Tuesday, June 4, 2019
Internal And Task Environment Analysis
Internal And Task surround outlineThe purpose of this paper is to discuss environmental factors poignant upon McDonalds management functions. And true strategy the company currently using to tackle this environmental impact. This will be achieved by exploring how McDonalds tackle with on the whole of the external and internal environmental factors. on that point argon mainly three factors that were selected to outline the achievement of McDonalds corporation.The first factor is beingness(prenominal)ization, which is define as closer contact in the midst of different parts of the world, with change magnitude possibilities of personal exchange, mutual understanding and friendship between world populations. Diversity, the difference among people and enculturations, is the second factor discussed in the paper. The final factor is ethics, which git be defined as a set of principles of good conduct. This paper explains how the McDonald Corporations engagements the factors to conduct business or so the world.There argon many different values to the horse around the world, many issues that wipe out occurred in many of those regions/websites, and to the highest degree 120 countries served by McDonalds thatRely on the functions of management to succeed. Fin onlyy, short and long border strategic and tactical recommendations were outlined in order to enhance McDonalds competitive position within the global close-food industry. These recommendations atomic number 18 twain realistic and intumesce back up, based upon the rating of their current strategy and activities.1.0 IntroductionMcDonalds sporting food eating place is one of the lifesizest franchises in the United States as well as aboard. Their top menu items complicate hamburgers, cheeseburgers, McNuggets, and French fries. They are also known for one of their popular desserts the apple pie and their breakfast sandwich the Egg McMuffin. There are more than 32,000 McDonalds restaurants serv ing in 117 countries. More than 75% of McDonalds restaurants worldwide are owned and operated by independent owners.McDonalds has several ethical and social responsibility policies in place throughout their just owned and franchised companies. These policies include placing the guest experience at the core of what they do, committing to their employees by nurturing their talent and rewarding their achievements, maintaining high standards regarding the conduct for business, and giving back to the communities in which they are established. All of these values are infiltrated through all levels of the company, which keeps McDonalds thriving as a successful fast food chain restaurant. Moreoer, as visited McDonalds stores all oer the realm, it became clear to me that the drive-through business was successful priority one.Risk management is imperative to McDonalds. They have a risk assessment tool that they use to determine the country risk which pertains to the specific country/regio n they are located in industry risk pertains to supplies produce and facility risk which is a combination of both country and risk groundwork. These factors are all part of the risk assessment tool that is utilize in each of their companies to help them with risk management.Security features in McDonalds includes their security camera systems within the facilities to continuously monitor all activity in and around the restaurants to ensure the safety for the workers as well as customers. Thus, McDonalds use these security cameras also in regards to workers compensation claims or liability lawsuit claims from consumers. McDonalds also monitors their computer software systems with an ACS system that monitors the technological factors of their business.2.0 Internal and Task Environment Analysis2.1 McDonalds MissionThe mission affirmment of McDonalds fast food restaurants around the world is non much different from any restaurant chain McDonalds firebrand mission is to be our custom ers favorite place and way to eat. McDonalds vision is to be the worlds silk hat quick service restaurant experience. macrocosm the best means providing undischarged quality policy QCSV that is a quality, cleanliness, service and value, so that we make every(prenominal) customer in every restaurant grimace. Moreover, have provided its customers with the opportunity to dine and alter with family and friends too.That broad and common mission statement is more clearly defined by the McDonalds good Values for money food to its customers and to make its product religious avering available to a wide customer base. Currently McDonalds is implementing a global strategy that it calls Play to Win, which is designed to create a consistently excellent customer experience in McDonalds restaurants. The five key facets of that McDonalds experience are people, products, place, price, and promotion (4P). Importantly, to ensure that each customer receives prompt, professional, friendly and c ourteous service. Additionally, to maintain a clean, teething ringable and well