This report explaining about the McDonald's business environment about the last five years. This report mainly explaining the macro, micro environment and strategy of the McDonald's business. This report implementing strategy of the business tools and models for the McDonald's to get the changing business environment information. This report explaining and evaluating the business strategy for the McDonald's comparing with their competitor. This report Summarizing and critically evaluating the McDonald's data collection and data analysis with the support of different strategic techniques.
"McDonald's is one of the best brands and instant recognized every country in the world. It has more than 30,000 restaurants in over 119 countries and serving around 50 million people each day."
McDonalds is a best and large food operations shop which has 118 countries branches. McDonald's brothers set up this shop in the 1940 and become best
Well know shops now in many countries and this branded company has well known logos in the world. It has much franchise in many places and controlled by the management to get good business. McDonalds has unique way of business to success in their business, it's doing global operation in the world and cometiting with relevant food store.
Business environment is a group of political, economical, social, economical, technical factor which influencing McDonald's finance, marketing, culture and sales. The macro environment influences with the organization and the micro environment consists of stakeholder groups. The McDonald's Success related to their financial model and their services, its offer free wifi connection in their restaurants and providing different varieties of foods in their shop. It's considering the equality to everyone in the shop and giving best reliable support to their buyer.
Strategy is the business techniques for any organization to get good business in the current market and the international market. Using SWOT, PESTEL, Porters Five forces technique we can judge the McDonald's performance and impact information in the last five years.
McDonald's encouraging and giving the high level support to the customer to visit their restaurant regularly. To encourage their visitor this company giving variety of promotions to the customer and providing different fun activity in their shop for kids. Mainly it's maintaining cleanness in their shop and giving good training to their staff to do better service for customers. This company offering low level cost food and supporting to the employee for their expectations. Totally McDonald's is the best restaurant to reach their business into the multinational market doing the best efficient performance.
2. MAIN BODY
"Business environment is a set of Political, Economic, Social, Legal, Environmental and,
Technological (PESTEL) forces" The Business environment is largely happen the force of control and influence on the business. The business environment can be categorized into Micro and Macro Environment. The Micro and Macro environment effect and make the decisions of the managers of any organization. The Microenvironment are the main factor for the organization and the macro environment related with the decision of the manager an any organization. The two types of internal and external business interlinked with the business in any organization. The McDonald's environmental factors are impact the business organization and operation. The business factor affect the outside we will called as external factors and the internal business are affecting inside the organization.
"The Micro Environment of the elements in an organisation's affects the company performance and decision, Micro Environment factors are related to the business management".
Customers: Any company customer is the best resources factor in the micro environment. McDonald's giving the benefits to the customer to improve their business. Customers are the best demand members in any company to get make good profit, McDonald's company providing the good customer support to the market to sell their food varieties. Evaluating the customer satisfaction survey the McDonalds business keeps on increasing in the last five years.
Employees: The Employee performance is always good in any organization. The good, dedicated employees are the strength of the company. McDonalds has efficient employees to increase their business growth. The McDonald's more concentrating for the employee to pay good salary and the benefit. The employees are getting travel allowances and the holiday packages. Its make them to work sincerely and dedicatedly. The McDonald's company strength are their company. The job satisfaction is the best for McDonald's employees. McDonald's giving to their workers for flexible hours.
Suppliers: If the supplier provide best quality product to the organization then business value get increase. The production and the cost of the production always related. McDonalds has good suppliers and always keeping their support to the business. McDonalds buy the product from the supplier and keep into the warehouse , whenever required its getting from the store room and selling to the customer. McDonalds getting good raw material from the supplier and keeping in store for their requirement. If product selling is high then supplier power also will be increasing.
Shareholders: The Shareholder always the best strength for their company. The share holder get the share from the company and get the wealthiest. The shareholder satisfaction is the most important one to achieve the business. McDonalds share get increasing and modifying due to the inflation. The company share holders put the investment for their share and increasing pressure to move private ownership to the public. The shareholder more interacts to their company and gets much profit for their business.
Media: The media is the communication point to interact to the customer. If the customer wants to buy any product always go to the McDonald's website and will be getting what are the food varieties available for their needs. This information through media McDonald's advertising and publishing. If online resource available for the company then the business default will be getting more profit. McDonalds has good media support and advertisement support to make publicity for their food product.
