McDonald's Corp.: Managing a Sustainable Supply Chain, Spanish Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study SWOT Analysis Solution
Case Study Description of McDonald's Corp.: Managing a Sustainable Supply Chain, Spanish Version
McDonald's seeks to learn from a successful response to Greenpeace's Amazon deforestation campaign in order to make its supply chain more socially and environmentally responsible.
Swot Analysis of "McDonald's Corp.: Managing a Sustainable Supply Chain, Spanish Version" written by Ray A. Goldberg, Jessica Droste Yagan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mcdonald's Greenpeace's facing as an external strategic factors. Some of the topics covered in McDonald's Corp.: Managing a Sustainable Supply Chain, Spanish Version case study are - Strategic Management Strategies, Supply chain, Sustainability and Global Business.
Some of the macro environment factors that can be used to understand the McDonald's Corp.: Managing a Sustainable Supply Chain, Spanish Version casestudy better are - – supply chains are disrupted by pandemic , increasing transportation and logistics costs, increasing commodity prices, challanges to central banks by blockchain based private currencies, technology disruption, increasing household debt because of falling income levels, there is increasing trade war between United States & China,
increasing government debt because of Covid-19 spendings, there is backlash against globalization, etc
Introduction to SWOT Analysis of McDonald's Corp.: Managing a Sustainable Supply Chain, Spanish Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in McDonald's Corp.: Managing a Sustainable Supply Chain, Spanish Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mcdonald's Greenpeace's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mcdonald's Greenpeace's operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of McDonald's Corp.: Managing a Sustainable Supply Chain, Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in McDonald's Corp.: Managing a Sustainable Supply Chain, Spanish Version case study
2. Improving business portfolio management of Mcdonald's Greenpeace's
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Mcdonald's Greenpeace's
Strengths McDonald's Corp.: Managing a Sustainable Supply Chain, Spanish Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mcdonald's Greenpeace's in McDonald's Corp.: Managing a Sustainable Supply Chain, Spanish Version Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the McDonald's Corp.: Managing a Sustainable Supply Chain, Spanish Version Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Sustainable margins compare to other players in Global Business industry
– McDonald's Corp.: Managing a Sustainable Supply Chain, Spanish Version firm has clearly differentiated products in the market place. This has enabled Mcdonald's Greenpeace's to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Mcdonald's Greenpeace's to invest into research and development (R&D) and innovation.
Diverse revenue streams
– Mcdonald's Greenpeace's is present in almost all the verticals within the industry. This has provided firm in McDonald's Corp.: Managing a Sustainable Supply Chain, Spanish Version case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Ability to recruit top talent
– Mcdonald's Greenpeace's is one of the leading recruiters in the industry. Managers in the McDonald's Corp.: Managing a Sustainable Supply Chain, Spanish Version are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Mcdonald's Greenpeace's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in McDonald's Corp.: Managing a Sustainable Supply Chain, Spanish Version Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
High switching costs
– The high switching costs that Mcdonald's Greenpeace's has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Cross disciplinary teams
– Horizontal connected teams at the Mcdonald's Greenpeace's are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Mcdonald's Greenpeace's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Mcdonald's Greenpeace's has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Superior customer experience
– The customer experience strategy of Mcdonald's Greenpeace's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– Mcdonald's Greenpeace's has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in McDonald's Corp.: Managing a Sustainable Supply Chain, Spanish Version HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of Mcdonald's Greenpeace's in the sector have low bargaining power. McDonald's Corp.: Managing a Sustainable Supply Chain, Spanish Version has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mcdonald's Greenpeace's to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Mcdonald's Greenpeace's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mcdonald's Greenpeace's has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Weaknesses McDonald's Corp.: Managing a Sustainable Supply Chain, Spanish Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of McDonald's Corp.: Managing a Sustainable Supply Chain, Spanish Version are -
Interest costs
– Compare to the competition, Mcdonald's Greenpeace's has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study McDonald's Corp.: Managing a Sustainable Supply Chain, Spanish Version, it seems that the employees of Mcdonald's Greenpeace's don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Need for greater diversity
– Mcdonald's Greenpeace's has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Low market penetration in new markets
– Outside its home market of Mcdonald's Greenpeace's, firm in the HBR case study McDonald's Corp.: Managing a Sustainable Supply Chain, Spanish Version needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
Mcdonald's Greenpeace's has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study McDonald's Corp.: Managing a Sustainable Supply Chain, Spanish Version, in the dynamic environment Mcdonald's Greenpeace's has struggled to respond to the nimble upstart competition. Mcdonald's Greenpeace's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow decision making process
– As mentioned earlier in the report, Mcdonald's Greenpeace's has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Mcdonald's Greenpeace's even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Lack of clear differentiation of Mcdonald's Greenpeace's products
– To increase the profitability and margins on the products, Mcdonald's Greenpeace's needs to provide more differentiated products than what it is currently offering in the marketplace.
