Strategic Management Plan for McDonald's in Ireland

Running head: STRATEGIC MANAGEMENT 1
BA (Hons) Business Studies
Strategic Management 1
Student’s name:
Name of the university:
Author’s note:

1STRATEGIC MANAGEMENT 1
Table of Contents
Introduction......................................................................................................................................2
1. Situational Analysis.....................................................................................................................2
1.1 Internal Analysis....................................................................................................................2
1.2 External analysis....................................................................................................................7
2. Strategic Alternatives: Recommended Corporate & Business Strategies.................................10
2.1 Corporate strategy................................................................................................................10
2.2 Business Strategy.................................................................................................................13
Conclusion.....................................................................................................................................14
Reference List................................................................................................................................15

2STRATEGIC MANAGEMENT 1
Introduction
This assessment focuses to develop a strategic management plan for McDonald’s. As the
companies move forward in the twenty-first century, gaining and sustaining competitive edge to
be necessary to have a significant impact on market share. As stated by Liu et al. (2018),
employing strategic management analysis provides forward-thinking perspectives to drive
business onward as the world marketplace continues to evolve. This particular assessment
requires applying strategic analysis models and findings based on McDonald’s. McDonald’s is
an American fast food chain and it was started its operation in the year 1940. McDonald’s has it
headquarter in Chicago and current revenue of the organisation reached US$ 22.82 billion.
McDonald’s has its operation over 120 countries and it has more than 69 million customers.
McDonald’s sells mainly hamburgers, French fries, chicken products, soft drinks and breakfast.
McDonald's started its journey to Ireland in 1977 and it came with drive-through restaurant in
Ireland (Mcdonalds.ie 2018).
This assessment critically appraises the relevance of strategic management concept and
empirically research on McDonald's. This assessment features on developing the strategies which
help McDonald's to make position in Ireland market favourably in relation to competition. In the
following section of the assessment discusses the resources and capabilities of McDonald's in
terms of ability to confer sustainable competitive advantage. McDonald's strategies for exploiting
foreign entry are discussed in this assessment.

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1. Situational Analysis
1.1 Internal Analysis
SWOT analysis
Strengths 1. McDonald's is the largest fast food network in McDonald's.
McDonald's is the second largest restaurant chain in the world as it has
more than 37,240 restaurants in more than 120 countries. McDonald's
can share its costs over many restaurants as it makes McDonald's as one
of the best and cheapest places to eat.
2. McDonald's identified the better ways to perform the tasks as it
manages the restaurant and hires new people to gain huge revenue.
3. McDonald's exercises its market power and they bring the products
from the suppliers' very lower prices.
4. McDonald's restaurant allows the chain to reach more customers and it
is the most recognised brand in the restaurant industry of Ireland.
Weaknesses 1. McDonald’s faces issue in finding the perfect locations for the stores
to be opened.
2. Annual dividend hikes are likely to continue and the growth rate is
slowing
3. McDonald's has declined its income growth and revenue
4. In Ireland, McDonald’s is experiencing its declining market share to
Subway
Opportunities 1. McDonald’s has its opportunities in international expansion and it