QuestionQuestion

1.    Using the PESTEL and Porter's 5 Forces models (provide your analysis of each force), what are the current forces in the external environment that might affect McDonald’s strategy?

2.    Using a Value Chain Analysis, identify the sources of competitive advantage does McDonald’s have?

3.    Identify their business-level and corporate level strategies it employs.

4.    Analyze the financial data provided.   All data provided is in millions of US $. What are the financial trends as indicated by the appropriate rations.

5.    What other strategies could McDonald’s formulate to achieve a competitive advantage?

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McDonald’s Case Study.

Table of Contents
McDonald’s Company Profile and Overview. 3
Porter’s Five Forces Model Analysis of McDonald’s. 4
PESTLE Analysis of McDonald's. 6
Value Chain Analysis of McDonald’s. 7
Primary Activities. 7
Support Activities. 8
McDonald’s Business Level and Corporate Level Strategy 9
Financial Data Analysis of McDonald’s 10
Strategies that McDonald’s can Apply to Leverage Competitive Advantage. 10
Five Force Analysis: Recommendations 10
PESTEL Analysis: Recommendations. 11
Conclusion 12
References 13

McDonald’s Case Study.

McDonald’s Company Profile and Overview.
McDonald’s Corporation is the company that operates and issues franchisee licenses for the McDonald’s family of restaurants. Incorporated in 1964, McDonald’s offers various food and drink items in over 100 countries around the world and takes into consideration various customization issues such as local relevance of menus and different pricing. The largest market segment served by McDonald’s is the United States, but other segments include Corporate customers, High Growth Markets, International Lead Markets, and Foundational Markets. Primarily, McDonald’s operates using a franchise model and its franchised outlets are operated and owned via different franchising structures such as conventional, affiliates and developmental franchising. The most common structure i.e., conventional franchising, the franchisor buys the building or land where the outlet is to be situated, or gets a long-term lease for the proposed outlet location. The franchisee is then responsible for signage, restaurant décor, seating, and equipment. In the United States segment, McDonald’s offers a platform for consumers to customize their meals by choosing from a variety of ingredients. The International Lead markets comprise countries such as Canada, France, Germany, Australia the UK and others. In the Foundation and Corporate segments, McDonald’s focuses on operating outlets and improving customer convenience through services such as drive-throughs. Finally, the High Growth segment covers operations in rapidly growing world markets such as Russia, Spain, China, Poland, Korea, Netherlands, and Switzerland among others. In the High Growth markets, McDonald’s focuses on product promotion by providing new and diverse menu items, marketing and promotions, value creation and the implementation of innovative digital strategies (Reuters, 2019).

The main items in McDonald’s menu usually comprise various fast food items such as ham and cheeseburgers, the famous ‘Big Mac’ burger, chicken sandwiches and McNuggets, salads, fresh fries, coffee, shakes,...

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