Acknowledgments

I am Kesavan Govindasamy like to wish my gratitude to MR MOHD REMIE JOHAN in helping and commenting on my assignment. I really appreciate her guidance and effort in completing this assignment. Last but not least , I also want to thank my beloved family , especially my father MR Govindasamy Millan and mother MRS UshaRani Rentnam for all the support and advice given in facing the obstacles and challenges in my campus life.
















Assignment Questions

As a final year student you are about to do a research on business strategy implemented by Mc Donald’s. As Mc Donald’s about to open a new branch in Legenda College in Mantin, you are required to do some basic observation or research on their business proposal.

1. What is “business strategy” and its benefits to Mc Donald’s?

2. Explore & explain Mc Donald’s Mission statement.

3. Conduct an external audit in order to know Mc Donald’s opportunities and threats in opening a new branch.

4. form the above findings, suggest why should Mc Donald’s open a new branch and what will be the risks and how to overcome these risks.


1.What is “business strategy” and its benefits to Mc Donald’s?


Business Strategy or Strategic Management can be defined as the art and science of formulating , implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives and McDonald’s use this for make their business becoming world class business . As this definition implies Business Strategy focuses on integrating management , marketing , finance/accounting , production/operations, research and development , and computer information system to achieve organizational success like McDonald this fast food after use this Business Strategy their Franchise Business are becoming world most top restaurants because they use Strategic Management way.

The term ‘strategy’ proliferates in discussions of business. Scholars and consultants have provided myriad models and frameworks for analyzing strategic choice (Hambrick and Fredrickson, 2001). For us, the key issue that should unite all discussion of strategy is a clear sense of an organization’s objectives and a sense of how it will achieve these objectives. It is also important that the organization has a clear sense of its distinctiveness. For the leading strategy guru, Michael Porter (1996), strategy is about achieving competitive advantage through being different– delivering a unique value added to the customer, having a clear and exactable view of how to position yourself uniquely in your industry, for example, in the ways in which Southwest Airlines positions itself in the airline industry and IKEA in furniture retailing, in the way that Marks & Spencer used to. To enact a successful strategy requires that there is fit among a company’s activities, that they complement each other, and that they deliver value to the firm and its customers. The three companies we have just mentioned illustrate that industries are fluid
and that success is not guaranteed. Two of the firms came to prominence by taking on industry incumbents and developing new value propositions. The third was extremely successful and lost this position. While there is much debate on substance, there is agreement that strategy is concerned with the match between a company’s capabilities and its external environment. Analysts disagree on how this may be done. John Kay (2000) argues that strategy is no longer about planning or ‘visioning’ – because we are deluded if we think we can predict or, worse, control the future – it is about using careful analysis to understand and influence a company’s position in the market place. Another leading strategy guru, Gary Hamel (2000), argues that the best strategy is geared towards radical change and creating a new vision of the future in which you are a leader rather than a follower of trends set by others. According to Hamel, winning strategy.

Stages of Strategic Management where McDonald’s use this for his business

The Strategic Management consists of three stages : formulating , implementing, and strategy evaluation. Strategy formulation includes developing a business mission for McDonald’s is , identifying an organization’s external opportunities and threats, determining internal strengths and weaknesses, establishing long –term objectives, generating alternative strategies, and choosing particular strategies to purse yes this will where McDonald’s know where is strengths and weaknesses after know what McDonald’s strengths and weaknesses the McDonald’s can to some plan for making McDonald’s top selling in fast food area. Strategic Management is give a lot benefits to McDonald’s like know where is their strengths and weaknesses . Strategy –formulation issues include deciding what new business to enter , what business to abandon, how to allocate resources , whether to expand operations or diversify , whether to enter international markets , whether to merge or form a joint venture, and how to avoid a hostile takeover. Because no organization has unlimited resources , strategists must decide which alternative strategies will benefit the firm most . Strategy-formulation decisions commit an organization to specific products , markets , resources , and technologies over an extended period of time. Strategies determine long-term competitive advantage. For better or worse , strategic decisions have major multifunctional consequences and enduring affects on an organization . Top managers have the best perspective to understand fully the ramifications of formulation decisions ; they have the authority to commit the resources necessary for implementation McDonald’s use this because that now McDonald’s is one of tycoon of Franchise around the world

