ASSIGNMENT 3 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 32: Business Strategy (574)

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Student name PHAN KIM LAN Student ID BSBF1200106

Class Assessor name BICH TRA

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Table of Contents
INTRODUCTION...........................................................................................................................................................4
I. Unilever's SWOT Matrix:.......................................................................................................................................4
II. Strategy proposal.................................................................................................................................................5
 PLAN 1: PRODUCT DEVELOPMENT.............................................................................................................5
1. Strategic direction............................................................................................................................................5
2. Business strategy.............................................................................................................................................6
3. Startegic method.............................................................................................................................................6
 PLAN 2: MARKET DEVELOPMENT...............................................................................................................6
1. Strategic direction............................................................................................................................................7
2. Business strategy.............................................................................................................................................7
3. Strategic method.............................................................................................................................................7
III. Evaluation of alternative strategies....................................................................................................................7
1. Key External Factors.........................................................................................................................................7
2. Key Internal Factors.........................................................................................................................................8
3. QSPM...............................................................................................................................................................8
4. SAFe criteria...................................................................................................................................................10
CONCLUSION.............................................................................................................................................................10
REFERENCES..............................................................................................................................................................12
INTRODUCTION
For an organization to have a high profit and influence on the community, it is necessary to define the
right goals as well as the markets and products that are popular and widely used by consumers. It is also
used to gauge the business performance of a business. In this report, we will select and present the
strategies that McDonald Vietnam applies in business.

I. McDonald SWOT :
Strengths Weaknesses

- Strong brand name - Unhealthy food

- Stable income through
successful franchising and
marketing campaigns.
- Using technology to improve
customer experience in stores
and mobile applications.
- Food quality
- Strong brand recognition
- Problem related to health
issue
- Price quiet high
- Low salary as well as too
high working pressure.

SWOT Opportunities Threats

- Growth of the fast-food - Highly competitive with
industry another brand, such as
- Diverse tastes and needs of KFC, Lotteria, Jollibee,
customers. Burger King, etc.
- Changing customer habits and - Differences culture
new customer groups. - Trend towards healthy
eating

II. Strategy proposal

Through the SWOT analysis above, I will propose 2 new product options to develop product of McDonald
in Viet Nam.

 PLAN 1: PRODUCT DEVELOPMENT

1. Strategic direction:
Industries: Along with the trend of economic - cultural - social integration, the change of people's eating
preferences, especially the youth, and with Vietnam's membership of the WTO, the fast- food in Vietnam
is having strong development steps. Currently, McDonald's is facing 3 main competitors: Lotteria, KFC,
BBQ. In addition to the 3 brands mentioned above, there are many other names such as Pollito, Jollibee,
PizzaHut, Subway, Starburg. Competition in Vietnam's fast-food market is becoming very fierce.

Product:

Different from almost of fast- food chains in Vietnam, McDonald's has two isolate areas in one store:
Foods and Coffee. This interesting model allows customers to both enjoy their meals and have a cup of
coffee at the same time. The space of McDonald's coffee shop is modern, friendly and comfortable.
Market:

Because of the continuous change in local consumers' eating and drinking, derived by Western and
modern cuisines, as well as much improved personal incomes and company development, the fast-food
category in Vietnam is expected to continue to flourish over the forecast period.

Fast food players, therefore, should try to constantly develop and introduce new items and seasonal
dishes to satisfy the quick changing demands of consumers.

Chain chicken fast food sales are expected to grow at a constant value CAGR of 21%, to record the
highest growth over the forecast period. It is a popular modern fast food in Vietnam, while burgers and
other Western-style fast foods are still unfamiliar tastes for domestic consumers.

2. Business strategy:
On the main menu of McDonald's there are fried chicken dishes and salads. It can be said that this is an
advantage, because Vietnamese people like to eat crunchy and chewy foods to drink with beer or
healthy vegetables.
Another advantage is that Vietnamese people are gradually changing their eating habits from traditional
dishes to fast meals to adapt to the current lifestyle. Moreover, the population structure of Vietnam is a
young population, young people tend to be more accepting and adapting better. That allows new foods,
with distinctive flavors to penetrate the fast-food market.
It can be seen that Vietnamese people do not like greasy food, but that is the characteristic of fast food.
This is also a barrier. Moreover, due to the increasing number of people with obesity, heart disease and
diabetes, consumers' health is being put on top.