maintained premises for its guests and staff. The price provided at fairly, nutritional using only quality ingredients well prepared meals as well. Which reflects the experience those customers can hold off when walking into a McDonalds fast food restaurant no matter where it is located.Eventually, ensure that guests and staff are treated with the respect and dignity they deserve and convey each guest for the opportunity to serve them. By maintaining these purposes, aims to be assured of a fair profit that will allow it to contribute to the community it serve.2.2 McDonalds ObjectivesA marketing plan must be created to make full clear objectives. Objectives guide marketing actions and are used to measure how well a plan is workings. These can be related to market destiny, sales, and goals, reaching the target audience and creating awareness in the marketplace. The objectives communicate what mark eters want to achieve. Long-term objectives are broken down into shorter-term mensurable targets, which McDonalds uses as milestones along the way. Results can be analyzed regularly to see whether objectives are being met. This type of feedback allows the company to change plans. It gives flexibility. Once marketing objectives are set the next stage is to define how they will be achieved. The marketing strategy is the statement of how objectives will be delivered. It explains what marketing actions and resources will be used and how they will work together.However, wish to provide tasty foods and drink we sell meets the highest standards of quality, freshness, seasonality, combines both modern-creative and traditional southern styles of cooking for their customers. Making Money is the main objective of any business and without it the company would go bust. To consistently provide customers with impeccable service by demonstrating warmth, graciousness, efficiency, knowledge, professi onalism and integrity in its work. To have every customer who comes through its doors leave impressed by McDonalds and excited to come back a recognise.Most people can find a McDonalds in any metropolitan city anywhere in the world. McDonalds global success can be attributed to company objectives. When consumers are aware of McDonalds objectives, they better understood the value of such a large, global franchise in helping people find employment and in offering a cheap, sustainable product to their consumers. To create and maintain a restaurant that is comprehensive and exceptional in its attention to every detail of operation.Moreover, can provide all who work with them a friendly, cooperative and rewarding environment which encourages long- term, satisfying, evolution employment so simple to able make their customers happy. They also need and have trained staff who are supposed to put a smile on the customers faces and who deal with the business side of the company e.g. acquire etc. Additionally to provide a consistent and steady source of revenue and income for its shareholders and all related stakeholders. Besides, also to be a responsible corporate citizen and to be an exemplary corporate member in the countries in which it operates.2.3 McDonalds Social ResponsibilityBeing aware of and act on its responsibilities as a good corporate citizen. McDonalds firmly believes in giving back to the communities in. We love to provide support and rise to the people who need it the most. All our restaurants approach to charities and sponsorships. We believe these help inspire the people of Pakistan, especially the underprivileged ones, to live a better life. We are commit to delivering great experiences through our ongoing community support programs. Undertake meaningful involvement of McDonalds restaurants in selected charitable activities in its community and region. As supported a school activity recently for Com expand-a school for the under privileged child ren also extended support by providing free food for students at the carnival logical by the school.All McDonalds products shall be of the highest quality and value, be healthy, nutritious and provided with outstanding personal services at the lowest possible prices consistent with a fair return on investment for shareholders, job enhancement/security for employees and a level of community involvement by everyone connected with its business. Therefore, all products and services shall be delivered consistently and measured one satisfied customer at a time, whether by company-owned or franchised operations, in superior, clean, convenient, fun and friendly neighborhood environments. Eventually, and make McDonalds the best place to eat and the best place to work.To make people realize that the worlds natural resources are fast diminishing and something must be done about it, McDonalds has created a public awareness program called McSaviors.McSaviors has certainly helped in bringing abo ut a sense of awareness in adults that Pakistan faces a shortage of urine and electricity and that good care must be taken of these precious resources. All school children are eligible to