Report on Strategic Management "McDonald’s"
Added on 2020-06-04
12 Pages3156 Words111 Views
Strategic Management
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11. External factors that affect competitive position....................................................................12. Identification of resources that contour competitive position.................................................43. Sustainable competitive advantage including external factors and internal weakness...........7CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
INTRODUCTIONBusiness environment is highly dynamic and complex. Strategic management is thecreation and implication of main objectives and aim that are set by employers and leaders of acompany in order to achieve success through analysing internal and external businessenvironment in industry (Luo, Sun and Wang, 2011). This assists an organisation in designing ofplans, allocation of resources in a balanced way, direction of enterprise and its operations alongwith analysing and adopting various effective models and approaches that exist in the market.This assignment will study the strengths and weaknesses of McDonald’s as compared with KFC.Also, it will evaluate different effective external factors of company here.TASK 11. External factors that affect competitive positionMcDonald’s is the largest food restaurant chain in all over the world with ruling marketfrom last few decades and expanding its business in various countries. This company servesmillions of people each day. Company has a unique brand image in the market as it portrays apositive image through facilitating quick and quality food along with best customer services.Market is dynamic as it keeps evolving (Mahoney and Qian, 2013). Competitors are dominatingand increasing through assistance of effective promotional techniques. Some rivals ofMcDonald’s are KFC, Burger King, etc.Competitive Positioning –Competitive positioning is the technique through which company creates a uniqueposition of itself in market by offering different services in comparison to other organisationsand building a positive perception in the minds of consumers. External Factors of McDonald’s and KFC -To identify the external factors that influence competitive position of company, PESTELanalysis would be more helpful which is mentioned as below:McDonald’sKFCPolitical 1. Hike in trade agreementsforeign levels and enlargementin the supply chain2. Change of state in pending1. Change in politicalenvironment can affectcompany positively ornegatively according to1
tax which avoid lawinterruption in processes ofMcDonald’s (Greco, Cricelliand Grimaldi, 2013).3. Development in publichealth related terms which canbe considered as anopportunity to grow.situation.2. Taxation policies onincentives and taxes.3. Governments concept andopinion over and cultural aswell as religious aspects mayrestrain its growth.Economic1. Stable but slow evolvementin UK economy which isrestraining the growth ofMcDonald’s. 2. Present financial conditionof enterprise in Europe can because of loss in future.3. Company is beingthreatened after delay inChinese economy framework.1. Less budget and revenuesbecause of which company isterminating employees.2. Economic growth rate,inflation and interest level aswell as business cycle isaffecting KFC’s financialsituation.Environmental1. McDonald’s has increasedCSR activities in order to reachsociety and make a positiveimage as well as promotingecological practices (Vogel andGüttel, 2013). 2. Environmental change canprove as a threat as company isthinking of going green andusing organic products.3. Accelerative importance onsustainable enterprise planningthat can make negative as well1. Environment friendlyservices despite utilizingplastic bags for packaging.2. Contribution for decreasingglobal warming through paperglasses, cups and other initiate.2
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