Assignment goal: In lecture, we have now discussed the general and industry environments, which together describe the external environment for a company. Now, we will put these concepts into practice. Our goal is to answer: what external factors might affect McDonald’s strategy? To answer this question, you will need to conduct external analyses!
1.) First, let’s assess the general environment. Conduct a PESTEL Analysis
Although in reality, some factors are more important than others depending on your company, for this assignment, please identify TWO examples for each factor below (P – E – S – T – E – L). Thus, two political examples, two economic examples, etc. If you recall, a general environment analysis applies not only to our company, but to other companies in the same industry as well. To indicate this understanding, you should write two sentences per example. The first sentence should reflect how that example impacts the industry as a whole, the second should reflect why it is important to the company specifically (McDonald’s in this case).
Political (3 points)
Example 1:
General sentence:
McDonald’s sentence:
Example 2:
General sentence:
McDonald’s sentence:
Economic (3 points)
Example 1:
General sentence:
McDonald’s sentence:
Example 2:
General sentence:
McDonald’s sentence:
Sociocultural/Demographic (3 points)
Example 1:
General sentence:
McDonald’s sentence:
Example 2:
General sentence:
McDonald’s sentence:
Technology (3 points)
Example 1:
General sentence:
McDonald’s sentence:
Example 2:
General sentence:
McDonald’s sentence:
Environmental (3 points)
Example 1:
General sentence:
McDonald’s sentence:
Example 2:
General sentence:
McDonald’s sentence:
Legal (3 points)
Example 1:
General sentence:
McDonald’s sentence:
Example 2:
General sentence:
McDonald’s sentence:
2.) Consider the importance of Competitive Intelligence for McDonald’s. Besides direct rivals (Wendy’s, Burger King, etc.), what other companies might McDonald’s conduct a Competitive Intelligence report on, and why?
3.) Strategic Group Mapping. First, What is a strategic group?
On the next page, I have created a strategic map template for you. Please create a Strategic Map that includes McDonald’s. You may also create your own map (using any program of your choice) if you don’t like editing the template! You can move the yellow circles around, make them bigger or smaller, etc.. Make sure to label your X and Y axes. Hint: There should be MORE than one company per strategic group.
Appendix A: Strategic Group Map Template
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4.) Conduct a Porter’s 5 Forces Model. You must include the strength of the force (high, medium, or low) and defend your decision.
Rivalry (high, medium or low force; why?):
Buyer Power:
Supplier Power:
Threat of Substitutes:
Threat of New Entrants:
