Concept of Strategic Management (SWOT AND PESTLE ANALYSIS) Assignment Help

Choose one of the concepts of strategic management , for example SWOT, Porter’s five forces, Balanced Scorecard and Core competencies., and apply it to any organisation. This will be a mini-case study.the aim of this short assigment is to demonstrate the understanding of key concepts in strategic management.

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Introduction

McDonalds is the world's largest and one of the oldest fast food chain in the world and is esteemed as most valuable companies and runs bullish on the stock markets too (as at March 2018) (Business Insider 2018). McDonalds is at presently lacking behind from the competitors. McDonalds is serving food in its restaurants and well as delivering food. It is thinking of expanding its hands in the delivery food market to increase its share and compete in the market.

SWOT Analysis

Strengths

McDonalds has been in the market since 1950’s. McDonalds always has a upper hand when compared to its competitors as it has a great experience in the industry and is aware of all the do’s and dont’s of the industry. McDonalds also has different food products for different parts of the world and traditions. McDonalds has a franchising system through which instead of investing on its own it distributes its franchisee so that more focus is on the research and development instead of expanding stores on its own. (Kajanus, et. Al, 2012).

Weaknesses

McDonald’s has a diversified food menu and a range of products, some of them are too unhealthy and high in calorie content. In spite of reducing the fat content in their food products McDonalds has been serving the same high fat food products in its restaurants. McDonalds sometimes fails in marketing its products like others and due to this it becomes less able to sell its new products. As McDonalds employees a lot of staff it has a huge expenditure on the training of its staff. McDonalds instead of using new methods is focusing more on the traditional methods and this is the reason it is not growing as fast as it competitors.

Opportunities

McDonalds has to look towards making changes in its technology to excel in its delivery and cross connection with the clients, moreover in the demanding world with ease and convenience of the food-to-go market. McDonalds has a product for every age, so it can target people according to the place in which they live and what are trends according to the season. Organic, gluten free food is in trend this trend can be taken in a positive manner so that people who are demanding healthy food can have something. McDonalds has a lose and in beverages more focus on beverages can increase it sales too.

Threats

The threats are mainly the obesity levels which in time may reduce the sales of the restaurant chain. This would show decline in the customer base as the taxation on these food items is being increased by the government, it is a high time when it has to look over the fat content in its food products. US FDA is very strict these days in controlling obesity, McDonalds should look into this otherwise it can face some harsh consequences from the authority. McDonalds sometimes is in a habit of stocking materials which are prone into use by it, but for storing these items high preservatives are used which can be harmful and people who know about it are spreading this message so that food habits of the people change, this can be a little harsh for McDonalds and has to be taken care of. (McDONALD & M.A.L.C.O.L.M., 2016). 

PESTLE Analysis

Political:

• Increase in the international agreements constituting to trade.

• Strict political guidelines on health and food safety.

• Making new FDA rules and regulations.

Economical:

• Growth rate is slow but does not fall.

• Economic slowdown in the planet.

• Some countries are growing on a fast pace.

Sociocultural:

• Rise in the public expenditure budget.

• Fast moving world is an opportunity.

• Diversified culture in the world.

• People are starting to think about what they eat, want healthy food.

Technological:

• Less of research and development.

• Robotics and automatic machinery use is increasing.

• Revenue is mainly done on mobile apps.

Legal:

• New health and food safety laws.

• Welfare of animals is necessary.

• Minimum wages act is applicable.

Ecological:

• Corporate social responsibility is necessary.

• Use of sustainable business plans.

• Climatic condition changes in some places. 

Conclusion

Through the SWOT analysis it can be concluded that it is very easy for McDonalds to work in todays world all that is needed are some changed and some technological advancements. Also, there is a need to look into the quality and the healthiness of its food products. If these little changes are positively tackled by McDonalds then nobody can stop it in growing and multiplying its sales revenue and profit margin.

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