Strategic Capability and Environment Audit | Report
12 Pages5033 Words87 Views
Added on 2020-02-14
Strategic Capability and Environment Audit | Report
Added on 2020-02-14
ShareRelated Documents
Strategic Management1
TABLE OF CONTENTSINTRODUCTION....................................................................................................................3TASK 1...................................................................................................................................3Evaluate the strategic capability of McDonald's................................................................3Evaluate the environment facing of McDonald's...............................................................4Identify the major issues relating to ethics and social responsibility of McDonald's.........5TASK 2...................................................................................................................................6Propose a range of plausible alternative future strategies for McDonald's.......................6Identify and justify the strategy that McDonald's should pursue in the future...................7TASK 3...................................................................................................................................8Explain and justify the balance of intended and emergent approaches to strategy formationapplies at McDonald's........................................................................................................8CONCLUSION.......................................................................................................................9REFERENCES.....................................................................................................................102
INTRODUCTIONStrategic management can be defined as the process through which formulation andimplementation are to be done to make the effective strategies for the organization in achieving themajor goals and objectives. The strategies are made by the top management which considers theresources as well as internal and external environment at the time of making strategies and plans(Hill, Jones and Schilling 2014). For conducting the current research, McDonald's has been chosen.This company deals with hamburger fast food restaurants which is the world's largest organization infast food. The organization’s effective strategies have made them one of the best fast food chains inthe UK. This report will emphasize on the strategic capability and environment audit of the chosenfirm. Furthermore, it will also evaluate various issues which are related to ethics and socialresponsibility. In addition to this, the future strategies are to made in which one best will be selectedand the desired strategy will be formulated in the organization. TASK 1Evaluate the strategic capability of McDonald'sStrategic Capability can be referred as the business ability which constitutes of the competitivestrategies which acts as a successful for the organization to incurred profitability. The other word forthe strategic capabilities can be core competency which can be known as the competitive advantageof the organization. There are various strategic capabilities of McDonald's which are as follows:Secret RecipeThe company has its special recipe which cannot be copied by its competitors. This is becauseif the recipe got popular than the firm will lose its strategic capability in the market place (Tarzian andForce, 2013). So for this, confidential agreements are to be signed which include information aboutthe company and it is known by the selected people.Cost LeadershipIt is one of the strategic capabilities of the company in which they have reduced the price of theproduct without cutting the quality of the product. McDonald's has maintained this strategy to attractlarge number of customers by enjoying the economies of large scale. Market leadershipAs the company is one of the largest burger fast food organizations in the world, it is itself oneof the big advantages for it. By joint venturing with the Coca Cola, the company has made itsreputation more strong because both the firm's target market is attracted towards both franchises(McDonald's Works to Mainstream Sustainability, 2011). Moreover, the business enterprise has manyoutlets in the other countries and its competitors are few so it has become the market leader. 3
Strong Value ChainThis chain deals with enhancement of the customer value which results in series of activitiessuch as logistic operations and services. The value chain of the chosen company is strong, as it ismeeting with objectives and goals of the customers. Product line EnhancementsThe organization product line is very vast which caters into various types of products andservices (Mellahi and Frynas, 2015). McDonald's segmenting is appropriate in targeting customerswhich helps in increasing its productivity which results in increment in revenue. This can be strategiccapability for the company because they are marketing products with the combination of culturedifferences and international standards.Evaluate the environment facing of McDonald'sThe environment facing can be done through the environmental audit that is PESTLE analysisthrough which the major issues can be identified and they are as follows: Political factorsMcDonald's is following rules and regulations of the country in which they are opening theirbusiness which are related to health and hygiene (McDonald's, 2016). It is difficult for the company tostart their business in new countries because some of the organizations have restricted the junk food.The current turmoil which is in between the American Russian can be one of the issues.Economic factorsThe interest rates and tax rates of any country can be the issue for the company because it willaffect profitability of the organization (Hitt, Ireland and Hoskisson, 2012). Through the ongoingrecession period, it also affects the company’s reputation and its market share. Social factorsIn some of the countries, they are restricting the junk because it is affecting health of thepeople so it is the big problem for the chosen organization to manage their business (Yüksel, 2012).As the people are becoming more busy with their lifestyle so they prefer type of food which is one ofthe merits for the business. Technological factorsThe company is successfully in dealing with the research and development activity so that theycan also environment and work accordingly. The company uses upgraded technology which is helpingin the management to increase its productivity and assisting by reducing the time and resources. Theretail outlets of McDonald's is providing free Wi-Fi connection and computing devices to theircustomers to attract them (What is PESTLE Analysis? A Tool for Business Analysis, 2016). Legal factors4
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Strategic Management - McDonald'slg...
|10
|2732
|389
Strategic Managementlg...
|12
|1124
|392
Business Strategy for McDonald's: Impact, Analysis, and Evaluationlg...
|18
|5985
|1
Competitors and Marketing Mix Analysis: Case Study of McDonald’slg...
|7
|1555
|57
Strategic Analysis Portfolio Assignmentlg...
|14
|3460
|161
Improving Innovation Capabilities Assignmentlg...
|14
|5850
|192