join McSaviors. They can become members by visiting any McDonalds Restaurant and filling out the registration form. It is also planned to seek the support of schools in further promoting the program.Question 2 investigate the external environment factors in which this organization is operating. (E.g. using PESTLED tools to analyses the external environment.)3.0 External Environment AnalysisThe PESTLE Analysis is a framework used to graze the organizations external environment factor. PESTLE stands for Political, Economical, Social, Technological, Legal and Environmental.3.1. PESTEL Analysis and Environmental Impact Matrix (Macro Environment)A PESTLE analysis should feed into a SWOT analysis as it helps to determine the threats and opportunities represented by macro-environment forces that the or ganization usually cannot control. Hence, below table provides an analysis of the external international marketing environment as well as the threats and opportunities of each factor of the fast-food industry.3.1.1 PoliticalAlarmed by links between poor diet and disease, as well as impinging increases in obesity, policymakers, the public, and health professionals have challenged food industry practices. Although many forces contribute to obesity and poor diet, food industry behaviors such as marketing membranous foods to children, promoting large portions and between-meal snacks, and exploiting schools for commercial gain have raised calls for government regulation and paved the path for actions such as requiring calorie labeling in restaurants. The menu of McDonald in the pass do not label the nutritions of the food. Hence customers do not aware unhealthy food of fast food that provided by cDonald. Starting in 2006, the fast food behemoth promises to place nutrition information o n the packaging of most menu items(R1). Recently, While millions of Americans working low-paying jobs, President Barack Obamas call for a $9 minimum hourly wage were successful in February 2013 (R2). This regulation makes McDonald not happy because it would reduce revenue of the company and it is a threat to McDonald business. 3.1.2 EconomicalMcDonalds, the worlds largest fast-food chain, account a decline in an important global sales figure, the first such drop in almost a decade by November 2012(R3). It is an unpredicted sharp drop in sales which some restaurants sales fell 2.2 percent in the United States and Europe and declined 2.4 percent in the Asia Pacific, Africa and Middle easternmost regions (R3). However, Global Fast Food Restaurants global market research report provides the latest industry statistics and industry trends, major fast food retailers have responded by expanding the number of healthy preferences on their menus, the general trend toward health awareness h as hurt demand for the typically greasy food provided by the these restaurants.However, the industry experient steady and growing demand from emerging economies, which boosted the industrys overall performance. Over the five geezerhood to 2012, industry revenue will grow at an average one-year rate of 2.2% to $499.5 billion(R4). Therefore,the industry report identifies the surpassing companies globally and offers strategic industry analysis of the key factors influencing the market. Furthermore the unemployment rate of McDonald is decreasing over the five years to 2012 (R5) and the figure is shown in Appendix. Hence, McDonalds is going on a hiring blitz for thousands of jobs in Canada has been announced on 9th April 2013(R6).3.1.3 SocialIn the last few decades the number of supposed civilization diseases has dramatically increased. Research has proved that the main cause for these diseases is the change in way of life, including rising stress in a fast paced world and a lack of attention to physical activity and good nutrition. Nutrition and bad dietary habits have the greatest influence on weight gain and obesity, which are serious public health problems because the increased risk of premature death and civilization diseases like heart diseases, high blood pressure and diabetes. The state of health in the European countries was examined, with special focus on Hungary, regarding public health indicators and nutrition habits (R7). The fast-food industry is a favour restaurant for nowadays peoples and has been criticised for providing unhealthy food to consumers and caused obesity in the country.3.1.4 TechnologicalMcDonalds has adopted the use of applied science in delivering its fast food to their consumers. The most recent McDonalds technology development has been place WI-FI hotspots in most of their restaurants globally (R8). This model is made to introduce more young and tech-people into the restaurants creating some what of a starbucks feel, which b y the way is free. Besides, Mcdonalds uses a 100% biodiesel technology (R8). Doing this has helped reduce carbon emissions with the truck making the deliveries. Moreover, McDonalds uses Nintendo DS system as a e-learning training tool for their new recruit staff in over 3,000 of their restaurants. These