SIM336 Strategic Management _McDonald (GC0349)

Executive Summary

The purpose of this paper is to importantly analyze the business environment along with its competitive position of a particular company, named McDonald Inc.

McDonald’s is one of the leading food sector business organizations over the globe. McDonald started its business in 1954 in the USA. The data of this paper are collected from McDonald Annual Report-2015, different academic books, websites, and journals.

This paper applies several models and analytical tools to investigate as well as assess the company business environment in addition to the competitive completive situation of McDonald Inc. In the first part, three widely recognized models are used: McKenney’s 7S Model, SWOT Analysis, and Porter’s Five Force Model. For analyzing the competitive position of McDonald’s business, Porter’s Five Forces Model is applied in this paper. In addition, the SWOT Analysis tool and McKenney’s 7S model are applied to assess and analyze the business internal environment for McDonald’s. Then, for making the right strategic choices for McDonald’s three other tools have used in this coursework, which are Ansoff’s Growth Model, Blue Ocean Strategic Model, and Marketing Mix (7, Ps)

There are a number of challenges and forces that have been found out through the analysis of Porter’s Five Forces model on McDonald’s, where the key forces come from competitors, customers, and threats of new entrants. McKinsey’s 7’S model investigation illustrates that McDonald’s has a very well-developed situation in every one of the issues of its company arrangement, company scheme, company policies, company abilities, company methods, company staff, also company operational costs. The SWOT investigation on McDonald’s discloses that McDonald’s has quality products offer with another internal efficiency. On the other hand, it faces challenges mostly in manufacturing goods and their costs. In contrast, McDonald’s has many facilities to develop its company activities including manufactured goods in the worldwide marketplace. Though, it July face difficulties from mostly external McDonald’s business environment, particularly from political and governments, financial and economic, technological, legal, social, and demographic issues. So, McDonald’s has to be more dynamic and innovative s in creating effective strategies for its business.

Table of Contents

1.0 Introduction.

2.0 Application Strategic Models for McDonald  Inc.

2.1 Porter’s Five Forces Model

2.2 McKinsey 7’S Model Analysis.

2.3 SWOT analysis.

2.4 BCG matrix.

2.5 Porter’s value chain to the company.

3.0  Strategic models for McDonald’s decision making.

3.1 Ansoff’s Growth Matrix for McDonald  Inc.

3.2 Marketing Mix (7’P) Analysis.

3.3 Application of Blue Ocean Strategy Model for McDonald.

4.0 Conclusions and Recommendations for McDonald.

4.1 Conclusion and findings from the study.

4.2 Recommendations for McDonald.

Reference.

1.0 Introduction

The food sector industry in the UK including McDonald’s facing severe challenges in the marketplace in gaining their competitive advantages and organizational goals. Thus, organizations need to conduct analysis on their business environment including both internal and external to understand the competitive positions and take effective strategies to survive in the competitive market (Johnson et al., 2014). McDonald’s was founded in 1954 and recognized as a popular food organization across the world. However, it has been facing different challenges mainly from major competitors including new entrants, Subways, Burger Kings, Pret A Manger, Greggs, Star Bug, in addition to superstores including Morrison, Tesco, ASDA, and Sainsbury.

The aim of this coursework is to analyze and assess the business environment of McDonald’s and its competitive positions. After analyzing the competitive position and business environment, this paper applied different models to create strategic choices for McDonald’s. Finally, this paper has made recommendations for McDonald’s based on the findings of the analyses in the previous sections. This paper applies several models and analytical tools to investigate as well as assess the company business environment in addition to the competitive completive situation of McDonald Inc. In the first part, three widely recognized models are used: McKenney’s 7S Model, SWOT Analysis, and Porter’s Five Force Model. For analyzing the competitive position of McDonald’s business, Porter’s Five Forces Model is applied in this paper. In addition, the SWOT Analysis tool and McKenney’s 7S model are applied to assess and analyze the business internal environment for McDonald’s. Then, for making the right strategic choices for McDonald’s three other tools have used in this coursework, which are Ansoff’s Growth Model, Blue Ocean Strategic Model, and Marketing Mix (7, Ps)

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2.0 Application of Strategic Models for McDonald Inc

For analyzing the business environment including internal and external environment three models are used here which are the SWOT analysis tool, Porter’s Five Forces Model, and McKenney’s 7’S Model. SWOT analysis tool and McKenney’s 7’s model are applied to analyze the internal environment of McDonald’s and Porter’s Five Forces Model is applied to analyze competitive positions and external analysis of McDonald’s.

2.1 Porter’s Five Forces Model

Porter’s Five Forces model is a model that is widely used and applied in the current business world to analyze the business external environment and to investigate the business’s competitive positions. In addition, this model also supports the business to make the right strategies for the business based on its findings. Kotler et al. (2014) stated that this model most importantly highlights five main issues, that are risk of a new competitor, existing competitors, plus the threat of substitutions, suppliers, and consumer bargaining power……………………

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