Mcdonald Business Strategy

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3.1 Summary of External Assessment

|Opportunities | |1 Customer Demand |The needs for the good quality control of fast food and hygienic environment. | |2 Compliance supply chain |Ensure the quality and cost control with economies of scale from large ordering. | |3 New launch of food product | Promoting new healthy menu and creating needs to customers. | |4 Annual market growth rate | Focus the market segment of young and energetic people and right positioning in high quality| | |products | |5 Social/ political/ legal impact | Enhancing the advance technology on the cosmetic products with no harm to the environment | | |and natural to skin. |

|Threats | | | |1.Competitive intensity |Very strong competition in catering market. | |2.Technological requirement |Need innovation and investment in developing high technology in farming to improve the quality| | |of meat provided. | |3 Overall market size | The overall market size is becoming saturated. |

3.2 Competitive Profile Matrix (CPM)

| | |McDonald’s |KFC |Wendy | |Critical Success Factors |Weight |Rating |Weighted Score |Rating |Weighted S |Rating |Weighted | | | | | | |core | |Score | |Market share |0.20 |3 |0.6 |2 |0.40 |2 |0.40 | |Price Competitiveness |0.15 |3 |0.45 |3 |0.45 |3 |0.45 | |Financial position |0.10 |4 |0.4 |3 |0.30 |2 |0.20 | |Product quality |0.30 |3 |0.90 |3 |0.9 |2 |0.6 | |Consumer loyalty |0.25 |2 |0.5 |2 |0.5 |2 |0.50 | |Total |1.00 |3.05 |2.55 |2.15 |

Note :
Weight (a) : 0.00 = Not important in the Industry 1.00 = Important in the industry Rating (For external factors) (b) :
1 = Major threats, 2 = Minor threats, 3 = average strengths, 4 = Major strengths Rating (For external factors) (b) :
1 = Major weakness, 2 = Minor weaknesses 3 = Average strengths, 4 = Major strengths

Conclusion
Weighted Score (a x b) :
4 = Enterprise is at strong competitive position
1 = Enterprise is at weak competitive position
2.5 = Mid-point

Findings of CPM
As the result shown in the above table for Competitive Profile Matrix (CPM), we found that McDonald’s got the highest score, 3.05; KFC and Wendy got 2.55 and 2.15 respectively. Therefore, McDonald’s competitive...
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