Strategic Analysis of McDonald's UK: Competitors and Future Strategies

This report presents a strategic analysis of McDonald's in the UK market. It begins with an introduction to strategic management and the background of McDonald's. The report then delves into external and internal environmental analyses, utilizing the PESTLE framework to assess political, economic, social, technological, environmental, and legal factors influencing McDonald's operations in the UK. A competitor analysis is conducted, comparing McDonald's to KFC and Burger King, evaluating their competitive forces and market strategies. The report explores strategic direction options using the Ansoff Matrix, including market penetration, product development, market development, and diversification. It selects market expansion and product expansion as the most suitable future strategies for McDonald's in the UK. The report concludes with recommendations for McDonald's, emphasizing the importance of long-term planning and strategic goals. The report aims to provide a comprehensive overview of McDonald's strategic position and potential future directions within the UK market.

STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
Background and strategic information on McDonald's ..............................................................3
External and fast food industry analysis in the UK.....................................................................3
Three competitors analysis on for McDonald's...........................................................................4
Strategic direction option discussion..........................................................................................6
Selection for one future McDonald's strategy for the UK...........................................................8
Recommendation for McDonald's /conclusion...........................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Strategic management is the management of an enterprise resource in terms to achieve
the goals and objectives of the entity (Litman, 2018). Thus, it involves with setting objectives,
analysing the competitive environment, evaluation of strategies and analysis of internal
enterprise and various engagement rolls so that things can be done in effective manner. In this, it
is essential to formulating and implementing the strategies there is also need to take initiatives in
terms to introduce corrective measures. The present report is based on the McDonald's, it is
largest food chain and provide attractive services to customer by providing quality products. The
present report will look over upon things as are strategic analysis of both external and internal
environments and possible strategic choices for McDonald's.
Background and strategic information on McDonald's
The McDonald's is world largest Fast food chain and it is one of world leading firm and
has restaurants in more than 100 countries. In order to enhance it brand image, this firm provides
the quality food to its customers. Thus, they use to take number of modifications in the products
so it will attract the more buyers. The strategic information of McDonald is that this firm has
adopted generic strategy and it also helps to determine the basic approach to bring development
in the enterprise and to have competitive advantage (Gassmann and et.al., 2018). This will helps
to bring systematic operation of the organisational activities. With help of effective strategy
formulation, it is possible to maximise the revenue of the enterprise.
External and fast food industry analysis in the UK
The Pestle analysis is helpful framework in order to determine the external environment
of the enterprise. With help of it, firm can able to perform its function effectively. This is defined
in below presented manner as are-
1. Political- The functions of McDonald's is operating its business in more than 100
countries. This industry has also been complied with the number of the health and
hygiene regulations. There are some legal authorities that are pressuring over the fast
food industry and this industry seen as junk food. The government policies towards issues

such as trade or public health can increase the cost or impact the operation of the
organisation.
2. Economic- There are number of factors as are international, national and local condition
due to it being a global brand. The Quoted firm should also be aware about the terms as
global supply and currencies exchanges. In this, it can be said that to cope with the fall of
selling the firm need to take intransitives in terms to attributable to changing taste and
increase competition in the industry (Meyer & Xin, 2018).
3. Socio culture- In this, it can be said that the changing taste of customer has also highly
impacted over the profitability of the enterprise. To have changes in customer
demographic means the firm need to take innovating initiatives in terms to meet out the
need and demand of the customers. In terms to have long term sustainability and to
enhance sales there is need to inclusion of low fat products.
4. Technological- with the advent of technological advancement, the enterprise is able to
improve its business process. It is assistive in terms to improvise the business relation
with the customers. With help using of effective social media strategies the firm is able to
engage with the customers.
5. Environmental- The environmental issues also barricades the future growth of the
enterprise. There are number of the environmental issues are being faced in terms to
issues in food production and deforestation and food miles (Bryson, 2018).
6. Legal- Higher level of rules and regulation are impacting the growth of the enterprise in
the huge context. There are number of issues as are minimum wages, holiday, sick pay,
rate of pay and other benefits are need to be considered.
Three competitors analysis on for McDonald's
The competitor analysis will be conducted in the following manner as are-
Poter's five forces McDonald KFC Burger king
Competitive rivalry The fast Food
restaurants is one of
the most competitive
enterprise in the
present scenario. The
competitors of
In this, KFC is also
facing intense
competition and the
main competitor of
this enterprise is In
order to attract the
The enterprise as
Burger King compete
with major firms as
Mcdonald's and
Windy's. It consider
the variety of firm in

