The Values and Mission Statement of Grocery Retailers
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This is a presentation need to do in ppt. Choose any organisation of food retail industry
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Title of the Assignment:
Food Retail Industry
Name of the Student:
Email Address and ID Number:
The Course Name:
Food Retail Industry
Name of the Student:
Email Address and ID Number:
The Course Name:
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Introduction
The purpose of the presentation is to
provide an insight food retail industry.
The presentation aims to achieve the
environmental and the internal and
external analysis of a food retail firm.
The purpose of the presentation is to
provide an insight food retail industry.
The presentation aims to achieve the
environmental and the internal and
external analysis of a food retail firm.
Background of the Organization
The organization chosen for this presentation is McDonalds
(corporate.mcdonalds.com 2020) .
The McDonalds is a fast food firm of America found in the year 1940
and operated by Maurice and Richard McDonald and represented
the largest restaurant chain in terms of the revenue.
It serves around 69 million customers on a day to day basis in close
to 100 countries.
It serves cheeseburgers, French fries and hamburgers. It also serve
breakfast items like items for breakfast, wraps, milkshakes,
desserts and soft drinks.
It also added smoothies, salads, fruit and fish to its menu as a
response to changing taste of the consumer.
The revenue of the food retailer is generated via fees, royalties and
rent paid by franchises and the sales generated by the restaurants.
McDonalds is considered the second largest employer across the
world with closer to 1.7 million employees.
The organization chosen for this presentation is McDonalds
(corporate.mcdonalds.com 2020) .
The McDonalds is a fast food firm of America found in the year 1940
and operated by Maurice and Richard McDonald and represented
the largest restaurant chain in terms of the revenue.
It serves around 69 million customers on a day to day basis in close
to 100 countries.
It serves cheeseburgers, French fries and hamburgers. It also serve
breakfast items like items for breakfast, wraps, milkshakes,
desserts and soft drinks.
It also added smoothies, salads, fruit and fish to its menu as a
response to changing taste of the consumer.
The revenue of the food retailer is generated via fees, royalties and
rent paid by franchises and the sales generated by the restaurants.
McDonalds is considered the second largest employer across the
world with closer to 1.7 million employees.
Mission of the Food Retailer
The mission of the fast food retailer is “to be
our customers’ favorite place and way to eat
and drink.( mission-statement.com 2020)”
The key components include:
Being the favorite place of customers in
relation to eating and drinking
Being the favorite way of the customers in
terms of food and drink.
The mission of the fast food retailer is “to be
our customers’ favorite place and way to eat
and drink.( mission-statement.com 2020)”
The key components include:
Being the favorite place of customers in
relation to eating and drinking
Being the favorite way of the customers in
terms of food and drink.
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Vision of the Food Retailer
The vision of fast food retailer is “to move with
velocity to drive profitable growth and become an
even better McDonald’s serving more customers
delicious food each day around the world
(corporate.mcdonalds.com, 2020)”.
The key components of the vision statement of
McDonalds include:
Moving with the velocity for driving profitable
growth.
Becoming a better McDonald
Serving customers across the world with delicious
food on a day to day basis
The vision of fast food retailer is “to move with
velocity to drive profitable growth and become an
even better McDonald’s serving more customers
delicious food each day around the world
(corporate.mcdonalds.com, 2020)”.
The key components of the vision statement of
McDonalds include:
Moving with the velocity for driving profitable
growth.
Becoming a better McDonald
Serving customers across the world with delicious
food on a day to day basis
Internal Factors of the
OrganizationInternal Factors: These refers to factors that has the ability of
influencing the business operations both in a positive and negative
manner (Bashir et al. 2013). In this presentation, the discussion will be
based on product issue, marketing issue and management issue.
Product Issues: McDonalds being a fast food outlet gives away food
products laden with ingredients that causes health issues. These
ingredients includes petrochemicals, Trans fat, higher sugar levels
and the artificial sweeteners. In doing so they claim that they solely
provide the consumers with convenience and choice.
