The following assignment talks about the strategic management in context to McDonalds. Strategic management is one of the critical issues to be studied by a company in order to understand the causes and solution of the problems and hurdles in the way of the success of the business and its market growth. As we all know that it's a world of globalization and competition and therefore every company has to make certain plans and strategies in order to tackle the problems they face due to the competition in the local and global markets. Every company has to make effective strategies and plans in order to tackle the internal and the external problems faced by the company. Internal problems can be linked with any internal department or process such as HR or Pay role or machinery etc and the external challenges can be competition, changing technologies etc. Globalization on one hand gives benefits to the company to explore new markets and increase its customers in order to make more profits but it also poses different problems and challenges which the company has to tackle to continue its success in the new markets. Company has to design proper strategic plan to point out and tackle the problems curbing the success of the business. Either it's a local or a global market company always needs an efficient strategy to tackle the issues curbing its success in the market. This assignment will discuss the various strategic issues of concern for the McDonalds and plans it has designed to tackle these problems. We will be using different strategic models such as Product Life Cycle, Porter's Five Forces model and BCG matrix in order to understand the issues of strategic concern for the company and how to tackle them for the success of its business.
STRATEGIC MANAGEMENT- Strategic management is the systematic study of the external environment i.e. customers, economical and political environment, competitors etc and the organization's internal environment i.e. customers, competitors, buyers, suppliers etc in order to find the basis of valuable information and knowledge essential for applying the management studies effectively which in turn contributes in improving the efficiency of the business. The main purpose of the study of strategic management is the effective application and use of policies and strategic priorities of an organization. Strategic management study is the blue print of the company's plan and different measures or steps its going to take in order to achieve its long term goals and objectives. Strategic management helps the organization to prepare it in improving in the areas where it is lagging and which are obstructing its way to success and achieving its future goals and objectives in order to improve its performance and position in the market.
Features of Strategy-
1. Strategy helps the company to deal with any uncertainties obstructing the company's path to success. 2. Strategy focuses on the long term goals and objectives of the company rather then its day to day operations. The strategic management process has following four steps-
1. Environmental scanning
2. Formulation of strategy
3. Implementation of strategy
4. Evaluation of strategy
COMPANY BACKGROUND- The idea of business was generated by two people Dick and Mac MacDonald who started with a barbeque restaurant in California. In the year 1948 they founded the McDonald which was the first self-service drive in restaurant. After that they kept on expanding locally in the America. It was the year 1967 when McDonalds gone international by opening its first global restaurant in Canada and Puerto rico. The McDonald launched its website mcdonalds.com in 1996.in its history of almost 60 years, McDonalds has grown a lot locally and globally. Today it is running around thirty one thousand restaurants in around one hundred twenty different countries around the world.
STRATEGIC ISSUES, PROBLEMS AND...