Mcdonald's are other
fast food restaurants as
Burger king, KFC etc.
the each firm is taking
initiatives in terms to
spend on advertising
and continue open of
new franchise to
enhance the potential
customers. In addition
to this, enhancement in
the number of the
competitors has made
Mcdonald's the
effective and strong
force.
customer KFC offers
membership card to
the kids. With help of
it this firm is able to
attract the customer in
the market.
McDonald's. Thus, the
competitive rivalries
of the KFC is intense.
terms of types of
products, market focus
and other
characteristics.
Threat of new
entrants-
There are number of
issues in terms to enter
into the new market.
Thus, to enter the
McDonald in the glob
requires the massive
capital investment and
time and it also helpful
in order to create the
awareness among the
market. In addition to
this, it also can be said
that it requires the
effective marketing to
attract the customers
The fast food industry
requires the number of
investment at time of
taking entry into the
new market. In
addition to this, it can
be said that KFC and
McDonald's has it
brand image so strong.
The burger king
provides its customer
the effective service at
the lower price. In
order to take the entry
into market this entity
is also requires huge
investment.

(Greer, 2018).
Bargaining power of
suppliers-
In this, number of
suppliers are there
who wishes to be part
of Mcdonald's and
want to render them
services. Furthermore,
supplier are in no
position to the bargain
with the firm in order
to enhance its price.
This firm has also
strong brand
reputation in the
market. In order to run
its business function
effectively it is
essential to have
effectiev supplier and
due to lack of
production variation,
large size of orders
supplier cannot
attempt to raise the
prise.
The Burger is also
glovbal leading brtand
and provide effective
services to customer.
Thus, they require
large number of
supplier to carry out
their operational ac
activities in the
market.
Threat of substitutes There are number of
substitutes of this
enterprise as are KFC,
burger king etc.
Among this, most of
the substitutes are
competitive in terms
of consumer
satisfaction and
quality. In this, it can
be said that to compete
with the substitute it is
essential to provide
product with the health
concern.
This firm is facing
competition mainly
with local restaurant as
Arabic Fried chicken
in the middle east
region. To cope up
with it, KFC decided
to provide free Wi- Fi
services so that things
can be done
effectively and
efficiently.
Burger king is also
facing tough
competition in the
market. This firm has
also number of
rivalries in the market.
In order to cope up
with it, they also need
to bring innovation
taste of products. This
will helps to enhance
brand image of the
enterprise.

Strategic direction option discussion
The Mcdonald's cooperation should use Ansoff Matrix growth strategies in order to give
major focus over the present and potential products of the customer's. Thus, it has been defined
in the following presented manner as are-
Market penetration- This strategy will be adopted at the time when the enterprise enters and
penetrates the market with the existing products. In this, the one of the best way to achieve more
amount of profitability is to attracting the competitors customer with providing innovative offers.
This will also help to enhance market share of the enterprise (Song and et.al., 2018).
Product development- In this, it can be said that McDonald has always provided its customer
the new and innovative strategy. With help of undertaking the innovation effectively the growth
of the firm can be enhanced. This strategy will be assistive in terms to attracting the customer's in
the market.
Illustration 1: Ansoff growth matrix
(Source: Strategic Planning with the Ansoff's Matrix - Product-Market
Growth Matrix - Expansion Strategy Framework, 2018.)
Market development- The quoted firm is providing its services in more than the 119 countries. It
work as to produce the additional market segments on the geographical basis. With help of
entering into the new market the enterprise is able to enhance its revenue.
Diversification- The McDonald's can also introduce new products and brand in new market. This
strategy is also inclusive some sort of risk. In order to attract the customer's they may also offer
number of opportunities so that things can be done effectively.

