Internal and External Analysis of McDonald's in New Zealand

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Course qualification NZ Diploma in Business and Enterprise Management (Level 7)
US/Prescription title: Business Strategy, Environment and Sustainability
Course/Paper number: 701
Student name: JINHO SONG
Student ID: 174482A
Teacher: Abraham
Assessment type: 1st assignment
Due date: 12/Aug/2018
Student(s) to complete: Assignment/Report Plagiarism Declaration
For Individual Assignment / Report ONLY
I certify that this is my own work and I have read and understood
the Plagiarism and Dishonest Policy (7.7) of Abacus Institute of
Studies.
I understand that the submission of this form electronically is the
equivalent of me signing my name, in pen, on a paper assignment
cover sheet.
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Student name(s) & IDs:
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2.
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Campuses
Auckland
Level 5 / 3 Wakefield Street
Auckland
New Zealand - 1010
0064-9213-9552
Christchurch
9A/166 Moorhouse Ave
Christchurch
New Zealand - 8011
0064-3365-6076

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Executive summary
This report has been elaborated on assessing the internal, external and the key
marketing activities and analysis of McDonald’s- one of the fast growing food industry of the
world- in New Zealand. It has also suggested some key recommendations for both the
managerial and the authorities’ deeds. The report has been carried on assessing the internal
and external environmental analysis for the company in the province of New Zealand. In
order to do so, it has dealt with Pestle, VRIO and PESTLE analytical situations. Lastly, it
summaries the significant recommendations that are to be used in the industry analysis along
with the Human Resource Management and organisational strategy. The key strategies used
by the company in regard to its management programmes as well as the external and internal
environment of New Zealand has been examined in this paper.

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Table of contents
Executive summary....................................................................................................................1
Introduction................................................................................................................................4
1.0 Strategic hierarchy...............................................................................................................5
1.1 Introduction of McDonalds (New Zealand).........................................................................5
1.2 Hierarchy framework of McDonalds...................................................................................6
1.3 Analysis implications of the organisational strategic hierarchical framework....................7
2.0 External and internal environments.....................................................................................8
2.1 Macro environment (New Zealand) impact on McDonald’s business operation................8
2.2 Microenvironment impact on McDonalds New Zealand.....................................................9
2.2.1 Porter’s five forces........................................................................................................9
2.3 Internal environment impact on McDonald’s (New Zealand) business operation............10
SWOT analysis.....................................................................................................................10
Value chain analysis.............................................................................................................10
3.0 Key success factors and strategic challenges.....................................................................12
3.1 Key success factors............................................................................................................12
3.2 Impact of these success factors on McDonalds New Zealand...........................................12
3.3.............................................................................................................................................13
a) Competitive sources of McDonalds New Zealand..............................................................13
b) Analysing the sources..........................................................................................................13
3.4.............................................................................................................................................14
a) Strategic challenges faced by McDonald’s New Zealand...................................................14
b) Impact of strategic challenges on the growth of McDonald’s New Zealand.......................14
4.0 Strategic options and plans.................................................................................................14
4.1.............................................................................................................................................14
a) Formulating McDonald’s strategic option...........................................................................14
b) Analysing the above-mentioned strategic options in regards to trades of McDonalds.......14
4.2.............................................................................................................................................15
a) Developing and recommending potential solutions.............................................................15
b) Developing plans for implementation..................................................................................15
c) Developing performance measures......................................................................................15
5.0 CSR and EM......................................................................................................................15
5.1 Examining McDonald’s environment management in terms of political, practical and
ideological factors....................................................................................................................15

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5.2 Five major business practice in which McDonalds New Zealand is engaged...................16
5.3 Developing environmental sustainability and social responsibility...................................16
5.4 Analysing the communicating strategy..............................................................................17
Conclusion................................................................................................................................18
References................................................................................................................................19

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Introduction
It is important for every firm to adopt such environmental analysis strategies so that it
can achieve the competitive advantage and growth in the market. For this, firms have to
analysis its internal and external environment so that effective decision can be taken in the
organization. For taking proper decisions, organization has to analysis its hierarchy
framework. In this report, the business practices and strategies adopted by McDonalds, New
Zealand will be evaluated that are helping the company in enhancing its competitive
advantage. Afterwards, the success factors of McDonalds is highlighted which assist the
company in gaining profitability and growth. The paper will elaborate on a brief overview of
the business operation of McDonald’s by shedding light on the various internal and external
factors that is influencing the business. Furthermore, it will present a hierarchical framework
of Macdonald’s focusing on its corporate, business and functional level. At the end of the
report, challenges faced by McDonalds and development plan in the light of social
responsibility will be demonstrated here.

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1.0 Strategic hierarchy
It describes the layout and the relations of the corporate strategy along with the sub-
strategies of a form.
1.1 Introduction of McDonalds (New Zealand)
McDonald’s is a fast food company of America founded by Maurice and Richard in
1940. It is world’s largest restaurant in terms of its revenue (Dana & Spier, 2011). It currently
has 160 restaurants, which serves over 69 million customers daily in 100 countries. In 1976,
it has opened its fast food chain in New Zealand. It has various products like French fries,
milkshakes, cheeseburgers, chicken, milkshakes, and soft drinks. Due to changing
expectation of the customers, it has included salad, smoothies, wrap and fish in its menu. The
operation of New Zealand is based in Greenlane, Auckland. In 2015, it has expanded the
“new gourmet burger service” in New Zealand. In this concept, it has generated the “create
your taste” service in which customers can choose the ingredients according to their choice.
After waiting for 10-15 minutes, the trained staff bought the food to the table of customer.
The home delivery services are also provided to the customers of New Zealand (McDonald’s,
2017).
1.2 Hierarchy framework of McDonalds