Running head: EXTERNAL ENVIRONMENTAL SCAN 1 EXTERNAL ENVIRONMENTAL SCAN 2 External environmental scan of McDonald’s Student’s name Course number Instructor’s name Date External environmental scan of McDonald’s Introduction McDonald's Corporation is the world biggest chain of fast food eating place and franchises system in the globally. The organization was found or established in 1940 east of Pasadena, California by two brothers Richard and Maurice McDonald. Presently the organization has 35,000 braches across the world in 125 countries with an estimated daily customer of 69 million. In the year 2013 the organization recorded an operating income of approximately US$ 9 billion which is a clear indication of the success since the establishment in 1940. Due tot hat fact that its the biggest food chain across the globe its gets affected by all the external factors such as political situation in the countries, economical circumstance, local competition, buyer behavior, legal rules and regulation across the nations and societal factors. The organization faces two major external factors including the substitution of new products that are healthier as compared to fast food and the entrant of new competitors in the market. This essay does the study of these external aspects that are affecting or can affect the McDonald in a constructive or unconstructive manner. The paper also comprises five force examination of fast food analysis to cover all features of external factors impacting this commerce. Porter's Five Forces Analysis Porter's five force analysis is a type of structure that is utilized by the organization to determine the competition levels in the market and provided vital information that will be used to developed strategies that leads to competitive advantages (Burks, 2015). This analysis provide the evaluation or information that can be used by new entrant or existing organization as the negative and positive market current and future conditions are exploited. Higher competition levels are presented in the industry of fast food. Threat of New entrant - At the present time there is no much competition due to new entrant in the market that can have the significant effects to McDonald as they have already established brand name in the market. Due to that fact that McDonald has invested more on their employees and the products hence providing acceptable standards in the market there has been a barrier blocking some of the new small entrant to the market. Creating a good image and provision of better services to the client is one of the main aspects to consider in the food industry to win the customer loyalty. The existing major competitors of McDonald are Burger King and KFC. However individuals are having high preference to McDonald products as they are high quality and within the affordable prices. So at this time for M ...

1. Running head: EXTERNAL ENVIRONMENTAL SCAN
1
EXTERNAL ENVIRONMENTAL SCAN
2
External environmental scan of McDonald’s
Student’s name
Course number
Instructor’s name
Date
External environmental scan of McDonald’s
Introduction
McDonald's Corporation is the world biggest chain of fast food
eating place and franchises system in the globally. The
organization was found or established in 1940 east of Pasadena,
California by two brothers Richard and Maurice McDonald.
Presently the organization has 35,000 braches across the world
in 125 countries with an estimated daily customer of 69 million.
In the year 2013 the organization recorded an operating income
of approximately US$ 9 billion which is a clear indication of
the success since the establishment in 1940. Due tot hat fact
that its the biggest food chain across the globe its gets affected
by all the external factors such as political situation in the
countries, economical circumstance, local competition, buyer
behavior, legal rules and regulation across the nations and

2. societal factors.
The organization faces two major external factors including the
substitution of new products that are healthier as compared to
fast food and the entrant of new competitors in the market. This
essay does the study of these external aspects that are affecting
or can affect the McDonald in a constructive or unconstructive
manner. The paper also comprises five force examination of
fast food analysis to cover all features of external factors
impacting this commerce.
Porter's Five Forces Analysis
Porter's five force analysis is a type of structure that is utilized
by the organization to determine the competition levels in the
market and provided vital information that will be used to
developed strategies that leads to competitive advantages
(Burks, 2015). This analysis provide the evaluation or
information that can be used by new entrant or existing
organization as the negative and positive market current and
future conditions are exploited. Higher competition levels are
presented in the industry of fast food.
Threat of New entrant - At the present time there is no much
competition due to new entrant in the market that can have the
significant effects to McDonald as they have already established
brand name in the market. Due to that fact that McDonald has
invested more on their employees and the products hence
providing acceptable standards in the market there has been a
barrier blocking some of the new small entrant to the market.
Creating a good image and provision of better services to the
client is one of the main aspects to consider in the food industry
to win the customer loyalty.
The existing major competitors of McDonald are Burger King
and KFC. However individuals are having high preference to
McDonald products as they are high quality and within the
affordable prices. So at this time for McDonald there is no new
admission threat for McDonalds in the fast food market. The
existing competitor and the small entrant are trying to other
product differentiation to the customer but this strategy is also

