McDonald’s Strategic Analysis | academiascholars.com

1. QUESTION
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.

Introduction

This portfolio work project will you demonstrate your understanding of strategy and the factors that must be considered when formulating and implementing strategy.

Scenario

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.

Your Role

You are a strategic analyst for the company you have selected to use in this course.

Requirements

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.
- Recommendations:
  - 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?
Deliverable Format
- 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.
Evaluation

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.”

Subject	Business	Pages	8	Style	APA

Answer

McDonald’s Strategic Analysis

Introduction
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
Strengths
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
Weaknesses
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
Opportunities
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)
Recommendations
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

This question has been answered

References

KFC (2015), “KFC Franchising” https://www.kfc.com/franchising.
McDonalds (2018), “Our History”, available at: https://www.mcdonalds.com/us/en-us/aboutus/our-history.html.

Appendix

Appendix A:

Communication Plan for an Inpatient Unit to Evaluate the Impact of Transformational Leadership Style Compared to Other Leader Styles such as Bureaucratic and Laissez-Faire Leadership in Nurse Engagement, Retention, and Team Member Satisfaction Over the Course of One Year