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BPMN 3023 STRATEGIC MANAGEMENT

SECOND SEMESTER SESSION 2019/2020 (A192)

CASE ANALYSIS:
“The Necessity and Importance of Vision and Mission to the
Organisation”

GROUP D

Submitted to:
Dzulhilmi Bin Ahmad Fawzi

MATRIC. NO. NAME

259198 HAFIZUL IKMAL BIN MAMUN

Dateline:
21st July 2020

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1.0 INTRODUCTION
McDonald's is outstanding amongst other known brands around the world. This
contextual analysis shows how McDonald's continually intends to fabricate its image by
tuning in to its clients. McDonald's undergo urged to fight with miscellaneous expected
obstacles to develop later, uttermost remarkably obvious analysis and a not explicitly great
general financial scene that has perceive consumers dwindle their alternative purchasing.
McDonald's has, notwithstanding, utilizing techniques to retaliate the particular matters of
contention, and the options the corporation has adapted have granted it to keep up a stable
degree of progression.

2.0 ISSUES OR PROBLEMS OF MCDONALDS

The issue is declining in sales for a couple of years. This is due when the appointed
Chief Executive Officer (CEO) Steve Easterbrook was handling the company, McDonald has
suffered a lost of 500,000 customers. It is also stated that it experienced a reduction of 1.3%
of sales in 2016. From the table of McDonald’s Income Statement, it is shown that 2013,
McDonald has a revenue of USD 28,105.70 million, however it showed a decrease trend for
years whereas in 2016, McDonald’s revenue was only USD 24,621.90 million. Plus, the
number of customers dine in the restaurant if compared with dining out showed a huge gap.
McDonald also experience a threat where increase number of companies that operate fast
food and focused on a better taste burger.

3.0 SUMMARY OF ANALYSIS

For this section, SWOT or PESTEL analysis will be used to further explore the internal and
external factors of McDonald.

3.1 SWOT Analysis

 Strength

S1: Strong brand name, reputation and image.

McDonald has refined monstrous brand value. It is the no 1 fast food corporation by
oversees, with in excess of 31,000 cafes providing fries and burgers in surprisingly
approximately 120 nations. McDonald’s figure is remarked completely.

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S2: Technology inventive

McDonald is maintaining at the prominence of utilizing technology all over the world.
For example, McDonald were the first to offer drive through if being compared to other
competitors in the fast food industry. Next, in 2017, McDonald also announced that it will
perform a mobile ordering to all the location in United States.

 Weakness

W1: High turnover rate of employee

Despite the case that McDonalds has prodigious great administrators like capable
workers, the turnover percentage is yet immense. Persistently a large number of their
employees are abolished out of the firm. Additionally, tremendous others renounce their
jobs, principally low maintenance representatives as a result of small pay just as excessive
working hours.

W2: Unbalance meals

Notwithstanding the matter that McDonalds solicits to reconstruct its menu by sound
standards, McDonald's dinners are still imbalance. To illustrate, there are tremendous food
with chicken (two together of fried and grilled), egg, meat, rib or bacon. Also, only a little food
is provided of mixed of organic items and vegetables. Also, assess of vegetables or organic
item isn't a lot. It also being stated that McDonald are putting efforts to provide more healthy
products for consumer who were concern about their health.

 Opportunity

O1: The rise of the fast food business

The commerce of fast food is currently thriving wholly. The contrast in way of life
instantaneous the readjustment in individuals’ arrangement of diet. Formerly, if just drivers,
workers or someone who required to work wildly and needed more an ideal opportunity for a
home dine select inexpensive food; these days, almost all individuals eat cheap food and a
significant of them like cheap food without a doubt. It is a tremendous possibility for
inexpensive food brand to progress their revenues, specifically McDonalds.

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O2: Expansion or globalization in other nations

McDonalds has in surplus of 31,000 restaurant delivering in right around 120 nations.
Of the 31,000 cafés, in any event 14,000 are in US. It is stated that the traditional competitor
of McDonald which are Burger King only have 7 500 restaurants operating in the US. The
other competitors are much lower in the amount of restaurant.

