External and Internal Analysis Mcdonalds Essay - 2377 Words

Date: August 23, 2010 To: Professor Kopka From: Veronica Salas Subject: Strategic Analysis for McDonalds EXTERNAL AND INTERNAL ENVIRONMENTAL ANALYSIS External Analysis There are two conditions that are most significant in McDonald’s external environment that are: 1. The new trend in which customers are changing fast –food restaurants to healthier ones. 2. The arising competition to achieve growth in this industry. The fast-food industry is very complex and saturated. The key success factors in APPENDIX 1 show that in order to be able to compete there is a need for research and development, achieve differentiation with your competition, create quality with your products, and be price competitive. Large capital is†¦show more content†¦They have already established certain steps all the franchises need to implement to create the final product; it is easier to change ingredients rather than changing all the operations in order to introduce new products. McDonalds will save money from the development of new product and use it to pay for the new healthier ingredients. This alternative also lets McDonalds reach new markets, without losing their image and brand recognition. While addressing to issue 2, the preeminent alternative is to create a long-term contract with a supplier t reduce costs. In order to produce new healthier products McDonalds needs to spend in buying the new products that will have a premium price. With this contract, McDonald will have a close relationship with the supplier and they will be both beneficiating from it. McDonalds will have the same products they need at a lower price. Their revenues would increase because they are satisfying their customers unmet needs. Last, the supplier would benefit from having a long-term buyer. APPENDIX 1: Selected External Analyses Key Success Factors for Industry Competition * Research and Development for new products * Quality of customer service * Trained employees * Competitive prices * Have strong relationships with supplier, in order to receive low cost raw materials. * Building trust and loyalty towards brand. * GoodShow MoreRelatedHuman Resource Planning and Development Leads to Success Essay examples1396 Words   |  6 Pagesorganization to ensure its workforce has necessary competencies or skills to meet the current and future job demands. In essence, human resource planning and development focuses on labor supply and demand in an organization. McDonalds’ Labor Demand and Supply: McDonalds Corporation is the leading fast food restaurant chain across the globe that serves tens of millions of customers on a daily basis. The corporation has fast food chains in more than 200 countries worldwide and customizes its foodRead MorePestle Analysis Of Mcdonalds1628 Words   |  7 PagesPESTLE analysis PESTLE is the analysis of the factors that could affect a business on a macro level. McDonalds franchise strategizes issues identified in this PESTLE analysis. The PESTLE analysis model determines the different external factors that offers opportunities or threats to the business based on its macro-environment. In the global fast food restaurant market, McDonalds is focused on economic and sociocultural factors. Nonetheless, the company’s success is indicative of its effective strategiesRead MoreMcdonalds : Mcdonald s Restaurant1146 Words   |  5 PagesEven McDonald has built in America but in recently, to describe McDonald’s restaurant, it is one of the biggest fast food restaurants in the world. Today, McDonald has cover more than 100 countries, more than 30,000 restaurants and serves more than 50 million worldwide in one day. McDonald use letter M with golden color for their logo, the logo is really important because the company show the brand quality and company has developed for customers for many years ago. However, the McDonald has beenRead MoreMcdonald s Business Strategy Analysis1465 Words   |  6 PagesEven McDonald has built in America but in recently, to describe McDonald’s restaurant, it is one of the biggest fast food restaurants in the world. Today, McDonald has cover more than 100 countries, more than 30,000 restaurants and serves more than 50 million worldwide in one day. McDonald use letter M with golden color for their logo, the logo is really important because the company show the brand quality and company has developed for customers for many years ago. However, the McDonald has beenRead MoreSwot Analysis Of Mcdonald s Australia Holdings1552 Words   |  7 PagesSWOT analysis of McDonald’s Australia Holdings 1. Executive analysisAustraliaï ¼Å¡SWOT analysis of McDonald’s Australia Holdings ä » £Ã¥â€ â„¢ This report intends to evaluate the external and internal environment of McDonald’s Australia Holdings, in which new product is to be realized and defining strategies appropriate to its realization. In this report, it will analyze the external and internal environments (SWOT) of the McDonald’s Australia Holdings, which includes the strengths, weakness, opportunities andRead MoreMcdonalds and Hotels1190 Words   |  5 PagesMcDonald s Hotels Written Case Analysis By Sean Bibbey SWOT Analysis External Environment The external environment of the hotel industry in is very competitive and already well established. Trends in the market include promotional campaigns to customers using the more bang for your buck, method. There are several different segments of the hotel industry including: luxury, upscale, mid-market with food and beverage, mid-market without food and beverage, economy, and budgetRead MoreForecasting Techniques For Planning Purposes977 Words   |  4 Pagesbut also a means of survival, which is why predicting the future, is so important for the short and long-term success of an organization. As the northeast vice president of operations for McDonalds, I have the complex and challenging role of ensuring accurate forecast are submitted for the internal and external demand for our products. In this paper, I will describe the demand techniques used for both my short-term and long-term planning and why these techniques are most affective. AdditionallyRead MoreIntroduction And Situational Analysis : Mcdonalds939 Words   |  4 PagesSituational Analysis Since it’s opening in April of 1955, McDonalds has become a popular global fast-food chain. Its popularity is mainly due to consistency, location and most importantly, price. By keeping food prices low, they gained the upper hand in the fast-food industry, but that doesn’t mean the food is also something to celebrate. McDonalds promoted the idea of cheap food at a cheap price. Their impact on global obesity increases as they gain more fame internationally. For years now McDonalds hasRead MoreMcdonald s Corporation : The World s Largest Chain Of Fast Food Restaurants Essay1600 Words   |  7 Pagesthrough more than 36,538 restaurants in 119 countries worldwide (McDonald s, n.d.). McDonald’s is one of the most valuable brands, worth more than $25 billion. The business began in 1940, with a barbecue restaurant opened by brothers Dick and Mac McDonald in San Bernardino, California. The present corporation dates its founding to the opening of a franchised restaurant by Ray Kroc in Des Plaines Illinois on April 15, 1955 (McDonald s, n.d.). The annual report of McDonald’s Corporation on Form 10-KRead MoreEthical Issues Facing McDonalds1772 Words   |  7 PagesProblem/Issue Identification Ethical Issues Facing McDonalds McDonalds puts in a lot of effort in supporting children with severe diseases. However, the diet this company offers contributes to heart diseases, asthma, obesity, and likely even mad cow disease. Adults and children are getting the wrong message in the society today. For instance, around 59 of 250 hospitals house fast food restaurants. Expenditure on fast foods from McDonalds has been on the rise as years pass by. The company has been