Company Situation/Problem Description a. Briefly describe the situation for which you are developing the case. This situation may include multiple is

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.

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Outline for Final Case Study Analysis

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Nation Wells

1. Who is the current CEO of your company? Chris Kempczinski

2. What are the company’s vision and mission statements?

Our mission is to make delicious feel-good moments easy for everyone. The backbone of our Brand is, and always has been, a commitment to a set of core values that define who we are and how we run our business and restaurants. Serve, inclusion, and integrity.

3. What is their principal business model?

The power of our franchisees, suppliers and employees working together toward a common goal is what makes McDonald’s the world’s leading quick-service restaurant brand. Franchisees bring the spirit of entrepreneurship and commitment to communities. Suppliers are dedicated to highest levels of quality and safety The company facilitates learning and sharing across McDonald’s more than 36,000 restaurants

4. What are the major goals for the company?

McDonald's main aims are to serve good food for great value in a friendly, fun environment, as well as being a socially responsible company that provides good returns to our shareholders.

5. List any recent changes in strategy.

In March of 2017, MCD’s introduced a Velocity Growth Plan. Retain, Regain, and Convert is there most recent changes.

6. What is the Industry in which your company resides? 

Fast Food

7. What is the company’s position on corporate social responsibility (CSR)?

“We take our social responsibilities very seriously. For example, we're always looking for ways to reduce, reuse and recycle in our restaurants and across our whole business. For example, we use low energy LED light bulbs, energy saving equipment and waterless urinals, and recycle used cooking oil into biodiesel to fuel more than half of our delivery trucks. We also recycle the cardboard boxes used in more than 89% of our restaurants, and more than 85% of our packaging is made from renewable resources. We know that every little bit helps.” (https://www.mcdonalds.com/gb/en-gb/help/faq/what-is-mcdonald-s-corporate-social-responsibility–csr–policy.html)

8. Has your company participated in any mergers or acquisitions in the past two years?

In March of 2019, McDonalds announced the acquisition of Dynamic Yield for more than $300 million USD

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Nation Wells

MCDONALDS

Porter’s Five Force Model :

The Five Forces is a framework for understanding the competitive forces at work in an industry and which drives the way economic value is divided among industry.

By Denis Fadeev – Own work, CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=32946157

VRIO framework

VRIO is a strategic framework used to analyze a firm's internal resources and capabilities for competitive advantage. It stands for Valuable, Rare, Inimitable, and Organized. Here is a breakdown of McDonald's VRIO analysis:

V – McDonalds is widely recognized around the world as one of the valuable brands with a large and loyal customer base. Its global network of restaurants ensures that it is easily accessible to several consumers.

R – The unique menu offerings like Big Macs, Chicken McNuggets and Happy Meals set McDonalds apart from fast food chains. The company’s efficient supply chain management guarantees the delivery of high-quality ingredients while maintaining consistency.

I – McDonalds has safeguarded its property and trade secrets, such as trademarks, recipes and operating systems that are challenging for competitors to duplicate. Its strong brand reputation and customer trust are hard for rivals to replicate.

O – With an established culture centered on customer service, cleanliness and value McDonalds emphasizes training programs to cultivate a skilled workforce. Overall McDonalds possesses a variety of resources and capabilities that give it an edge in the fast-food industry.

SWOT :

examines the company's strengths, weaknesses, opportunities, and threats

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