Assignment - Strategic Management

RUNNING HEAD: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
Name of the Student:
Name of the University:
Author’s Note:

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Executive Summary:
McDonald’s corporation is a USA based business organisation. This organisation is successful to
maintain its presence in 121 countries. English paper strategic analysis of McDonald’s
corporation is done. For the environmental analysis of this organisation PESTLE analysis and
porter’s five forces model is used. Political stability, economic strength, social factors,
implementation of innovative technologies, legal environment and environmental factors can
influence the business of McDonald’s Corporation. Porter’s five forces analysis refers that the
bargaining power of suppliers for this company is low. Bargaining power of consumers of
McDonald’s corporation is very high. The threat of new entrants and the threat of substitute
product for McDonald’s corporation is moderate. However, the competitive rivalry for this
company is high. To analyse the resource and competence of this company, VRIO analysis is
used. According to this analysis, it can be said that this company can utilise its brand image and
equity, global presence, human resource, HR culture, supply chain, innovative technology,
innovative menu and its loyal customer base. To analyse the recommendation for the future
development of McDonald's Corporation, Ansoff matrix is used in this report. The result of this
matrix refers that the strategy for market penetration of this company is adequate. To gain a
competitive advantage, this organisation has to prioritise market development. By focusing on
the local customer, this company has to emphasize on product development. Instead of vertical
diversification, McDonald’s Corporation emphasizes horizontal diversification. By taking
several risky strategies, this organisation is successful to achieve competitive advantages. In the
review part, market development and product diversification are analysed. Whether market
development and product diversification are suitable, feasible and acceptable for McDonald's
Corporation on not is analysed in this part. This review part refers that McDonald’s Corporation

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can follow market development and product diversification appropriately. In the end, there are
certain recommendations for McDonald’s Corporation. It is recommended that this organisation
has to focus on Business expansion, prioritise promotion, provide healthy food, emphasise on
CSR activities and develop a centralised system to manage its worldwide franchisees.

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Table of Contents
Introduction:....................................................................................................................................4
Company background:.....................................................................................................................4
Strategic analysis of McDonald’s Corporation:..............................................................................5
Environmental analysis:...............................................................................................................5
PESTLE analysis:....................................................................................................................5
Porter’s five forces analysis:....................................................................................................9
Resources and competence analysis:.........................................................................................10
Recommendation for future development:....................................................................................12
Ansoff matrix:............................................................................................................................12
Review:......................................................................................................................................14
Recommendations:....................................................................................................................15
Conclusion:....................................................................................................................................16
References:....................................................................................................................................17