PESTLE and SWOT Analysis of McDonalds

PESTLE and SWOT Analysis of McDonalds Executive Summary In this report entitles about the external analysis of fast food restaurant and internal analysis of McDonalds cooperation by SWOT analysis and constructing of TWOS matrix that give us the future strategies of MC Donalds. The vital results of external analysis are the there is wide competition with the competitors because it is perfect competition between the firms. The customers are more oriented about the organic food, and also about health issues such as obesity. Such as increasing the organic food is also opportunity and at the same time it will increase the cost, so they should more concentrate pricing of the product. From the internal analysis the firm is stronger in financial position and supply chain and also strong brand image. By combining these elements the firm should go for the research in terms of the health issues and also they can extend the new stores to attract the customers. They should also increase the benefits to the employee s that should decrease the turnover ratio. This report is prepared for the CEO of McDonalds cooperation for taking decision on future strategy Terms of Reference This report is prepared for the internal use only and prepared as the assignment for the strategic management in the course of MBA. The use of this is primarily for accessing the understanding and awarding grades Introduction McDonalds is the one of the biggest fast food chain restaurant having more than 32000 restaurants in 199 countries whole over the world. McDonalds is selling majorly soft drinks and fast food items like fries, chicken, burgers, salads and ice creams. The restraints of mc Donalds are operated such as an affiliate, franchisee, or the corporation itself. In term of long term goals of the mc Donald is satisfaction of customer and loyalty to their brand. Brand image and the unique brand logo are one key success factor for the McDonalds. This is report prearranged in a certain manner that is in the first discussion about the external analysis of the organization by PESTLE and PORTERS five force model for the analysis in industry level. In the internal analysis part discuss about the tangible assets, key success factors ,supply chain, SWOT analysis and formulate the TWOS matrix for the future analysis for future strategies and in the conclusion part entitled about the recommendations and long term strategies. EXTERNAL ANALYSIS In this section deals with the considerate the factors that effect the organization by the external environment. These are forces that the organization would take steps to reduce the effects but could not avoid it totally (Strategic Management Process 2000) Macro environment: The analysis of macro environment is can be done by PESTLE analysis and also other factors like competitors, suppliers, customers. The complete analysis of PESTLE is given in the appendix and some key factors is given in the table 1 The important factors like obesity and other competition is more in the fast food chain, and mc Donalds is also concentrating on the green, price to have competitive edge on competitors, menu based upon the region such as in India Mc Donalds introduced MAC ALLU and O fat items are planning in the menu for attracting the customers more oriented about obesity. Porters five force model Porters five force model is used for the analysis in the industry level; complete analysis of five porters is given in appendix and summarized is given below In the case of MC Donalds from the five porter analysis new entry is very high due to less regulation in fast food industry, substitute threat is low, where as competition and rivalry among the firm are very high so McDonalds pricing is very important. Supply power is low unless the main ingredient of the product is not readily available Opportunities and threats The external audit can be done by using opportunities and threats, the whole Opportunities and threats are explained in the appendix. The opportunities for the mc Donalds such as low cost menu will gain competitive advantage and attract more customers and also such as people also more oriented about the health so McDonalds concretes more on healthier goods o attract the customers. They have main threats like obesity, the relationship with the franchiser, quality also decreasing due to the lack of proper control on the franchising, such as American brand appeal act as threat in some anti American countries, Global recession and fluctuating foreign currencies Key success factors Mc Donalds one of the success factors is franchising with the local suppliers, uniqueness in the brand image, pricing of the meal with the best price, store location in maximum places and easy access to the customers, turnover rate per chair in the McDonalds is high as compare to the restaurants, attracting the customers based upon the kids menu and toys .introduction of breakfast menu and coffee in the menu, localization of their menu like introduction MAC ALLU and mutton in India. Appearance of the restaurant more focus on their values and productivity, Promotion and a continuing focus on building brand loyalty Internal Analysis of McDonalds Internal analysis of McDonalds can be done based upon the tangible assets and intangible assets, strength and weakness, supply chain. These are the factor on which firm has control as they can be alter based upon available resources and increase capabilities. Tangible assets and intangible assets: The vital tangible assets of McDonalds comprise of resources such as financial resources, and also resources in terms physical elements location of restaurants in city, airports and in all happening locations, the trade secret of their recipes, innovative production processes etc and resources in terms of organizational such as efficient strategic planning processes, control systems and excellent evaluation. The vital intangible assets of McDonalds are unique brand identity and their logo. The capabilities of the organizational also important such as satisfaction of the customers are high, product innovativeness and excellent product development capabilities (see appendix). Strengths and weaknesses The strength and weakness are explained in the appendix. The strength of McDonalds is the brand image, their innovative products, uniqueness in their products, strong finical position, more in terms of their stores in the main cities, employee training such as mangers get training in Hamburger University, segmentation of their product such as kid meal, happy meal etc. more concentrate about the customers, turnover per chair is more in McDonalds, strong advertisement campings to attract the more customers, kids offers to attract more customers. Weakness of mc Donalds such as No clear strategic direction, obsolete facilities, higher overall costs than rivals, subpar profits, Falling behind in RD, Too narrow product line. High Staff Turnover including Top management, Unhealthy food image, Uses HCFC-22 to make polystyrene that is contributing to ozone depletion TWOS Matrix: TWOS matrix is build based upon the internal and external factors by using strength, weakness, opportunities and threats. It is constructed based upon comparing of each factor with the other factors of SWOT. The complete TWOS matrix is given in the appendix. In this based upon the TWOS matrix explain about the differ combination as possible. Strengths and Opportunities Because of strong financial position and their unique brand image McDonald can extend their stores and attract new customers. Due to their unique brand image they can advantage over their suppliers. Due to the strong financial position they can invest more on the Research and development example in term of decreasing the fat in the food. Strengths and threats Mc Donalds can take more control on the franchise dealers to maintain the quality and reputation. They can offer novel product and keep the innovation to attract the new customers and existing customers. Weaknesses and Opportunities By creating product in a greener such as decreasing HCFC-22, product quality can be increased and also plan for the healthy meal. By Increase stores in different locating that increases the market penetration. Weaknesses and Threats Applying 0 grams Trans fat that increase the customers who are more oriented about the obesity By changing HCFC -22 in to the carbon free HFC (hydro fluorocarbon) which is not harm to environment. Future Strategy Based upon the different analysis of the firm and by comparing the different analysis the future strategies can be planned. The strategies in term they can be broadly classified in to two broad sections such as business and corporate strategies. The recommendation of the firm based upon the analysis is listed in following section. Business level strategy Such as differentiation of their product to gain competitive advantage, increase in the research to develop food with low fat content that can be decrease the obesity, focusing more on the customers to increase the customer loyalty to the brand. They can also concentrate about the organic food, Labor turn rate should be decreased by giving different bonuses and effective salaries. Corporate Level Strategy Due to the strong financial they can penetrate into new market by increase their store in different locations. And also they go for back ward integration with the suppliers to get the quality goods for low price. Conclusion In this report entitled about the different external and internal environment of mc Donalds and by constructing the PESTLE analysis, SWOT analysis and also prepare the TWOS analysis for the long term strategy in the future.mc Donalds increased their stores about 50 percent in last five years but there is only less increase in the sales about 2percent only so McDonalds is planning to change their strategies to attract the more new customer and planning to increase the customer life time value such that the sales can be increased they should consider about the following factors such as health issues they can increase the organic food, they can also by employing and also proper planning of the queues that can decrease the queuing time and also increase the turn over. Price is also one of the important factor because bargain power is low they can be shift to the other company, so pricing can be properly planned. They can be plan for the deli burger which cost low that will give price adv antage whereas they also keep the organic burger in their menu to attract the health oriented customers and also they can be focus on o fat food that can also attract who concrete about diet. They should plan to decrease the employee turnover ratio. Limitation and Recommendation The limitation would be that the current strategies that are practiced currently have not been reviewed in depth; the future research can be done on analyzing the current strategy of mc Donalds and see how these can be amended to formulate the future strategy.