Marketing Issues: McDonalds remains beset by problems that
ranged from consumer preferences to the newer competition to the
declining revenues. Besides, McDonalds has been concerned towards
introducing various kinds of meal categories. The fast food outlet had
been struggling towards attracting the young adults, the elderly and
the teenagers with its price and menu.
OrganizationInternal Factors: These refers to factors that has the ability of
influencing the business operations both in a positive and negative
manner (Bashir et al. 2013). In this presentation, the discussion will be
based on product issue, marketing issue and management issue.
Product Issues: McDonalds being a fast food outlet gives away food
products laden with ingredients that causes health issues. These
ingredients includes petrochemicals, Trans fat, higher sugar levels
and the artificial sweeteners. In doing so they claim that they solely
provide the consumers with convenience and choice.
Marketing Issues: McDonalds remains beset by problems that
ranged from consumer preferences to the newer competition to the
declining revenues. Besides, McDonalds has been concerned towards
introducing various kinds of meal categories. The fast food outlet had
been struggling towards attracting the young adults, the elderly and
the teenagers with its price and menu.
Internal Factors Continued..
Management Issues: McDonald’s built global empire
depending on consistency of the product in terms of the
thickness of the fries to number of pickles on the Sandwich.
Compound. The management of McDonald experienced a
protest nationwide which broke on raising minimum wage. The
fast food outlet had experienced protest against $15 wage on an
hourly basis which had been considered a bare minimum (ft.com
2015). The management of the company had been charged with
liability on how the franchises treats the employees which acted
as a major blow to the franchise model as a whole.
Management Issues: McDonald’s built global empire
depending on consistency of the product in terms of the
thickness of the fries to number of pickles on the Sandwich.
Compound. The management of McDonald experienced a
protest nationwide which broke on raising minimum wage. The
fast food outlet had experienced protest against $15 wage on an
hourly basis which had been considered a bare minimum (ft.com
2015). The management of the company had been charged with
liability on how the franchises treats the employees which acted
as a major blow to the franchise model as a whole.
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External Factors of the Organization:
Political
External Factors: This refers to the objective assessment in changing the
world around which the enterprise operates to put across an early system of
warning for identification of the potential opportunities and threats
(McDonald and Wilson 2016).
Political Factors:
McDonald’s operates in closer to 100 countries and like any restaurant it
needed to comply with the government regulations that pertained to the
health and the hygiene.
In some countries, government has been pressuring this industry to
introduce healthier food options as the junk food variety has been leading
to cardiovascular difficulties, obesity and higher levels of cholesterol.
The tumult between United States and Russia had threatened the ability of
McDonald in functioning and turning a profit with regard to the Russian
Federation.
Political
External Factors: This refers to the objective assessment in changing the
world around which the enterprise operates to put across an early system of
warning for identification of the potential opportunities and threats
(McDonald and Wilson 2016).
Political Factors:
McDonald’s operates in closer to 100 countries and like any restaurant it
needed to comply with the government regulations that pertained to the
health and the hygiene.
In some countries, government has been pressuring this industry to
introduce healthier food options as the junk food variety has been leading
to cardiovascular difficulties, obesity and higher levels of cholesterol.
The tumult between United States and Russia had threatened the ability of
McDonald in functioning and turning a profit with regard to the Russian
Federation.
External Factors of the Organization:
Economic and Social
Economic Factors
The slow but stable growth in the developed countries acts as opportunity as it allows the firm
in increasing and growing the stability of its business
The slowdown of Chinese economy acts as a threat to McDonald’s business since Chinese
market acts as key contributor of McDonalds revenues.
The rapid growth of the developing countries like Asia as it provided opportunities for its
business growth.
Social Factors
There rising level of the disposable income acts as an opportunity for McDonalds as it allows
consumers in buying fast food rather cooking.
Busy lifestyles in the urban environment also acts as opportunity as it enhances the likelihood
of dining at McDonalds rather than home.
