• McDonalds
• 1. Introduction
•             McDonald is one of the best American brands that lead in fast food business. The company also emerges to be a long worldwide time leader in the fast food wars. The company has more than 30000 restaurants located in different countries all over the world. It also plays a significant role in offering a considerable market in the food industry. The management of the company uses advisement as one of the best way in convincing customers about the products that they offer. According to the case study, the company managed to achieve all what it has through its structured strategic management. The strategic situation of the company indicates that the management is able to cope with the confronting situation that might occur. The corporate and business levels strategies of the company include offering low cost to their products and focusing on increasing sales on its market locations.
• 2. Environment Analysis
•             The general environment of the company includes the political, economic, social and technological factors. These factors create the organization’s external environment that contributes to a competitive business structure. On the political or legal factors, the company is able to influence various factors in a given society, located in its market area. Most of the political factors in the company include various regulated laws and groups that contribute in limiting certain operations of its marketing mechanism. Issues that contribute to the political factors include the government attitude on how the company operates in its foreign markets and on the financial policies entitled in the specific business laws. The political factors affect the company as a whole through various regulatory bodies.
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•           The economic factors associated with the general environment of the company include those factors that affect potential customers in their purchasing strategy and ability. The other economic factor of in McDonalds Company that affects the consumers is their spending patterns. The company has a mechanism of setting a lower price on its products in the countries where there is a low percentage of economic growth. The low level of purchasing power in most of the developing countries where the company has its marketing operations taking place, poses as a threat to McDonalds. This is because there is limitation in promotion strategies in order to inform more customers about the various products in the market.
•           The social factors that affect the operations of the company include various demographic trends that relate to the community in a specific marketing area. Some of these factors include the shifts in spending power of potential customers. Population fluctuation in various parts of the company’s marketing areas tends to affect its operations. Social factors also relate with economic ones in determining the potential customer’s ability in purchasing various products.
•           The technological factors include various forces that create various new strategies in the company. These strategies include forces that help the company to create new technologies that assist in production process. The company having competitive environment require the technological factors in order to create new products. These factors also help the company to establish new market opportunities in various parts of the world.
• Industrial Environment-Five Forces Analysis
• The entry of the new competition to the market
•           The company has strategy of creating new market opportunities in various parts of the world. Although the case depicts that, the company had lost its focus six years ago while trying to expand its marketing opportunities, it later managed to regain its potential in making new markets.
• The threat of substitutes or replacement products
•           The company is able to act as fast as possible in creating an alternative in situations where there needs to be replacement of products.
• The bargaining power of buyers
•           The company gives its customers a chance to bargain on various products that it offer. However, customers of the company offers have little control over the prices of various products.
• The bargaining power of suppliers
•           McDonald Company has a great influence to most of its suppliers. The reason is that it helps in offering various aids and training them.
• Rivalry between firms of the same sector
•           There is low concentration between firms that deal in the same business as the one that McDonald operates. The company is able to position itself in a competitive strategy.
• 3. Internal Analysis
•           The resources of the company include family employees and the suppliers. The other resource of the company includes franchisees.
•           The capabilities of the company include being able to venture into new markets worldwide. The company is also able to retain most of its potential customers because of the quality services that it offers.
•           The competitive advantage of the company is that it is able to withhold various superior skills and resources. The company also withholds superior position over other companies in the same industry.
• 4. Statement of the major Problem
• Concentrate on time management and increase more workforces in the company.
•           The company ought to consider more strategies on how to keep working time in order to be convenience in all times. The company also ought to add more workforces in order to cater for the demanding services from the increased number of customers.
• • 5. Alternatives
                        I.        The first alternative is that the company ought to apply further implementation of differentiation strategy in order to meet its goals.
  •                   II.        The company also has an obligation of employing the cost leadership strategy in order to achieve all its strategic goals.
  •                 III.        The company ought to employ the strategy of making better pricing decisions.
  • 6. Recommendation
•           The company ought to focus its strategic strategy on various aspects that require global standardization that require much responsiveness. This form of strategy will help the company in winning all the domestic markets that the competitors seem to be doing well.
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