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Second Strategic Analysis Case # 17, McDonalds and the McCafe Coffee Initiative

This case is brief and focused as it is presented by the text/authors. However, there is much more to it than meets the quick first reading. For this case analysis, use the information in the text to define the part of McDonalds’ business you will examine. Use the company’s Internet site to supplement your understanding of the issues presented in the case – which still exist today.

Using APA format and succinct commentary, prepare a 6 to 7 page analysis of this case by addressing the following questions: (You can use attachments to supplement the paper)

1. What business level strategy does McDonalds appear to be using? (ref Chapters 5 & 6) What niche (cost, differentiation, focus) do they fill in this highly competitive industry, and is it sustainable?

2. Using the Porter’s 5 Forces model, explain the new venture’s relative position in relationship to industry competitive forces.

3. Identify McDonald’s corporate strategy as it applies to McCafe in terms of (i) direction (ii) composition and (iii) size, explain McDonald’s corporate strategy.

4. How does McDonald’s corporate strategy create value? Identify the factors that fueled McDonald’s growth.

5. Is McDonald’s current corporate strategy the best one it can have? Justify your answer.

6. Assume that McDonald’s McCafe initiative hit a plateau in terms of its growth. What should McDonald’s do to overcome such a roadblock?

7. Summary – summarize what this case has illustrated in terms of the strategic principles you have been learning.

Case Analysis Assessment:

Content – the analysis addressed the strategic analysis content area. It used the language of the course (text) appropriately and conveyed the correct information. Each of the 8 sections required were correctly addressed with information from the case and instructor supplied...