Strategy planning Essay Example | Topics and Well Written Essays - 5250 words

Strategy planning - Essay Example McDonald’s deals with a wide range of products like hamburgers as well as French Fries, chicken sandwiches along with soft drinks, desserts and other various sorts of breakfast items (Gilbert, 2008). In order to determine the significance of various external factors that impact on the way McDonald’s conducts its business, it can be viewed that proper analysis of the external factors made the company to raise its business reputation and also to accomplish superior competitive position by a greater level. In order to analyse the external environment of McDonald’s, certain appropriate tools have been taken into concern like SWOT and STEEP which are described below. STEEP Analysis Socio-cultural Factors: McDonald’s establishes and follows an effective system in order to assess the requirements of the business markets where it operates. It stresses mainly on the strategy of individuality of the customers in relation to product behaviour and decisions on purchas es (Ivanova, 2011). Technological Factors: McDonald’s deals with broad assortment of fast food related products which generates a greater demand of these products by adopting along with executing pioneering technological procedures concerning its inventory system and supply chain among others (Ivanova, 2011). Environmental Factors: Relating to environmental factor, McDonald’s largely focuses upon effectively performing different sorts of corporate social accountabilities in terms of utilising bio-degradable substances in its broad array of products (Ivanova, 2011). Economic Factors: McDonald’s has a propensity to practice a great deal of difficulty in certain cases where there exists the significant concern of inflation and fluctuation in exchange rates. Specially mentioning, the variations in the exchange rates play a decisive part in the overall operations of the company (Ivanova, 2011). Political Factors: McDonald’s follows a unique set of instructions and policies for performing different operational functions effectively. It mainly concentrates on several sets of anxieties such as areas of health, environment and protection of the workers as well. These elements can be noticed in the state control of licensing of the restaurants in different regions where the company operates (Ivanova, 2011). SWOT Analysis Strengths: McDonald’s has a very strong and reputed brand name across the globe. It bears a strong partnership with other different companies which eventually results in increase of its goodwill in the market. The company is said to be the first fast-food restaurant which offered its customers with nutritional facts and as a consequence the loyal employees, customers and management form to be its biggest strengths (Scribd Inc., 2013). Weakness: McDonald’s has a pessimistic reputation concerning turnover rate of its employees. Relating to weakness, it generally faces quality issues at times and it also receives c riticisms particularly from health conscious people (Scribd Inc., 2013). Opportunities: McDonald’s should provide online services for its clients so that they can order sitting at home which in