Increase in the cultural diversity acts as a threat as well as opportunity. It is a threat since the
diverse preferences of consumers will reduce the profitability of the company if the company is
unable to meet it. On the other hand, it can be considered as opportunity as it will allow the
firm in increasing the flexibility for satisfying the preferences of the consumer in various
markets.
A trend in healthy lifestyle acts as a threat as well as opportunity. The criticisms regarding
adverse effects of health impacts acts as a threat to the company. While it can be considered as
opportunity as it allows the firm in increasing the healthy items in menu.
Economic and Social
Economic Factors
The slow but stable growth in the developed countries acts as opportunity as it allows the firm
in increasing and growing the stability of its business
The slowdown of Chinese economy acts as a threat to McDonald’s business since Chinese
market acts as key contributor of McDonalds revenues.
The rapid growth of the developing countries like Asia as it provided opportunities for its
business growth.
Social Factors
There rising level of the disposable income acts as an opportunity for McDonalds as it allows
consumers in buying fast food rather cooking.
Busy lifestyles in the urban environment also acts as opportunity as it enhances the likelihood
of dining at McDonalds rather than home.
Increase in the cultural diversity acts as a threat as well as opportunity. It is a threat since the
diverse preferences of consumers will reduce the profitability of the company if the company is
unable to meet it. On the other hand, it can be considered as opportunity as it will allow the
firm in increasing the flexibility for satisfying the preferences of the consumer in various
markets.
A trend in healthy lifestyle acts as a threat as well as opportunity. The criticisms regarding
adverse effects of health impacts acts as a threat to the company. While it can be considered as
opportunity as it allows the firm in increasing the healthy items in menu.
External Factors of the
Organization: Technological
Technological Factors
Moderate level of research and development activity acts as an
opportunity within industry as it will help in improving the efficiency
and effectiveness of the business.
Increasing level of business automation acts as opportunity as it
allows the firm in maximizing the productivity.
Increasing level of sales through the mobile devices acts as
opportunity as it results in revenue growth through the mobile
channels.
Organization: Technological
Technological Factors
Moderate level of research and development activity acts as an
opportunity within industry as it will help in improving the efficiency
and effectiveness of the business.
Increasing level of business automation acts as opportunity as it
allows the firm in maximizing the productivity.
Increasing level of sales through the mobile devices acts as
opportunity as it results in revenue growth through the mobile
channels.
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External Factors of the Organization:
Environmental and Legal
Environmental Factors
Rising level of interest for the corporate based environmental program acts as
opportunity as it allows potential growth and business stability.
Increased level of emphasis on the sustainable business strategies acts as
opportunity since it allowed potential growth.
Changes in the climatic conditions within some regions acts as a threat since it
determines the stability and the availability of the food supply.
Legal Factors:
Increasing level of health regulations in the workplaces acts as threat as it does not
allow McDonald in earning revenue from the market segment.
Increasing regulation on the animal welfare act as opportunity and threat. It is an
opportunity because it contributes to business improvement. It is a threat since it
might lead to higher cost and prices.
The rising level of the minimum wages also acts as threat as it results in higher
prices and cost structure.
Environmental and Legal
Environmental Factors
Rising level of interest for the corporate based environmental program acts as
opportunity as it allows potential growth and business stability.
Increased level of emphasis on the sustainable business strategies acts as
opportunity since it allowed potential growth.
Changes in the climatic conditions within some regions acts as a threat since it
determines the stability and the availability of the food supply.
Legal Factors:
Increasing level of health regulations in the workplaces acts as threat as it does not
allow McDonald in earning revenue from the market segment.
Increasing regulation on the animal welfare act as opportunity and threat. It is an
opportunity because it contributes to business improvement. It is a threat since it
might lead to higher cost and prices.
The rising level of the minimum wages also acts as threat as it results in higher
prices and cost structure.