Strategy implementation requires a firm to establish annual objectives , devise policies, motive employees, and allocate resources so that formulated strategies can be executed ; strategy implementation includes developing a strategy –supportive culture, creating an effective organizational structure , redirecting marketing efforts , preparing budgets , developing and utilizing information systems , and linking employee compensation to organizational performance. McDonald's vision is to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness and value, so that they make every customer in every restaurant smile. To achieve our vision, we are focused on three worldwide strategies that is:

Be the best employer for our people in each community around the world, Yes McDonald's is rely do want they say they care about people around them they being best employer for the employee who in McDonald's they give training to their employeeDeliver operational excellence to our customers in each of our restaurants, and Achieve enduring profitable growth by expanding the brand and leveraging the strengths of the McDonald's system through innovation and technology." The Benefits business strategy to McDonald's make the McDonald's one the road never go out form road it mean if follow business strategy way the company can achieve good profit in future because it control everything in business have all for make one business being successful this is the benefits to the McDonald's

Strategy implementation often is called the action stage of strategic management Implementing strategy means mobilizing employees and managers to put formulated strategies into action . Often considered to be the most difficult stages in strategic management , strategy implementation requires personal discipline , commitment , and sacrifice .Successful strategy implementation hinges upon managers’ ability to motivate employees for make good work and do the best for McDonald's this is the benefits McDonald's get form strategic management how to motivate their employees how to make good relationship between employer and employee . strategic management make McDonald's success fast food restaurants around global

Interpersonal skills are especially critical for successful strategy implementation. Strategy – implementation activities affect all employees and managers in an organization this is very important to McDonald's already use this Interpersonal skills to all McDonald's restaurant . Every division and department must decide on answers to questions such as “ what must we do to implement our part of the organization’s strategy ?” and “how best can we get the job done?” The challenge of implementation is to stimulate managers and employees throughout an organization to work with pride and enthusiasm toward achieving stated objectives this how the strategic management give a lot benefits to the McDonald's because of this McDonald's being successful fast food Brand in world

Strategy evaluation is the final stage in strategic management. Managers desperately need to know when particular strategies are not working well; strategy evaluation is the primary means for obtaining this information . All strategies are subject to future modification because external and internal factors are constantly changing. Three fundamental strategy evaluation activities are
1) reviewing external and internal factors that are the bases for current strategies
2) measuring performance, and
3) taking corrective actions.












Strategy evaluation is needed because success today is no guarantee of success tomorrow success always creates new and different problems ; complacent organizations experience demise this is also McDonald's use for their business. Strategy formulation , implementation, and evaluation activities occur at three hierarchical levels in a large organization: corporate , divisional or strategic business unit, and functional . By fostering communication and interaction among managers and employees across hierarchical levels , Strategic management helps a firm function as a competitive team . Most small business and some large business do not divisions or strategic business units they only the corporate and functional levels. Nevertheless, managers and employees at these two levels should be actively involved in strategic management activities McDonald's must use this in fast the managers and employees must meeting to make sure all going fine.


Benefits of Strategic Management to McDonald's

Strategic Management allows an organization to be more proactive than reactive in shaping its own future; it allows an organization to initiate and influence ( rather than just respond to) activities, and thus to exert control over its own destiny. Small business owners , chief executive officers , presidents , and mangers of many for-profit and nonprofit organizations have recognized and realized the benefits of Strategic Management . Historically , the principal benefit of Strategic Management has been to help organizations make better strategies through the use of a more systematic , logical and rational approach to strategic choice . This certainly continues to be a major benefit of strategic management , but research studies now indicate that the process , rather than the decision or document , is the more important contribution of Strategic Management





Conclusion

All Firms have a strategy ,even if ii is informal , unstructured ,and sporadic . All organizations are headimg somewhere , but unfortunately some organizations do not know where the old saying “ if you do not where you are going, then any road will lead you there!” accents the need for organizations to use strategic management concepts and techniques. The strategic management is becoming more used by small firms . large companies, not profit institutions , govervemental organization and one company al ready benefits form strategic management that is McDonald's is clever used their opportunity in front eye because they follow McDonald's strategic management so they success in the market.































