Week 15 Case Study Analysis Presentation

Nation Wells

BBM 402

14 JULY 2024

1. Describe the company’s internal environment.

McDonalds corporate values guide all business decisions emphasizing treatment for employees. They prioritize opportunities for all regardless of race, gender, age or disability. The company focuses on promoting staff based on their skills and achievements while maintaining a discrimination free workplace. Employees are valued as team members with their opinions respected. McDonalds HR team regularly reviews discrimination policies to ensure fairness. Workers are encouraged to refer to company handbooks if they feel unfairly treated.

2. List  the company’s external factors.

Socio culture factors, political factors, environmental, and economic factors

3. List the Company’s internal competitive advantages.

Brand, Culture and values, marketing and advertising

4. How does the company differentiate itself from its competitors?

McDonalds differentiates itself from competitors through various limited edition menu items. Offering Lower prices than competitors and consistency no matter what McDonalds you go to.

5. Where is your company on the industry’s life cycle?

McDonalds is in the Maturity stage, they are an ever evolving company so I do not foresee a decline in McDonalds in the future. Most of their business comes from word of mouth because most customers are already aware the products.

6. Does your company have a cost-leadership position in this business? If so, identify which cost drivers it uses effectively to hold this position.

McDonalds is widely regarded as a leader in the fast food industry, for its ability to maintain prices. They use a strategy focused on cost leadership to reduce costs without compromising the quality and value of their offerings to customers. This strategy includes reducing production costs offering menus and efficiently managing the supply chain.

7. What is your company’s approach to the market? Does it segment the market?

Mcdonalds approach to the market is delivering target offers and enhancing customer experience through demographic and geographic segmentation.

8. Is your company vertically integrated? Explain.

Since the 1990s McDonalds has taken steps to control its supply chain effectively by integrating vertically. This approach involves owning livestock farms and running distribution centers enabling the company to have control over the quality and costs of its products. By managing beef sourcing and delivery in house McDonalds can closely monitor aspects of its supply chain, which ultimately helps in cost management.

9. Explain your company’s global strategy.

Mcdonalds global strategy is adaptability in food trends, attitudes, and local customs, so that they are to remain successful for years to come.

References

McDonald's. “Our Business Model and Growth Strategy.” Corporate.mcdonalds.com, 2022, corporate.mcdonalds.com/corpmcd/our-company/who-we-are/business-model-and-growth-strategy.html.

Jaro education. “Understanding McDonald’s Supply Chain Success | Jaro Education.” Jaro Education, Jaro Education, 24 Dec. 2022, www.jaroeducation.com/blog/the-amazing-supply-chain-of-mcdonals/.

So, Soyin. “Internal Environment.” Mcdonaldsmanagement, 16 Jan. 2015, yin234590.wixsite.com/mcdonaldsmanagement/internal-environment.