Original Writing : Do kids have ambitions or do they

Ambitions. An egger desire to achieve something in life. Now a days if you ask kids what are your ambitions forty two percent reply ‘I don't have any I just go with the flow and see what life has in store for me'. Is this the answer we really want to hear from our future leaders this doesn't sound very promising. Having ambitions to be or do something is encouraging to achieve your goals. If you have an ambition you have something to work towards however kids today just want to play computer games and set no targets in life for them self. Is this really what we want kids to be doing, our future. People work hard to achieve there ambitions and to make them a reality instead of just an ambition any more. Anna Cleaver from London had an ambition to be a leading plastic surgeon in the heart of New York. She was determined to fulfil her ambition to succeed and now if we look at Anna she is one of the top leading surgeons in the heart New York and recognised by people all over the world. She was once a normal person with a ambition working hard got her this far and now she is where she wanted to be in life at the top of her game. From ordinary people like Anna to famous people Britney Spears have ambitions her ambition was to become a singer from a young age she has been working hard to succeed in becoming a singer. She didn't just wake up one day and just become what she is today she worked hard for it. It was her ambition since she was a young girl and today look at her she has fulfilled her ambition. I also have ambitions. My ambition is to go to university when I finish College to fulfil this ambition I need to work hard in school studies and I am determined to succeed it will be a tough ride but you just have to believe in your self. One very ambitious man said, â€Å"Education is the passport to the future, for tomorrow belongs to those who prepare for it today†, Malcolm X. This is something that has been proven right so people of today should use this to make a better life for themselves. Education is something that can help achieve a lot of peoples ambitions and should be taken very seriously. But not every one is a academic but this still applies because if your ambition is sport you still have to educate yourself with the knowledge to platy the game. Every one should have ambitions and believe they can succeed children and adults, people of all ages. One thing this world lacks is people believing in them selves' all you need is some belief and determination to fulfil your ambitions. Have a goal in life and you will achieve anything.

