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GROUP 3

GROUP ASSIGNMENT PRESENTATION


(DMS 4063 - STRATEGIC MANAGEMENT)

LT KOL MOHD RIDZAM BIN MAT REJAB (3191175)


MEJ ZURAINI BT MD KAMAL (3191189)
MEJ WAN MOHD AKRAM BIN HJ SAIDON (3191174)
EN MOHD AIZAT BIN KUSNI (3191173)

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MC DONALDS

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SCOPE

 Vision and Mission


 Introduction
 Organization
 EFE Matrix
 EFE Report
 IFE Matrix
 IFE Report
 Competitive Profile Matrix (CPM)
 Types of Strategies
 SWOT Matrix
 Strategy Implementation
 Strategy Evaluation
 Ethics
 Environmental Sustainability
 Global Issues
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INTRODUCTION

 McDonald’s started 1940.


 35,000 restaurants worldwide
 120 countries.
 260 restaurants nationwide.
 Introduce in Malaysia – 1984.

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VISION & MISSION

VISION
To move with velocity to drive profitable growth and become even
better. McDonald’s serving more customers delicious food each
day around the world.

MISSION
To be our customers favourite place and way to eat and drink.

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ORGANIZATION

Corporate Level

Divisional Level

Functional Level

Operational Level

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WHY DO WE NEED TO ASSESS EXTERNAL FACTOR
ENVIRONMENT

 To meet the needs of customer requirement.


 To improve and promote our marketing strategy.
 To enhance our services align to the latest technology.
 To remain rational and acceptable globally.
 To achieve profitable growth.

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EFE MATRIX - OPPORTUNITIES
EFE MATRIX WEIGHT RATING SCORE

OPPORTUNITIES
Global Market 0.20 3 0.60
Acceptable by all age level 0.10 3 0.30
Services with latest technology 0.08 2 0.16
Meet the social demand of nutritious and healthy food 0.04 4 0.16
Support from worldwide media 0.08 3 0.24

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EFE MATRIX - THREAT
EFE MATRIX WEIGHT RATING SCORE

THREAT

Competitors (Marry Brown, KFC) 0.10 4 0.40


Boycott from certain countries 0.18 4 0.72
Reputation tarnish through media social 0.18 4 0.72
Bad perception with regard to fast food industry 0.02 3 0.06

System failure due to hacker interception 0.02 3 0.06

Total 1 3.42

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EFE REPORT

From the EFE matrix, the total weighted score of Mc Donald’s is 3.42.
This mean that Mc Donald’s is responding well towards the
opportunities and threats in the external environments. The
opportunities i.e support from worldwide media and global market
can be maximized to avoid or minimize the threats. i.e boycott from
certain countries and reputation tarnish through media social that
can affect Mc Donalds growth profitability.
WHY DO WE NEED TO ASSESS INTERNAL FACTOR
ENVIRONMENT
 To identify strength and weaknesses of all function.
 To identify distinctive competency and function of organization.
 To improve skills, professionalism and behaviour among the
employees.
 To enhance collaboration and integration within the
department.
 To identify our standing in market and opportunities.

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IFE MATRIX - STRENGTH

IFE MATRIX WEIGHT RATING SCORE


STRENGTH
Successful advertisement and brand name 0.08 3 0.24
Collaboration with ‘COKE’ 0.20 3 0.60
Clean environment and play space for kids 0.04 3 0.12
Low cost food 0.09 4 0.36
Fast and convenient 0.15 4 0.60
Kids and family friendly 0.09 4 0.36

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IFE MATRIX - WEAKNESSES

IFE MATRIX WEIGHT RATING SCORE


WEAKNESSES
Weak product development 0.04 2 0.08
Management of franchisee 0.09 2 0.16
Reputation for unhealthy food 0.09 1 0.09
Many scandals (China’s used expired beef, 0.15 1 0.15
Halal Certification in Malaysia)
High staff turnover including Top Management 0.09 1 0.09
Slow revenue and income 0.05 2 0.10
Total 1 2.5
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IFE REPORT

From the IFE matrix, the total weighted score of McDonalds is 2.50.
This mean that McDonalds is responding average towards the
strengths and weaknesses in the internal environment. The strengths
i.e. Fast and Convenient, Low Cost Food and Kids and Family Friendly
in the internal environment can be maximised to overcome the
weaknesses, i.e Management of Franchisee, Scandals and Slow
Revenue and Income which can affect the success of McDonalds in
achieving its vision and mission.
WHY DO WE NEED TO ASSESS OUR COMPETITOR
 To identify the strength and weaknesses of the competitors.
 Supersede the strength of the competitor by plan and
implement strategic planning (customer, product, services and
technology). tarnish through media social that can affect growth
profitable.
COMPETITIVE PROFILE MATRIX

