
development with prolific work essential scenarios and also to enhance business reach. MC
Donald’s specifically keenly focuses towards new work diversity with its premium quality structure
domains, enriching new profound diversity aspects and also has been up scale focusing towards
vivid marketing innovatively (Sinha, 2020).
The MC Donald’s business strategies and new range of vision oriented production,
technology scale parameters have been vividly impacting in bringing on higher scale revenue
benchmarks vividly. MC Donald’s has larger number of stores globally and also there is digital
connectivity which has been harnessing varied scale domains keenly, raising benchmarks widely
based on structural innovation and also for consumer’s market domains vividly. MC Donald’s has
been vividly focusing ahead on operational innovation, keen functional aspects of varied larger
scale marketing for enhanced vision oriented long term work targets which has been prominently
enabling it to be one of the fastest competitive brand within world. MC Donald’s serves
hamburgers, cheeseburgers, French fries, chicken burgers, breakfast items and soft drinks where all
products are being served with premium quality. MC Donald’s is also globally recognised for best
functional standards services, higher scale attributes to evolve towards quest operational metrics
and also for evolving new domains of work efficacy scenarios for strategic upscale efficacy
(Dubrovski, 2020).
Company current mission
MC DONALDS current mission is to develop strategic best goodwill and brand name with
its high quality outstanding customer preferences oriented wide scale marketing, and also to
enhance competitive positioning within longer term. MC Donald’s mission is to serve customers
with best evocative advanced digital services and expanding stores within untapped market areas
commercially. MC Donald’s also has structured advanced functional digital services which has
enhanced its business reach and also for overall new edged marketing functional aspects. MC
Donald’s also serves customers with best trained staff, on which advanced strategies are to be
focused on further for upscale new competitive marketing and also for enhanced long term vision
perspectives. The brand aims to be optimistic towards future brand performance domains
strategically by using new advanced brand management functional scenarios, also for generating
new vision oriented marketing attributes widely. MC Donald’s aims to reach on global parameters
with its strategic functional aspects for new quest goals and operative keen domains, developing

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benchmarks commercially and also to evolve on new quest goals strategically. MC Donald’s has
been also found to be one of the most globally demanded brand when it comes to offer best quality
food services with advanced new structured domains and also competencies provoking new scale
functional parameters. MC Donald’s constantly innovative within products and services, were all
new advanced consumers based produces are served based on changing tastes, preferences and new
scale profound innovation.
MC Donald’s have been also heading towards new imperative profound functional metrics
and vivid new efficacy revenue, goodwill targets for keeping up new competent innovation at
shape. MC Donald’s embraces strict sanitary principles and safety policies to keep clean
surroundings within kitchen, where customers are being served with hygienic services and excellent
quick services. Company beliefs in defining accomplished brand services and new strategic brand
services along with new efficacy aspects to upraise new work horizons (Sołoducho-Pelc and Sulich,
2020).
PESTLE analysis and 5 force analysis
PESTLE analysis of any company helps the firm to evaluate its environmental
circumstances and identify macro factors that are need to improve by taking strategic actions.
Macro factors that are evaluated are political, social, economical, technological, legal and
environmental factors (Mcdonald's Pestle Analysis On Effective Business Expansion Strategies,
2021). McDonald employ set of strategies to maximize the benefits of opportunities available in
industry. The analysis can help company to make strategic decision to overcome competitive
situation prevailing in industry of food chain.
Political Factors
Political elements are government rules and regulations, policies related to food chain or
health condition. These are some factors that can affect smooth functioning of the company.
Interference of government can divert the growth path of McDonald. Government of some countries
pressurizes food industry to maintain hygiene and avoid health issues like obesity, high cholesterol
etc. political factor also affects the infrastructure, instrumentality and marketing scheme in new
market (Perera,2017). As rates of food are decided within the limits specified by regulatory
authority of that country. The major political factors that can influence process of organization are
changing health policies, standards of food quality and increment in international trade barriers. All
these can be opportunity or threat to company which can enable food chain to change its strategies.
