BADM475 UNIT 4 DB
2
Strategic Plan
Jacob Hurst
BADM475
CTU
03/09/2021
Strategic Plan
McDonald’s has over the years grown into at least 100 plus nations. However, this success has been attributed to effective formulation and implementation of strategies. In this paper, we are going to analyze the key variables under the pest and environmental analysis that have contributed to this success.
Political
As the firm expands, it has carefully analyzed the political statuses of nations before getting into those given markets. Taking on studying the political environment is key in determining the investment choices. This is because, the company makes heavy investments in equipment, marketing and infrastructure for the business to remain functional in any given location for a certain number of years till it breaks even. Besides, a nation’s political scope should offer favorable working conditions, laws and policies that will favor all stakeholders. Brand demand, taxation, and licensing are also key.
Economical
A business is not termed viable if it can offer anticipated returns. Therefore, a market analyst should visit the market to determine the need and thus project viability. For nations with increasing per capita incomes, the citizens will prefer global brands. Also, the consumer tastes and preferences get considered by the company as it expands.
Social
The public opinions and views towards the brand are key as well as culture, societies, and religious beliefs. Therefore, the company should at first get to know the new market to help in making informed business decisions. Such studies will help the firm get into Asian and Arabian economies that are so much in culture and religious beliefs. (Alina, 2020). As a result, the company has employed unique managers for the region. However, the company has to work strategically on Hindus and Muslims who are choosy when it comes to meet products.
Technology
Technology is a key element when it comes to growth and operations. therefore, the firm should look at the technical aspects involved in new business functions and expansions. McDonald has automated machinery that produces food items that are of high quality, right ingredients and quantity. This helps in managing the manufacturing prices and thus profitability. The company is adopting high end technologies, and engineers to track and monitor its facility machinery as per the firm’s guidelines. The company has also embraced digital communication through internet communication. This manages the sales, stocks and any statistics virtually.
Environmental Analysis
The current state of the globe is experiencing increased concerns on the environment and pollution. The company is committed to coming up with strategies through the right technologies to monitor carbon emissions from its manufacturing activities as well as making sure that it complies with the environmental guidelines. The firm has invested in corporate social responsibility policies that has helped the company address the domestic communities wants and needs and the environmental issues as well. All these are aimed at improving the brand aggregate reputation and performance.
6-step sequential process of strategic planning.
Step 1 involves assessing competitors, consumer trends and the industry. the size of the industry, the key rivals and their financial muscles, their strategies are key are of interest. Others include the rival’s pricing trends. Also, the consumer wants and needs should get studied, the government policies too. Step 2 is completing a swot analysis on the business. This will look at the business’ threats, opportunities, weaknesses and strengths among the consumer base, in the financial resources, growth, and profitability. Opportunities in getting into partnerships can also get analyzed, launching new items, getting funds, and exploiting consumer weaknesses. The threat analysis will look at the inadequate financial resources, decreasing prices, and scarce cash flow.
Step 3 is defining the vision and mission of the business. After carrying on the external as well as the internal evaluation, the mission and vision statements should get developed. The mission will elaborate on why the business is in existence while the vision will be guided on what is being offered. (Neis, Pereira, & Maccari, 2017). The vision should be timebound and can get quantified. Step 4 involves defining the business corporate goals. This comes after understanding where you are and the kind of operational scope you are in. Afterwards, generating particular business objectives is key because it helps the business understand what is to get achieved. This could include issues such as making changes to operational efficiencies, financial targets and employee culture.
Step 5 is drilling the business goals to a departmental level. Setting unique goals for a product team, operations, finance, human resource and technology is key in making things happen. The goals should be SMART ones that is; specific, measurable, achievable, results-oriented and timebound. Step 6 involves determining budget, financing requirements and staffing. After determining the departmental wants and needs, they should be brought together and get analyzed from a central point view to engage them in the corporate plan. If the financial resources are not adequate to get things done, then the business can; reduce the targets to a level that the plan can get attained easily or raise the capital needed for the plan to get done. Therefore, all stakeholders and financial advisors should get involved.
References
Alina, F. THE IMPACT OF COVID-19 ON PROMOTION OF BRANDS. In The science of the XXI century: challenges of the contemporaneity [Еlectronic edition]: proceedings of the all-Ukrainian scientific and practical student conference (Kyiv, May 14, 2020)–Kyiv: Kyiv National University of Trade and Economics, 2020.–477p.–English, German. (p. 38).
Neis, D. F., Pereira, M. F., & Maccari, E. A. (2017). Strategic planning process and organizational structure: Impacts, confluence and similarities. BBR. Brazilian Business Review, 14(5), 479-492.