Strategy Implementation in McDonalds Company Report Paper Assignment 5: Strategy Implementation. This assignment involves identifying and addressing, throu

Strategy Implementation in McDonalds Company Report Paper Assignment 5: Strategy Implementation. This assignment involves identifying and addressing, through appropriate resolution strategies, potential implementation issues associated with the goals and strategies earlier identified in your Strategy Formulation. Guidance for this assignment can be found in Consulting Project Briefing 4.
Read assignments 1 to 4 because part 5 is based on it. Consulting Project Briefing
Number Four
STRATEGY
IMPLEMENTATION
Assignment Five
STRATEGY
IMPLEMENTATION
Scope of Work
Assignment Five
 Review your earlier Strategy Formulation
assignment in the interest of determining:


Potential Implementation Issues
Resolution Strategies to address these issues
 Incorporate the identification of these
Implementation Issues into your previous Strategy
Formulation document.
 Reference the Strategies that you have included to
address these issues.
 These resolution strategies should be listed under
both “Strategies” and “Program Objectives.”
Deliverables
Assignment Five
 Your submission for this assignment should be a
revision of the previous submission that adds an
additional section for each Goal that incorporates the
identification of potential Implementation Issues
and how you plan to address these issues through
appropriate Resolution Strategies.
Assignment Six
COMPREHENSIVE
DOCUMENT
This final assignment involves
compiling all previous assignments
into a professional comprehensive
document.
Organizational Overview
Mofarh Haroobi
Overview of McDonald’s
In the past decade, the consumption of fast foods has increased and so have the brands
that offer fast food services across the world. McDonald’s is one of the most outstanding brands
in this category because of its consistent operation over the years and the high quality of its
products and services. The brand was founded in 1940 by Richard and Maurice McDonald in
California as a restaurant. The company has expanded to over 100 countries and services up to
69 million customers daily (Nagarajan et al., 2019). It is among the most successful brands and
this can be attributed to its strategic management and good customer service. The company’s
financial performance is one of the main indicators of how it has maintained a good trend of
performance. The reason for choosing it that it has a good history of planning and implementing
strategies to achieve its organizational goals.
Primary Business Activities and Foods and Services Offered
The primary business activities of the company include marketing and selling foods and
beverages. The company has many restaurants across the world through which it distributes its
products. Some of the products sold by the company include hamburgers, several types of
chicken and chicken sandwiches, French fries, desserts, salads, breakfast packages, and wraps
among others. A variety of soft drinks and coffee are also sold at their restaurants. Some of the
products are available in specific regions to meet the cultural needs of the people and the taste
and preferences of the people in those regions. Most of the restaurants offer both drive-through
and counter services. In some of the restaurants, they offer extra services like playgrounds for
children, known as McDonald’s PlayPlace. The restaurant also offers delivery services using
Uber Eats and DoorDash as partners and it has recorded many other developments from its
founding to date (Schmid & Gombert, 2018). Most of the products are prepared freshly and this
attracts many consumers due to the high quality.
The fast and reliable services offered in their restaurants is one of the factors that
contributed to the success of the company. Most of the consumers appreciate fast service and
will be irritated if the services they seek seem to take longer than they expect. The brand has
attracted many employees due to the good management and this has made it easy to hire the
qualified ones. The design of the restaurants is focused on increasing the efficiency of their
services and to increase the comfort of the consumers. The brand has embraced the new
technology like the use of robotic features in the drive-through and the use of social media to
advertise their new products and services. The training of employees helps maintain a
highly-effective workforce that embraces diversity, cultural differences, and marketing strategies
among others (Duggal & Alexander, 2018). The company serves a diversified set of customers.