Economical Factors
These factors directly or indirectly affect the performance of McDonald. PESTLE analysis
of economic factor helps company to make marketing plans. There are several economic macro
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elements such as stable and growing economy, changing relationship between two countries, poor
economic rates, unemployment and low purchasing power of people of country can influence
execution of company. Such situation stops people to spend their money on outside food that results
in lower down of revenue of company. It is also important to determine customer preference to
check that buyers are interested in purchasing international product are not. Importing and exporting
also depends on economic situation of country. But the current trend of youth to eat junk food
encourages its sales and revenue irrespective of these economic situation.
Social factors
The analysis of social environment can support or limit McDonald's action. There are many
social part that can impact impermanent of company. Changing health trends like most of the people
are becoming health conscious, busy urban lifestyle and increase in disposable income results into
increase in sales of prepared junk food and diversification of cultural trends can also affect
McDonald's efficiency of working (Restage and Trivedi, 2016). It is important for company to
understand customer’s perception and ideas about brand, religion, cultural activity etc. to make its
services and goods accordingly. For example, McDonald has evaluated Indian economy before
entering the market, it has modified its menu according to taste and social values of their customers.
Technological Factors
Technological services are becoming necessity of currents scenario. It is making people t
able to work effectively with fewer efforts. Time to time research and development in food chain
industry, taking orders online and offline, using automatic machines helps company to increase
productivity. There are many technological factors that become beneficial or drawback for company
depending on up the surrounding. Taking orders from online apps increasing demand of company
and making the company to develop with changing time. Food chain industry does not get much
influenced from technological changes but its makes firms to save time and resources.
Legal Factors
changing legal procedures, policies and law are the biggest concern for companies. Law and
legislation play important role in economy within which business operates. The internal structure of
organization and its policies are made based on legal requirements. McDonald's need to adhere
these requirements to make sure that its process of working does not get affected. In Food industry
changing health policies and standards are also big deal for organization. The firm must comply
with benchmark decided by these bodies. Animal welfare organization also keep eye on such firms
to safeguard interest of animals. It is important for McDonald to give preference to those nations
that have stable legal laws and rules.
Environmental Factors
Public have become more conscious about the environment. McDonald conduct its all
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activities in e-friendly way that is strength for organization. Its logistic and operations are
ecological that assist it to increase its brand image. It also makes sure that its wastage of operation
should be recycled or disposed in effective manner. With respect to these business need to accept
the corporate social responsibility which will help the company to denote its concern for
environment as well as for communities (Khurta, Hassan and Khurram, 2020).
5 force analysis
This model help company to evaluate that strategies are appropriate for changing external
environment or not (Rengarajan, Moser and Narayanamurthy, 2021). This model assist firm to
check that competition in industry, bargaining power of buyers and suppliers, threat of substitution
and threat of new entrance. MC Donalds due to its vivid structure of fast food chain stores serving
millions around world has t competitively focus on towards new scale innovative business strategies
and wider keen edge marketing for reaching on competitive scale growth horizons. Porter 5 force
analysis factors can be understood as follows Bargaining Power of McDonald customers: The analysis of bargaining power of customer
help company to evaluate its impact on firm's performance. There are many external factors
that increases strong customer bargaining power. High availability of substitute, large
numbers of providers and low switching cost are some examples of elements that influences
buyers to bargain. Customers are not loyal when they tend to change restaurant as there is
very low cost for switching (Broil, 2018). The availability of substitute because of large
competition pertaining in industry makes customers more strong and large number of
provider is relevant external factor that encourages buyers' bargaining power. Threat of new Entrants: McDonald's financial performance and share of market get
influenced by new entry. New entry reduces sales of McDonald as customers are transferred
from McDonald to other restaurants (ÖNEREN, ARAR and YURDAKUL, 2017). There are
many elements that encourages restaurants to enter the food industry. Low switching cost
motivates customers to change their taste and preference of foods from different restaurant.
