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TABLE OF CONTENT

Table of Contents
Table of Contents...............................................................................1

ABSTRACK

In this Introduction to Management assignment, we were required to examine the research and observing in any two Mega Environmental factors and two Task Environmental factors. We have chosen McDonalds Corporation and the factors have on the success of an organisation. Our group did a research and explain on the related concept of Mega environmental there is International and Sociocultural elements, and Task environmental there is Customer & Client, and Competitors. Mega-environment is the general environment which reflects the broad conditions and trends in societies within which an organisation operates, there are five major elements Technological, Economic, legal political, Sociocultural, and International. The two Mega that we chosen is Sociocultural element, the attitudes, norms, beliefs, behaviours and associated demographic trends that are characteristic of a given demographic area, E.g Mc Donalds modifies menus all over the world. And International element, the development of

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countries outside an organizations home country than have potential to influence the organization. Task environment depends largely on the precise products and services that the organisation decides to offer and on the locations where it chooses to conduct its business. The elements comprises of Customers and clients, Competitors, Suppliers, Labour supply, Government agencies. In this element we choose Customer & clients, individuals or organizations that purchase products and / or services. And Competitors, other organizations that either offer or have a high potential of offering rival products or services. In a nutshell, the research conducted on the Environmental that used in Mcdonalds operations.

Competitors Analysis

1. McDonalds has been a leading fast-foods outlet in Vile Parle. But the outlet understudy has other competitors eating away into its market share. In addition to its traditional rivals KFC, Dominos, Pizza Hutthe firm encounters new challenges. Jumbo King competes using a back-to-basics approach of quickly serving up burgers for time-pressed consumers. On the higher end, the KFC has become potent competitor in the quick service field, taking away customers from McDonalds. Perhaps in the new environment, fast, convenient service is no longer enough to distinguish the firm. At this time, a new critical success factor may be emerging: the need to create a rich, satisfying experience for consumers. This brings us to service and experience based competition which McDonalds can use for competitive advantage against Jumbo King. Keeping in mind the demographics of the area, McDonalds has Wi-Fi enabled the outlet to cater to the student community. It is for this overall Food, Fun & Folks experience that customers pay a premium over the other competitors.

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1.1Competitive Environment Companies and organization need to interact with external environment to get raw material and any others input to produce their outcome. This produce competition in achieve the customer and getting the best available resources which are limited. Therefore they have to fight to survive in a competitive industrial environment. Competitors analysis is an important element of management, as it not only helps a company to identify the weakness and strengths it poses in fact it also provides a better understanding to prevailing opportunities and threats.

Following are the major McDonalds hamburgers Competitors Company KFC Subway YUM! brands Burger King Wendys Africa Miami, FL Milford, City Louisville , KY Original Location

1. Burger King: is second to McDonalds in competition of hamburger fast food chain. Although as compared to McDonalds it has more number of franchised restaurants but revenues are low due to McDonalds big size. 2. Wendys: is on third number of fast food chain competition across the world. It is severely affected by recession; it has quite small operation margins as compare to McDonalds. 3. YUM! Brands: includes KFC, Taco Bell, Pizza Hut, and Long John Silvers American Food Restaurants. China market is dominated by YUM! Brands. It serves as a biggest competitor while entering into the china market. While McDonalds run its business

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under one flag. YUM! Has splits its resources into variety of brands generating high revenue.

1.2 SWOT Analysis SWOT analysis is the main ingredient of management as well as marketing functional analysis. It is process of overall evaluation of companys strengths (S), weakness (S) and prevailing opportunities (O) and threats (T) in the companys competitive environment. Now we will conduct McDonalds SWOT analysis in India. 1.2.1 Strengths By strength we mean internal potential of company they grant it competitive edge on other competitors. While evaluating strengths of McDonalds we will deal with companys micro environment. McDonalds micro environment is consisting of the following elements.

1. 2. 3. 4. 5. Image

Image Full filling Customers Expectation Innovation Complying with cultural values Human Resource Satisfaction

McDonalds is the fastest growing food chain of the world. It is a number brand of the half of the world. It has created a positive strong image in its customer minds. Customers are amused by their cleanings, high speed service delivery and customer friendly attitude. These are few elements which are increasing the customer loyalty with every passage of time. Their corporate symbol and marketing campaign is successful in creating a strong positive image in the Indian customers mind. Full filling Customers Expectation Another greatest strength of McDonalds is its product value. To fulfill customers expectation when they walk in their franchise becomes their strongest marketing element in India. Customers know what they will get and never turned disappointed. Innovation McDonalds keeps on bringing innovation with quality in its products. People get used to of experiencing new taste and variety. McDonalds experience in different venture capital is another strong point.

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Complying with cultural values McDonalds makes adjustment in product offered as per the regions culture. As in India it introduces vegetable burgers instead of typical beef and chicken burger. They introduce a whole new vege burger line exclusively for India. Its capability of adaptability is its main strength. Human Resource Satisfaction They give immense importance to the employees satisfaction. They believe that to build strong employee-customer relationship they have to keep their employee satisfied and happy with different incentives other than pay roll.

1.2.2 Weakness By weakness we mean prevailing internal system weakness of the company and negative factors in environment that affect badly the companys core business. We all know that McDonalds is not that adaptive in the recent years as it was in the past. Here we will list some weakness which is hindering the high business share and consequently the profits.

1. Over exposure 2. Customer trends 3. External Environment Over Exposure People of India always want something new or that is different from others. But in McDonalds scenario, you can find its outlets everywhere in India. This over exposure may become boring for certain class of people in India. This over exposure induce customer to move on to something new which is not as crowdie as McDonalds. McDonalds has lost the element of uniqueness by opening so much franchise. Plus managing so many franchises has never been so easy. Some managerial pitfalls witnessed in any one franchise affects the whole brand image. Customer trends Customer trends changes rapidly. For a big chain like McDonalds it is hard to comply with all customer choices. So when customer sees no further advancement or innovation in companys product they move on to some other brand. External Environment

Threats and opportunities prevail in any companys external environment. Following diagram shows that companys external environment

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Technology; technology works as a benchmark for organization success. It is important to be technologically ahead to cope up with the modern age requirements and to compete with other firms of the same industry. Politics: politics plays vital role in effecting organization repute. It can have best as well as worst affect in any organizations success. Law: every organization need to work under state regulation, no one can work beyond the legal boundaries of business limited by state legal authority

4.2.3 Threats Relationship of management and franchise dealers are very important in maintaining sustainable repute in different countries. With so much franchise dealers a threat of bond collapse also exist. It needs to be fixed while coming over any communication barriers among dealers and top management. Another threat would be lack of growth opportunities available. As the market is very saturated so it is hard to grow more with the same product line. Another concern can be a treat which is of health conscious people who thinks McDonalds products make them fatty. 4.2.4 There are a lot of unexplored market niche available in India. All they need to do proper marketing of their product. Earlier they used kids as their brand ambassadors. Whereas it is proven fact that Demographics and customer financial and psychological aspects define a business concerns success. They should expand their target market by targeting health conscious adults, men and women.

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Scribd (2010), Merketing Strategies of Mcdonalds, (Online), Available from: http://www.scribd.com/doc/11520753/Marketing-Strategies-of-McDonalds (Accessed: 19 Des 2010

docstoc, Inc (2007-2010), Mcdonalds Bussiness Analaysis, (Online), Available from: http://www.docstoc.com/docs/23008831/Using-appropriate-frame-worksanalyze-McDonald%E2%80%99s-competitive-environment--and-its-businessmodule-and-business-ISIT-strategic-initiatives (Accessed: 19 Des 2010)

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