Internal and External environment analysis for Mcdonalds

Internal and External environment analytic thinking for McdonaldsMcDonalds has been a thriving business since 1955 and 20 of the top 50 corporate supply employees started as a restaurant level employee. In addition, 67,000 McDonalds restaurant managers and assistant managers were promoted from restaurant staff. Fortune Magazine 2005 listed McDonalds as the Best Place to Work for Minorities. McDonalds invests more(prenominal)(prenominal) than than $1 billion annually in training its staff, and every year more than 250,000 employees graduate from McDonalds training facility, Hamburger University.The business is ranked number peerless(prenominal) in Fortune Magazines 2008 list of most admired provender service companies.One of the worlds most recognizable logos (the Golden Arches) and spokes character (Ronald McDonald the c emitn). According to the Packard Childrens Hospitals shopping center for Healthy Weight children age 3 to 5 were given aliment in the McDonalds packaging a nd consequently given the same aliment without the packaging, and they preferred the food in the McDonalds packaging every single time.McDonalds is a community oriented, socially responsible company. They run Ronald McDonald House facilities, which provide room and board, food and sibling take for at a embody of only $10 a day for families with children needing extensive hospital c ar. Ronald McDonald Houses are located in more than 259 local communities worldwide, and Ronald McDonald make out Mobile programs offers cost effective medical, dental and education services to children. They in like manner sponsor Olympic athletes.They are a orbicular 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 tush also operate effectively in an economic moundturn due to the social need to seek out comfort foods.They successfully and ea sily adapt their global restaurants to appeal to the cultural differences. For example, they serve up lamb burgers in India and in the affectionateness East, they provide separate entrances for families and single women.Approximately 85% of McDonalds restaurant businesses world-wide are possess and operated by franchisees. All franchisees are independent, full-time operators and McDonalds was named Entrepreneurs number-one franchise in 1997. They have global locations in all major airports, and cities, along the highship canal, tourist locations, theme set and inside Wal-Mart.They have an efficient, assembly line style of food preparation. In addition they have a systemization and duplication of all their food prep processes in every restaurant.McDonalds uses only 100% pure USDA inspected beef, no fillers or additives. Additionally the baffle is farm fresh. McDonalds serves 100% farm raised chicken no fillers or additives and only grade-A eggs. McDonalds foods are purchased fro m only certified and inspected suppliers. McDonalds works closely with ranchers, growers and suppliers to ensure food quality and freshness.McDonalds only serves name brand processed items such(prenominal) as Dannon Yogurt, Kraft Cheese, Nestle Chocolate, Dasani Water, Newmans Own Salad Dressings, Heinz Ketchup, Minute Maid Juice.McDonalds takes food safety very seriously. More than 2000 inspections checks are performed at every stage of the food process. McDonalds are required to run through 72 safety protocols every day to ensure the food is maintained in a clean begrime free environment.McDonalds was the first restaurant of its type to provide consumers with nutrition information. Nutrition information is printed on all packaging and more recently added to the McDonalds Internet site. McDonalds offers salads, fruit, roasted chicken, bottled water and other low fat and calorie advised alternatives.It has branded menu items e.g. Big Mac, Chicken McNuggets, which further promote M cDonalds.McDonalds EgyptHas the second largest merchandise look at in Egypt with branches exceeding 60.Fastest delivery service provided in Egypt.Nutrition information is printed on all packagingSafety protocols and quality assurance to serve best quality food.More than 92% of suppliers are Egyptian (Halal)Efficient assembly line to serve food as fast as likely with maintaining high quality.Charity works.McDonalds is the first restaurant in Egypt to provide drive through in 7 branches.Has a joint casualty with shell petroleum.Sponsors many events and football teams.Cares about the environment by recycling the oil used in cooking for delivery motorcycles.(SWOT)McDonalds WorldwideHigh employee turnover in their restaurants leads to more bullion being spent on training.Their test marketing for pizza failed to yield a substantial ware. Leaving them much less able to grapple with fast food pizza chains.The companys ability to increase revenue is small due to many competitors to ke ep prices down.It uses advertising that mostly targets children.Lack of innovative products.McDonalds EgyptNo innovation in products that could serve the culture taste due to consistency in their menu.PricesMcDonalds StructureMcDonalds has a functional structure which serve many product lines in the same industry.Its chain of command is as follow Chief ExecutiveOperationsDevelopmentFinanceMarketing tender-hearted ResourcesMcDonalds are incorporate along functional lines. Their Chief Executive oversees five major areas of activityOperations (equipment and franchising)Development (property and construction)Finance (supply chain and new product development)Marketing (sales marketing)Human Resources (customer services, personnel, hygiene and safety)CultureMcDonalds is all about corporate culture. From its Hamburger University (where managers and assistant managers are trained) to its vision financial statement of Quality, Service, Convenience, and Value (QSCV), McDonalds corporate cul ture is a shared value system that forms the basis of all company decisions.A relatively enduring, interdependent symbolic system of values, beliefs, and assumptions evolving from and imperfectly shared by interacting organizational members that allows them to ascribe common meanings to stimuli encountered in the organizational context these functions are accomplished through the mediation of implicitly and explicitly rules that act as cultural warrants.McDonalds vision statement creates the values by which are made all managerial and corporate decisions. These guiding values are exhibited in all aspects of business, from social responsibility and miscellanea to training and policies. McDonalds operates four Hamburger Universities in four countries.McDonalds has and provides the best employees-business relationship via providing an equal opportunity employer. As an equal opportunity employer McDonalds ensures that employees and job applicants are selected, trained, and promoted w ithout inequality to race, gender, sexual orientation, age or disability.The company promotes their employees based on their relevant skill, talents, and performance. In support of this McDonalds promotes and sustains a working environment, which is free from unlawful discrimination, harassment and bullying.Employees are regarded as members of a team where everyones opinion is valued and respected. The Human Resources department monitors the effectiveness of the discrimination policies at regular intervals and takes corrective action as infallible to ensure that they being complied with Employees who feel that they have been treated unfairly are encouraged to use the remedies outlined in the Companys handbooks.The Ronald McDonald House charity offers thousands of sick children in approximately 48 countries hope and it inspires courage. They say laughter is the best medicine and nonhing makes people smile more than a Happy Meal.ourworld-policy-heroAt McDonalds we do it our respon sibilities to protect and preserve the environment for future generations to comeOur goal is simple, is achieving a continuous environmental improvement across all areas of our business.ourworld-prpbtn-show-your-supportimages (9)LitterMcDonalds provides trash cans international every store all around the world.food-friesWasteUsed cooking oil represents 10% of the restaurant total waste, and is recycled into biodiesel, which our delivery bikes runs on.food-saladsplusPackagingFor the salads containers McDonalds replaced them with a idea card base saving nearly 69 tones of plastic purchased by the firm.EnergyAll our restaurants uses low energy lampsrestaurants-whatsonResourcesSuppliersMeat from Brazil in bulks and then processed in Egypt.Potato Farm fritesVegetable Egyptian farms dairy farm Egyptian farmsBread Egyptian suppliersAssets60 restaurantsDelivery MotorcyclesOffice equipmentManufacturing plantsRestaurant equipmentsSkills acquaintanceEmployees are trained on the same values and are given the required skills to achieve companys success. (Hamburger University)External environment(SWOT)WorldwideIn todays health conscious societies the introduction of a healthy hamburger is a great opportunity. They would be the first QSR (Quick Service Restaurant) to have FDA approval on marketing a low fat low calorie hamburger with low calorie combo alternatives. Currently McDonalds and its competition health choice items do not include hamburgers. put forward optional allergen free food items, such as gluten free and peanut free.In 2008 the business directed efforts at the breakfast, chicken, beverage and convenience categories. For example, hot medical specialist coffees not only secure sales, but also mean that restaurants get increasing numbers of customer visits. In 2009 McDonalds saw the full benefits of a venture into beverages.It can adapt to the needs of the societies and undergo an innovative product line.It can adapt to the needs of the societies and underg o an innovative product line.It can research ways to use green energy and packaging which will work as a part of their promotional effort as good as action their social responsibility.It can create new product offerings, use mobile text messaging to offer services that appeal to consumers.It can upscale whatsoever of its restaurant settings at luxurious locations to attract more customers.It can provide optional items that are regarded to be the basis of allergy for some.It can slow down the level of expansion in order to increase the profitability of the organization.McDonalds EgyptIntroduce new products that satisfy the culture needsReduce expansion to generate more revenueUse new home ordering techniquesCare more about green environment(SWOT)WorldwideThe recession negatively impacts the holding face of the firm regarding its revenue streams, even though they are quite diversified.Foreign currency fluctuations are regarded to be a major problem as it uses meter pricing for it s food items.More restaurants that are increasing their food offering and declining the price.Health issues regarding the fast food chain.Heavy investments on promotional campaigns which decrease the gaining of market share.Some parents criticize the firms cradle to grave marketing dodge that focuses on kids, who later on take it as a trend to their adulthood.Sued various generation for unhealthy food, usually with addictive additives.Emergence of major fast food competitors Burger King, Starbucks, Wendys, Taco Bell, KFC.The expansion has made the firm