High cost of variable capital and development of brand make organisation to enter
international market to earn more profits. Small and medium scale business lack the
resources so this display that threat of fresh entrants is considerable issue but not so crucial
plan of action. Competitive rivalry against industry: MC Donald’s faces medium threat within new range
of competitive rivalry rising within industry on which there is higher efficacy domains
enriching larger strong impact among new working horizons. Competitive rivalry is also
raising due to advanced business levels of functional attributes where there are larger scale
innovation also demanding within business practices. This also brings forward structural

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aspects of raising competitive rivalry perspectives on which higher vision oriented scale
domains shall be reached on commercially. MC Donald’s competitive rivalry has been also
analysed as medium threat as brand has been serving consumers with best quality, which has
enhanced consumer’s goodwill perspectives widely.
Bargaining power of suppliers: MC Donald’s has minimum threat as suppliers do not hold
excessive power as the brand operates its individual chain of networks, best work growth
efficacy supplies which has restored profound stable new horizons productively. The brand
has stable working diversity which has been constantly evolving on larger aspects and work
productive targets connectively. MC Donald’s is not relatable dependent on suppliers
externally which has enabled it to frame its independent chain of working structure aspects
commercially. There is also productive shift towards new scale operations metrics for
identifying higher new paradigms of commercial profound synergies enhancing its new
scale productive diversity aspects. Due to its independent structure of suppliers and stores
the brand has varied scope to bring on competent scale perspectives and higher range of
global scope networking horizons.
Threat of substitutes products: This factor has high inflective three impacting functional
scenarios where new brands and companies entering within global food supply chain, brands
developing new product range within food services widely. MCD has to constantly focus
towards enhancing its new scale evolution aspects by bringing on new competencies vividly
and also raise up investments in entering into untapped consumer market. This will enable
consumer’s preferences be analysed functionally and also generate stable domains of
continuous scale marketing for yielding towards new raising horizons prodigally. Threat of
substitutes has been also strongly becoming impactful due to change in customer
preferences towards healthy food products options, where there is wider shift analysed form
fast food products vividly.
The above aspects of Porter 5 force analysis have in detail analysed that MC Donald’s within global
industry has been widely growing to be one of the best global brands, where new strategic
investments have to be strongly worked on and also there is new scale exploration scope. It has
been found to be also optimistically heading towards work extensive aspects for entrance into
untapped new scale targets within revenue and goodwill at frame (Anastasia, Gavril and Maier,
2020).
SWOT analysis
swot analysis is a framework which is used in the business world to analysis the strength, weakness,
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opportunities and threats of an organisation. These four attributes play an important role in a system
(Jurevicius, 2017). The swot analysis of MC Donald will help in analysing the capabilities and
weakness of a firm and will also evaluate future opportunities which a firm may use in their future
along with threats.
Strength:
Strong franchisor: MC Donald has an old reputation and a big brand image which has proved
significant in leading its contender in the fast food market. It uses its name to align with other
restaurants. It is primarily a franchisor, with around 90% of MC Donald restaurant which is
currently operated and owned by independent franchisees. Franchisees contribute the company's
revenue by paying off the rent and along with it, initial fees are also paid while opening of a new
franchisee or restaurant. The company shares it fixed cost over it restaurants which makes it one of
the cheapest place to eat.
Mc Donald menu: MC Donald offers variety of food menu also it has a substantial uniform menu,
even there are menus according to the geographic variation that goes best with the local customer
taste and preference (Ebrahim and et.al., 2017). Mc Donald menu includes both veg and non-veg
fast foods such as chicken sandwiches, wraps, French fries, shakes, desserts, cheeseburgers,
hamburgers and many more. Also, it prioritizes nutrition, quality and choice of the customers.
Big brand image: It is working since 1940 and today it has world's largest chain of restaurant. It has
its branches worldwide which have resulted in increase of its brand value. It operates in almost 120
countries that consist of billions of populations. Among the other global corporations MC Donald
enjoys a strong brand awareness.
