external audit mc_donalds

8/13/2019 External Audit Mc_Donalds

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External Audit:

Opportunities Threats

1. Growing health trends among

consumers

2. Globalization, expansion in othercountries (especially in China &ndia!.

". #i$ersi%ication and acuisition o%other uic'ser$ice restaurants.

). Growth o% the %ast%ood industry.*. +orldwide deregulation.

. -ow cost menu that will attract thecustomers.

. /reebies and discounts.

1. 0ealth pro%essionals andconsumer acti$ists accusec#onalds o% contributing to thecountry3s health issue o% highcholesterol, heart attac's, diabetes,and obesity.

2. 4he relationship betweencorporate le$el c#onalds and its%ranchise dealers.

". c#onald3s competitors

threatened mar'et share o% thecompany both internationally anddomestically.

). 5nti5merican sentiments.*. Global recession and %luctuating

%oreign currencies.. /ast%ood chain industry is

expected to struggle to meet theexpectations o% the customerstowards health and en$ironmentalissues.


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CPM-Competitive Profile Matrix

McDonald's Burger King Yum Brands Wendy's

Critical Success

Factors

+eight 6ating +eighted7core

6ating +eighted7core



Price 8.1* ) 8.8 " 8.)* " 8.)* " 8.)*

FinancialPosition

8.89 ) 8."2 " 8."2 " 8.2) 2 8.1

Consumer

oyalty

8.18 ) 8.)8 " 8.)8 " 8."8 2 8.28

!d"ertising 8.18 " 8."8 " 8."8 ) 8.)8 2 8.28

Product #uality 8.18 ) 8.)8 " 8.)8 ) 8.)8 2 8.28

$nno"ation 8.1* " 8.)* " 8.)* " 8.)* 2 8."8

Mar%et Share 8.18 ) 8.)8 2 8.28 " 8."8 2 8.28

Management 8.8 ) 8.29 " 8.21 " 8.21 " 8.21

&loal

()pansion

8.1* ) 8.8 2 8."8 " 8.)* 1 8.1*

Total 1 3.75 3.03 3.20 2.07

External Fator Evaluation !EFE" Matrix

2


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Key ()ternal Factors Weight *ating Weighted Score

Opportunities

Growing health trends among

consumers

8.89 " 8.2)

Globalization, expansion in other countries(especially in China & ndia!. 8.12 ) 8.)9

#i$ersi%ication and acuisition o% other uic'ser$ice restaurants.

.8) " 8.12

Growth o% the %ast%ood industry. .18 " 8."8

+orldwide deregulation .8) 2 8.89

-ow cost menu that will attract the customers. .89 2 8.1

/reebies and discounts. .89 1 8.89

Threats

0ealth pro%essionals and consumer acti$istsaccuse c#onalds o% contributing to thecountry3s health issue o% high cholesterol, heartattac's, diabetes, and obesity.

8.18 " 8."8

4he relationship between corporate le$elc#onalds and its %ranchise dealers.

8.8 " 8.2

c#onald3s competitors threatened mar'etshare o% the company both internationally anddomestically.

8.12 ) 8.)9

5nti5merican sentiments. .8 2 .1)

Global recession and %luctuating %oreigncurrencies.

.8) " .12

/ast%ood chain industry is expected to struggleto meet the expectations o% the customerstowards health and en$ironmental issues.

.8) 2 .89

Total 1.00 2.#5

"


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&'(T Matrix

*


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Strengths Wea%nesses

1. 7trong brand name, image and

reputation.

2. -arge mar'et share.

". 7trong global presence.

). 7pecialized training %or managers

'nown as the 0amburger

;ni$ersity.

*. c#onalds , >!.

T+reat) &-T &trate*ie) '-T &trate*ie)

1. 0ealth pro%essionals andconsumer acti$ists accusec#onalds o% contributingto the country3s health issueo% high cholesterol, heartattac's, diabetes, and

obesity.2. 4he relationship between

corporate le$el c#onaldsand its %ranchise dealers.

". c#onald3s competitorsthreatened mar'et share o%the company bothinternationally anddomestically.

1. ore control on %ranchise dealersto maintain c#onalds reputationand uality (71, 42!.

2.


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&PACE Matrix

Financial Strength *ating (n"ironmental Staility *ating

6eturn on in$estment ) 6ate o% in%lation "

-e$erage ) #emand Changes "

@et ncome


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T+e o)ton Con)ultin* roup !C" Matrix

T+e $nternal-External !$E" Matrix

9

uadrant uadrant

uadrant Euadrant

6apid ar'et Growth

7trongCompetiti$e


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7trong 5$erage +ea'

".8 to ).8 2.8 to 2. 1.8 to1.

