Answer To: I have submitted a University Assignment Brief andword document (Task 1) brief that explains in more...
Asif answered on Nov 16 2022
1
This report needs to fix the highlighted issues,
Need clearly stated in your executive summary, conclusion summarises your main points and links them to your aims or objectives, Fix the use of single-sentence paragraphs (that does not mean to delete that part, I meant you have to put the idea into the document but that didn’t be single sentence paragraph). Need to do Proofreading and also fix a point on Page number 5 (because that contradicts with pestle analysis )
I will check all this things
Executive Summary
This report examines the role and significance of internal and external stakeholders in the operation of McDonald's. This report also presents the Macroeconomic environment, nature, and degree of main stakeholder interest, implication, and conflict of interest in a tabular format using a stakeholder matrix and mapping. McDonald being a global restaurant have been impacted greatly during the global pandemic situation. Through this report we will be able to analyse the various impacts and consequences it suffered during such crisis through various evaluation such as SWOT analysis, PESTLE analysis along with stakeholder mapping and matrix. Further, the report will help us to view the various actions initiated by McDonald in recovering itself from deprived situation and contribute towards the growth of the organization in the recent times. Finally, the report also briefs about the various roles and responsibilities played by stakeholders of the companies and peer organizations which helps to motivate McDonald and encourage them to grow further.
Task
The key findings of this report have not been clearly stated in your executive summary. Consider revising this section and make sure that you state your findings (and any recommendations, if necessary) clearly.
Table of Contents
Introduction 3
Main Body 4
Functional area 4
SWOT Analysis 5
Macroeconomics 5
PESTLE Analysis 8
Porter's Five Force Analysis 10
Nature and degree of main stakeholders’ interests and influence 14
Implication regarding Conflicting Interest 16
Stakeholders’ Matrix 17
Stakeholders’ Mapping 19
Peer Post 19
Conclusion 20
References 22
Introduction
McDonald's is one of the most well-known fast-food brands, and the stakeholders, both internal and external, have played a significant role in its success. The purpose of this report is to examine the role and significance of internal and external stakeholders in the operation of McDonald's. This report also summarises the various macroeconomic environment aspects and their impact on business operations. This assignment demonstrated the analysis of internal and external stakeholders' approaches for the company McDonald using Functional Areas as well as PESTLE analysis, Porter's Five Analysis, and SWOT analysis.
This report also includes a stakeholder mapping and stakeholder matrix to determine their impact on business operations. This report also includes a comparison of McDonald's to peer organizations Netflix and Woolworth. This report also presents the nature and degree of main stakeholder interest, implication, and conflict of interest in a tabular format using stakeholder mapping (Dahan et al., 2015).
Main Body
Functional area
McDonald's Corporation is an American franchisor of fast-food restaurants and one of the world's largest fast-food corporations. It was founded in 1955 and has its headquarters in San Bernardino, California, USA (Ravinder & Saraswathi, 2020). Its assets are valued at more than $181.13 billion. McDonald's has more than 40,000 locations worldwide, including 13,438 in the United States, 15,808 in International Developmental Licensed Markets and Corporates, and 10,785 in International Operated markets (Tien, 2019). Mcdonald’s organizational structure includes a Divisional hierarchical framework. These are essentially classified as the United States, Europe, Asia-Pacific Middle East and Africa (APMEA), and other countries (Wood, 2020). McDonald's main products include hamburgers, chips, and beverages. While many international McDonald's resemble their American equivalents, their menus reflect local wealth to keep up with local demography (Tien, 2019). McDonald's four key functional areas are marketing, human resources, operations, and finance (Thompson et al., 2018).
SWOT Analysis
Strength
Weakness
Opportunity
Threats
Universal Franchise along with large market share and Innovative technology.
Legal approach as well as health issues from consuming foods and high employee turnover.
Digital marketing and focus on the Asian markets as the target.
The impact of the pandemic along with too much reliance on the franchise.