gaming systems train the recruits and grade them on their performance, in which they can compare with opposite colleagues and view their progress.There are many types of information systems used in McDonalds too such as Transaction Processing System (TPS), Decision support system (DSS), Management Information Systems (MIS), Made for you system, POS system Scale of fountainhead system and Hyperactive Bob system(R9). Transaction system is important to answer routine questions, and it helps to conduct business such as payroll, employee record keeping or paying an employee. Decision support system is used to model data and make quality decision based on the data , making the right de cision is usually based on the quality of the data and ones ability to analyze the data. Management information system is a system that provides information indispensable to manage organizations effectively.In Made for you system when a customer places an order , the sandwich item will immediately appears in the computer monitor in the kitchen and a tone sound to alert the kitchen staff . Point of scale system to ensure fast and accurate order , because this system is used to travel rapidly the business process, it can track massive amounts of data in seconds. The Hyperactive Bob system used computers and rooftop cameras to monitor traffic entering a restaurants pose lot and drive-thru. All these technologies used by McDonald are helping in daily business and ensure the business delivers smooth to customers.3.1.5 LegalMcDonalds has been involved in certain of lawsuits and other legal cases in their fast food business. Defamation in the McLibel case was an English lawsuit happen ed by McDonalds Corporation against environmental activists Helen marque and David over a pamphlet critical of the company(R10). McDonald was won in the English court. McDonald has been sued a restaurant MacJoy in Phillipines for using a similar restaurant denote with McDonald(R11). This is to keep the name of McDonald as their company trademark and copyright in the regulation.McDonald complies with the global operators regulation which are opening hours, taxation and employment in all business country such as real case happened between McDonald and Coalition of Immokalee workers in US (R11). Besides, all global countries are required to meet national food standards such as the requirements set out by the Malaysia Ministry of Health, McDonald food must Halal in Malaysia(R12). Advertisement of McDonald must honour and cannot deprave the consumers (R11). Furthermore, health and safety law is important to ensure workers are working in the safe working environment, McDonald restauran t (R11).3.1.6 EnvironmentalEnvironmental activists are promoting go green as well as it is encouraged by most countries governments so McDonald has been introduced go green program such as REDUCE, RE-USE, RECYCLE, DISPOSE. Its better to reuse trash than to throw it away, better to re-use a bottle or bag directly than to recycle it, and best of all to reduce garbage by not generating it in the first place. McDonalds has been whittling away at the thickness of its polystyrene burger containers, straws, and cold drink lids, reducing them on average by 12 percents (R13). McDonald is welcome in every step toward environmental responsibility such as above organized program.4.0 McDonalds Internal and External AnalysisThe following framework identifies McDonalds review of the Corrective exertion System. For SWOT steps and flow.STRENGHS1.Ranks very high on the Forture Magazines food service companies that are most admired list.2.One of the best brand recognition in the world,the opulent ar ches and Ronald McDonald.3.Global operations all over the world.4.Cultural diversity in the foods that are provided based on location of the restaurant.5.Excellent locations in theme parks,airports,Wal-Mart store,and along most well traveledroads.6.Efficient operating guidelines in the assembly line fashion.7.Food safety guidelines are strictly adhered to.WEAKNESSES1.Failing pizza test market thus limiting their ability to complete with fast food pizzaproviders.2.Training costs are elevated due to high3.Very minimal concentration on providing organic foods.4.Large fluctuations in their net and operating profits making impacts on the investors.5.Not much variation in seasonal products that are affered.6.Quality concerns due to franchised operations.7.Focus on burgers and grease fried foods and not on healthier option for their customers.OPPORTUNITIES1.Opening more joint ventures with several different retailers.2.Being more responsive to the social changes to healthier options.3.ad vertising the capabilities of Wifi internet services in the branches.4.Expanding on the advertising in regards to being more socially responsible in theenvironment.5.Expansions of business into newly developed parts of the world.6.Open product up to allergen free options such as goober free and gluten free foods.7.Continue to venture into more enticing beverage choices.THREATS1.Their marketing strategies that entice people from small children all the way to adultsand the criticism that they take beause of it.2.Lawsuts for offering unhealthy foods that have alleged addictive additives.3.Contamination risks that include the threat of e-coli containments.4.The vast amount of eat in fast food restaurants that are open as competition.5.Social changes to a more balanced meal in cluding fruits and vegetables in servings offive per day.6.Focus on healthier dieting by consumers.7.Down turn in economy affecting the ability to eat out as much.4.1 Internal Analysis4.1.1 Resources and Capabiliti esA firms resources and capabilities can be measured through identifying its tangible andintangible resources and capabilities within. Tangible and intangible resources aresignificant in implementing firms strategies. It ranges from financial, physical,technological and organizational while intangible can be human, innovation andreputational assets. Incase of Macdonalds, is the worlds largest chain of hamburgersfast food restaurants, serving nearly 47 million customers daily.The restaurants arefound in 119 countries and territories around the world. McDonalds operates over 31,000restaurants worldwide, employing more than 1.5 million people. Looking at theincreasing popularity especially in South-Asian region it is predicted Macdonalds wouldexpand even further in new countries and unexplored territories.4.2 External AnalysisMcDonalds has many opportunities in the external environment due to an increase in eating out, and growth of the hot drinks market. During the recession, McDonald s Informal Eating Out (IEO) market share increased to a record high of 11.5% and a quarter of surveyed teenagers said they purchase fast-food at least once a week (Mintel, 2011).They are a global company operating more than 23,500 restaurants in 109 countries. By being spread out in different regions, this gives them the ability to weather economic fluctuations which are localized by country. They can also operate effectively in an economic downturn due to the social need to seek out comfort foods.Health consciousness trends are a global threat, as McDonalds has been traditionally perceived as offering only fatty food. Recently, some healthier options have been introduced, i.e. salads and wraps, in efforts to shift their position in the consumer eye. However, the brand is still perceived as unhealthy and this poses a continual threat.McDonalds uses only 100% pure farming inspected beef, no fillers or additives. Additionally the produce is farm fresh. McDonalds serves 100% farm rais ed chicken no fillers or additives and only grade-A eggs. McDonalds foods are purchased from only conscious and inspected suppliers. McDonalds works closely with ranchers, growers and suppliers to ensure food quality and freshness.5.0 RecommendationsStrategic and tactical recommendations for McDonalds.The following table outlines the strategic and tactical recommendations for the future successShort term (6 months- 1 year)Long-term (1- 5 Years)Developing and expanding business in exploitation countries with the middle classesPromoting recycling and environmentally friendly program in the internal working environmentAdapting the foods according to the cultural and regional taste as well as provide healthy foodEncourage social responsibility program for health awarenessLoyalty program such as provide discount in happy hour and give free items with loyalty gummed label or cardExpand business with other healthy food brand5.1 Short Term Recommendations (6 months 1 year)Growing middle classes in developing country give an opportunity for expanding the business since many western markets are saturated. Besides, McDonald has been focused on the taste of the food according to regional and emerging economies offer multiple opportunities for product adaptation. For example, pastry options in Brazil and cheese products in India could increase sales. Further adaptation of meal size and price will cater for a larger market demographic as well as introduce healthy food in all franchises since health awareness is strictly important around the world. A loyalty program could be used to increase frequency of a customers purchasing. This could be introduced discounts in certain happy hours, or given free items with loyalty sticker or card when over a purchase limit to encourage more purchase.5.2 Long Term Recommendations (1 5 years)Awareness of environment, environmentally-friendly and ethically-sourced packaging are activated by most global countries. This encourages McDon ald provides this knowledge among the workers in a working environment to show difference McDonald culture compare to their competitors. Although McDonalds every year supports social responsibility in ophanant houses, old folks, blind houses in various charities to help weak peoples, further emphasis on charitable work could positively alter customers perception of the brand. Besides, promote health awareness to them with McDonalds products. Expanding the health-conscious fast-food market under the guise of