3. embraces by McDonald to the diverse branches across the globe.
Threat of Substitute Products or Services – The availability of
healthier food substitutes in the market has been a major threat
to McDonald as new organization are providing more healthy
products at an affordable cost. But in the fast food industry the
main criteria that are used to choose the most effectual product
from the customer point of view are the time of preparation,
conveniences in eating or take away and the health benefits to
some extent. In order to achieve this, McDonald is frequently
introducing new products that are differentiated, high end
services and have some healthy aspects to the customer in order
to ensure that they remain competitive and maintain the
customer loyalty. According to Mourdoukoutas (2012)
McDonald’s in the past few years has constantly expand and
developed its product portfolio by offering high quality coffee
and healthy drinks.
McDonald ensure the faster and good service to their client
which facilitate the customers to stick to their products in the
menu including McDonalds Burgers, Beverages, dairy products
and many more which comes at an affordable prices.
Bargaining Power of Customers (buyers) - in any given industry
it’s within the supply ability to choose the competitor that they
wish to purchase from in the market. Within the fast food
industry there is room for differentiation of the products but not
to bigger extent therefore most of the products are almost the
same. This competitors organization control the pricing
mechanisms in the market hence this limits the bargaining
power of the client. Therefore, there is a very low bargaining
influence of buyers in the industry.
Bargaining power of Suppliers - Due to that fact there are
dominance of not many suppliers in the fast food industry there
is high bargaining power by the suppliers. For instance like soft
drinks are dominated ands supplied by coca cola and PepsiCo
which provide them with high bargaining power in the market.
This industry is directly depended on the providers as they are

4. responsible to provide the necessary products or gears for the
fast food companies.
Intensity of Competitive/Industry Rivalry - The fast food
industry is highly competitive market with various competitors
that are developing strategies to ensure that hey provide high
quality services, innovation and affordable prices to the
customers. Brands like McDonald, KFC and Burger king are
unswerving competitors (McDonald & Wilson, 2016). The
geographical settings, advertising and branding of the
organization also provides some pointers to the competitors in
the market. Even though McDonald is far ahead of other two
major competitors but along with these two McDonald also has
to face the local completion across all countries. Cost
competition is the main completion category in the industry.
Consequently, McDonalds ought to progress strategies and be
aware of client taste and preferences to compete with this
gigantic restaurant industry.
Key Factors and Trends in any other areas affecting your
industry (PESTEL)
Economic condition of the countries that the organization
operates affects the general operational functions of the
organization like increase or decrease of customer purchasing
power, interest rates of finances among others. The social
setting in the countries across the globe provides McDonald
with a better environment to attract the large customer based via
strategic social joints developments. The use of technology in
improvement of customer service like Wi-Fi enabled fast food
restaurant, online order and delivery service, online payment
options, new equipment for quick and effective food
preparations are the major other factors that are affecting this
industry. The government regulation and other legal provision
among the diverse nation also posses some threats to the
organization operations. Political condition of the countries
especially in African nations affects the operation of majority of
the McDonald braches.

5. External Factors as either Opportunities or Threats
Some of the external factors that affect McDonald operations
positively by providing adequate opportunities are advancing
technological incorporation, changing customer needs, new
geographical location diversity, high end services and healthier
development of products (Barra, 2012). The use of technology
platform like social media in advertisement and provision of
orders will provide the effective online operation that can boost
the organization productivity.
Some of the threats that affect the organization include the
introduction or people shifting to products that are healthier and
affordable in the market. On the other hand the unstable
economic condition and political status in the diverse
geographical location affects the operations significantly.
References
Barra, D. (2012, May 19). How does McDonald’s use
technology development to lower cost of production? Retrieved
from
https://economicsofmcdonalds.wordpress.com/2012/05/19/how-
does-mcdonalds-use-technology-development-to-lower-cost-of-
production/
Burks, F. (2015). Types of Economic Factors That Can Affect
the Fast Food Industry. Retrieved from
http://smallbusiness.chron.com/types-economic-factors-can-
affect-fast-food-industry-36923.html
McDonald, M., & Wilson, H. (2016). Marketing Plans: How to
prepare them, how to profit from them. John Wiley & Sons.
Mourdoukoutas, P. (2012, April 20). McDonald's Winning
Strategy, At Home And Abroad. Retrieved from
http://www.forbes.com/sites/panosmourdoukoutas/2012/04/20/m
cdonalds-winning-strategy-at-home-and-abroad/