Skills based hiring
– The stress on hiring functional specialists at Mcdonald's Greenpeace's has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Capital Spending Reduction
– Even during the low interest decade, Mcdonald's Greenpeace's has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Slow to strategic competitive environment developments
– As McDonald's Corp.: Managing a Sustainable Supply Chain, Spanish Version HBR case study mentions - Mcdonald's Greenpeace's takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Opportunities McDonald's Corp.: Managing a Sustainable Supply Chain, Spanish Version | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study McDonald's Corp.: Managing a Sustainable Supply Chain, Spanish Version are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Mcdonald's Greenpeace's to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Mcdonald's Greenpeace's to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Mcdonald's Greenpeace's can develop new processes and procedures in Global Business industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Creating value in data economy
– The success of analytics program of Mcdonald's Greenpeace's has opened avenues for new revenue streams for the organization in the industry. This can help Mcdonald's Greenpeace's to build a more holistic ecosystem as suggested in the McDonald's Corp.: Managing a Sustainable Supply Chain, Spanish Version case study. Mcdonald's Greenpeace's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Mcdonald's Greenpeace's to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Mcdonald's Greenpeace's can use these opportunities to build new business models that can help the communities that Mcdonald's Greenpeace's operates in. Secondly it can use opportunities from government spending in Global Business sector.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Mcdonald's Greenpeace's to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Mcdonald's Greenpeace's in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
Using analytics as competitive advantage
– Mcdonald's Greenpeace's has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study McDonald's Corp.: Managing a Sustainable Supply Chain, Spanish Version - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Mcdonald's Greenpeace's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Building a culture of innovation
– managers at Mcdonald's Greenpeace's can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Global Business segment.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Mcdonald's Greenpeace's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Global Business industry, but it has also influenced the consumer preferences. Mcdonald's Greenpeace's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Loyalty marketing
– Mcdonald's Greenpeace's has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Better consumer reach
– The expansion of the 5G network will help Mcdonald's Greenpeace's to increase its market reach. Mcdonald's Greenpeace's will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Threats McDonald's Corp.: Managing a Sustainable Supply Chain, Spanish Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study McDonald's Corp.: Managing a Sustainable Supply Chain, Spanish Version are -
Regulatory challenges
– Mcdonald's Greenpeace's needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Global Business industry regulations.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study McDonald's Corp.: Managing a Sustainable Supply Chain, Spanish Version, Mcdonald's Greenpeace's may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Global Business .
Stagnating economy with rate increase
– Mcdonald's Greenpeace's can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Mcdonald's Greenpeace's needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Environmental challenges
– Mcdonald's Greenpeace's needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Mcdonald's Greenpeace's can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Mcdonald's Greenpeace's.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Mcdonald's Greenpeace's in the Global Business industry. The Global Business industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
High dependence on third party suppliers
– Mcdonald's Greenpeace's high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Consumer confidence and its impact on Mcdonald's Greenpeace's demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Mcdonald's Greenpeace's business can come under increasing regulations regarding data privacy, data security, etc.
Easy access to finance
– Easy access to finance in Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Mcdonald's Greenpeace's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of McDonald's Corp.: Managing a Sustainable Supply Chain, Spanish Version Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study McDonald's Corp.: Managing a Sustainable Supply Chain, Spanish Version needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study McDonald's Corp.: Managing a Sustainable Supply Chain, Spanish Version is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study McDonald's Corp.: Managing a Sustainable Supply Chain, Spanish Version is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of McDonald's Corp.: Managing a Sustainable Supply Chain, Spanish Version is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Mcdonald's Greenpeace's needs to make to build a sustainable competitive advantage.