 Threat

T1: Extreme competition

At the side of the industry advancement of fast food, there are tremendous unfamiliar
fast food company enter to the market. It is nothing to state if there is no strong company
which are able to compete with McDonalds. Be that as it may, actually, there are a few and
they are more grounded bit by bit, for instance Yum!Brands, Wendy's or Burger King.
Despite the fact that piece of the overall industry of this brand are lower than McDonalds,
they attempt to acquire clients from McDonalds. In addition, progressively easy-going
feasting cafés increment their burger offering and reduction the cost. On the off chance that
we are not so much rush, we may pick this sort of eatery rather than drive-thru eateries.
They additionally become the contenders of McDonalds.

T2: The crisis of public health

Alongside an evolving number of heftiness problems among Americans, cheap food

chains like McDonalds will maintained on being overshadowed by their previous item
contributions, for instance Supersized Meal, no organic product or yogurt, thin plate of mixed
greens assurance. In addition, individuals currently are encountering heart issue all the more
admittedly. Subsequently, they expect nutritive and sound food just as way of life.

3.2 PEST Analysis

3.2.1 Political Challenges

The challenge in political is conflicts and wars. There are always wars occurred
between nations where the business operates. They have also become an image
Americanism and capitalism where McDonald will become the terrorist’s target attack. For
example, the support of America toward Israel in concurring Palestine has make Muslim
started boycott on McDonald and all US business company.

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3.2.1 Economic Challenges

McDonald need to examine the challenge of economic when enlarging globally. One
of the obstacles in fast food industry is to maintain low prices for the buyer. But every
country has their own currency, and every currency is different. For example, $ 1 is equal to
RM 4.26, so it will be more expensive if McDonald operate in nation that have low currency
value.

3.2.1 Social Challenges

The primary consideration is the worries of customers had incredibly raised with the
concerns of health. So, consumers currently prefer for more healthier alternatives of fast
found such as Subway where it provides so much more option for customer who concerns
about their health.

3.2.1 Technological Challenges

McDonald has occupied the benefit of technology to distribute their operation and
boost productivity. As a result of technology’s advancement like application and network
consolidation has greatly improved the operation of McDonald and other company. For
example, McDonald test the Speed pass cashless purchasing system where the customers
able to put their order straightforwardly from their cars or tables.

4.0 STRATEGY RECOMMENDATIONS

The first recommendation for McDonald is providing more choices of healthy food.
McDonald ned to establish choices of menu that are healthy and importantly accepted by
social. It is desirable to establish menu that society will love and that also appropriate in the
term of fast food. But it is stated that by using fresh material it will consume time and
increase cost, same as when McDonald wants to implement fresh beef for Quarter Pounder.
By eliminating this issue, McDonald should use the sources of local food. By using local
supplier, it will reduce the delivering time and at the same time will decrease the cost.

The second recommendation, McDonald need to increase their presence in the

Asian region. This is good because McDonald can cover a lot more market in operating
internationally. This will also contribute more income and potential consumer. This will help
McDonald to gather more revenue rather than focusing in the European countries where

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competition is intense in the market. Plus, this will also help McDonald to broaden their
product offering since each region have their own favourable taste.

REFERENCES

Hridoy, M., & Dash, T. (2019). McDonalds Case Study. Retrieved 19 July 2020, from
https://www.academia.edu/40915522/McDonalds_Case_Study?
email_work_card=view-paper
McDonald's SWOT Analysis and Recommendations. (2020). Retrieved 19 July 2020, from
https://toughnickel.com/industries/McDonalds-SWOT-analysis-and-
recommendations
Schramade, W. (2019). McDonald's: a sustainable finance case study. Retrieved 20 July
2020, from
https://www.rsm.nl/fileadmin/Images_NEW/Erasmus_Platform_for_Sustainable_Valu
e_Creation/Case_study_sustainable_finance_McDonalds.pdf
umarshk. (2012). Mc donald case study 1. Retrieved 20 July 2020, from
https://www.slideshare.net/umarshk/mc-donald-case-study-1