Competitors of McDonalds
The key competitors of McDonald’s includes the Doctor’s
Associates doing business as Subway, Yum brands, Wendy
International and Burger King Corporation. McDonald’s have a
lower level of price to earnings ratio compared to yum (Downie
2020).
The key competitors of McDonald’s includes the Doctor’s
Associates doing business as Subway, Yum brands, Wendy
International and Burger King Corporation. McDonald’s have a
lower level of price to earnings ratio compared to yum (Downie
2020).
SWOT Analysis: Strength
Strength
1. It is the second largest network of restaurant in close to 120 countries
with close to 37, 241 franchises. With regard to the sales, McDonalds
outdid the quick service chains across the world with close to US$22.820
billion in terms of the sales. The size of the restaurant network of the
company provide various advantages over the competitors (Gerhardt,
Hazen and Lewis 2014)
Strength
1. It is the second largest network of restaurant in close to 120 countries
with close to 37, 241 franchises. With regard to the sales, McDonalds
outdid the quick service chains across the world with close to US$22.820
billion in terms of the sales. The size of the restaurant network of the
company provide various advantages over the competitors (Gerhardt,
Hazen and Lewis 2014)
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SWOT Analysis: Strength
Continued..2. The fast food outlet have strong brand image. According to Forbes,
McDonald ranks amongst the most valuable brands across the world
having a worth of close to US$41.533 billion.
Continued..2. The fast food outlet have strong brand image. According to Forbes,
McDonald ranks amongst the most valuable brands across the world
having a worth of close to US$41.533 billion.
SWOT Analysis: Weakness
Weaknesses:
Limitation in the process of flexibility due to variation in the
market.
Lower level of product diversification makes business
vulnerable to the slowdown of the restaurant industry.
McDonalds is vulnerable to the decline in the western market.
Besides, the hikes in annual dividend are expected to continue
with lower level of dividend growth that continues to level off
or slow down.
Weaknesses:
Limitation in the process of flexibility due to variation in the
market.
Lower level of product diversification makes business
vulnerable to the slowdown of the restaurant industry.
McDonalds is vulnerable to the decline in the western market.
Besides, the hikes in annual dividend are expected to continue
with lower level of dividend growth that continues to level off
or slow down.
SWOT Analysis: Opportunities
Opportunities
The opportunities lies in expanding to the developing
countries. China acts as an immense opportunity.
Menu innovations and market development in Middle East.
Lower rate of interest provided cheaper capital for growth.
Besides, the dollar based debt, McDonalds recently became
one of the first international companies for issuing yuan
denominated bonds in the Hong Kong.
Opportunities
The opportunities lies in expanding to the developing
countries. China acts as an immense opportunity.
Menu innovations and market development in Middle East.
Lower rate of interest provided cheaper capital for growth.
Besides, the dollar based debt, McDonalds recently became
one of the first international companies for issuing yuan
denominated bonds in the Hong Kong.
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SWOT Analysis: Threats
Threats:
McDonalds faces criticism with the implementation of the regulations
of Government with regard to fast food.
The fast food retailer faces competition from the Burger King and the
Yum Brands
The newly introduced products goes head to head with the
established players like the Starbucks
The increase in the price of the commodity could increase the cost
while the weaker economy remains limited towards passing the price
hikes on the consumers.
Threats:
McDonalds faces criticism with the implementation of the regulations
of Government with regard to fast food.
The fast food retailer faces competition from the Burger King and the
Yum Brands
The newly introduced products goes head to head with the
established players like the Starbucks
The increase in the price of the commodity could increase the cost
while the weaker economy remains limited towards passing the price
hikes on the consumers.
Recommendations
McDonald should focus on the service differentiation strategy for
positioning the restaurant as the superior restaurant service in minds
of target consumers.
McDonald should undertake personnel differentiation which
implied availability of the well trained staffs that is necessary for the
delivery of the higher quality service to customers
McDonald should adopt an integrated promotion mix which would
help in balancing both the modern and the traditional digital media
for the brand promotions.