Customer Groups Served
The organization targets a large portion of the population. The main target segments
include the parents with young children, young children, teenagers, and young people like
students. The company targets people from both local and the international market, rural and
urban places. Students, employees, and professionals are also targeted as well as low-income
earners and middle-class people. The availability of entertainment services for young children
indicates that the brand targets the young population and other parents. Most of these services
attract many people during weekends and holidays. The organization has positioned itself as a
low-cost choice that is friendly to all members of the family (McDonald’s, 2016). The target
market is wide and has a diversified range of needs and wants. However, most of the restaurants
have modified menus and services to meet the needs of their regions. The company usually
serves people aged between 8 and 45 years although their products and services can be
consumed by people outside this range.
Scope of Operations
The scope of the company is based on the target to serve foods and drinks in a friendly
environment that accommodates all members of a family. It also aims at adding value to the
stakeholders and maintaining a good relationship with them. The company has become a major
player in the industry because of its ability to serve the target customers to their satisfaction. The
scope of its operations includes selling food and drinks and offering services like home delivery
and play services for children. Just like the other competitors in the industry, the company
modifies its services to meet the changing demands of its customers.
Conclusion
McDonald’s is one of the most successful restaurant brands in the world and has opened
branches in over 100 countries. It serves more than 69 million people each day and this makes it
a well-known brand among the households. Some of the reasons for its success include effective
strategic management, proper management of its resources, and efficient services. The
high-quality products also attract a large number of consumers. Most of the consumers are young
people, children, and their parents.
References
Duggal, R., & Alexander, P. (2018). Staff management training in McDonald’s.
McDonald’s (2016). McDonald’s franchise strategy. ​McDonald’s,​ retrieved on 11 May 2020
from https://sites.google.com/site/mcdonaldsfranchisestrategy/home
Nagarajan, K., Kee, D. M. H., Thevarajan, R., Kumaran, S., Letchumanan, M., & Aziz, A.
(2019). Efforts of McDonald’s Towards Green Environment: Case Study on
McDonald’s. ​International Journal of Tourism and hospitality in Asia Pacific​, ​2​(2).
Schmid, S., & Gombert, A. (2018). McDonald’s: Is the Fast Food Icon Reaching the Limits of
Growth?. In ​Internationalization of Business​ (pp. 155-171). Springer, Cham.
Industry Overview of McDonald’s
Industry Overview of McDonald’s
McDonald’s Corporation operates in the restaurant industry and it is one of the highly
competitive industries in the world. The company has been in operation for many years and this
means it has some advantages of experience. The management has many years of experience
which helps them solve the business challenges easily. In the United States, the restaurant
industry makes over $800 billion. The analysis of the industry helps in determining the chances
of success of the companies in it, the threats that affect the businesses, and the opportunities they
have to grow their business. The analysis helps identify the economic factors that affect its
success and how to make use of the opportunities in the industry for growth. It is useful in
creating a strategic plan that guarantees the growth of the company.
The Primary Industries
The primary industries in the US and other parts of the world are defined by their
operations and the target customers they serve. The sustainability of the business operations in
the US and other countries where McDonald’s operates is based on the competition level of the
primary industries. The sustainability of the business is affected by many factors that determine
the decisions made and how resources are distributed (Legrand, Sloan, & Chen, 2016). The
tourism and agricultural industries are some of the most significant industries that affect the
operations of the restaurants and the sustainability of the businesses. For example, the company
deals with fresh products from the farmers (Gorham, Gibson, & Irlbeck, 2016). The success of
the agricultural sector reflects as a success for the McDonald’s. The tourism industry provides the
restaurant with a large portion of customers. Most of the tourists trust the brand and prefer
consuming their products when traveling. During summer, when many people are out and about,
the business records a higher profit than during winter when people remain indoors.
Other Industries
The restaurant is also affected by other industries that have direct and indirect
connections to its operations. For example, the health sector is highly concerned with the health
of consumers. Many customers are concerned about the quality of the food they consume and
how it is processed. The McDonald’s used a social media campaign called “Our Food, Your
Questions” and used it to explain the quality of their food to the consumers (Gorham, Gibson, &
Irlbeck, 2016). Out of the analysis, it is evident that the health and media industries have a major
impact on the attractiveness and success of the brand. Any failure of the business to meet its
quality demands could lead to negative impacts on the business and even lead to its closure.
