Strategic Management Plan of McDonald's: Assignment
Added on 2021-02-20
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STRATEGICMANAGEMENT PLAN
TABLE OF CONTENTSTABLE OF CONTENTS.................................................................................................................2INTRODUCTION...........................................................................................................................1PART A...........................................................................................................................................1Overview of Organization............................................................................................................1PESTLE Analysis........................................................................................................................2Porter’s 5 force model..................................................................................................................3VRIO framework.........................................................................................................................5PART B............................................................................................................................................6SWOT analysis............................................................................................................................6Porter’s Generic Strategy.............................................................................................................7Ansoff’s product/market growth matrix......................................................................................8Evaluation different Mergers and Acquisition options available to the organisation..................9CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
INTRODUCTIONStrategic planning can be defined as an organizational process that helps in defining theirstrategy, helps in decision making, setting direction, allocation of their resources by perusing acommon strategy (Ansoff and et.al., 2018). It also helps organization in setting and outliningtheir measurable goals, bring required changes within the organization, evaluate their overallprogress whenever their move forward within their defined market. This assignment will layemphasis on internal and external analysis of McDonald's in order to provide a base for strategicplanning through PESTLE analysis, Stakeholder analysis, Porter’s 5 force model, VRIOframework and discussion on strategic planning based on the environmental analysis andfindings of McDonald's through SWOT analysis, Porter’s Generic Strategy, Ansoff’s matrix anddifferent Mergers and Acquisition options available to McDonald's. PART AOverview of OrganizationMcDonald's is one of the largest fast food restaurant chain who serves more than 68million customers daily with global presence in more than 120 countries with more than 37000outlets. They have almost 1.7 million employees working for them in different countries. Theyare mostly famous for their fries, cheeseburgers and hamburgers (Fozer and et.al., 2017). As pera survey they are world's second largest private organization (first is Walmart) with almost 1.7employees working under them. Their main source of royalty is sales of their product, rent,royalty, fees paid by franchisees.Mission: The main corporate mission statement of McDonald's is to be their customer's favouriteplace and way to eat and drink.Vision: Their main vision statement is to move with velocity in order to drift profitable growthand becomes an even better McDonald's who focus on serving more delicious food to theircustomers with the best service each and every day around the world. Objectives: the main corporate objective of McDonald's is to be customer's first preferred placeto eat and drink, another objective of McDonald's is to serve good food in a friendlyenvironment, become a socially responsible company and provide good profitable returns totheir stakeholders. 1
PESTLE AnalysisPESTLE is a kind of strategic analysis tool which is mainly used to show influence ofexternal factors that affects the business. PESTLE mainly stands for political, economical, social,technological, environmental and legal factors that affects than organization in both positive andnegative way (Racz and et.al, 2018). PESTLE analysis will help in analysing all the externalfactors that influences the business of McDonald's.Political Factors: political factors mainly focuses on government's policies and actions thataffect the remote environment of a business as well as their economic development. Factors suchas trade control. Tax policies, government stability affect an organization in a drastic way.McDonald's has an opportunity where they can expand their business through international tradewhich will eventually enhance their supply chain globally. Every country have their own healthand diet guidelines and public health policies. McDonald's need to adhere all such guidelines andpolicies if they want to enhance their business and gain stability. They need to focus on theirconsumer's health and maintaining as well as increasing the overall quality of their products. Economic Factors: this factors mainly focus on economic factors such as labour cost,unemployment rate, inflation rate, interest rate etc. Slow and stable growth rate of developedcountries increases development opportunities for McDonald's to enhance and increase theirbusiness (Wüstemeyer, Madlener and Bunn, 2015). Other than this rapid growth rate ofdeveloping countries can also help McDonald's to boost their business. Social Factors: This factor includes social environment of a country, living life style, growthrate etc. that affect a business. Increasing disposable income of individuals is an opportunity forthem to increase their customer base as the lifestyle of people today are changing and consumerslike to buy food outside instead of cooking food at home. They can focus on introducing healthyfood products as well, as today many people are becoming health conscious.Technological Factors: Due to advancement in technology, McDonald's can adopt advancetechnology and automate their business operations which will help them to improve their overallbusiness operations and grow. They can invest more in research and development in order toimprove business efficiency and effectiveness. Environmental Factors: these factors affect an organization in many ways by focusing onclimatic change, consumer's increasing awareness towards the environment. Changing climaticcondition within some regions can affect McDonald's and their diversity so they need to2
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