3. Startegic method:

For this difficulty, McDonald's has been promoting the "happy meal" menu, a menu that restricts obesity. In
the "Happy meal" menu, increase the amount of vegetables, fruits and vegetables and reduce the calorie
content of each serving by 20% on average.

 PLAN 2: MARKET DEVELOPMENT

1. Strategic direction:
Industries: From the products available from McDonald to carry out a unanimous diversification
campaign in today's market.

Product: When considering using any product, the clients always put their focus and select the
prestigious ones on top, with the 20 year's trademark mark that the McDonald has a seat in the client's
lap. Besides, a multi-funded proprietary strategy that helps the fang clients have more options, which
suits every product, preferences and different flavors. From the combined arguments with the correct
markets, the correct market, in time, the McDonald received a warm welcome for the client taking
40%pound in Asia and Lati.

Market: The market, personally, on the Vietnam market, the clients are mostly individual clients with
special specialists.

First of all, high economy development and stability the last few years have created a young client's
department with high income. They're willing to pay a lot of money to have a meal, which means the
quality of the travel. Second, the Vietnamese tastes are rich and diversified, but they can see they don't
like fat. It's a matter of formalities. The Vietnamese speak for themselves and the Asians, they're rather
than fat and overweight. That gives the consumers reservations for quick food. With these problems like
that, McDonald's pushing the menu in order to get menu with nutritious, low-fat food is essential.

Business strategy:

Pick a target market. Study and develop the product that fits in fast Vietnamese food markets.

To promote a picture of the McDonald McDonald's market. McDonald's in general, and the McDonald's
robotics team says that he's been promoted, marketing to get the product closer to the consumer. By
promoting the image from Zalo – OTT (free chat app and call) which is developed by the Free Vietnam Group.
Zalo app possesses about 7 million, and more than seven million messages every day, large community and
most of them are young. This creates a good and effective product environment, which is consistent with the
target client of the food industry from 15-30-30-year-old.

Besides, McDonald keeps his eye on his new menu business. In the case of nations like Thai, Malaysia,
McDonald offers more drinks with their own brand. In India, McDonald replaced the beef, the turkey with the
lamb. In Vietnam, McDonald has also raised his diet food, lots of vegetables and especially the product of
rice.
Strategic method:

To promote the image of fast-food products to the market. McDonald's in general and the product
development team in particular have increased advertising and marketing to bring products closer to
consumers. In addition, one reason many people consider coming to eat at McDonald's is the gift of movie
character models with the purchase of a Happy Meal box meal (although this program is aimed at children,
it is attractive to children). mostly young people). In addition, opening 24/7 and encouraging in-store
football viewing also makes McDonald's a fast-food chain to be considered by many during the World Cup
season.

Evaluation of alternative strategies

1. Key External Factors:
Weight Rating Wscore
Opportunities
1. Following the trend of industrialization and modernization. 0.10 3 0.60
2. The domestic market is strongly developed. 0.20 1 0.40
0.05 2 0.25
3. Large population, mostly young population with the ability to
adapt quickly
 4. It's a religiously free country. 0.05 5 0.05
5. As an agricultural country, it is fully capable of supplying 0.10 4 0.35
abundant goods.
Threats
1. Economic growth rate remains low. 0.12 4 0.20
0.05 3 0.25
2. Commercial law still has many disadvantages.