McDonald should undertake product augmentation that would offer
additional service and product features thereby providing
convenience to the customers.
McDonald should focus on the service differentiation strategy for
positioning the restaurant as the superior restaurant service in minds
of target consumers.
McDonald should undertake personnel differentiation which
implied availability of the well trained staffs that is necessary for the
delivery of the higher quality service to customers
McDonald should adopt an integrated promotion mix which would
help in balancing both the modern and the traditional digital media
for the brand promotions.
McDonald should undertake product augmentation that would offer
additional service and product features thereby providing
convenience to the customers.
Conclusion
McDonalds underwent various changes since
inception. The fast food retailer conquered US
and now focuses on the other countries of the
world. McDonalds strives toward the
satisfaction of customer while enhancing the
position of international market. The company
performs well is able to overcome all the
challenges through making use of advantages
and right strategies.
McDonalds underwent various changes since
inception. The fast food retailer conquered US
and now focuses on the other countries of the
world. McDonalds strives toward the
satisfaction of customer while enhancing the
position of international market. The company
performs well is able to overcome all the
challenges through making use of advantages
and right strategies.
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References
Bashir, R., Hassan, A., Pasha, M.A. and Ahmed, S., 2013. Analysis of internal & external
factors affecting choice of business schools by students. IBT Journal Of Business Studies
(JBS), 9(2).
corporate.mcdonalds.com, 2020. [Online]. Available at
https://corporate.mcdonalds.com/corpmcd/about-us/history.html [accessed Feb 27, 2020]
corporate.mcdonalds.com, 2020. [Online]. Available at
https://corporate.mcdonalds.com/corpmcd/about-us/our-values.html /[accessed Feb 27,
2020]
Downie. R, 2020. [online]. Available at
https://www.investopedia.com/articles/markets/102815/who-are-mcdonalds-main-
competitors.asp[accessed Feb 27, 2020]
ft.com, 2015.McDonald and its challenges worldwide: a market-by-market look [online].
Available at https://www.ft.com/content/f8ac22fc-a7c1-11e4-8e78-
00144feab7de[accessed Feb 27, 2020]
Gerhardt, S., Hazen, S. and Lewis, S., 2014. Small business marketing strategy based on
McDonald's. ASBBS Proceedings, 21(1), p.271.
McDonald, M. and Wilson, H., 2016. Marketing Plans: How to prepare them, how to profit
from them. John Wiley & Sons.
mission-statement.com, 2020. [Online]. Available at
https://mission-statement.com/mcdonalds/[accessed Feb 27, 2020]
Bashir, R., Hassan, A., Pasha, M.A. and Ahmed, S., 2013. Analysis of internal & external
factors affecting choice of business schools by students. IBT Journal Of Business Studies
(JBS), 9(2).
corporate.mcdonalds.com, 2020. [Online]. Available at
https://corporate.mcdonalds.com/corpmcd/about-us/history.html [accessed Feb 27, 2020]
corporate.mcdonalds.com, 2020. [Online]. Available at
https://corporate.mcdonalds.com/corpmcd/about-us/our-values.html /[accessed Feb 27,
2020]
Downie. R, 2020. [online]. Available at
https://www.investopedia.com/articles/markets/102815/who-are-mcdonalds-main-
competitors.asp[accessed Feb 27, 2020]
ft.com, 2015.McDonald and its challenges worldwide: a market-by-market look [online].
Available at https://www.ft.com/content/f8ac22fc-a7c1-11e4-8e78-
00144feab7de[accessed Feb 27, 2020]
Gerhardt, S., Hazen, S. and Lewis, S., 2014. Small business marketing strategy based on
McDonald's. ASBBS Proceedings, 21(1), p.271.
McDonald, M. and Wilson, H., 2016. Marketing Plans: How to prepare them, how to profit
from them. John Wiley & Sons.
mission-statement.com, 2020. [Online]. Available at
https://mission-statement.com/mcdonalds/[accessed Feb 27, 2020]
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