BSBLDR802: Strategic Leadership Report - McDonald's SWOT Analysis

This report provides a strategic analysis of McDonald's Singapore, beginning with a SWOT analysis identifying the company's strengths, weaknesses, opportunities, and threats within the Singaporean market. Strengths include high-quality food and efficient service, while weaknesses involve a limited menu and potentially lower staff pay compared to competitors. Opportunities exist for expansion given the popularity of fast food, but threats arise from local competitors offering similar products at lower prices. The analysis emphasizes the need for McDonald's to differentiate itself through menu innovation and competitive pricing. Furthermore, the report identifies and discusses the roles and potential impacts of internal stakeholders (investors) and external stakeholders (customers) on McDonald's Singapore's operations, highlighting how their interests must be considered for sustained success. Desklib provides access to this and other solved assignments to aid students in their studies.

Running head: STRATEGIC LEADERSHIP
Strategic Leadership
Name of the Student
Name of the University
Author Note

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802 – Assessment Task 2
1. Chosen Organization – McDonald’s Singapore
2. SWOT Analysis of McDonalds Singapore
Strengths – McDonalds Singapore provides customers with high quality and sumptuous
burgers and fries, which are free from the use of preservatives and which suit the diet of
young and old alike. Services are rendered efficiently and quickly by competent
professionals, with both in-dining and take away facilities being made available for
customers of every budget.
Weaknesses – McDonald’s Singapore offers great fast food for customers, but its menu is
becoming more limited and staid with there not being too many exciting food options for
customers to choose from. The pay offered by McDonald’s Singapore for staff members is
also not as high as that which is offered by rival fast food joints in the same city, which in
turn implies that there are not too many serving on the payroll of McDonalds Singapore,
making it difficult for the fast food joint to cater to the requirements of as many customers as
it would like to.
Opportunities – Given the love for fast food in a city like Singapore, McDonald’s fast food
joint is one that has several opportunities to expand in the city. The burgers and fries of
McDonalds are favored and loved by people of all ages, from thirteen to seventy, so the joint
is certain to do as well as it is now, if it opens another branch or store in Singapore.
Threats – The burgers, fries and other fast foods offered at McDonalds Singapore are not too
different in terms of taste and freshness from the fast food offered by related enterprises in
the same city. There are many local joints in Singapore for instance, that offer similar and

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delicious fast food for prices that are more competitive, resulting in McDonalds having no
monopoly over the fast food loving population of Singapore.
Summary
From the SWOT analysis that has been carried out above, what is evident is that
McDonalds Singapore is an enterprise that is doing quite well in Singapore and that there is
plenty of scope for the organization to grow and expand, given that people living in
Singapore happen to love fast food very much. McDonalds offers delicious fast food that is
quickly served, and customers even have the wonderful option of ordering food from the
home or office if they wish to. However, this is not a fast food chain that has any monopoly
over the fast food industry of Singapore, given the presence of local fast food eateries in the
city that offer similar foods for far lower prices. McDonalds must position its services more
uniquely in the market for fast food in Singapore by offering newer items on its menu for
competitive prices, as this will result in a greater footfall, making it the most favored fast
food joint in the city. The organization should also consider paying employees better, in order
to be able to hire the sufficient number of staff it needs to cater to as many customers as
required for incurring huge profit.
Part B – Stakeholders in McDonalds Singapore
Internal Stakeholders – Investors
External Stakeholders – Customers
The internal stakeholders of McDonalds Singapore are people who have invested in
the McDonalds Franchise in the city and who have major stakes in the enterprise. The
internal stakeholders are likely to be greatly affected by any profit or loss that may be
experienced by McDonalds Singapore, given that they are substantively involved in the

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business of the organization, by virtue of the amount of money that they have chosen to
invest in it. The external stakeholders of McDonalds Singapore are of course the customers of
this fast food joint, who love visiting the store in their free time with their friends and family
members in order to be able to dig into their favorite chips, burgers and fries. Both the
internal and external stakeholders in the McDonalds Singapore organization have a vital role
to play in ensuring the smooth and efficient running of the enterprise in the city of Singapore
over the long term. Investors play a crucial role in providing the capital that is needed for this
fast food joint to grow, expand, develop and prosper. Customers on the other hand are the
clients who bring the revenue to the organization and who are responsible for the fast food
joint being able to exist and prosper in the food industry of Singapore over the long term.
Hence it is imperative to look into the interests of both the internal and external stakeholders
when running an enterprise such as McDonalds Singapore.
An example of how investors can be affected by the way in which McDonalds
Singapore operates is during the emergence of a new fast food joint in the city, which offers
food similar to that of McDonalds Singapore but at a far lower rate. The returns for
investment for such investors will not be as high as it normally is, when such a threat
emerges, as customers will prefer to enjoy fast food for a price that is lower than what is
charged by McDonalds. Similarly, customers can also be affected by McDonald’s Singapore
operations, if the staff working at the enterprise decide to go on strike because of low wages
and not serve food for a day or two. This will not only result in a huge loss of revenue, but it
will also mean that customers who are used to eating McDonalds food on a daily or regular
basis in Singapore will have to forego their favorite and conveniently priced meals for some
time. They may at this point of time have to opt for more expensive food until and unless
operations are normal at McDonalds Singapore once again. It is therefore crucial that
McDonalds Singapore as an organization looks into the needs and interests of both internal

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and external stakeholders, that is, both those who have invested in McDonalds Singapore as
well as the customers, if it intends on running its operations consistently in Singapore for as
long as possible.