Strategy in Global Context

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Strategy in Global Context
January 29
2010

Submitted To: Mr. Nirmaalya B Biswas Submitted By: Jaskaran Singh Apoorva Veeksha Rai Robin Gupta

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Table of Contents
Executive Summary3
Introduction4
External Environment5
Internal Assessment6
Organizational Purpose8
Strategy Analysis and Choice9
Current Strategy11
Conclusion11
Bibliography12
Annexure-113
EFE Matrix13
Annexure-214
Per capita income14
Annexure-315
IFE Matrix15
Annexure-416
The Internal – External (IE) Matrix16
Annexure-517
The Grand Strategy Matrix17
Annexure-618
QSPM18


Executive Summary
McDonald’s is a signature restaurant chain serving 58 million customers each day all over the world through its 31000 restaurants in 119 countries. This report views the various internal and external factors affecting the McDonald’s prior to that the report gives a brief introduction about McDonald’s, its evolution and the way it entered the Indian market. Evaluation of the response McDonald’s is giving to the internal and external factors has been calculated through the Internal Factor Evaluation matrix and External Factor Evaluation matrix. We have used the I/E matrix and the Grand strategy matrix to formulate strategies. We formulated two possible strategies i.i. expansion in the market and product development. The strategies that we formulated using the above stated matrices have been evaluated by using the Quantitative Strategic Planning Matrix to know which strategy is more viable. Furthermore, the report provides an insight into the organizational purpose of the McDonald’s. Current strategies and recommendations include the analysis of the strategies that McDonald’s is using to hold and maintain its competitive advantage.

Introduction
McDonald’s is the largest burger fast food chain which has its operations in 119 countries. It serves around 58 million customers every day through its more than 31,000 restaurants (McDonald's, 2009). McDonald’s was started by two brothers Dick and Mac McDonald’s in the year 1940. Ray Kroc became the first franchisee as he opened a restaurant in Chicago. Restaurant became so popular among the masses that in just four years the number of McDonald’s restaurants reached 100. QSCV i.e. Quality, Service, Cleanliness and Value became the motto of the company and the execution of the same is one of the primary reasons why McDonald’s is what it is today. In 1961, Ray Kroc payed $2.7 million to Dick and Mac McDonald’s and acquired all the rights reserved of McDonald’s. McDonald’s was growing at such a fast speed that in 1963, 500th restaurant was opened. In 1965, McDonald’s went public and in 1967 first restaurant across the borders of USA was opened in Canada and since then McDonald’s has never looked back. Presently McDonald’s has its restaurants in 119 countries of the world (McDonald's History, 2009). McDonald’s got the approval to enter in the Indian market in the year 1991 itself but it took 5 years to study the market, needs of the people, adjust the menu according to the culture and to build a strong supply chain. McDonald’s finally entered India in 1996 as it opened its first restaurant in New Delhi. McDonald’s is a joint venture in India, which was signed in April 1995 and is managed and owned by Mr. Amit Jatia (MD of Hardcastle Restaurants private Ltd.) who heads the operations in South and West India and by Connaught Plaza restaurants Private Ltd. which looks after the operations in North and East India. There are 158 restaurants in the whole country today (About McDonald's, 2009). McDonald’s has always believed in thinking global and acting local. Before entering into the Indian market McDonald’s made to changes in its menu as in India beef and pork items cannot be offered because of the...
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