Strategic Business Analysis of Macdonald's Corporation

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University of Liverpool Management School
MSc in Operations and Supply Chain Management

Strategic Management and Business Analysis

‘Strategic Business Analysis and Evaluation of McDonald’s Corporation’

January ’2012

Prepared by:
Mohammad Marai , Georgia Kabantega , Anthony Amoonu , Meng Foo , Oluwadamisi Tayo-Ladega

Word Count: 3,306 excluding Cover page , table of content ,references and appendices. Table of Contents

Project Summary 3
MacDonald’s Organization Overview3
MacDonald’s Mission3
MacDonald’s Products4
MacDonald’s Current Business Strategy4
Financial Situation6
MacDonald’s Organization Structure6
MacDonald’s Key Business Issues7
SWOT Analysis8
Porters Five Forces Analysis10
Financial Ratio Analysis12
BCG Analysis16
Discussion20
Strategic Options Analysis20
Recommendation at SBU Level21
Conclusion 22
Appendix22
References25

Figures & Appendices :

Numbers of Figures : 14
Number of Appendices : 2

* Project Summary
In this project , we performed a strategic analysis for MacDonald’s corporation using a different technique to discover the current strategic position vs. the available opportunity for the organization. The results are used to suggest a strategic options to attain a higher growth in market share and profits. The suggested strategies are analyzed and narrowed down to agree on the best strategy to be implemented. The ability of applying these strategies are supported by further analysis tools like Financial Ratio and Porters Five Forces. The analysis will support our argument that MacDonald’s needs to implement a Penetration strategy and maintain a competitive advantage through strong innovations that satisfy customer needs and enhance customer experience. * MacDonald’s Organization Overview

MacDonald’s is an international company in the fast food industry that conducts a business in more than 119 countries and operates more than 34,000 restaurants today across the different regions in the world. It is known to be one of the main franchising companies. They started in USA in 1940 when Dick and Mac MacDonald’s opened a small Bar-B-Q restaurant in San-Bernardino in California. Eight years later they introduced a nine items including burgers , milk , potato chips , soft drinks and pies. In 1976 MacDonald’s started to be classified as international business when it commenced the first restaurant in Canada. It continued to develop its products and services and expanding its business to different countries until they were able to operate in 119 countries. Today , MacDonald’s are employing 1.8 Million Employees , 80% of its restaurants are franchised and it serves about 69 Million consumer a day. It is now a market leader and the biggest rival in the restaurant industry.

* MacDonald’s Mission
MacDonald’s mission is to be the favorite place for customers to eat. This will be through operations improvement and customer service enhancement based on a global strategy called “ Plan to Win”. This strategy focuses on customer service , products , places, price and promotions. MacDonald’s (2011:4).

* MacDonald’s Products
MacDonald’s introduce the following items for its customers , 1. Burger and Sandwiches
2. Chicken
3. Salads
4. Breakfast
5. Snacks and Desserts
6. Beverages
Each item contain a list of different items introduced , for example MacDonald’s introduce 11 different types of breakfast and 14 different chicken meals. This is to increase its choices that match the requirements of different customers.

* MacDonald’s Current Business Strategy Analysis
Andy McKenna, chairman of McDonald’s, note that the “Plan to Win” strategy will remain a key guide for McDonald’s strategy. This strategy will be focusing on the following different areas as the main objectives for the business; 1. Customer Service

* Customers still...
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