CRITICAL SUCCESSFUL KFC MARRYBROWN BURGER KING


FACTORS
W R S W R S W R S
Retaining customer 0.02 3 0.60 0.15 3 0.45 0.20 3 0.60
Regain customer 0.25 3 0.75 0.30 3 0.90 0.20 3 0.30
Convert customer 0.10 2 0.20 0.15 2 0.30 0.10 2 0.20
Digital 0.10 3 0.30 0.00 0 0.00 0.20 3 0.60
Delivery 0.15 3 0.45 0.00 0 0.00 0.00 0 0.00
Media 0.10 3 0.30 0.25 1 0.25 0.18 3 0.54
Community Social 0.10 2 0.20 0.25 2 0.50 0.12 2 0.24
Responsibility
Total 1 2.8 1 2.5 1 2.78
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TYPES OF STRATEGIES

 Integration Strategies  Diversification Strategies


 Forward Integration  Related Diversification

 Intensive Strategies  Porter’s 5 Generic Strategies


 Market Penetration  Type 1- Cost Leadership-
 Market Development Low Cost
 Product Development  Type 2- Cost Leadership-
Best Value
 Type 5- Focus Best Value
SWOT MATRIX
STRENGTH WEAKNESSES
1. Successful advertisement and brand name 1. Weak product development
2. Collaboration with ‘COKE’ 2. Management of franchisee
3. Clean environment and play space for kids 3. Reputation for unhealthy food
4. Low cost food 4. Many scandals (China’s used expired beef,
5. Fast and convenient Halal Certification in Malaysia)
6. Kids and family friendly 5. High staff turnover including Top Management
6. Slow revenue and income
OPPORTUNITIES SO STRATEGIES WO STRATEGIES
1. Global Market 1. Develop new and variety products for global 1. Develop healthy and organic products
2. Acceptable by all age level market (S4, O1,O2) (W3,O4,O5)
3. Services with latest technology 2. Expanding into new territories ( S1, O1, O5) 2. Launch press conference and enhance
4. Meet the social demand of nutritious and 3. Promoting and encouraging customer using our marketing campaign (W4,O5)
healthy food latest services (S5, O3) 3. Develop variety products (W1,O4,O2)
5. Support from worldwide media 4. Develop healthy product for customer (S4, S6, O4) 4. Introducing variety of McValue (W6,O4,O5)
5. Introducing McDonalds is Your 2nd Home 5. Enhancing SCM (W2,O1)
(S3,02,04)
THREATS ST STRATEGIES WT STRATEGIES
1. Enhancing marketing campaign and introducing 1. Improvising the healthy meal particularly to an
1. Competitors (Marry Brown, KFC) variety of McValue (T1,S1,S4,S5) organic food and launch a campaign (W3,T4)
2. Boycott from certain countries 2. Launching campaign by advertising repeatedly 2. Cohesion among employees, reform new
3. Reputation tarnish through media social and wisely of the latest products & services strategy particularly on stabilizing HALAL meal
4. Bad perception with regard to fast food (T2,S1) and attracting kids with healthy food (W4,T3)
industry 3. Enhancing products particularly to a kids and 3. Launching a marketing campaign constantly
5. System failure due to hacker interception healthy meal (T4, S6) and promoting on the new products (W6, T1,T2)
4. Promoting the marketing on low cost food through 4. Develop variety of healthy food using organic
social media (T3,S4) ingredients with HALAL certificate approval
5. Enhance our services through the latest (W1,T2)
technology and cohesion among the staff in order 5. Updating of system management using latest
to avoid any exploitation of the hackers (T5,S5) technology (W2, T5)
STRATEGY IMPLEMENTATION

Short Terms Medium Term Long Term

 Intensive promoting product  Empowering our SCM  Develop variety of healthy


and services by using latest food with halal certification
technologies and to be accepted global
market
RESISTANCE IN IMPLEMENTING STRATEGIES

 Preference
 Different region have different
taste
 Supplier Commitment
 Raw Material and resources
 Resource
 Limited resource in producing
limited time for Mc Value ie
“Ice Cream Durian”
 Government policy
STRATEGY EVALUATION

 Examining by using report or Balance Score Card

 Comparing the result with actual result

 Taking corrective actions to ensure that performance


conforms to plans
ETHICS
ENVIRONMENTAL SUSTAINABILITY
CORPORATE SOCIAL RESPONSIBILITY
GLOBAL ISSUES

 Bad food image –unhealthy food


 Slow, inaccurate service
 Increased competition
 Halal certificate
 Israel Issue
 India: legal dispute eats away early advantage
 China: food safety concerns undermine brand
 US: left behind by shifts in dining habits
 Japan: consumer backlash against cost cuts
 Russia: burger business caught up in geopolitics
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