SIM336 Strategic Management Assignment Sample (GC0459)

Executive Summary

The aim of this paper is to critically analyze the business environment and its competitive advantages McDonald  Inc. McDonald’s is one of the leading food companies across the world. It was established in the US in 1954. The finding of this report comes from McDonald  Annual Report-2015, different other websites, journals, and academic books.

This report uses a number of models and theories to analyze and evaluate the business environment and competitive position of McDonald  Inc. In the first section, three particular strategic models are applied: Porter Five Force Model, McKenney’s 7’s Model, and SWOT Analysis. Here, Porter’s Five Forces Model is used to analyze McDonald’s competitive position, and the other models are used to analyze the business environment of McDonald  Inc. In the second section, three particular strategic business decision models are applied to develop strategic paths and choices for McDonald’s Inc. These models are Ansoff’s Growth Model, Marketing Mix (7’Ps) analysis, and Blue Ocean Strategic Model.

Porter’s Five Forces Model analysis discloses that McDonald’s is facing challenges and forces that come from its competitors, customers, and substitutes. McKinsey’s 7’S model analysis shows that McDonald’s has a very strong position in all of the factors of its business structure, business system, business strategies, business skills, business styles, business employees, and business shared values. The SWOT analysis of McDonald’s reveals that McDonald’s has a strong brand image and brand equity with other internal effectiveness. However, it has limitations mainly in product ranges and product prices. On the other hand, McDonald’s has lots of opportunities to improve its business activities including product and market development in the global market. However, it may face threats from the main external business environment, especially from political, economic, technological, and legal and social factors. Therefore, McDonald’s must be careful in making strategic decisions 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’s.

4.0 Conclusions and Recommendations for McDonald’s.

4.1 Conclusion and findings from the study.

4.2 Recommendations for McDonald.

Reference.

1.0 Introduction

Organizations in the food industry including McDonald are facing great challenges in gaining sustainable competitive advantages. Thus, it is significant for businesses including McDonald to conduct an effective analysis of their both internal and external business environment as well as competitive position (Johnson et al., 2014). This report conducts a critical analysis of the McDonald’s business environment and its competitive advantages. McDonald’s is one of the leading food companies across the world. It was established in the US in 1954. Although McDonald’s is now leading and dominating the food market, it has been facing great challenges nowadays in gaining sustainable competitive advantages in competing with its key competitors Burger Kings, Star Bug, Subways, Greggs, Pret A Manger, and supermarkets including Tesco, Sainsbury, ASDA, and Morrison.

This report uses different models and theories to analyze and evaluate the business environment and competitive position of McDonald  Inc. In the first section, three particular strategic models are applied: Porter Five Force Model, McKenney’s 7’s Model, and SWOT Analysis. Here, Porter’s Five Forces Model is used to analyze McDonald  Inc’s competitive position, and the other models are used to analyze the business environment of McDonald  Inc. In the second section, three particular strategic business decision models are applied to develop strategic paths and choices for McDonald’s Inc. These models are Ansoff’s Growth Model, Marketing Mix (7’Ps) analysis, and Blue Ocean Strategic Model. In the third section, this report summarises the conclusion and provides recommendations for McDonald’s on how it can improve its strategies to gain sustainable competitive advantages.

2.0 Application Strategic Models for McDonald  Inc

In this section, three particular strategic models are applied to analyze the business environment and competitive prostitution of McDonald  Inc: Porter Five Force Model, McKenney’s 7’s Model, and SWOT Analysis. Here, Porter’s Five Forces Model is used to analyze McDonald’s Inc’s competitive position. McKenney’s 7’S model and SWOT analysis technique are used to analyze the business environment of McDonald  Inc.

2.1 Porter’s Five Forces Model

Porter’s Five Forces Model is widely applied in global business organizations to analyze the business competitive position. This model is mainly applied when any business goes to make strategic decisions for the business and to evaluate the competitive position of the business in the marketplace. This model mainly emphasizes five key factors, which are the threat of new entrants, industry rivalry, the threat of substitutes, customer bargaining power, and supplier bargaining power (Kotler et al., 2014).

The main strengths of this model are this model gives a better understanding of business forces that come from the business external environment. Thus, a business organization can make effective decisions. However, this model has limitations, which in this model only focuses on five key factors identified in the above diagram and only focuses on the business external environment. Thus, businesses cannot depend on only this model, they need to use other strategic models to achieve their goals (Kotler et al., 2014).

Porter’s Five Force’s  Analysis for McDonald

Competitive Rivalry

A business market share rivalry can be low to moderate to high/extreme. The competitors may have the extreme intensity to beat the competitors in the industry. Although McDonald’s is leading and dominating the global food market, aggressive competitors are putting extreme pressure on McDonald’s, where the key extreme competitors are Burger Kings, Star Bug, Subways, Greggs, Pret A Manger……..

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