2.Explore & explain Mc Donald’s Mission statement

McDonald's. Is the leading global foodservice retailer with more than 30,000 local restaurants serving nearly 50 million people in more than 119 countries each day. Is one of the world's most well-known and valuable brands and holds a leading share in the globally branded quick service restaurant segment of the informal eating-out market in virtually every country in which we do business. Serves the world some of its favorite foods - World Famous French Fries, Big Mac, Quarter Pounder, Chicken McNuggets and Egg McMuffin. Our rich history began with our founder, Ray Kroc. The strong foundation that he built continues today with McDonald's vision and the commitment of our talented executives to keep the shine on McDonald's arches for years to come. To read more about McDonald's history, vision and executives, click on their links in the left menu.

Core Elements of McDonald’s Strategy Core Elements of McDonald’s Strategy is
Add 1750 restaurants annually Promote frequent customer visits via attractive menu items, low-price specials, and Extra Value Meals also Be highly selective in granting franchises like if people want to eat they should think about McDonald’s .Locate on sites offering convenience to customers and profitable growth potential yes locate the McDonald’s restaurant in right place and gain profit also Focus on limited menu and consistent quality yes that quality is most very important in McDonald’s restaurant so when they open college they also to like this. Careful attention to store efficiency and also important is Extensive advertising and use of TV , Radio for say open new branch in College Legenda

Mission Statements are “enduring statements of purpose that distinguish one business from other similar firms. A mission statement identifies the scope of a firm’s operation in product and market terms . it addresses the basic question that faces all strategists : What is our business?” A clear mission statement describes the values and priorities of an organization. Developing a business mission compels strategists to think about the nature and scope of present operation and to assess the potential attractiveness of future markets and activities. A mission statement broadly charts the future direction of an organization Research suggests that about 60 percent of all organization have developed a formal mission statement.
Mission Statements
The concept of mission has become increasingly fashionable in discussions of strategy. Indeed, some analysts go as far as asserting that a good ‘mission statement’ can provide an actual worthwhile alternative to the whole task of corporate planning. The definition of a firm’s strategic mission encapsulated in the mission statement can be thought of as the first stage of the strategy process. Managementguru Peter Drucker, the source of much contemporary thinking about the business mission, argues that asking the question ‘What is our business?’ is the same as asking the question ‘What is our mission?’ A business is defined by its mission. Only a clear definition of the mission of the organization makes possible clear and realistic business objectives, because the mission defines the purpose of the firm in terms of its enduring sense of its reason for being. The mission defines the long-term vision of the organization in terms of what it wants to be and whom it wants to serve. A firm’s mission should be clear and concise and distinguish it from any other firm. The mission statement has to be backed up with specific objectives and strategies, but these objectives and strategies are farmore likely to be acted upon when there is a clear sense of mission informing action.
A good mission statement will contain the following:
• the purpose of the organization – a statement of the principal activities of a
business or organization;

• its principal business aims – its mission as regards the position it aims to achieve
in its chosen business;

• the key beliefs and values of the company;

• definitions of who are the major stakeholders in the business;

• the guiding principles that define the code of conduct that tells employees how
to behave.
Drucker illustrates the importance of a sense of mission with his story of three people working on a building site. All three were doing the same job but when asked what their job was gave very different answers. One answered, ‘Breaking rocks,’ another answered, ‘Earning a living,’ the third answered. ‘Helping to build a cathedral.’ There is a similar story told about three climbers. When asked what they were doing, one answered, ‘Pitching camp,’ the second answered, ‘Collecting material for a film,’ the third answered, ‘Climbing Everest.’ There are no prizes for deciding who was most committed to his/her task and who would be most motivated to perform to the best of his/her ability. Drucker himself highlights the need to link a sense of mission with clear, achievable objectives. He makes the point when analysing the early success of Marks & Spencer: Marks & Spencer redefined its business as the subversion of the class structure of nineteenth-century England by making available to the working and lower middle classes upper-class goods of better than upper-class quality, and yet at prices the working