6. Academic writer(s) Needed 4 pages/1100 words
And more orders
If interested, email or chat via
Contact: [email protected]
The impact the theory of consumer choice has on:
Demand curves
higher wages
higher interest rates
The role asymmetric information has in many economic
transactions.
The Condorcet Paradox and Arrow's Impossibility Theorem in
the political economy.
People are not rational in behavior economics.
Cite a minimum of three peer-reviewed sources
Running head: STRATEGY

7. 1
STRATEGY
2
Strategy
Student’s Name
University Affiliation
The market of contender advantage is extreme and muddled
where to pick up esteem related position about the item assumes
the characterizing part. When I addressed the General Director
(Advertising) of Delegate and Gamble, I found the present
observation about this example that he could see through his
experience of the occasions. I got some information about the
marketing methodology of the organization to which he reacted
speedily and said that they are concentrating on increasing
decent amount in the market without neglecting to give quality
administrations to the clients. I vitally centered then around the
subject of significant worth extent to which, he answered that
the organization was anticipating distinct or consubstantial
advantages together, which could enable them to get to the
general execution in the market. My consideration and interest

8. made me solicit him that what is a technique from the
organizations for increasing most extreme upper hand. He
answered decidedly that the team is looking forward keeping up
its most extreme market scope and additionally guaranteeing
that the items were available advantageously and to give a
feeling of feeling significant factor to the clients about the
issue.
Part II
Among the different units of the items, I chose Global BABY
FEMININE and FAMILY CARE unit. In such group there are
numerous excellent, dependable best items sort like,
Dependably, Abundance, Luvs, Naturella, Spoils, Dodot, Puffs,
whisper and the sky is the limit from there. Such things are,
particularly for infant and females. This unit is additionally
particularly vital because it related with the newborn children or
little children. The objective clients of this unit are kids (0-3
years) and females (13 years or more) at that point the duty of
association increment. The organization must confirm that they
are giving reliable, clean and agreeable item classification to
their clients (Hanson, Hitt, Ireland, & Hoskisson, 2014).
Items profile depiction for such unit is that such item is having
the second position a piece of the overall industry. Their
primary rival is Johnson and Johnson, Unilever. Item class of
this unit is including child scoops and jeans, clean cushions,
paper towel, tissues and bathroom tissues. According to the
BCG Grid, such products are on the star position, where a piece
of the overall business of the organization is large with high
picking up.
Target Customers
The objective clients of these products are kids (0-3year),
women (above 13 years) and can be entire family. Child scoops

9. and jeans, paper towel, tissues are epically for kids, the entire
family can use sterile cushions for women and tissue, a paper
towel. Entire classes of items give a delicate and delicate taste
to its clients. Elements keep the sterile feel and are high
quality, and haphazardly used. Such products can be used
whenever anyplace at whatever point required. Their conveying
is simple, and practice of using it gives a decent impact.
Analyzing customer need
According to the discourse of GM promoting, I found that
organization adequately perceived the need of its clients. All
guardians need to give a solid and clean condition to their
children or family. Children are not ready to inform their folks
concerning the nature call (Pee and Potty) guardians need to
deal with them, which protect them by some skin infections. Be
that as it may, they cannot take care of them. For such reason,
the organization is giving infant scoops and jeans, which keep
them safe and give sterile wellbeing. This is likewise because of
the female when they utilize clean cushion. All items intended
to give a delicate and sound understanding to its clients (Kim,
& Mauborgne, 2015).
Such question is especially vital that why they buy our item?
For what reason not contender's items? Keeping the view of
clients require our methodology isn't regarding our self as an
organization yet we regard ourselves as relatives of the clients
who are mainly mindful of their health and security. Our goal is
to give a decent administration, uniqueness, the advantageous
and moderate cost to our clients with the organization vision,
"to give to give super nature of items and administrations with
the considerable value".
Position of Products
The organization's primary rivals are Johnson and Johnson,