a different brand would ripe a larger market share and diversify their business, spreading the risk of failure.6.0 ConclusionIt is argued that effective marketing strategies and tactics cannot be developed withoutfirstly analysing the environment in which the company operates. A number of uncontrollable elements affect McDonalds international marketing strategy and tacticalimplementation. These groups of elements include the PESTLE (political, economic,social, technological, leg al and environmental), structure of the market and competition being faced (Porters (1980) five forces analysis) as well as analysis of its stakeholders,customers and product adaptation within its internationalisation strategy. All of theseaspects are crucial to a companys strategic decision making. The level of understandingthat exists in these relationships will determine the success of a company.McDonalds is not making a one-time standardised global choice but it is striking tofind a balance. This is not a straightforward task, as identifying the balance between calibration and adaptation is a challenge and very difficult to achieve. The goals of reducing costs and complexity lead McDonalds to consider standardisation, whilecustomer orientation sways it towards adaptation. It is evident through the analysis thatMcDonalds is adapting its marketing mix elements in order to go in line with the externalenvironment. At the same time, it should be noted that the company is also standar disingwhen and where possible in its desire to achieve economies of scale and global uniformityand image.With respect to McDonalds internationalisation strategy, the companys effectivenessand profitability is obviously well supported by their strong competitive position andmarket share in their primary product market.Its international success is achieved by thecompanys strategy and tactics, which complement each other and work in harmony, providing the optimum return bounded by efficiency. The company is thriving as it is botheffective (doing things right) and efficient (doing the right thing).McDonalds portfolio of products is well managed and ensures the best fit between thecompanys strengths and weaknesses and for offsetting the threats found in its competitiveenvironment. In considering the strong competitive position of the firm in a highlyattractive market, it is suggested that McDonalds should protect its position (Mckinseymatrix). This can be achieved by concentrating effort s on maintaining its existing strength by investing to grow at maximum digestible rate.It is recommended that McDonalds continue this approach, that is simultaneouslyfocus its attention on aspects of the business that require global standardisation and aspectsthat demand local responsiveness. When appropriate, processes should be standardised,however, operation in local markets necessitates the maintenance of the appropriate localflexibility.McDonalds is adopting differentiation and cost leadership strategies (genericstrategies). In terms of differentiation, the firm attempts to be diverse from its competitors by adding something to its product that will provide a unique value to its customers. 7.0 References1) http//www.commondreams.org/views05/1103-23.htm. plump accessed on 12/04/20122) http//money.msn.com/now/post.aspx?post=d184c64e-c231-426c-bb2e-8935ebd3ee06. Lastaccessed on 12/03/20123)http//www.nytimes.com/2012/11/09/business/mcdonalds-reports-global-decline-in-sales.html?re f=mcdonaldscorporation. Last accessed on 12/03/20124) http//www.ibisworld.com/industry/global/global-fast-food-restaurants.html. Last accessed on12/03/20125) http//research.stlouisfed.org/fred2/series/MOMCDO9URN. Last accessed on 13/03/20126) http//www.chch.com/home/item/12412-mcdonalds-hiring-day. Last accessed on 13/03/20127) http//ageconsearch.umn.edu/bitstream/44325/2/460.pdf. Last accessed on 13/03/20128) http//mcdonaldsteam3.blogspot.com/2010/05/mcdonalds-corp.html. Last accessed on13/03/20129) http//mcdonaldsmis.blogspot.com/p/mcdonalds-is_04.html. Last accessed on 14/03/201210) http//en.wikipedia.org/wiki/McLibel_Case. Last accessed on 14/03/201211) http//en.wikipedia.org/wiki/McDonalds_legal_cases. Last accessed on 14/03/201212) http//www.mcdonalds.com.my/abtus/CSR.pdf. Last accessed on 15/03/201213) http//www.sustainer.org/dhm_archive/index.php?display_article=vn304mcdonaldsed8.0 Bibliographyhttp//www.aboutmcdonalds.com/mcd/our_company/mission_and_values.html.Last accessed on 8/04/2012http//retailindustry.about.com/od/retailbestpractices/ig/Company-Mission-Statements/McDonald-s-Restaurants-Mission-Statement.htm. Last accessed on 8/04/2012http//wiki.answers.com/Q/What_are_the_aims_and_objectives_of_McDonalds.Last accessed on 10/04/2012http//businesscasestudies.co.uk/mcdonalds-restaurants/the-marketing-process/marketing-objectives.htmlaxzz2Prg92Wds. Last accessed on 10/04/2012http//www.mcdonalds.com.pk/page/corporate-social-responsibility. Last accessed on 10/04/2012http//www.mcdonalds.com.pk/page/corporate-social-resp
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.