In the twentieth-century computer industry Apple set as its mission ‘To make a contribution to the world by making tools for the mind that advance humankind’. Thornton’s, a UK premium chocolate manufacturer and retailer, talks about itself in this way: ‘Our aim is to delight our customers with exceptional products and caring service. Our goal is to be widely recognized as the best specialist retailer and manufacturer of quality confectionery.’ Tesco, a major UK supermarket chain, has talked about its mission with a similar stress on service and the customer: ‘The strategy is to make our stores, our products and our people the very best in thebusiness in the opinion of our customers.’ Other companies have a different emphasis. Levi Strauss, for example, talks about its aspirations in terms of the kind of company it wants to create for its employees: ‘we want satisfaction from accomplishments and friendships, balanced personal and professional lives, and to have fun with our endeavors’. Missions can be extremely visionary and challenging. For example, during its heyday Body Shop proclaimed the following in its annual report: ‘Make compassion, care, harmony and trust the foundation stones of business. Fall in love with new ideas. Every business develops a mission statement. A company's mission statement summarizes what the company does or produces and what principles guide its activities and business practices.
McDonald's mission statement is:

Mission
Promote Diversity and Inclusion among our Employees, Owner/Operator's and Suppliers who represent the diverse populations McDonald's serves around the globe.

Vision

The McDonald's System leverages the unique talents, strengths and assets of our diversity around the globe in order to be our customers' favorite place and way to eat.



McDonald's mission statement is:

"McDonald's vision is to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness and value, so that we make every customer in every restaurant smile. To achieve our vision, we are focused on three worldwide strategies:

Be the best employer for our people in each community around the world,

Deliver operational excellence to our customers in each of our restaurants, and

Achieve enduring profitable growth by expanding the brand and leveraging the strengths of the McDonald's system through innovation and technology."

Evaluation Matrix of Mission Statements
COMPONENTS
Customers


Products


Markets
Concern for
Survival
Growth
Profitability
Technology
Org Organization





McDonald's
YES
YES
YES
YES
YES

COMPONENTS
Philosophy
Self-
Concept
Concern for
Public Image
Concern for
Employees
OroOrganization




McDonald's
YES
YES
YES
YES



Customer

McDonald's is rely care about their customer they don’t lose their customer . McDonald's are doing a research if they want to invest in other country like in Indian Indonesia and so on before they open new restaurant there they must know what cultural in country where they will open the new McDonald's restaurant and make customer come eat in McDonald's. customer for McDonald's is like new born must take cake very nice they can come to McDonald's Again . Who are the McDonald's customer yes McDonald's customer all people form kids until old people.


Products

What are the McDonald's major products that answers is McDonald's major products is Burger in McDonald's have a lot variety of burger this show that McDonald's rely care about their product they give the best to the customer .


Markets

McDonald's dedicated to the total success of KFC as worldwide competitor . so McDonald's will do a lot promotion to win market sales . McDonald's Markets is very big and have their restaurant around the world they market their product to all world and also they rebut the change to open new in new markets they never open the restaurant this also in Mission Statements


Concern for Survival Growth Profitability
in this respect, the company will conduct its operations prudently, and will provide the profits and growth which will assure McDonald's ultimate success and to serve the worldwide need for knowledge at a fair profit gathering, evaluating, production , and distributing valuable information in a way that benefits our customer , employees, authors, investor and our society. McDonald's make sure is get more profit everyday McDonald’s have all this in their mission statement

Technology
McDonald's have high tech tools for make his Burger wash their mangkuk and so on in mission Statements McDonald's want give best service to the people so for that McDonald's must good technology for make success in food markets around the world McDonald’s have all this in their mission statement






Self-Concept

What is the firm’s distinctive competence or major competitive advantage McDonald’s have this in their mission statement