Market Presence
The brand controls a large market share in the world and it is considered as one of the
most successful brands in the industry. One of the factors that contribute to this unique success is
the high quality of its products. The company is transparent about its quality and production
process and this attracts many consumers who consider it a socially responsible brand (Langert,
2019). The company’s sales and stock value are some of the factors that can be used to determine
if its presence is improving or declining. The company has a reliable market presence due to its
good reputation and competitive advantages against some of the other competitors like the
Burger King.
Geographic Scope and Conclusion
The growth of the brand over the years has allowed it to open many joints across the
world. The largest number of restaurants is in the US, followed by Japan, China, and Germany.
The restaurant provides products and services that are in line with the culture and traditions of a
country. For example, the company considers the cultural differences, etiquette, beliefs, and
other factors like seasons and holidays. The brand is established in many different geographic
regions and this has increased its revenue. In conclusion, the McDonald’s Corporation is a key
player in the industry and its operations and management contribute to its success.
References
Gorham, L. M., Gibson, C., & Irlbeck, E. (2016). Making a case for McDonald’s: a qualitative
case study examining the McDonald’s” Our Food, Your Questions” campaign. ​Journal of
Applied Communications​, ​100​(4), 17-33.
Langert, B. (2019). ​The Battle To Do Good: Inside McDonald’s Sustainability Journey.​ Emerald
Group Publishing.
Legrand, W., Sloan, P., & Chen, J. S. (2016). ​Sustainability in the hospitality industry:
Principles of sustainable operations.​ Routledge.
SWOT Analysis of McDonald’s
SWOT Analysis of McDonald’s
General Overview of SWOT
McDonald’s restaurants, a successful brand in the industry, are faced by many factors
that are both internal and external and they all have different impacts on the success of the
company. The strengths, weaknesses, opportunities, and threats (SWOT) analysis is a traditional
tool that helps companies analyze their environment and understand the areas they need to focus
on in their operations (Gürel & Tat, 2017). The brand has successfully opened branches in many
countries globally. However this increases the exposure they have to factors that affect their
business. SWOT analysis can be used to make decisions that will ensure the available resources
are focused on the right processes and activities. It also helps with brainstorming and strategic
planning (Phadermrod, Crowder, & Wills, 2019). The analysis focuses on the factors that affect
the business both positively and negatively.
Organizational Strengths
● Economies of Scale and Financial Position: ​The first one is that the organization
purchases its raw materials in bulk and this gives them economies of scale, thus reducing
the cost of operations. The outcome is that the price of their products is low and this
attracts people from all economic classes. The financial position of a company is affected
by the access it has to resources and the effectiveness with which the available resources
are used. McDonald’s has a strong financial position and access to financial resources
due to its good performance history.
● Brand Strength: ​The other one is that the brand name is well-known in all countries in
which it operates and it has become a household name for people at all economic levels.
Through franchising and opening of direct branches, the brand operates in more than 120
countries, with about 93% of the branches owned by franchisees (Nuque-Joo, Kim, &
Choi, 2019). The brand attracts a large number of consumers across the world.
● Consistency:​ The organization has a standardized mode of operation and the functions
are standardized across all its branches. Therefore, a client in one country will be
guaranteed good service and quality products in any other part of the world.
● Strong Market Position:​ The restaurant has a wide reach to its customers in the
countries in which it operates. A recent analysis by the company’s Chief Executive
Officer in 2017 shows that since the company started working with UberEats to supply
food and drinks to their consumers, they have increased their ability to reach out to their
consumers, creating a strong market position. About 75% of their consumers live within
3 miles from their branches and this made it possible to reach out to them through home
deliveries (McDonald’s, 2017). The delivery services make it easy for consumers to make
orders and receive them in their homes effectively and efficiently.
● Effective planning and Managing:​ The company has a highly experienced management
team, which makes it easy to make the right decisions at any given instance. The
leadership makes decisions that favor the growth of the company and this increases its
chances of success. Many businesses fail to achieve their goals when the management is
ineffective and their decision-making is poor.