Macroeconomics
Macroeconomics is described as the interplay of individuals and business organizations interacting to generate a sustainable economic and business environment on a national scale and even worldwide (Pierleoni et al., 2019). A macroeconomic organization could be defined as a combination of conditions that prevail throughout the economy rather than in a single industry or location (Abel et al., 2017). Therefore, by application of macroeconomic factors, various organizations can reveal their strengths and weaknesses with respect to the current approach of the management and the ways it can transform. Further, it is by evaluating the macroeconomic factors organizations can assess the reasons of disasters and the way such problems can be avoided (Halton, 2022). Similar, situation happened during the advent of global pandemic situation covid-19. There have been a high economic loss in various organizations due to pandemic situation (Rungcharoenkitkul, 2021). FIX IT -Avoid the use of single-sentence paragraphs. (Generally, to form a complete paragraph, you need to use several sentences. A full paragraph must include a topic sentence, elaborating details, examples, and analysis, and a concluding/transition sentence at the end; one or two sentences are rarely able to make a complete paragraph. When you find yourself with a very short paragraph, try either integrating it into a surrounding paragraph where you are discussing similar topics or add more information to it to form a complete paragraph of its own.)
The economy experienced a recession, postponing two years of economic progress and recovery. The COVID-19 pandemic produced considerable disruptions in the Australian workforce, coinciding with an initial drop-in economic activity because of curfews and restrictions on organizational activities. In the early stages of covid 19, underemployment in Australia reached 13.8%, with almost 1.8 million people working fewer hours or for no compensation. Youth unemployment has risen to 23.6% and 870000 people lost their job. Australian GDP falls by 7% (Australian Bureau of Statistics, 2021). The unemployment rate is one of the personal elements that have influenced people's shopping patterns. As a result, 84% of the most affected industries were hotels, retail shops, and food restaurants (Australian Bureau of Statistics 2021).
As a result of the worldwide epidemic, McDonald's sales and revenue have dropped by 30.5% to $3.76 billion. (Panzone et al., 2021).
Industry outlook and competition landscape.
The macro-environment enters the meso-environment to compete, resulting in competition. Burger King, KFC, and Taco Bell are three major competitors of McDonald’s. These competitors can be more competitive with McDonald’s by changing pricing strategies and inventing more products. According to (Niu et al., 2021), people nowadays are highly concerned about sustainability and an eco-friendly environment. The fast-food industry itself has not adopted effective sustainability principles; as a result, McDonald’s might get criticism from customers in the upcoming time. But in the recent times McDonald has emphasized on Zero Campaign where the mission is to reduce the emission to zero by 2050. As on 2021, McDonald’s have achieved a 2.9% reduction in the greenhouse gas emission by installing technological innovation in their restaurants and offices. McDonald have made around 82.7% of the packaging materials and 96.8% of the primary fibre packaging which can be recycled and comes from certified resources. Finally, in order to conserve the forest and natural resources, McDonald have reduced the usage of water in all its restaurants by 30% which helped in saving around 3.7 million gallons of water (McDonald, 2022). FIX This idea, because it doesn’t make sense with PESTLE Analysis, or come up with an idea/ outline, that could put into this area but same time does not contradict the PESTLE analysis. By looking into the opportunities, McDonald's can extend their product line by introducing new products. McDonald's sells beverage products of Coca-Cola; by introducing its beverage product, the company can increase their revenue figure and profit margin. Changing the price might attract people who belong to the economic group. Pocket-friendly pricing of fast food attracts a huge number of college and school students (Saha, Al Mamun & Kabir, 2022). To describe macroeconomics, two business techniques—PESTLE analysis and porter’s five force analysis—will be used. According to (Marmol, Feys, & Probert, 2015), the Pestle analysis is a great tool for identifying unexpected developments that may shape the ability and operation of a specific organization. The study examines Political, Economic, Social, Technology, Legal and Environment, legal, and environmental factors. Likewise, Porter's five forces model is also a powerful tool for assessing the competitive environment within an organization. (Jurevicius, 2021).
PESTLE Analysis
Political
The government is now regulating the marketing of fast-food restaurants due to health issues e.g., cardiovascular disease, high cholesterol, and obesity in the nation. According to (Caescu et al., 2011), McDonald's is becoming increasingly concerned about the excessive sodium and salt content of its dietary needs, which can have negative effects on conditions like hypertension and diabetes.
Governments also have authority over all permits issued to operate fast-food restaurants or other business requirements, such as those for franchise businesses.
According to (Petimar et al., 2019), political issues prevent Macdonald's from operating in several nations, including Bermuda, Iran, Macedonia, Montenegro, North Korea, Zimbabwe, Iceland, and Bolivia.
Economic
Macdonald’s must abide by the rules and policies of the various tax rates established by each nation. The organization needs to be mindful of the global supply and foreign exchanges within the macro environment. McDonald’s needs to get...