Philosophy

What Are the basic beliefs , values , aspirations, and ethical priorities of the firmIs like believe human development to be the worthiest of the goals of civilization and independence to be the superior condition for nurturing growth in the capabilities of people. It’s all part of the Mary Kay philosophy . a philosophy based on the golden role. A spirit of sharing and caring where people give cheerfully of their time, knowledge , and experience Organizational values define how members of the organization approach their work; values help determine appropriate behavior and guide individual decision making. Taken together, an organization's guiding values or principles create an overall operating philosophy and ethical framework to facilitate professional decision making. Values form the bedrock of an organization’s culture. For values to be truly shared, they must be more than advertising slogans; they must be deeply supported and broadly endorsed beliefs about what is important to us. Constituents must be able to enumerate the values and have common interpretations of how values will be put into practice. They must know how values influence their own jobs and how they directly contribute to organizational success. McDonald’s have all this in their mission statement so rely beliefs good management can make McDonald’s have great success

Concern for Public Image

Is the firm responsive to social , community , and environmental concerns McDonald's also to social work like give food to poor kids old folks and McDonald's also give good work for the people in country they open McDonald's. McDonald's help to do activities with the kids like color the picture , sing song and so on . McDonald's is care about people where he open restaurant they do advisement with cultural value

Concern for Employees
Are employees a valuable asset of the McDonald's for that McDonald's will recruit, develop , motivate , reward , and retain personnel of exceptional ability , character , and dedication by providing good working conditions, superior leadership , compensation on the basis of performance, an attractive benefit program, opportunity for growth, and a high degree of employment security . McDonald's are very take care about their worker is their works to good job they give bonus and son on in McDonald's they send of employee to continue study in overseas



3.Conduct an external audit in order to know Mc Donald’s opportunities and threats in opening a new branch.


The purpose of an external audit is to develop a finite list of opportunities that could benefit a firm and threats that should be avoided . As the term finite suggests , the external audit is not aimed at developing an exhaustive list of every possible factor that could influence the business rather , it is aimed at identifying key variable that offer actionable responses . Firms should be able to respond either offensively or defensively to the factors by formulating strategies that take advantage of external opportunities or that minimize the impact of potential threats Mc Donald’s have threats if they open restaurant in college Legenda

Opportunities and threats is refer to economic , social , cultural , demographic , environmental , political, legal , governmental , technological, and competitive trends and events that could significantly benefit or harm an organization in the future Opportunities and threats are largely beyond the control of a single organization, thus the term external. This all are will effect Mc Donald’s













External Forces can be divided into five be divided into five broad categories

1 Economic forces
2 Social , Cultural , Demographic , and environmental forces
3 Political , governmental, and legal forces
4 technological forces
5 Competitive forces

Change in external forces translate into changes in consumer demand for both industrial and consumer products and services. External forces affect the types of products developed , the nature of positioning and market segmentation strategies, the types of services offered , and the choice of business to acquire or sell. External forces directly affect both suppliers and distributors . Identifying and evaluating external opportunities and threats enables organizations to develop a clear mission , to design strategies to achieve long-term objectives, and to develop policies to achieve annual objectives. Mc Donald’s always do like this they their mission also have long –term objectives for make their restaurant top in world the Mc Donald’s brand is known by everybody in the world.














· RELATIONSHIPS BETWEEN KEY EXTERNAL FORCES AND AN ORGANIZATION

1 Economic forces
2 Social , Cultural , Demographic , and environmental forces
3 Political , governmental, and legal forces
4 technological forces
5 Competitive forces
Competitors
Suppliers
Distributors
Creditors
Customer
Employees
Communities
Managers
Stockholder
Labor unions
Governments
Trade associations
Special interest groups
Products
Service
Market
Natural environment

AN ORGANIZATION OPPORTUNITIES AND THREATS


Performing an external audit must involve as many managers and employees as possible . `As emphasized in earlier chapters, involvement in the strategic management process can lead to understanding and commitment from organizational members. Individuals appreciate having the opportunity to contribute ideas and gain a better understanding of their firm’s industry, competitors , and markets.

