Create an 8-12-slide PowerPoint presentation that summarizes the AFI Framework and the results of the internal and external analyses. Your presentation must also include a SWOT matrix for the company and your recommendations for strategies to move the company forward, that align with organizational structure and governance, and reflect ethical responsibility.
This portfolio work project will you demonstrate your understanding of strategy and the factors that must be considered when formulating and implementing strategy.
Organizational leadership of your company has requested that you present your analyses of the company, as well as recommend potential strategic actions that could be taken to address issues raised by your analyses.
You are a strategic analyst for the company you have selected to use in this course.
Develop a PowerPoint presentation of 8–12 slides that synthesize the work you did on Assessments 2 and 3 and incorporate feedback from your instructor. Use the speaker’s notes sections of each slide to expand your talking points. Be sure your presentation includes:
- A summary of the AFI framework.
- Results from your internal analysis (VRIO or Value Chain).
- Results from your external analysis (PESTEL and Five Forces).
- A SWOT matrix for the company.
- Do the current strategies need to be changed?
- What strategies will move the organization forward?
- How do your recommendations align with organizational structure and governance?
- Do your recommendations reflect ethical responsibility?
- PowerPoint presentation.
- 8–12 slides (in addition to the title and references slides).
- Include additional details on each slide in the speaker’s notes section.
- Additional requirements.
- Title slide.
- References slide.
- APA formatted references from at least five sources.
- Be sure you consider the audience.
By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies through corresponding scoring guide criteria:
- Competency 1: Assess the importance of strategic management for supporting long term success and sustained competitive advantage.
- Summarize the strategic framework for a company.
- Competency 2: Apply strategic thinking approaches to resolve business-related challenges.
- Develop a SWOT matrix for a company.
- Competency 3: Analyze the internal and external environments of an organization in order to formulate and implement successful strategies.
- Summarize the findings of an internal environmental analysis.
- Summarize the findings of an external environmental analysis.
- Competency 4: Apply strategic concepts and models to ensure the fit between strategy, organizational structure, capabilities, and goals; and the external environment.
- Recommend strategic actions for a company that align with organizational structure and governance, and reflect ethical responsibility.
- Competency 5: Communicate business needs, opportunities, and strategies with multiple stakeholders.
- Correctly format citations and references using current APA style.
- Write content clearly and logically with correct use of grammar, punctuation, and mechanics.
Your instructor will use the scoring guide to review your deliverable as if they were a member of executive leadership. Review the scoring guide prior to developing and submitting your assessment.
The following resources examine strategic alliances:
- Hughes, J., & Weiss, J. (2007). Simple rules for making alliances work. Harvard Business Review, 85(11), 122–131
- Dyer, J. H., Kale, P., & Singh, H. (2004). When to ally & when to acquire. Harvard Business Review, 82(7/8), 108–115.
The following resources will help you expand your knowledge and understanding of the alignment between strategy and elements of the organization such as structure, governance, and ethical responsibility:
- Porter, M. E., & Kramer, M. R. (2006). Strategy & society: The link between competitive advantage and corporate social responsibility. Harvard Business Review, 84(12), 78–92.
- Porter, M. E., & Kramer, M. R. (2011). Creating shared value. Harvard Business Review, 89(1/2), 62–77.
- Rothaermel, F. (2017). Strategic management concepts(3rd ed.). New York, NY: McGraw-Hill. Available from the bookstore.
- Chapter 11, “Organization Design: Structure, Culture, and Control.”
- Chapter 12, “Corporate Governance and Business Ethics.”
McDonald’s Strategic Analysis
- McDonalds is the largest food chain industry
- It offers burgers, chips, chicken, pizza, sausages and regional meat offerings like bacon, spam and steak, among others
- The firm serves 160 billion consumers within 100 countries globally (McDonalds 2018)
- Its sustainable competitive advantage is focused on its adherence to service and product differentiation
- Competitive advantage is taste universality
- Results from Internal Analysis (VRIO)
- It is a tool for analyzing a business’ internal environment
- Analyzes financial, material, human and non material resources
- Acronym for value, irritability, rareness and organization
- Provides ways for attaining a competitive advantage
- Complements other strategic management tools
- Value of Products and Rareness of the Resources
- Value is based on quality of food products sold
- The products meet the consumers exact needs
- McDonalds’s products are of high quality
- The firm maintains a sustainable customer relationship
- The firm has diversified widely across the globe
- The resources used are readily available
- The firm can readily maintain its identity
- The unique products give its products a unique taste
- Imitability of Products and the Organization
- A section that McDonalds’s has not been able to seal
- It is a persistent challenge (McDonalds, 2018)
- Rival firms have successfully imitated the brand’s packaging styles and got patents for them
- It counteracted with the evolving packaging materials
- The company reflects a simplified structure
- Eliminates bureaucracies (McDonalds, 2018)
- Optimal utilization of human resources
- Results from External Analysis (PESTEL Five Forces)- Company Competitors
- KFC is McDonald’s major competitor (KFC, 2015)
- Maintains a wide advantage over fast food chains with a high market share
- It offers superior products at the same costs offered by other companies with inferior products (KFC, 2015)
- Burger King offers desserts, soft drinks, hot dogs, chicken and French fries of good quality
- It is a cost leader by offering foods at affordable prices to attract a wider market segment
- Likely New Entrants and what buyers could possible purchase
- The fast food industry is a free industry McDonalds’s products’ license is special
- New entrants focus on producing healthier products
- Threatens McDonalds’s market dominance
- Huge economies of scale (McDonalds, 2018)
- Understand the moves of clients to maintain their circle
- Investing in continuous research and development
- Adjust to emerging market trends
- The Bargaining Power for Customers and Suppliers
- Fast-foods market-a negative bargaining ground for buyers
- The firm sells products to clients at desired market price
- It is difficult for buyers to bargain based on market costs
- The company does not bear any market costs
- Increases the clientele bargaining points
- The company has several food suppliers through deliveries
- Suppliers use variation in food prices as bargaining points
- The firm needs to graduate and become its own supplier
- A SWOT Matrix for the Company
- Automation of activities provides quality to products
- Integration of complimentary firms through acquisition and mergers (McDonalds, 2018)
- Highly skilled workforce through training
- Good returns on capital expenditure
- Strong dealer community
- Strong free cash flow (McDonalds, 2018)
- High customer satisfaction level
- Gaps in product range
- Poor product demand forecasting
- Limited success outside core business
- Improper financial planning
- High days inventory
- Limited investment in research and development
- Lower inflation rate
- Opening up of new markets
- Decreasing transportation cost
- Stable free cash flow
- New trends in consumer behavior
- New environmental policies
- Organizational core competencies
- Threats facing McDonald’s
- Change in consumer buying behavior
- Intense competition (McDonalds, 2018)
- Counterfeit and low quality products
- Irregular supply of innovative products
- Differences in liability laws
- New environmental regulations
- Currency fluctuations as McDonald’s operates in different countries (McDonalds, 2018)
- Current strategies need to be fixed
- Introduction of extra recipe that suite the local taste
- Maintain service quality as a differentiation strategy
- Open to more outlets in rural locations to expand its market segment further
- Maintenance of product quality monitoring the local tastes and preferences
- Enhancement of product service standardization during menu development
- They align with organizational structure and governance
- G rounded on four strategic pillars; value, services, cleanliness and quality
- They should be engraved in the firm’s brand identity
- Successful franchise both in the international and local market levels
- The recommendations reflect ethical responsibility
- Advocacy for health consumption and environmental protection for sustainable development