vulnerable to the slow economies of the other countries.Swine grippeMcDonalds EgyptRumors such as an Americanized brand that supports Israel.Egyptians are starting to care more about diet and healthEconomy recessionSwine FluMcDonalds vs. KFC vs. MomenThe SWOT analysis of KFC showed that it has the largest market share of the fast food industry and 24 stores more than McDonalds. Its weaknesses turned out to be lack of consistence of standards and moderate rates of dissatisfaction by the customers. For the threats and opportunities of KFC, they are no different from those of McDonalds or any other fast food restaurant in the industry.Similarly, the SWOT analysis of Momen showed that its main strengths are in their diversified menus and reasonably more competitive and affordable prices. Its weaknesses are much more lack of consistency than that of KFC and customers perceive their taste to be less than both McDonalds and KFC as well as any other fast food restaurant in the market. Its opportunities are the incorrect believe of customers that Momen is Egyptian and halal fleck McDonalds and KFC are not. However, the threats of Momen are that they are only spread over the main areas of the Egyptian market so they do not serve all the customers impertinent what McDonalds and KFC do.Natural environmentMcDonalds doesnt supply its franchises from the headquarters in fact it treats every franchise as its own operating b usiness that will order its supplies from the suppliers they insufficiency taking into consideration the quality assurance this could be based on the country itself or from imported goods.For McDonalds Egypt they order nearly 92% of their supplies from Egyptian producers whom produce the supplies in Egyptian land because Egypt is considered to be a good agriculture region for its good climate and having the Nile River.Potato Farm fritesVegetable Egyptian farmsDairy Egyptian farmsBread Egyptian suppliersSocietalPoliticalTaxes before 2005 were 40%, after 2005 and until now it is debased to 20% this encouraged McDonalds to expand into what it is now 60 Branches and rising.EconomicalInflation has a very huge impact on McDonalds Egypt as prices are increasing and people have low income this leads them to spend money on cheap products, McDonalds has to increase its prices because its supplies are becoming more expensive.The economic crises has also affected McDonalds because people are saving more and spending less and as McDonalds is not considered as a need and people have many other cheap substitutes such as Amo Hosney and Momen, McDonalds sales are reduced.As McDonalds has a high unemployment rate it is not hard to find employees because McDonalds has a training center that trains them and candidates dont need to have special skills or certificates to work at McDonalds.Socio-cultureAs McDonalds operate in many different countries it has to take into consideration their beliefs and traditions.It introduces new products besides the standard menu that suits every culture for e.g. in the Middle East MC Arabia and in India Mc Panton.McDonalds also cares about the factors that could offend each culture for e.g. a state in USA considers the red pretext in McDonalds logo as evil therefore McDonalds has introduced the BLUE color in the logo.TechnologicalMcDonalds uses new technology in cooking and preparing the food to reduce the fats and cholesterol in nutrition.It h as also introduced new technology to reduce costs (waste) and increase production efficiency.Task (Porter 5 Forces)Threat of new entrantsMcDonalds was not terrified a single bit when it first noticed that Burger King is going to start up in the Egyptian market for several reasons. First, they were well sensitive of their position in the market and how customers perceive them. Second, Burger King is not well positioned yet and the customers do not really know anything about it as well as not many customers in Egypt like it. Third, in order for Burger King to catch quickly with McDonalds it needs to open 10 stores every 2 months which is impossible and even if it was possible Burger King would still need a year for it to catch up.McDonalds main concern is for new small entrants such as Amo Hosney who offers low price products with more quantity but the difference comes in quality and not quantity.Rivalry among existing firmsMcDonalds does not really see Hardees or consider it a main competitor. Kentucky Fried Chicken and Momen are the main competitors of McDonalds in the fast foods industry or business. KFC has the largest market share of the fast food industry with 84 stores (24 stores more than McDonalds) and Momen has the third largest share of the industry. McDonalds is counting on coming up with creative and appealing ideas to beat the competition which is the main strategy that McDonalds is adopting against competition.Threat of substitutesInstead of buying McDonalds people can prepare food at home and it will be more healthy and will cost less therefore it is considered to be a threat to McDonalds because people will buy less causing loss in revenue.Power of buyerMcDonalds consumers can influence its prices because there are many competitors and substitutes that consumers can switch to such as Momen and KFC therefore the consumers have the power in purchasing the product of not and can influence it.Power of supplierMcDonalds has the power over suppliers because there are many suppliers available whom wish to work with McDonalds because it is a well recognize organization worldwide. The only problem is that McDonalds needs to follow some quality measurements in providing the food which might not be easily taught to new suppliers.