3. Social and interest groups significantly more health-conscious 0.01 3 0.40

and litigious.
4. Competitors’ strategies. 0.02 4 0.20
5. The minimum wage of Vietnamese workers is not high. 0.30 1 0.60

TOTAL 1 3.30

2. Key Internal Factors:

Weight Rating Wscore
Strengths
1. McDonald’s global support. 0.05 4 0.25
2. Attract talent effectively. 0.05 3 0.75
3.R&D is very effective in exploiting the tradition in the product. 0.15 2 0.05
4.The price is relatively acceptable. 0.25 1 0.50
5. Strong corporate culture. 0.10 2 0.30
Weaknesses
1. The key positions in the company are still held by foreigners. 0.05 3 0.20
2. Some technologies have not been applied due to high cost. 0.15 3 0.01
3. Some items have high prices compared to Vietnamese 0.15 1 0.75
income.
4. Mc Donald's product promotion strategy is not yet suitable 0.05 4 0.25
for Asian culture.
TOTAL 1 3.06

3. QSPM:
PLAN 1 Product PLAN 2 Market
development development
 Weight Rate WScore Rate WScore

Opportunities
1. Following the trend of 0.10 3 0.75 2 0.50
industrialization and
modernization.
2. The domestic market is strongly 0.20 2 0.40 1 0.50
developed.
3. The level of education is 0.05 2 0.25 4 0.20
relatively high, especially in urban
areas.
4. It's a religiously free country. 0.05 - - - -
5. There is a long coastline, many 0.10 - - - -
large seaports are convenient for
exporting goods.
Threats
1. Economic growth rate remains 0.12 - - - -
low.
2. Finance and credit are not well 0.05 3 0.25 1 0.50
developed, the stock market
remains small.
3. Commercial law still has many 0.01 - - - -
disadvantages.
4. Hot and humid tropical climate. 0.02 - - - -
5. Many new companies compete. 0.30 1 0.60 3 0.25
TOTAL 1
Strengths
1. McDonald global support. 0.05 4 0.25 3 0.50
2. Attract talent effectively 0.05 - - - -
3. R&D is very effective in exploiting 0.15 2 0.05 4 0.35
the tradition in the product.
4.The price is relatively acceptable. 0.25 1 0.50 4 0.15
5. Strong corporate culture. 0.10
 Weaknesses
1. The key positions in the company 0.05 - - - -
are still held by foreigners.
2. Some technologies have not 0.15 - - - -
been applied due to high cost.
3. Some items have high prices 0.15 1 0.55 5 0.50
compared to Vietnamese income.
4. Mc Donald's product promotion 0.05 - - - -
strategy is not yet suitable for Asian
culture.
TOTAL 1 3.6 3.45

4. SaFe criteria:
Suitability

McDonald's often builds more play areas for children. They capture the psychology of customers coming to
eat and use their services. McDonald's understands that if they can win the hearts of their parents, children
will be their customers. And they very well choose their suitable sales target as well as market strategies.

Acceptability

In Vietnam to hit the Vietnamese food market is a big challenge because the food needs of the Vietnamese
are richer and there are dishes that can be served faster than McDonald's. As well as more competitors
because there are many restaurants in Vietnam. The menu on McDonald's menu is not suitable for people in
Vietnam.

CONCLUSION
McDonald's successfully accompanies the Vietnamese people in their activities every day. Can be used as a
place to chat as well as play for children after a day of school. In general, McDonald's has been very
successful in selecting and implementing strategies to grow the business. They always find new strategies as
well as develop new products to be suitable for each customer, each region to accelerate the development of
the business.
REFERENCES
[1] T., lý, K. and doanh, Q., 2021. Phân tích cơ hội kinh doanh của McDonald’s tại thị trường đồ ăn nhanh Việt Nam
- Tài liệu text. [online] Text.123docz.net. Available at: <https://text.123docz.net/document/2350504-phan-tich-
co-hoi-kinh-doanh-cua-mcdonald-s-tai-thi-truong-do-an-nhanh-viet-nam.htm> [Accessed 26 August 2021].
[2] Đặng, M., 2021. Mc Donalds Vietnam Strategic Analysis. [online] Academia.edu. Available at:
<https://www.academia.edu/7242438/Mc_Donalds_Vietnam_Strategic_Analysis> [Accessed 26 August 2021].
[3] Corporate.mcdonalds.com. 2021. Food Safety. [online] Available at:
<https://corporate.mcdonalds.com/corpmcd/our-purpose-and-impact/food-quality-and-sourcing/food-
safety.html> [Accessed 26 August 2021].