Selection for one future McDonald's strategy for the UK
The revenue growth is goals of the enterprise and it is effective in terms to grab stronger
position in the market. Thus, new customers, new markets, and creation of new products and
doing a better job serving and this all are viable in terms to growth strategies. In addition to it,
this can be defined in following manner as are-
In order to run the function effectively, the McDonald's will adopt two strategies in future that is
market expansion and product expansion. With help of Market expansion the firm is able to
analyse the success of the firm in market. With help of entering into the new market, it is
possible to have room for growth. In this way, the firm is able to cover the number of market and
it will be helpful in order to have expansion of firm and enhancement in the profitability of the
enterprise. On the other hand, it can be said that product expansion will also be suitable in order
enhance the operational functions of the enterprise (Hunt, 2018). In terms to add new features to
the product it is possible to increase sales and profits of the enterprise. With help of this strategy,
the firm is able to bring modifications and innovation in the products and services. In order to
add new taste and flavours the firm can able to attract the number of customer in the market.
This all kind of strategy will be helpful to attract the customers of competitive firm.
Recommendation for McDonald's /conclusion
CONCLUSION-
By summing up the above report it can be concluded that strategic management is the
term that works as to focussing on long term planning and provides ultimate direction to the
enterprise. In addition to it, strategic goal of the enterprise will be helpful to achieve desire aim
and objectives. The present report is based on the business activities of the McDonald's and it is
global leading brand. Thus, report has covered the various things as are Pestle analysis, strategic
direction, Ansoff strategies and selection of future strategies so that growth of the firm can be
expanded. The main aim of this report is to focus over strategic manager so that long term
growth and sustainability can be enhanced.
RECOMMENDATION-
On the basis of above report, there are some following kind of recommendation and it has
to be presented in the below context manner as are-

1. The McDonald should work as to provide quality products to the customers so that the
brand image of the firm can be sustained for the longer period. With help of providing
services in the affordable manner will helps to maintain customer retention to firm.
2. Quoted firm should offer discounted services and attractive offer this will be assistive in
terms to grab the attention of buyers in market.
3. The Mcdonald's should adopt modern technical advancement to provide services to
customer. It can be done with help of strategic management planning and this works as to
maintain long term sustainability and profitability.

REFERENCES
Book & Journal
Litman, T. (2018). Developing an Integrated Parking Plan. In Parking Management Best
Practices. Routledge.
Gassmann, O & and et.al., (2018). The Industry Challenge: Who Would Want to Be in
This Business?. In Leading Pharmaceutical Innovation. Springer, Cham.
Meyer, K. E., & Xin, K. R. (2018). Managing talent in emerging economy
multinationals: Integrating strategic management and human resource management. The
International Journal of Human Resource Management. 29(11). 1827-1855.
Bryson, J. M. (2018). Strategic planning for public and nonprofit organizations: A guide
to strengthening and sustaining organizational achievement. John Wiley & Sons.
Greer, G. (2018). Win in India: An Analysis of Market Entry Strategy Into India’s Food
and Beverage Industry.
Hunt, S. D. (2018). The prospects for marketing strategy and the marketing discipline in
Era V: is the prognosis promising or problematic?. Journal of Marketing Management. 34(1-2).
86-95.
Song, R., Moon, S., Chen, H. A., & Houston, M. B. (2018). When marketing strategy
meets culture: the role of culture in product evaluations. Journal of the Academy of Marketing
Science. 46(3). 384-402.
Online
Strategic Planning with the Ansoff's Matrix - Product-Market Growth Matrix - Expansion
Strategy Framework. 2018. [online] Availagble through:<
http://www.anythingresearch.com/Strategic-Planning/Ansoff-Matrix.htm>