The McDonalds Corporation Strategy Planning - Essay Example

In order to determine the significance of various external factors that impact the way McDonald’s conducts its business, it can be viewed that proper analysis of the external factors made the company raise its business reputation and also accomplish a superior competitive position by a greater level. In order to analyze 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 the strategy of the individuality of the customers in relation to product behavior and decisions on purchases (Ivanova, 2011).

Technological Factors: McDonald’s deals with a broad assortment of fast food-related products which generate greater demand for 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 the environmental factors, McDonald’s largely focuses upon effectively performing different sorts of corporate social accountabilities in terms of utilizing 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 an increase in its goodwill in the market. The company is said to be the first fast-food restaurant that offered its customers 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 the turnover rate of its employees. Relating to weakness, it generally faces quality issues at times and it also receives criticisms 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 turn will help them to get more customers. Moreover, the company should bring in more innovation in their products like introducing more food items, especially for breakfast. The aforesaid aspects would eventually support the company towards gaining the opportunity of accomplishing a superior competitive position over its chief business market competitors by a greater level (Scribd Inc., 2013).