I decided to carry out a PEST/STEEPL analysis on MacDonald’s, the fast food chain. Although in their own Mission and Value statement they describe themselves as a franchise business.
The STEP analysis proved to be relatively easy, in some was it is similar to SWOT, in that once a start has been made it is difficult to stop. I used a copy of their 2011 Annual Report as the basis for the analysis, this did make things difficult in term of economic factors as the report was mainly financial information and based towards shareholders use. The best I could come up with was exchange rate fluctuations which affect the business being the global enterprise it is, also income affecting customers. Too little and they stop eating out, more than expected and they may change dining habits for something upmarket. Exchange rates could also have slotted into political factors alongside the mandatory health and safety, taxation and employment laws, which affect all businesses.
Sociological factors also had the usual suspects of demographics, closeness to customers to restaurants and also type of customer in terms of socio-economic groupings and their lifestyle. McDonald’s place more value on this than I suspect their customers do. Customers view McDonald’s more as convenience rather than a dining out experience. I also included in this category Ronald McDonald Charities and, at least in the U.K. sponsorship of grassroots football through the Football Association.
McDonald’s in branch ordering system is fully computerised (technological factor) and presumably linked up to their Head Office in which ever country they operate. Therefore allowing for instant reordering of products and sight of best selling products as well.
Where I experienced problems was in extending the STEP into STEEPL. McDonald’s lack of concern for the environment was previously well documented and much bad publicity forced them into re-think. Unfortunately there was very little about their environmental policy in the Annual Report, save for a short sentence in their Mission and Value statement – “is focused on energy conservation, sustainable packaging, and waste management”. Legal factors were slightly duplicated in political factors, viz health and safety, employment law and tax regulations.
In conclusion I found both STEP and STEEPL were very useful tools in analysing McDonald’s. Initially I viewed STEP as an analysis to do when a business was starting up, in order to see if the business would work. Now I see that both tools can be used on existing organisations. It is perhaps easier to use on established organisations, as the various factors are perhaps easier to spot.
For this section, I have chosen to do the report on Sunderland FC, something close to my heart, having been born there and supported them through think and thin (mainly thin) for nearly 45 years.
Report on the Internal, External and Stakeholder Analysis
relating to Sunderland Football Club
The first part of this report will deal with Internal Analysis. This analysis of strengths and weaknesses will focus on internal factors which give Sunderland FC some advantages and disadvantages in meeting the needs of its target audience (supporters, but also directors). Strengths refer to those core competences which provide an advantage in meeting needs of the target audience. The analysis of these will need to be both market orientated and customer focused because the strengths are only meaningful if and when they assist the firm to meet customer needs. Weaknesses are of course the limitation that Sunderland FC faces in developing or implementing strategy. The weakness also...
References: B301 Making Sense of Strategy –Block 3: The Strategy Toolkit. The Open University, First Published 2010.
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