Organizational Weaknesses
The weaknesses of the organization refer to the factors that reduce the ability to
achieve the goals and objectives set.
● Low Diversification of Products and Services: ​The first weakness is that the restaurant
does not have a wide diversification of the products and services they offer. The world is
changing and so are the taste and preferences of the consumers. The restaurant needs to
aim to change the delivery processes and the products and services should reflect these
changes. Unfortunately, the products and services in the restaurant have remained the
same for many years.
● Delays and Queues: ​The restaurant experiences long queues during the peak seasons and
this discourages many potential consumers. The management should focus on how the
challenge can be reduced.
● Negative Campaigns on Health:​ The world today is affected by a wide range of
diseases that are associated with unhealthy meals. Most of the foods sold in the restaurant
are considered unhealthy because of the high cholesterol content and other factors. Many
of their products are considered too oily and this makes them unhealthy for the
consumers (Kee et al., 2019). The brand should focus on improving the quality of its
products to ensure it attracts a positive attitude regarding their products and focus on the
health of its consumers.
Environmental Opportunities
The restaurant has several opportunities in the environment that can be exploited
to increase the performance of the company. The opportunities re as follows:
● Access to Credit Facilities: ​The restaurant has a reliable performance trend and this
makes it possible to get the required financial support to use in the growth and
development of their business. Some of the challenges that affect the restaurants are low
financial abilities which could cripple their activities.
● Expansion in other countries: ​The restaurant has an opportunity to expand to more
countries. The economic development of different countries means there is a larger
number of people who can afford to take their meals at McDonald’s restaurants. The
company should take advantage of this fact and create a larger market share.
● Market and menu Development: ​The restaurant has the opportunity to grow the market
to other areas and to expand the number of products and services they offer. The
management can develop the menu and the market to increase the income they get from
the potential markets.
Environmental Threats
The threats related to the operations of the company are the factors that have the
potential to reduce the profits of the business and cripple its abilities. They include the
following:
● Competition: ​The restaurant has many major competitors that reduce the market share
and increase the need to change the way the business is conducted. The industry has
grown fast and this means there are many new entrants that offer relatively the same
products and services. Some of the major competitors include Subway, Burger King, and
Wendy. The threat extends to marketing and promotion because the management has to
plan for more resources to market its products.
● Economic Fluctuations: ​The restaurant operates in many countries and this means it is
exposed to inflation and other economic fluctuations that affect its profits. A fluctuation
in the strength of the dollar and other currencies cause financial challenges to the
restaurants.
● Regulatory Requirements:​ Government policies have a major impact on the success of
the brand. Some of the regulations set by different countries affect the decisions made in
companies and it increases the risk of liability related to compliance (Jurevicius, 2017).
Conclusion
The analysis of the strengths, weaknesses, opportunities, and threats that affect the
company makes it possible to plan and make the right decisions. The above analysis shows that
McDonald’s restaurants are affected by many factors, both internal and external, and that these
factors contribute to its success. The analysis can be used to plan the future actions that the brand
can take to ensure it makes the best out of its business. The knowledge about the internal and
external environments can be used to predict the way the business will perform in the near future
and how the management can make decisions to mitigate the risks that affect the business.
References
Gürel, E., & Tat, M. (2017). SWOT analysis: a theoretical review. ​Journal of International
Social Research​, ​10​(51).
Jurevicius, O. (2017). McDonald’s SWOT analysis in 2017.
Kee, D. M. H., Sivanesswaren, A., Pandiyan, L. T. P., Jeyvendranathan, A., Yuganathan, L., &
Alrashed, Y. T. (2019). Health Threats by McDonald’s. ​Journal of the community
development in Asia,​ ​2(​ 3), 45-51.
McDonald’s (2017). McDonald’s McDelivery Expands to 4,200 Restaurants in 13 Countries with
UberEATS. Retrieved on May 25, 20…
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