Gathering Strategy Information
- McDonald’s has got huge brand equity. It is considered as the top fast food company based on their sales. The sales of McDonald’s were approximately $ 56 million in 2009. (McDonald’s, 2009)
- McDonald’s has a promising behavior for its customers. The company provides innovation and product development in order to retain their customers. As a result the sales growth increased from 3% to 5% in 2009.
- McDonald’s make large amount of investments to support its franchises. Approximately 75% of McDonald’s restaurants around the globe are its franchises. Rest of the 25% is company operated.
- In 8 out of 10 advertisements the company focuses children only.
- Price competition with the competitors is resulting in low revenues. For instance the revenue of McDonald’s decreased from $16 million in 2008 to $15 million in 2009. (McDonald’s, 2009)
- There are different issues related to the quality of the food across the entire franchise network.
- McDonald’s always responds to the social changes in a positive manner, for instance, recently McDonald’s has moved to hot baguettes and fruit snacks which have helped in positioning the company on new grounds.
- The expansion of business to emerging countries as China and India will be helpful in earning the company more revenues as it already did due to which the combined operating margin increased from 27% in 2008 to 30% in 2009. (McDonald’s, 2009)
- The consumers focus on nutrition and healthier products nowadays, which may lead the company to changes its product line.
- The new companies entering in the fast food market are offering much more healthier and nutritious food, for instance, subway.
- Recession and economic downturns may also affect the sales, as the consumers will have a tight budget, this will result in reduced number of customers visiting.
Assurance of Learning Exercise 1B – Strategic Planning for my University
- The university should take advantage of the opportunities that globalization has created. Nowadays, people are more concerned about getting a university degree because of the increasing global requirement of qualified people.
- The Distant learning programs and electronic syllabi should be included in the university’s focus as it provides the university a global recognition because of its online programs.
- The international cooperation projects can serve as financial sources.
- Successful alumni of the university who are on top positions in different organizations can support the university.
- Implementation of satellite training programs can help in serving the international students more promptly.
- Frequent changes in the government policies and regulations can pose a negative impact on the institutional development.
- Quality and standards are also a major concern for the university because in some universities the credits earned at one university are not fully transferred to the other.
- The increasing population of students can actually pose a threat on the management and the faculty because then, the quality of the program will be diminished.
- Due to the market-oriented economy, university has to be accountable for everything it does. So, any misconduct of the policies and procedures can negatively affect the institution.
- The illegal use of university’s intellectual property can be a threat to the university’s private documents and other important data.
- Skilled and dedicated teachers are the most precious asset of the university.
- The university degree in recognized nationally as well as on international level.
- The up-to-date teaching aids and the accessibility to the digital libraries are also considered as the strengths of the university.
- Staff members can opt to continue their studies at the university simultaneously besides teaching.
- The reputation of the university is its major strength.
- The major constraint which hinders the faculty in utilizing their abilities to the fullest possible extent is time. Usually the teachers complain about not getting ample amount of time to do their work.
- The recruitment of teachers is also time consuming because of the bureaucratic structure, this ultimately adds up to the list of weaknesses.
- Funds also add up to the weaknesses of the university as the lack of availability of funds hinder the research projects and staff appraisals.
- University activities such as sports, fund raising programs etc are also affected due to lack of resources.
- University does not own a hostel because of which it remains unable to accommodate its students.
Assurance of Learning Exercise 1D – Getting Familiar with CeoExpress
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The strategic resources section will be most useful to the students of Strategic Management.
McDonald’s (2009) “Annual Report 2009,” Retrieved Aug 25, 2010, from,