Q: Business level and corporate level strategies

Q: Strategic Group Analysis

Q: Competitive Profile Matrix
Q: Detailed PESTEL Analysis

Competitive Profile Matrix

COMPETITVE PROFILE MATRIX (CPM)

Mc Burger
Donald’s King Wendy's
Critical Success Weighted Weighted Weighted
Factors Weight Rating Score Rating Score Rating Score

Market Share 0.12 4 0.48 3 0.36 2 0.24

Product Quality 0.15 4 0.6 3 0.45 3 0.45
Brand awareness 0.1 3 0.3 3 0.3 2 0.2
Brand Image 0.14 3 0.42 3 0.42 2 0.28
Customer Service 0.12 4 0.48 2 0.24 2 0.24
Customer Feedback 0.1 3 0.3 3 0.3 3 0.3
Advertising 0.1 4 0.4 2 0.2 2 0.2
Price 0.15 4 0.6 3 0.45 2 0.3
Customer Loyalty 0.02 4 0.08 4 0.08 3 0.06
1 3.66 2.8 2.27

This shows that Mc Donald’s have the highest weighted score as in quality, service, customer
satisfaction and price in comparison with burger king and Wendy’s. The score 3.66 shows
that Mc Donald’s is performing very well with respect to all the factors.
Strategic Group Analysis:
 Business Level and Corporate Level Strategies:

Business Level:
Cost leadership strategy:
Mc Donald’s focuses on giving their customer best product in good prices. Mc Donald’s aims
to provide their customer with good quality, best service that is the main reason they are on
the top of the fast food industry.
Differentiation strategy:
Mc Donald’s offer differentiated products and services from their competitors in a way that
Mc Donald’s is consumed by large market so to give their customer more value they have
started a 24 hrs drive thru system and also targeting their young consumers by their kid meal.

Corporate level:
Market development:
Mc Donald’s is currently using the market development strategy as in they are expanding
their business and developing new segments for their current product. Mc Donald’s is
offering quality products in good prices by which they can attract a mass market which
results in good market share and one step ahead of their competitors.

Product development:
As far as product development strategy is concerned Mc Donald’s is coming up with new
product to the market like many new menu items such as Big Mac and Egg Mc Muffin after
than a full breakfast menu then the kid meal covering the young market as well. Their main
principle depends on four things quality, service, cleanliness and giving value.
 PESTEL:
Political factor:
Tax payment issues
Issues from the Health Department

Economic Factor:
Economic recession 2008 lead to low purchasing power of people which effects the business
Unemployment rises at a rate of 8%

Social Factor:
Wealth inequality
More health conscious people

Technological factors:
Computerized inventory system to control the inventory
Automation
Drive thru process

Environmental factors:
Environment friendly process
SEC 18-24, their more focus towards the product which are better for the environment.

Legal factors:
Laws in USA, increasing child obesity, high fat meals
Calorie count of every meal of any fast food outlet.