This report presents a preliminary strategy audit of McDonald's, examining its value proposition, market position, and competitive advantages within the fast-food industry. The analysis includes an external environmental scan using Porter's Five Forces to assess competitive rivalry, bargaining power of buyers and suppliers, the threat of substitutes, and the threat of new entrants. The report identifies key strategic issues facing McDonald's, such as competition, customer service challenges, and the need to adapt to changing consumer health preferences and menu optimization. The author provides an overview of the company's strategies and suggests recommendations for retaining market share and improving its competitive position. The report aims to provide a comprehensive analysis of McDonald's current strategic challenges and opportunities, as well as provide recommendations.