McDonalds
. Assignment 1
Based on your readings and your personal experiences, prepare a 2 page summary (750 words
maximum) of your understanding of the role of project management in today�s business environment.
Guidelines for assignment 1: Consider your workplace; are you involved in projects. If so, what is your
assessment of how well they are selected, managed, resourced, appraised, and closed? If you are not
involved in projects, can you talk to someone who is? Even if project management does not exist in your
workplace, is there scope to introduce it? If not, why not? What elements of project management could
you introduce into your own daily tasks at work?
Marks given for;
� Identifying real or potential project activities in your workplace and describing them from your viewpoint
� Your opinions on how well project management is handled in your workplace
� Applying some of the text book theory to what is observed in the workplace as a way of identifying
gaps or opportunities in current work practises
Introduction
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McDonald’s is one of the world’s largest multinational companies that trades in hamburgers fast
food chains mostly based in the US. McDonald has over 35,000 branches in over 119 countries.
The company was founded in 1940 and it has its head office in Oak Brook, Illinois in the US.
McDonald’s realised a total revenue turnover of US $28.1057 billion in the year 2013.
The major opportunities that are available to McDonald include the large US market and the
international market. The company’s customers are very loyal, its management strategic plans
and marketing abilities are exceptionally well organized and also efficiently managed. This paper
examines the weaknesses and the strengths of McDonalds plus its threats together with the
opportunities and risks that the company may face.
External Factors Analysis
McDonald has experienced a rapid growth in its business processes probably due to its efficient
marketing abilities and huge financial resources. The company employs over 1.9 million
employees and its total assets in the year 2013 amounted to $36.6263 billion. The company has
also diversified its products to also include soft drinks, French fries, chicken, milkshakes, fruits
and salads. McDonald’s ability to expand to other international markets due to removal of trade
barriers has increased the company’s chances of expansion.
Internal Factors Analysis
The major threats facing McDonald are the rival companies from the Asian market whose prices
are lower than McDonald’s. The political instability that exists in foreign markets poses
increased risks to the company’s profitability.
Opportunities Threats
Making use of accessible technology Political instability
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Huge market change in govt policies
Rapid growth in segmented market Economic threats
Potential to diversify Competition
R & D development of standard
products
Change in tastes & needs
Strengths Weaknesses
Cost efficiency High costs of maintenance
The effective VAS system Competitive pricing
Skilled human capital High effort for the VAS
system
Accessible infrastructure High costs for technology
dev
Loyal brands High expansion costs
The fear of new entrants of competitors in the market increases the risks that McDonald is
exposed to. Economic crisis and change of government policies may also affect the profitability
of the company.
The major weaknesses of McDonald are the large costs that are associated with the maintenance
of the huge network of franchised companies, the maintenance of technological and support
costs. The integration of the VAS system and the high costs required to compete effectively with
Asian rivals.
Strategy Formulation
To compete effectively with the Asian rivals in the market, McDonald’s should target and
implement growth strategies that would improve its performance including sales and business
expansion strategies. The products of the company have to be fully differentiated and branded to
strengthen its position in the market by utilizing the most effective marketing strategies that
would make the company have a strong presence in the market (Kotler, Keller, Brady, Goodman
& Hansen, 2012). Positioning involves persuasion and influence of customer decision
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through the use of objective and clear promotional strategies that would develop and
expand the company’s primary demand in existing and emerging markets (Blythe, 2008).
The market should be segmented by defining the needs of the customers in the market and
profiling the different needs of the segmented market. Media communication strategies
should entail the use of optimized integrated communication systems (Smith & Taylor,
2004). This may include the use of bill boards and other aggressive promotional strategies
that would help penetrate the segmented markets.
Sales execution strategies may also exploit the optimized personal promotion strategies to
expand and develop sales initiatives in other markets that are still emerging and also to
strengthen its hold on existing markets to prevent the entry of competitors in the market.
Implementation
After the new marketing strategies have been implemented in the market, their effects have
to be analyzed. The strategies have to be evaluated and their success weighed against an
effective feedback system that analyses the performance of the marketing strategies
against the targeted goals.
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References
Blythe, J. (2008) Essentials of Marketing, 4th Edition, Essex; Pearson Education Limited
Kotler, P., Keller, K. L., Brady, M., Goodman, M. & Hansen, T. (2012) Marketing Management, 2
Ed. Essex: Pearson Education Limited.
Smith, P.R. & Taylor, J. (2004) Marketing communications, an integrated approach, 4th edition.
London: Kogan Page Limited.
