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Unit III Case Study

Essay Instructions:

The text book used for this course is Strategic Management Concepts and Cases, Custom Edition, by Fred R. David. Complete the Assurance of Learning Exercise 6A and 6B on page 205 of the textbook. Use the completed SWOT and SPACE matrices for McDonald's to draw conclusions regarding both the long term and short term strategies you would recommend in light of your findings. Summarize in a two-page APA formatted paper.

Essay Sample Content Preview:

Unit III Case Study
Name
University
Date
Strengths
1 McDonalds has a strong image and a brand name that is recognizable all around the globe.
2 It has a large market share in its respective market.
3 It has a strong global presence among other fast food restaurants.
4 McDonalds offer specialized training to its restaurant managers.
5 McDonalds focus on its product, price, place and promotion strategy.
6 It holds the record of strong financial performance.
7 It frequently introduces new products.
8 Customers are the focus of attention of McDonald’s
9 It is a significant player in the global financial market.
Weaknesses
1 Most of the items on McDonald’s menu are unhealthy.
2 The employees’ turnover is quite high, including the high level employees.
3 It often losses its customers as the result of fierce competitive in the market.
4 Facing legal issue due to the usage of Trans Fat.
5 It uses HCFC-22 for making polystyrene which has hazardous affect on the environment.
Opportunities
1 Customers becoming more and more health conscious.
2 Globalization, expanding its business in other countries.
3 Rapid growth of the fast food industry.
4 Deregulation occurring worldwide.
5 Low prices that will attract more and more customers.
6 Discount and freebies.
Threats
1 Consumer activists and health professionals often criticize McDonalds for being the cause of some major health issues such as heart attack, cholesterol, obesity and diabetes.
2 Relationship between the corporate level of McDonalds and its different franchises can be a major threat for the firm.
3 The market share of McDonalds is threatened by its competitors both on domestic and international level.
Space Matrix
Financial

Rating

Environmental Stability

Rating

Leverage

4

Demand Changes

-3

Cash Flow

4

Rate of Inflation

-3

Return on Investment

4

Competitive Press...
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