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Strategic and Change Management

Group Members
Kabiru Ahmed Shahir Eddy Lim Song Chia Wan Adib Akmal Muhammad Hidayatulah Ahmed Abd-aldaem Abu

SEGi University For Miss Malathi

Company Background
McDonalds the global fast food giant starting off as a single small restaurant in 1940 by two brothers Richard and Maurice also known as Dick and Mac opened a small driver-in eatery in San Bernardino ,California .

The brothers brought a game changer again putting FAST in the word fast food they reinvented their restaurant using their speedy service system in 1948 . In late 70s the 3000th McDonalds restaurant was opened in Woolwich (south east London) in October the first in the UK.

Company Background
The company admitted that NOBODY went in and Kroc believed advertising was a worthwhile investment that would ultimately reap dividends later decided to target children with TV ads
today McDonalds has invested the concept of fast-food restaurant and has more than 31,000 franchises in 199 countries and serves almost 47 million customers a day, but this success story like every other started somewhere and by someone

General Environment
General environment broad external conditions that may
affect the organization. 1. Economic: it includes the impact of economic factors such as interest rates, inflation , changes in disposable income and the stage

of general business cycle.

General Environment
2. Political/Legal: federal, state and local government influence what organization can and cannot do.

3. Sociocultural:
mangers must adapt their practices to the changing expectations of the society

General Environment
4.Demographical trends in the physical characteristics of population such as gender, age , level of education ,income, geographical location 5. Technological is changing the ways the organisations are operating, so business must address this issue and its impact on performance of

organization.

Question B Kabiru Eddy Hidayat


Evaluation on the influence of the organizations general environment and international strategies

International Strategy

General Environment
The forces within the general environment, including politic legal, economic, technological, socio cultural and international forces, To analyze the current status of McDonalds corporation, we chose to use the PEST method to evaluate the following categories P E S T Political Economic Social Technological

Political
Ecological/environmental issue Fast food industry giants such as Wendy's, Pizza Hut, and McDonalds are some of the largest consumers of paper products in the US. "Every year millions of pounds of food packaging waste litter our roadways, clog our landfills and spoil our quality of life. The increasing interest in protecting natural resources and preserving ecological balance

Economical
McDonalds must consider economic challenges when expanding internationally. Low set up costs = rapid expansion One of the challenge for fast food industry is that to keep the price is low for the customer. Franchising facilitates set ups McDonalds corporation provides financing assistance and training for new franchise owners to manage cash flow and keep businesses profitable.

Social Cultural
McDonalds was face with health carges on the oil they use and fries Customers now opted for more healthier options like subway which offered more of a variety for health conscious customers McDonald's faced cultural problems in entry in to most countries in Asia such as India, Japan and Malaysia .

Social Cultural
To ease customers concern about health issues, McDonalds has made changes to the following; McDonalds changed its image vastly by evaluating the current menu and making changes to it from using organic products to revising the whole menu entirely by offering salads and vegetarian burgers. McDonalds serves a range of high-quality foods that can fit into a balanced diet. The accurate and accessible nutrition information help guests make informed menu choices

Technological
McDonalds has taken advantage of technology to streamline their processes and improve efficiency. Mobile Application You To Place Order At McDonalds Via mobile The customers can place their order directly from their tables, dubbed as Touch Order. Its the first self-ordering system in the world to use McDonalds has also implemented technology to improve supply chain management, and allows customers to access this information to make more informed decisions about what they eat.

Global Strategy
Recent years have seen McDonalds adapt to local regions by remodeling its retail space while changing the product line to appeal to local tastes

McDonalds may be able to cater to local tastes as long as it focuses on its core competency of fast food.
Global panthers Coca-Cola and Olympic

Global Strategy India


locally focused menu choices (using lamb meats instead of beef meat keeping the religious sentiments of most Indians) McDonalds in India has specific menu items For the vegetarian market (50% veg items)

Strategy in Europe
In Europe, unfortunately, McDonalds is straying from its fast food roots. In an effort to compete with coffee shops like Starbucks, McDonalds is turning the restaurant space more upscale and comfortable McDonalds even further away from its core competency of fast food.

Strategy in China
While offering the basic burger and fries, McDonalds in China also offers: Szechuan-style spicy chicken wings Seafood Soup Rice Oriental Sauces Taro and Red Bean Dessert

Strategy In Malaysia
Applying the Balance active life in Malaysian market The Halal Logo (no pork) Double Cheeseburger, Spicy Chicken McDeluxe and McChicken. A new twist of the Triple Cheeseburger the Double Spicy Chicken McDeluxe , Double McChicken and the MEGA MAC Currently seasonal menu ( Beef and Chicken Prosperity Burger )

Recommendations
More Healthy Choices Locally focused menu choices in certain countries Increase presence in Asian and African countries

Thanks for listening Any questions??

Okay, I have a question for you All


Do you feel that McDonalds food can be consumed every time or is it unhealthy and toxic, or is it more like a treat to be enjoyed on occasion?

The END