College Degree Necessary Essay

In Barbara Ehrenreich’s article, â€Å"The Higher Education Scam† she expresses her feelings about employers looking specifically for college grads to fill their positions. Ehrenreich seems to be voicing her feelings to employers because they are beginning to look specifically for college grads, instead of people who may have more experience and knowledge, or even currently work for the organization. She claims that employers seek college grads merely because they have a college degree and it shows they have the ability to listen and obey. Deep within Ehrenreich seems to be attacking the college grads by saying that once they have finished school and earned their degree, they are now slaves to the employers. Her claim is quite logical and the examples she gives validate what she is saying. Conversely, she seems to be going on a theory with her argument and her attacks on the college grads for going to school and earning a degree detracts from the value she has built up. Finally, Ehrenreich’s argument is effective to some degree, but lack of personal experience leave the article with a flaw. Ehrenreich uses value and emotion within her article to get the attention of her audience. We all need jobs in order to get through life and if you want to have a good job, you need to get a degree. This puts a lot of value in what you need to accomplish because the final product is suppose to be worth it, and employers will only hire you if you are a college grad. Ehrenreich uses this example to connect with her audience and adds to the credibility of her argument. Throughout the article Ehrenreich adds humor to help make an emotional connection with her audience. She says that whatever you learn in college doesn’t seem to matter. All that employers are looking at is that you were able to sit still for long periods of time, be told what to do, and appear awake. Ehrenreich is saying that no matter what degree you’ve just earned, all employers are looking at is that you devoted 4 years doing what your told. She adds, â€Å"no college has yet been honest enough to offer a degree in seat-warming† (696). This is most likely what you will end up doing when you begin working at a white-collar job anyways, so by hiring you they know you are able to do what they ask. She also goes on to imply that you will be desperate for work because of the debt you have just accrued and you won’t become a troublemaker, or whistle blower. You’ll basically grovel at their every need and do exactly what your told. Ehrenreich adds to the credibility of her article by giving examples of people who have been able to do something and do it well, but didn’t have a degree to back it up. They were either dismissed from their job, or called out on it once they became popular. She gives the example about Marilee Jones who worked for MIT as the dean of admissions for twenty-eight years. Marilee claimed she had three degrees and yet she really didn’t have any. Now if Marilee had done a poor job as the dean of admission it would be easy to forgive and remove her from her position, yet she was very successful and it was threatening to an institution of higher learning. This gives us an emotional appeal because it’s a personal story of sadness for Marilee and it causes the audience to wonder if a college degree is really worth it. She did a good job for the institution and just because she didn’t have a degree, they were willing to dismiss her. Is that really all the companies want is a degree; or do they want someone who is going to do a great job for their organization? Throughout Ehrenreich’s article she stays pretty true to her argument, employers seek out college grads. Although she puts in the example of â€Å"Dr. Dennis Waitley Ph. D† who is known for writing a best selling self-help book The Secret. He confessed to not having a master’s degree and the marketing firm he worked for admitted that they couldn’t confirm he ever received his Ph. D. This example adds to Ehrenreich’s credibility, but it seems to go off what she talks about in the majority of her article, which seems to be more along the lines of employers. It does however stay true to her title, â€Å"The Higher Education Scam†. For her article to be spot on with her argument, she should have stuck more with education and touched on different subjects like employers, writers, and other people in general who have not had college degrees, but were still successful in their fields. In Ehrenreich’s article she doesn’t attack anyone in particular with what she is saying, but she keeps her comments vague so it is up to the reader to interpret the hidden meaning. In the beginning she talks about the amount of lies being put into resumes in order for people to get certain positions they are applying for. She says, â€Å"that 10-30 percent of resumes include distortions if not outright lies† (696). She adds to this with some more humor in saying, â€Å"lying is a grievous sin, as everyone outside of 1600 Pennsylvania Avenue knows† (696). This comment adds humor to the article as well as a little ad hominem because of the hidden attack. Ultimately, the article by Barbara Ehrenriech is effective. She shows credibility with the examples she uses and the only flaw seen is that she doesn’t have a personal example herself. She keeps humor going in the article, which keeps the audience drawn in and is very logical in her viewpoints. Ehrenreich really makes you think after reading her article. Should we go to college in order to get a degree and work for a good company? Should employers really just look for candidates that have earned that college degree hoping they will obey their every need? Should employers give there currently employees a chance to earn a college degree instead of being dismissed from their position? Is it worth over looking other candidates for positions strictly because they don’t have a degree when they will be able to do the same job and possibly do it better? To sum it all up, why do employers really need to be looking for a college degree? Is the time and money really worth it to earn that degree for a position that you are going to learn on the spot anyways? Employers really need to think about what they are doing and not just jump on the bandwagon and make hasty generalizations. Works Cited Ehrenreich, Barbara. â€Å"The Higher Education Scam. † Inventing Arguments, 2nd ed. Eds. John Mauk and John Metz. Boston: Wadsworth, 2009. Print. 69-697.

The Attack Essay - 918 Words

The Attack by Yasmina Khadra follows the story of Dr. Amin Jaafari, a successful Palestinian surgeon who resides in Israel. He lives with his beloved wife, Sihem, live alone in a beautiful house. Amin and Sihem live happily until an unimaginable event occurs, Sihem is killed in a suicide attack. The police discover that Sihem was not a victim, but the bomber. Amin desperately attempts to understand how his kind, loving wife could possibly carry out such an attack. He sets out on an incredible journey to investigate the secret life Sihem lived outside of their marriage. In the novel, The Attack, Yasmina Khadra illustrates the intense frustration that precedes suicide attacks and the intense physical and physiological results of†¦show more content†¦(158) The commander held Amin for a week so he could experience the same pain, suffering and frustration that the Commander and other extremists feel. As they continue to lose their homeland the desperation as a result of the conflict the deep seated hatred only grows deeper. The aftermath of a suicide attack has both physical and ideological consequences. The physical effects of the bombing are much more apparent. While working in the emergency room in the aftermath of Sihem’s suicide attack, Amin can see firsthand how devastating these attacks can be. In the course of fifteen minutes, the lobby of the emergency room is transformed into a battlefield. No fewer than a hundred wounded people are packed into this space, the majority of them lying on the floor. All the gurney are loaded with broken bodies, many horribly riddles with splinter and shard... The whole hospital echoes with wailing and screaming... (14-15) This tragic scene illuminates how many people can be hurt and ki lled in suicidal events. The author is trying to show what the terrible consequences of Sihem’s actions were. 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