Competitors : Always the competitor make the product become good quality and price competition. The McDonald's has competitor like KFC, Burger King, Sams. The McDonald's having good Strength, Opportunity to make their business to stable and achievable. The McDonalds' has good brand in the market. The McDonald's future business opportunity more in different new achievable place compare to KFC. McDonald's identifying how the organization can do better business performance with their best competitor. The other competitor are giving the best quality food with less price then people will move there. So McDonald identifying their competitor and giving the quality food in the reasonable price.
"Macro environment effect the management of the organization"
The Microenvironment impact with the Political, Economical, Social, Technological, Environmental, Legal factor.
Political factor: Government order, government rules and regulation are the main factor.
Economic factor: Labor cost, Income, Impact of globalization..
Social factors: Population of the Growth, Public attitude work
Technological: Software activity, Internet communication
Environmental: Weather, Climate Condition, and Business Opportunity
Legal: Firm's costs, Age discrimination, Legal changes
"The Macro environment are Political, Economical, Social, Technological, and Environmental".
Political Factors : This factor explaining how Mcdonald's government information or policy affect with the business. The government providing good support to the Mcdonald's and even controlling the rules and regulation to maintain the quality food in their restaurant. The government type of stability.
Economic Factors: The Mcdonald's business main concern about the economic factors If the economic down and the business also goes down, Due to the inflation Mcdonald's business not affected . The employee salary is good in Mcdonald's so employee satisfaction is good and they are working in shift time to improve their business. Always Labour supply, labour employment level is good in Mcdonald's. The finance level of this company always good so global economic factors not affected Mcdonald's.
Social factors: The social factors are explaining how consumers communities behave for their beliefs. In McDonald's education and the social mobility culture make them to involve good into the environment. The employment patterns, attitudes to working nature increase the social factors for McDonald's. "(2005) pointed out that McDonald's has launched a sensibly valued set of food that tenders a reliable level of quality for the respective market where it operates."
Technological factors : The technological factor is very important for any organization.
Its impact reduction of communication, increasing remote working nature and costs.
"( 2006) The company's key tool for marketing is by means of television advertisements."
The McDonald's product innovation technique increasing the business growth. The Internet technical factor supporting to the McDonald's company to access their restaurant product and supporting for internet transaction.
Environmental factors The Environmental factor always related with the weather and climate changes. The changes of the temperature directly impacting the organization. The McDonald's branches have the good special food according to the weather condition. Its make easier for the user to get their expected food on the season time. Due to this customer demand will increase and the McDonald's get more profit.
Legal factors The Legal factor related with the business in the UK market and it has many significant and it is affecting the firm's behaviour. McDonald's giving the minimum wage to their employees. Employees are getting more satisfaction work from McDonalds, The legal changes have restriction to certain age limit members to sell the particular product. The McDonald's legal factors are good so employees are getting good working hours and salary, its make shop to achieve good sales.
"Strategy formulation is the process of determining appropriate courses of action for achieving organizational objectives and organizational purpose".
The Strategic tool giving solution to the company to get the objectives of the company. There are many strategic tool available, In this important tools are:
Critical question analysis
Business portfolio analysis
Porter's model for industry analysis, and
"Swot Analysis is a easiest structure for generating strategic alternatives from a situation analysis".
S - STRENGTH
T - THREATS
i) INTERNAL ANALYSIS
a) STRENGTH (HELPFUL)
b) WEAKNESSES ( HARMFUL)
ii) EXTERNAL ANALYSIS
a) PPORTUNITIES ( HELPFUL),
b) THREATS (HARMFUL)
Strengths : The McDonalds is a familiar popular company and it has the great strength of the logo compare to the other small food restaurant company. This is the best and quality and standard company. It has the good services to attract the people. "It has the more than 31,000 restaurants in the 120 countries. Their sales in 2007 around 11,4009 million". The main strength of the McDonald's is Consumer choice and the great good quality of food services . Their employees are good team work members and has good management team to solve the problem and issue. McDonald's encouraging to their employee to work family and fun structure.
Weaknesses : McDonald's has few drawback , The food item all mainly focus on the hot food and the hot burgers item. There businesses are seasonal, The Quality issues happen across the company franchise place. This shop not available in all the important city places to get more customer. Some time happening quality issues.