To perform an external audit , a company first must` gather competitive intelligence and information about social, cultural, demographic , environmental , economic, political , legal , governmental , and technological trends. Individuals can be asked to monitor various sources of information such as key magazines, trade journals and newspaper




1 Economic forces

Economic have direct impact on the potential attractiveness of various strategies . For example, if interest rates rise then funds needed for capital expansion become more costly or unavailable. McDonald’s is one Top Name is Food Industries so they want expand their business all place so they want open McDonald’s Restaurant in college Legenda .College Legenda is place were students come form around Malaysia to Study here they not work yet so where they got their money yes form their Parents . So if we see students all are still study so they will not spend money for eat McDonald every day because price is very high this is the threats so Students will not eat McDonald everyday they got some student are poor they cannot even eat McDonald’s. One more threats is that if we see the College Legenda is far form town maybe some people don’t know got McDonald’s Restaurant Inside Bandar University Technology Legenda because the Location not very commercial in college Legenda Got 3000 students plus with Staff , Lecturer are maybe 600 people in College Legenda the amount of people is not big this is also the threats for McDonald’s Restaurant .Income students get their income form their mom and dad . Opportunities for McDonald’s Restaurant open his business here is like they got more profit.













2 Social , Cultural , Demographic , and environmental forces

McDonald's serve around half a million customers on an average, in Malaysia restaurants across every day. All our HALAL products are 100% pure Clean and Halal . Even their menu was specially developed for Muslim consumers and hence does not contain any pork or pig. Additionally, our soft serves too do not contain any alcohol and are 100% HALAL. McDonald' take great efforts to ensure that their products are have good quality. Social , Cultural , demographic, and customer . Small, large, for –profit and non profit organizations in all industries are being staggered and challenged by the opportunities and threats arising from changes in social , cultural, demographic, and environmental variables and his also have major impact on virtually all products, services , markets and customers. Significant trends for the future include consumers becoming more educated , the population aging, minorities becoming more influential, people looking for local rather than federal solutions to problems , and fixation on youth decreasing Social , Cultural , Demographic , and environmental trends is shaping the way Americans live, work, produce and consume. New trends are creating a different type of consumer and consequently a need for different products, different services and different strategies.

Malaysia is one country that have more then one race like Malay , Chinese and Indian this races are different between race , Cultural , Way of live , Religion , language is also same in College Legenda have Malay ,Chinese and Indian Students are live and study here also they form different background of family . McDonald want open new Branch in College Legenda McDonald will face threats . Malay people like to cook at house and eat together they don’t like eat in outside and practice good lifestyle so is same went their son or daughter are move live and study in college Legenda they and their Housemate cook in Hostel not going out to eat so this one of threats the McDonald . Indian people are more to religion almost all Indian in College Legenda are Hindu so the students will eat vegetable only not eat Chicken , Cow so this also one of threat to the McDonald’s . Chinese are more like to eat sup and mee this is also threat to the McDonald’s . Students who study in college Legenda still young their age between 19 to 23 so they like to go outside form Mantin Town example they like go to Kuala Luampur for clubbing , Disco , Party , Shopping and so on the social life here very happing so the students don’t spend their time , money in McDonald’s they more like to enjoy going somewhere everyday after class so this is also threat to McDonald’s

Example is in Malaysia, they have some menu with ‘bubur’. In Thailand some menu’s with ‘pulut’ and in Indonesia they have some menus with ‘nasi’or rice when they order that particular menu’s. Another example is in Malaysia, when the Chinese new year when to coming, mcd has made and produce some menus that called burger prosperity. The opportunities that McDonald’s has been take is when their company put their restaurant at any region, they must have to learn or comfortable with the area of that region.






















3 Political , governmental, and legal forces

Federal , state local, and foreign governments are major regulators , deregulators, subsidizers, employers , and customer of organizations. Political , and legal factors therefore can represent key opportunities or threats for both small and large organizations. For industrial and firms that depend heavily on government contracts or subsidies political forecasts can be the most important part of an external audit.

College Legenda is the place where Student come form all part of Malaysia
To study because that government will monitor McDonald’s In College Legenda how they do the business . This place the McDonald’s will get benefits that government will advertised in a long road going to Kajang that have New McDonald’s Restaurant in College Legenda so this opportunity for the McDonald’s the threat is if McDonald not follow the guide lines the local government will ask to close the McDonald’s . and more is McDonald’s cannot take students work if they work will affect their study this also the threat .















4 technological forces

Revolutionary technological changes and discoveries such as superconductivity , computer engineering , thinking computers, robotics , un staffed factories , miracle drugs , space communications, space manufacturing, lasers , cloning , satellite networks , fiber optics , biometrics, and electronic funds transfer are having a dramatic impact on organizations . Technological forces represent major opportunities and threats that must be considered in formulating strategies . Technological advancements dramatically can affect organizations’ products , services , markets , suppliers , distributors , competitors , customers, manufacturing process , marketing practices , and competitive position.

