Strategic Management of Companies - Case of McDonald's in Australia

Running head: STRATEGIC MANAGEMENT OF COMPANIES
STRATEGIC MANAGEMENT OF COMPANIES
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1STRATEGIC MANAGEMENT OF COMPANIES
Executive summary
The report aims at understanding the value of strategic management through the enumeration of
the case of Mc Donald’s in Australia. The purpose of undertaking the research is to identify the
current market holdings of the concerned organization and the strategic options that are available
to the same for the smooth functioning of the business. The report also aims at portraying the
implementation plan that might be undertaken by the organization and the KPIs that might be
considered in order to measure the success factors of the change.

2STRATEGIC MANAGEMENT OF COMPANIES
Table of Contents
Introduction......................................................................................................................................3
Market size and trends.....................................................................................................................3
Financial and Corporate Performance.............................................................................................4
Strategic Options.............................................................................................................................5
Final Recommended Strategy..........................................................................................................7
Implementation of Final Strategy....................................................................................................8
Monitoring and Control of Future Performance............................................................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

3STRATEGIC MANAGEMENT OF COMPANIES
Introduction
Strategic management initiatives assist an organization in facilitating the smooth
operations of the processes as per the objective of achieving the long term sustenance. The key
changes that are undertaken by the organizations are dependent on the assessment of the market
situation and development of strategies for gaining a competitive edge. Wheelen et al. (2017)
stated that the strategies that are framed by the organizations help in attaining competitive
advantage over the other players in the market. The report will enumerate the different strategies
that might be considered by McDonalds in Australia through an assessment of the market
holdings, trends and financial performance. The final step of the discussion will generate a
strategy that might be undertaken by the concerned organization for gaining competitive edge
over the competitors.
Market size and trends
The concerned organization, McDonalds, is an American fast food company holding
around 950 restaurants globally. The net income of the organization was around $ 5 billion,
computed at the fiscal year 2016 (McDonald's Australia., 2018). Wheelen et al. (2017) stated in
a research that the organization made an expansion of around 3.5% annually. The wide
expansion of the organization has helped the same in retaining a greater market share in most of
the economies. The organization made aggressive expansion in the Australian markets. On the
other hand, the customers in the Australian markets reciprocated to the product and service
offerings made by the business due to the enhanced quality of the propositions. The increasing
trend of the takeaway food system has also helped the organization in maintaining the efficiency
of the operations as per the needs of the business. Trigeorgis and Reuer (2017) stated in a