Opportunities: McDonald's has the sister consultant retailers in many places. It can able to start better location for their work. It has the best healthier good food, The food can served with the good customer services and the company target is keep on increasing for their employee strength. Its going to have all the shop Internet connection to serve better performance. Its opening many branches in different international location and getting better brand name in those place also. Its has good linkage between the community.
IV) Threats: Many of the country giving advertisement and support to get diet ( fruit, vegetables ). Its affecting the business for McDonald's. The supermarket and the subway , M& S shop main threat for this company. Economy making affection for their employees. Its not good for the employees who is working in McDonalds. Its getting the environmental condition disturbance in the different climate, those days the business got less for them.
The four Ps :
The business of the McDonald's 4Ps very important factors for their business. The Price, Product, Promotion, Place more supporting to the marketing to get more business in the market. The McDonald's business should achieve the good product selling as per what customer expect. They can buy easily that product. Price always need to meet for customer expectations. The promotion should include to increase the business. The place should say the where actual product where its selling. The McDonald's Supporting these factor to increase their business.
PORTER'S FIVE FORCES:
"Porters fives forces model is an excellent model to use to analyze a particular environment of an industry"
Porters five Forces model focuses on five factors affecting the business environment.
1) Competitive rivalry
2) Power of suppliers
3) Power of buyers
4) Threat of substitute
5) Threat on new market entrants
i) Competitive Rivalry : McDonald's
The entry into a market is easy McDonalds rivalry to be high , Generally rivalry is the highest one and entering to the fast food industry makes competition for their major focus.
McDonald's has the many competitor like KFC, Burger King nearest place. The competitor almost same size members
The number of company increasing affecting the business. Rivalry is the more competitor is stronger then here McDonalds product is growing slowly.
ii) Buyers power:
Buyer always have the bargaining power. The McDonald's Buyer have the great value for their business. The McDonald's price become more sensitivity so the buyer are more essential members in their business. The buyer information available in the McDonalds, this can identify the buyer capability to get more business.
iii) Suppliers power:
The power of the supplier is also very important in the market. The supplier input more essential for McDonald's . If the supplier cost vary then the McDonalds product value also get changing. The presence of the supplier concentration of the firm keep on varying and the supplier inputs on the cost varying in the supplier level differently. The supplier power affect the McDonalds degree of the cost value due to supplier comptition.
iv) Threat of substitute :
If any new product available in the different store customer switch to alternative one. Compare to McDonalds price changes people are moving to their business into the different level. The buyer cost affect for the McDonalds and product differentiation also the main threat of the substitute.
v) Threat on new market entrants:
The threat of new market entrants affecting the business of the McDonalds. If any new changes available in the market automatically the price value is going differentiate from the KFC and other Burger King. The new market entrants is make business become less. So the company should overcome to this.
This report explaining the McDonald's strength, threats, opportunities and weakness using SWOT analysis, From this analysis we can come to know the future benefit of the company. From this report we come to know if McDonald's give the best price for their food compare to KFC easily can come up with the best option. This report identifying the last five years McDonald's management information changes in the competition market. The McDonald's product item should satisfy the all customer, so their employee need to get some more benefit from the company to do their work best in the market.
After implementing strategic tool McDonald's showing the best performance of their food product, The main competitor of the KFC has the multinational technology communication, IF this will be implemented in McDonald's will be more advantages to get the quick information from the other network. McDonald's better services, quality familiar into the business to make the long term achievement into the business. I like to command the McDonalds would focus on the new food varieties according to the situation and environmental situation. The implementation of the BCG and Porters Five forces information to the McDonalds finding the status of the company comparing with other relevant organization.
In the final conclusion we come to know the McDonald's is the best food item selling restaurant in the competition market. If McDonald's follow the Micro and Macro environmental factor more then the business get succeeded in the global market soon. The business of the environment keep on changing in the last few years in many countries for McDonald's, So if company find the Technical, Social, Environmental factor then quickly identify by all the user. The SWOT, FESTEL factor is explaining how the McDonald's company get achieve in their business soon for their satisfaction life. This company business strategy utilizing the new model, graph and diagram for identify the solution to overcome into the competition business. In the final conclusion we analyzed McDonald's last few years' business changes in their business.