McDonald’s are world class restaurant they have high-tech tools for make their food and service better . it is bebaloi if McDonald’s bring is high tech tools here because the population who stay in Around college not very much maybe 4000 people include students , staff , lecturer , outsider who have rent house here . The threat
Is its McDonald’s can their have profit here answer is cannot because is want do the all sophisticated technological tools must have a lot of money if got money must need support what I mean support is support people who stay in college Legenda area if the people not give support the McDonald’s lose a lot money and close his business in College Legenda this also the threat . McDonald’s Also good opportunities if they got new technological tools make them faster and good in service the customer they can promote their new branch in Internet so people will come to College Legenda eat here.







5 Competitive forces

Competitive forces is we know our competitors what they do and how we want better form them or for any business . An important part of an external audit is identifying rival firms and determining their strengths, weaknesses, capabilities, opportunities, threats , objectives , and strategies . Collecting and evaluating information on competitors is essential for successful strategy formulation. Identifying major competitors is not always easy because many firms have divisions that compete in different industries. Most multidivisional firms generally do not provide sales and profit information on a divisional basis for competitive reasons . Also, privately held firms do not publish any financial or marketing information but information on leading competitors in particular industries can be found in publications such as Moody’s Manuals, Standard Corporation Descriptions, Value Line Investment Surveys, Forbes , Fortune ,Business Week

College Legenda are good college have nice facilities and when time first this college open just Food Court only the place where students or people in area college eat but recent year later have more restaurants be open here in College Legenda like Adabia , Arena , Tawakal and many more . People in College are eat in all this restaurant latest now have 6 Restaurant in college Legenda so this big threat the McDonald’s and In this business, many competitors are compete with McDonald’s like food court that have been placed in this college so all this are threat to the McDonald’s one more is restaurant like Tawakal is the food price is normal students and people around will eat everyday in this kind of restaurant because very chip if we see the price of McDonald’s is very high so students not have a lot money to go and eat McDonald’s every day so they will choose restaurant like Tawakal for eat so this is also the threat to the McDonald’s.







This example of PLAN how new products come and reach to hand of buyer











Glossary of Terms
CRITICAL SUCCESS FACTORS (CSF) - Critical success factors (CSF’s) represent a limited number of key performance areas in which an organization must achieve the levels of performance required by its mission and values.These factors are specific to each Line of Business (LOB), and may be unique to certain LOB’s. CSF’s drive the process of strategy implementation by defining managerial preferences with regard to key variables at a given point in time.
CRITICAL SUCCESS INDICATORS (CSI) - Critical success indicators drive the process of strategy implementation by providing the performance measures used to track progress on critical success factors. The specific indicators can include both hard (quantitative) and soft (qualitative) indices.
ENVIRONMENTAL SCAN - Analysis of key external elements or forces that influence the conditions in which an agency functions. This is commonly referred to as the opportunity of and threats to the agency (see SWOT analysis).
GAP ANALYSIS - Gap analysis is the identification of the disparity between current performance and desired future performance on key critical success indicators. This disparity leads to the development of specific strategies, priorities, and resource allocation decisions to close the gap.

In every planning period, a company is expected to make progress against strategic goals and measures.
Alexander Hiam, 1992


LINE OF BUSINESS (LOB) - Line of Business refers to a distinct set of products or services offered by an organization along with clearly identifiable customers and competitors. There should be an obvious link between a organization's mission and each Line of Business.

STAKEHOLDERS - a term designating anyone who directly, or indirectly, receives the benefits or sustains the costs derived from the actions of the organization. As the term suggests, it includes all those who have a stake in the actions of the organization and their resultant outcomes.

STRATEGIC INITIATIVES - Strategic initiatives represent the essential issues that an organization must confront during the next 3-5 years to best achieve its mission and to move toward its desired future. Strategic initiatives originate from the organization's assessment of its internal and external environments. They consist of both short-term and long-term activities, specifying the pragmatic steps necessary for managerial action. Each strategic initiative may require a distinct commitment of resources from executive management.


