10. Unilever who are otherwise called world best organizations.
According to advertise position P&G having the 11 most
prominent groups on the planet abandoning Johnson and
Johnson, Unilever. The Organization is having the most
significant pieces of the pie in the market. Our item separations
drop by perceiving its image, bundling, administrations,
advertise accessibility and its quality. Our goal is not to offer
the item we are making relations, sharing the feeling and giving
them sound and cheerful condition. An organization has several
class items brands, which are accessible in the entire market,
and the cost of such items, are exceptionally bona fide as
pressure to its rivals. We are not offering cost arranged items
we are offering client situated items (Osterwalder, & Pigneur,
2013).
Exchange with GM advertising and pick up information from
their experience I go to the outcome that the primary wellspring
of getting the upper hand is to be picking up client put stock in,
their dedication and receiving a place in their heart. Such can be
a win just by demonstrating excellent quality trust, exceedingly
fulfilling worth and client arranged system. We should center
on long-haul client require and prepared continuously to
perceive their need effortlessly.
References
Hanson, D., Hitt, M., Ireland, R. & Hoskisson, R.
(2014). Strategic management:
competitiveness and globalisation. South Melbourne, Victoria,
Australia: Cengage
Learning.
Kim, W. & Mauborgne, R. (2015). Blue ocean strategy: how to
create uncontested market space

11. and make the competition irrelevant. Boston, Massachusetts:
Harvard Business Review
Press.
Osterwalder, A. & Pigneur, Y. (2013). Business model
generation: a handbook for visionaries,
game changers, and challengers. Hoboken, N.J: Wiley.
Strategy Part 3
By now, in “Strategy” you have completed the following steps:
· Identified the organization for your report
· Interviewed at least one key mid-level or senior-level manager
· Created a market position analysis
· Conducted an external environmental scan in preparation of
your final report and presentation
Write a 7–10-page report in Word format. Make sure your
writing is clear, concise, and in an organized manner;
demonstrates ethical scholarship in accurate representation and
attribution of sources; and displays accurate spelling, grammar,
and punctuation. Apply APA standards to citation of sources.
The end result of this is developing a strategy audit. Today, you
will outline and draft a preliminary framework for your final
product.
Write your report as though you are a consultant to your
company and are addressing the executive officers of this
company.
Use the following format for your report:

12. · Cover page
· Executive summary/abstract
· Table of contents
· Introduction to company (each subsection should be an
assessment)
· Value proposition
· Market position
· Competitive advantage
· External environmental scan/five forces analysis
· Current environment
· Assessment of external factors applying five forces
· Strategic issues (label each issue and provide a header and the
reason for why it is an issue)
· Summary/key findings and recommendations
· References
In this assignment, you will generate a preliminary strategy
audit in preparation for your final course project.
Prepare a report that includes the following:
· In preparation for your course project, prepare the preliminary
strategy audit using the tools and framework you have focused
on so far including the following:

13. · Analysis of the company value proposition, market position,
and competitive advantage
· External environmental scan/five forces analysis
· Identify the most important (5–7) strategic issues facing the
organization or business unit.
· You may modify the strategic issues in your final report based
on the additional analysis you will conduct in the next module
as well as the feedback you receive on this paper from your
instructor.
· Keep in mind that it is important to look at the strategic
issue(s) from more than just one perspective in the business unit
or company—speak to or research the issue from more than one
angle to offer a 360-degree approach that does not cause more
problems or issues.
· Strategic issues arise from a mismatch between internal
capabilities and external trends such that important
opportunities are not being pursued or significant external
threats are not being addressed under the current strategy.
· Include a preliminary set of recommended tactics for
improving your company’s strategic alignment and operating
performance.
· You may modify these recommendations in your final report
based on the additional analysis you will conduct in the next
module as well as the feedback you receive on this paper from
your instructor.
· Keep in mind that recommendations can include, but are not
limited to, tactics in marketing, branding, alliances, mergers

14. and acquisitions, integration, product development,
diversification or divestiture, and globalization. If you
recommend your company to go global, you must include a
supply chain analysis and an analysis of your firm’s global
capabilities.
Write a 7–10-page report in Word format. Make sure your
writing is clear, concise, and in an organized manner;
demonstrates ethical scholarship in accurate representation and
attribution of sources; and displays accurate spelling, grammar,
and punctuation. Apply APA standards to citation of sources.
Due Sunday 02/25/2018