Weaknesses:
Lack of employee’s satisfaction: Many organisations worldwide faced issues after the new
employee rights which took place in demand of increase of wages. Due to which organisations
faced revolutions by the side of employees (Wang and Wang, 2020). Mc Donald also went through
such tough situations recently where worker and the employees went striking and protesting for
demands of increase in wages. Such acts have resulted in decreasing company's reputation and
affected its brand image.
Mc Donald breakfast menu lost its charm: MC Donald restaurant located in US and various other
countries offered a full and limited breakfast menu including food items such as hotcakes, egg Mc
Muffin, bagel sandwiches etc. which was very much liked by the customers and its breakfast sales
remained unbeatable for about a decade in US. But the CEO accepted that from nearly about the last
few years they have been observing the downfall of the breakfast menu. It needs to fix the problem
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as soon as possible (SWOT Analysis of McDonalds, 2020). But in the current situation it is already
facing difficulties from fierce competition that is continuously growing in fast food market.
CEO got fired: The CEO of MC Donald was found having consensual relationship with one of the
employee in the firm. This act violated company's policy and the CEO was fired in 2019. Such
controversy also resulted in downfall of MC Donald's brand image.
Opportunities
McDonald has good market share and its capable of serving those products that match taste
and preference of customers. It has ability to meet the opportunities available in food industry. Its
research and development team share its contribution in conducting innovation of products.
McDonald increases its advantages by mentioning food ingredients like it does not serve many
calories to attract health conscious people (Abdel-Basset, Mohamed and Smarandache, 2018). It
also makes sure that all youth are loyal towards its products so it enhances a line of products to
increase variety of goods available with it. It also uses opportunity of digital marketing by making
customer enable to order for foods online. It also promotes its brand on social media. Building
brand image by valuing culture of Asian market through preparing menu by keeping in mind their
usage of degree of spices. it is increasing value in international market.
Threats
Threats refers to those unfavourable marketing situation that are uncontrollable for
organisation. For McDonald there are various situations that tend to be threat for its growth of
business. Competitors are the biggest uncontrollable factor as in food industry, new entrants are
increasing day by day and switching cost is very low for customers so they easily change their
likings and tend to go to other restaurants (Vlados, 2019). Health norms changes every time
whenever there are changes in standards of food. People are also becoming health conscious and
avoiding junk food. Regulatory pressure to prepare foods with maintaining standard quality.
Spending on junk food is unnecessary expenditure for low disposable income group. Economic
situation arising in market also results affects the fluctuation in financial position of McDonald.
Threat of culture changes in other countries also affect the performance criteria of food industry.
Food industry also get influenced with economic panda mic like COVID 19. such viruses drop
down the sales of McDonald so dealing with it becomes difficult for company. These are some eh
threats that make company able to control circumstances and unfortunately adopt those changes and
modify its strategies to deal with surroundings.

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Current strategies
The strategies are the steps which the company has to follow in order to keep the working of
the company in accordance with the attainment of the objective of the business. For the business to
be successful the most essential thing for the company is to make effective and efficient strategies
for the management of the business (McDonald and et.al., 2017). This is particularly important for
the business to make the strategies in such a manner that it assist the company in using it in proper
development of the business. For the business to be effective and successful the most essential thing
is to communicate all the strategies of the business in order to make them understand that how they
have to manage the strategies so that all the aim and objectives of the business in effective manner.
The major current strategies of McDonalds are as follows-
In the current competitive market, the latest strategy in which McDonalds is focusing is to
stay transparent while using the marketing strategy. The major reason for this is that when the
company will be transparent and clear to all the stakeholder and especially the consumers. The
major reason for this is that when the company will be using a transparent strategy then this will
assist the consumer to know about all the ingredients and the other food product which are offered
by the company (Kozina, 2017). For the company to be successful it is very essential that they make
the use of the transparency with all the stakeholders so that all the information of the company is
being timely communicated with all the people then this will increase the interest of the
stakeholders and this will improve the overall performance of the company.
