External Factor Evaluation (EFE) Matrix Key External Factors Opportunities Growing health trends among consumers Globalization,

expansion in other countries (especially in China & India). Diversification and acquisition of other quick-service restaurants. Growth of the fast-food industry. Worldwide deregulation Low cost menu that will attract the customers. Freebies and discounts. Threats Health professionals and consumer activists accuse McDonald's of contributing to the countrys health issue of high cholesterol, heart attacks, diabetes, and obesity. The relationship between corporate level McDonald's and its franchise dealers. McDonalds competitors threatened market share of the company both internationally and domestically. Anti-American sentiments. Global recession and fluctuating foreign currencies. Fast-food chain industry is expected to struggle to meet the expectations of the customers towards health and environmental issues. Total Internal Factor Evaluation (IFE) Matrix Key Internal Factors Strengths Strong brand name, image and reputation. Large market share. Strong global presence. Specialized training for managers known as the Hamburger University. McDonalds Plan to Win focuses on people, products, place, price and promotion Strong financial performance and position. Introduction of new products. Customer focus (centric). Strong performance in the global marketplace. Weaknesses Unhealthy food image. High Staff Turnover including Top management Customer losses due to fierce competition. Legal actions related to health issues; use of trans fat & beef oil . McDonald's uses HCFC-22 to make polystyrene that is contributing to ozone depletion. Ignoring breakfast from the menu. Total Weight Rating Weighted Score 0.24 0.48 0.12 0.30 0.08 0.16 0.08

0.08 0.12 .04 .10 .04 .08 .08

3 4 3 3 2 2 1

0.10

0.30

0.09 0.12 .07 .04 .04 1.00

3 4 2 3 2

0.27 0.48 .14 .12 .08 2.85

Weight

Rating

Weighted Score 0.48 0.40 0.12 0.12 0.48 0.32 0.24 0.24 0.32 0.08 0.10 0.04 0.08 0.08 0.06 3.16

0.12 0.10 0.04 0.04 0.12 0.08 0.06 0.06 0.08 0.08 0.04 0.04 0.04 0.04 0.06 1.00

4 4 3 3 4 4 4 4 4 1 1 1 2 2 1

The Internal-External (IE) Matrix

The IFE Total Weighted Score
Strong 3.0 to 4.0 Average 2.0 to 2.99 Weak 1.0 to 1.99

I
High 3.0 to 3.99

II

III

IV The EFE Total Weighted Score

Medium 2.0 to 2.99

VI

McDonald's
VII VIII IX

Low 1.0 to 1.99

The Quantitative Strategic Planning Matrix (QSPM)

Strategy 1 Expand further in Asia by adding 500 restaurants Key Internal Factors Strengths Strong brand name, image and reputation Large market share Strong global presence Specialized training for managers known as the Hamburger University McDonalds Plan to Win focuses on people, products, place, price and promotion Strong financial performance and position Introduction of new products Customer focus (centric) Strong performance in the global marketplace Weaknesses Unhealthy food image High Staff Turnover including Top management Customer losses due to fierce competition Legal actions related to health issues; use of trans fat & beef oil Uses HCFC-22 to make polystyrene that is contributing to ozone depletion SUBTOTAL Weight 0.12 0.10 0.04 0.04 0.12 AS 4 4 4 4 TAS 0.48 0.40 0.12 0.48 Strategy 2 Applying 0 grams Trans fat in all worldwide McDonald's restaurants AS TAS 4 2 2 4 0.48 0.20 0.08 0.48

0.08 0.06 0.06 0.08

4 1 3

0.32 0.06 0.24

4 4 1

0.32 0.24 0.08

0.08 0.10 0.04 0.04 0.04 1.00

1 3 1 -

0.08 0.12 0.04 2.34

4 1 4 -

0.32 0.04 0.16 2.40

Strategy 1 Expand further in Asia by adding 500 restaurants Key External Factors Opportunities Weight AS TAS

Strategy 2 Applying 0 grams Trans fat in all worldwide McDonald's restaurants AS TAS

Growing health trends among consumers Globalization, expansion in other countries (especially in China & India) Diversification and acquisition of other quick-service restaurants Growth of the fast-food industry Worldwide deregulation Low cost menu that will attract the customers Freebies and discounts Threats Health professionals and consumer activists accuse McDonald's of contributing to the countrys health issue of high cholesterol, heart attacks, diabetes, and obesity The relationship between corporate level McDonald's and its franchise dealers McDonalds competitors threatened market share of the company both internationally and domestically Anti-American sentiments Global recession and fluctuating foreign currencies Fast-food chain industry is expected to struggle to meet the expectations of the customers towards health and environmental issues SUBTOTAL SUM TOTAL ATTRACTIVENESS SCORE

0.08 0.12 0.04 0.10 0.04 0.08 0.08

1 4 4 4 -

0.08 0.48 0.40 0.16 -

4 1 4 1 -

0.32 0.12 0.40 0.04 -

0.10

0.10

0.40

0.09 0.12 0.07 0.04 0.04

4 4 1

0.36 0.48 0.04

1 4 4

0.09 0.48 0.16

1.00

2.10 4.44

2.01 4.41