5. form the above findings, suggest why should Mc Donald’s open a new branch and what will be the risks and how to overcome these risks.


McDonald’s operates and franchises more than 30,000 local restaurants in 119 countries on five continents. McDonald’s is a global company. are the world’s leading foodservice retailer. own one of the world’s most recognized and respected brands. have an unparalleled global infrastructure. have competencies in restaurant operations, real estate, retailing, marketing and franchising. are a leader in social responsibility. generate substantial amounts of cash. serve nearly 50 million customers a day. are 50 years young.McDonald’s is a local business. are your neighborhood restaurant. are the crewperson who serves you. do business with local suppliers. learn every day from our customers. give back to the communities in which we do business. generate average annual sales of $1.8 million per traditional restaurant. serve one customer at a time.are focused on the future.

McDonald’s Strategy is Add 1750 restaurants annually so because the strategy McDonald’s because his motive McDonald’s must open more restaurants every year this why McDonald’s open new restaurants in college Legenda . Mc Donald’s should open a new branch for more people can taste his food and for get more profit and also market placing where Mc Donald’s want his restaurants easy to find in any place so Mc Donald’s get high profit. Why Mc Donald’s open his restaurants in college legenda Mantin it because College Legenda maybe Mc Donald’s already have research before open the Mc Donald’s restaurants in College Legenda maybe now the customer not very much but after many years form 3000 students the number will increase until 6000 so if Mc Donald’s open now they can have a lot of profit future





Mc Donald’s open restaurants have a lot risk also like Students don’t want come eat in Mc Donald’s but they go other normal restaurants . Mc Donald’s also will have problem with because their business will not very good and possible will close his restaurants so how to overcome all the risks and problem first is Must reduce the price of the Food or Burger in Mc Donald’s or give some discount for the students who come first time come to Mc Donald’s because student not working yet they cannot eat everyday in Mc Donald’s so if got discount like students will go eat burger in Mc Donald’s for example one is give discount to students come everyday for eat in Mc Donald’s if do like this the Student will tell other people so this will make students , lecturer and all people go to Mc Donald’s and taste his burger and other dishes . Give prize yes right give prize for person who everyday come to Mc Donald’s to eat this will overcome the risks arise because of Price of Mc Donald’s because in Mc Donald’s one burger the price is RM 6 like that is so very expensive if want eat every day but if got things like this like reduce price , give prize will make Mc Donald’s in college legenda get higher profit.

party in Mc Donald’s invite all Students to eat free for one day only this make student tell other his friend in outside to come to college Legenda to eat burger in Mc Donald’s because teen like party ,dance so if Mc Donald’s do party a lot of students will go and McDonald’s ,management take this gold time to explain about their product until students , lecturer understand what they saying about their products for Mc Donald’s their product is Burger will have Vegetarian burger for Indian People and advertise with among students that they also can deliver the burger form restaurants to Apartment so this will make Mc Donald’s first choose when students hungry they will call and ask to send burger to his Hostel









About competitors like Tawakal , Areana , Adabia and more they are be threat to the McDonald’s so risks is students will not go McDonald’s but go to this one of restaurant this risks to the McDonald’s so how McDonald’s in college legenda overcome this risks the idea is make promotion to the students they also have good service like given in normal restaurant like tawakal so promote this McDonald’s restaurant to the lecturer and staff so they can go and eat in McDonald’s restaurant with their friends . McDonald’s in Lengenda is not only focus to the students but people who live in area college Lengenda are target people.This is the answer why McDonald’s should open new restaurant and how McDonald’s overcome the risks


















References ….
Note form MR Mohd Remie Johan

Form book

Strategic Management , Ferd R. David , seventh edition .

Strategic Management , Michael A. Hitt , R. Duane Ireland , Robert E Hoskisson



Form Internet

http://en.wikipedia.org/wiki/Businesses
http://en.wikipedia.org/wiki/Strategic_management
http://www.realtor.org/libweb.nsf/pages/fg225
http://64.26.27.40/interactive/mcd2004summaryannualreport/md/page_001.php





















End of Assignment
Done by kesavan