McDonald has adopted the strategy to answer the questions of customers to make them feel
that it is concern for their queries and interested in solving them by taking respective action. To
supports its statement, it has also launched FAQ page so that customers get proper platform to drop
their concerns regarding how product is made (Kingsnorth, 2019). It also tries to be active on those
platforms where customers are more interested to get connected with business like Facebook,
twitter, Instagram etc. with respect to these it has become important strategy for company to
feedback and queries.
Another strategy of McDonald is always working in which it tries to match the traditional
approach of market with uniqueness of its flavours. The biggest example of it is Happy meal that it
has introduced to fulfil need of customers. The motto behind this is presentation of menu on
healthier way. For this purpose, it has also reduced the quantity of salt that it used to add for the
safeguard of its customers.
In addition to this another major strategy which the company is using in order to market the
product and services of the company is to make use of the influencer adverting by sponsoring video
named 'What is in McDonalds Chicken McNuggests? This video was hosted by the YouTuber star
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Raphael Gomes and this video countered the myths relating to the way how the company is
producing the McNuggets (McDonald’s marketing strategy: Staying transparent while under fire,
2020). This strategy assisted the company in properly attracting the consumers towards the non-
vegetarian section of the company as well. This is majorly because of the reason that there are many
different types of the people who have issues that how the chicken will be produced and whether
there will be proper safety and hygienic measures or not. Hence, this video will clear all the doubts
of the consumers so that they can have the product and service without any doubt.
Recommendations
From the above all discussion and market analysis it is stated that company need to make
some changes it is current strategy in order to meet the current competition of the company
(Moseley III, 2017). These strategies which the company can use after the analysis of the market
with help of PESTLE and SWOT and porter five forces are as follows-
The major recommendation for McDonalds is that they must focus on time to time doing the
market research. This is particularly because of the reason that there are many frequent changes
which the company need to adapt. If the company will not be working and analysing the current
changes then this will have a great impact over the working of the strategies (Snihur and Tarzijan,
2018). Hence, before making the effective strategies it is essential for the company to first
effectively conduct the marketing research and then in accordance with the finding the strategies
will be made.
In addition to this another major recommendation for the company McDonalds is that they
must also focus on the traditional methods of marketing as well and not completely rely on the
social media and digital marketing only. For this the major focus must be given on the sales
promotion activities. The major reason for this is that when the company will make the use of
different types of discount activities and offers then this will attract a large number of consumers.
Hence, this will be helpful strategy in the maintenance and attracting of the most of the consumer
with help of the sales promotion technique.
In addition to this another major recommendation is that the company must also focus on the
ingredients which they are using in order to make the food products (Stubbs, 2019). The major
reason for this is that if the company will not have a good quality of the materials then this will
affect the working to the great extent. Particularly this is because of the fact that when the quality of
food products will be low then this will decrease the interest of the consumer within the company
and its products.
CONCLUSION
From the above whole analysis and evaluation of the study it was seen that the managing the
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business strategies is very important for the business. This is particularly because of the reason that
when the company will effectively manage the business strategy then this will affect the working
pattern of the company to a great extent. From the above evaluation it was seen that the analysis of
the objective and mission and vision of the company is very important as this assist the company in
developing business strategies. Further from the above discussion it was analysed that market
research was very much helpful which was done through PESTLE analysis and Porter five forces.
In addition to this the study also highlighted that the SWOT analysis was helpful in managing the
business internal strength and weakness. In the end with the help of the whole of whole of the
market analysis the strategies of company were discussed like transparency in business strategy and
others. In addition to this some of the recommendation were also provided.

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REFERENCES
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Online
McDonald’s marketing strategy: Staying transparent while under fire. 2020. [Online]. Available
through: < https://postfunnel.com/mcdonalds-marketing-strategy-staying-transparent-
while-under-fire/#:~:text=The%20latest%20McDonald's%20marketing%20strategy,seems
%20to%20be%20paying%20off&text=Welcome%20back%20to%20the%20Brand,the
%20world's%20most%20successful%20companies.>
SWOT Analysis of McDonalds. 2020. [Online]. Available through:
<https://www.learnmarketing.net/SWOTMcDonalds.html/>.
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