Business Strategies of McDonald's: Report and Analysis

This report provides a comprehensive analysis of McDonald's business strategies. It begins with an executive summary, introduction, and company details, including its vision, mission, and organizational structure. A literature review is conducted to explore relevant issues, followed by an analysis that includes financial ratio analysis, SWOT analysis, PESTLE analysis, and Porter's five forces. The findings highlight high operating costs, business disruptions in emerging markets, and intense competition. The report concludes with recommendations for strategic improvements and is supported by references to annual reports and news articles. This analysis provides a detailed overview of the challenges and opportunities facing McDonald's.

Running head: BUSINESS STRATEGIES OF MCDONALDS
Business Strategies issues faced by McDonalds
Name of the Student:
Name of the University:
Author Note:

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BUSINESS STRATEGIES OF MCDONALDS
Executive summary:

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BUSINESS STRATEGIES OF MCDONALDS
TOC:

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BUSINESS STRATEGIES OF MCDONALDS
Introduction:
1. Company Details:
Background:
Vision:
Mission:
Nature of business:
Organisation chart:
2. Literature review:
Must deal with the issues. Compare and contrast
3. Analysis:
Financial ratio analysis:
Current ratio:
Current asset for 2016 is 1.40 while in 2015 was 3.27. This shows the McDonalds had excess
current assets in 2015 and acquire excess liabilities in 2016 but did not increase current
assets. Thus, resulted in less poor performance as per current ratio (corporate.mcdonalds.com,
2017).
Similarly show quick ratio and write on liquidity status of the company
SWOT analysis:
Strengths-

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BUSINESS STRATEGIES OF MCDONALDS
1. Multinational fast food chain,
2. Presence in over hundred countries.
3. Product line consisting of burgers, wraps, deserts and so on catering to a large number of
customers
Weakness-
1. Faces criticisms due to health problems fast foods items cause.
2. Faces challenges from other multinational brands and local fast food makers
Opportunities-
1. Expansion of product line to incorporate local flavours
2. Providing more healthy food items like boiled chicken
Threats-
1. Threats from new competitors both internationally and locally.
2. Threats from health foods
3. Political instability and economic downturns
PESTLE analysis:
Political:
Government policies, taxes.
Economic:

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BUSINESS STRATEGIES OF MCDONALDS
Labour conditions, resource availability, local sources, changing currency exchange
rate
Social:
Growing preferences in some societies for fast food is a driver. Changing preferences
of people to consume healthier fast food requires innovation.
Technological:
Modern hygienic food manufacturing technology, online order acceptance, digital
presence
Legal:
Legal complication due to presence in multiple countries, law suits filed by several
organisations like NGOs against the company for selling unhealthy fast food.
Environmental:
Sustainable operations.
Porter’s five-force analysis:
Threats from new entrants, threats from substitutes and so on must connect to SWOT
and PESTLE.
4.Finding:
1. High operating costs and decreasing amount of assets against increasing liabilities.

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BUSINESS STRATEGIES OF MCDONALDS
2. Disruption in business in emerging markets like Asia and North America
(foodworldnews.com, 2017)
3. High operation costs
4. Stiff competition
5. Recommendations and conclusion:
Recommendation of strategies

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BUSINESS STRATEGIES OF MCDONALDS
References:
Annual Reports :: McDonald’s. (2017). Corporate.mcdonalds.com. Retrieved 14 November
2017, from http://corporate.mcdonalds.com/mcd/investors/financial-information/
annual-report.html
News, F. (2017). McDonald’s Closing Stores: Consistent Sales Drops In US, Australia And
Asia Mean McDonald’s Closing HUNDREDS Of Restaurants. Food World News.
Retrieved 14 November 2017, from
http://www.foodworldnews.com/articles/17725/20150423/mcdonald-s-closing-stores-
consistent-sales-drops-in-us-australia-and-asia-mean-mcdonald-s-closing-hundreds-
of-restaurants.htm