0igh".8 to ".

edium2.8 to2.

-ow1.8 to 1.

T+e uantitative &trate*i Plannin* Matrix

!&PM"

Strategy ,

()pand -urther in

!sia y adding .//restaurants

Strategy 0

!pplying / grams

Trans -at in all1orld1ide

McDonald'srestaurants

4e $nternal Fator) 'ei*+t A& TA& A& TA&

&tren*t+)

7trong brand name, image and reputation 0.12 0.# 0.#

-arge mar'et share 0.10 0.0 2 0.20

7trong global presence 0.0 0.12 2 0.0#

7pecialized training %or managers 'nown as the0amburger ;ni$ersity

0.0 - - - -

c#onalds


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7trong %inancial per%ormance and position 0.0# 0.32 0.32

ntroduction o% new products 0.0% - - - -

Customer %ocus (centric! 0.0% 1 0.0% 0.2

7trong per%ormance in the global mar'etplace0.0# 3 0.2 1 0.0#

'eane))e)

;nhealthy %ood image 0.0# 1 0.0# 0.32

0igh 7ta%% 4urno$er including 4opmanagement

0.10 - - - -

Customer losses due to %ierce competition 0.0 3 0.12 1 0.0

-egal actions related to health issues= use o%trans %at & bee% oil

0.0 1 0.0 0.1%

;ses 0C/C22 to ma'e polystyrene that iscontributing to ozone depletion

0.0 - - - -

S2BTOT! ,+// 0+34 0+4/

Strategy ,

()pand -urther in!sia y adding

.// restaurants

Strategy 0

!pplying / gramsTrans -at in all

1orld1ideMcDonald's

restaurants

4e External Fator) 'ei*+t A& TA& A& TA&

(pportunitie)

Growing health trends among consumers 0.0# 1 0.0# 0.32

Globalization, expansion in other countries(especially in China & ndia!

0.12 0.# 1 0.12

#i$ersi%ication and acuisition o% other uic'ser$ice restaurants

0.0 - - - -

Growth o% the %ast%ood industry 0.10 0.0 0.0

+orldwide deregulation 0.0 0.1% 1 0.0

-ow cost menu that will attract the customers 0.0# - - - -

/reebies and discounts 0.0# - - - -

T+reat)

0ealth pro%essionals and consumer acti$ists accusec#onalds o% contributing to the country3s health

issue o% high cholesterol, heart attac's, diabetes, andobesity

0.10 1 0.10 0.0

18


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4he relationship between corporate le$elc#onalds and its %ranchise dealers

0.08 0.3% 1 0.08

c#onald3s competitors threatened mar'et share o%the company both internationally and domestically

0.12 0.# 0.#

5nti5merican sentiments 0.07 - - - -

Global recession and %luctuating %oreign currencies 0.0 - - - -

/ast%ood chain industry is expected to struggle tomeet the expectations o% the customers towardshealth and en$ironmental issues

0.0 1 0.0 0.1%

S2BTOT! ,+// 0+,/ 0+/,

S2M TOT! !TT*!CT$5(6(SS SCO*( 4+44 4+4,

,eommendation)

()pand -urther into !sia mar%ets o"er a 07year period y adding .//restaurants per year at a cost o- 84 illion annually9 and applying / gramsTrans -at in all 1orld1ide McDonald's restaurants+

$ntrodution/

c#onalds Corporation is the worlds largest chain o% %ast %ood restaurants,ser$ing nearly ) million customers daily through more than "1,888 restaurantsin 11 countries worldwide. c#onald3s sells $arious %ast %ood items and so%t

drin's including, burgers, chic'en, salads, %ries, and ice cream. any

11


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c#onalds restaurants ha$e included a playground %or children and ad$ertisinggeared toward children, and some ha$e been redesigned in a more natural style,with a particular emphasis on com%ort: introducing lounge areas and %ireplaces,and eliminating hard plastic chairs and tables.

?ach c#onalds restaurant is operated by a %ranchisee, an a%%iliate, or thecorporation itsel%. 4he corporations re$enues come %rom the rent, royalties and%ees paid by the %ranchisees, as well as sales in companyoperated restaurants.c#onalds re$enues grew 2F o$er the three years ending in 288 to 22.9

billion, and F growth in operating income to ". billion.1

9i)tor anal)i)/

4he business began in 1)8, with a restaurant opened by brothers #ic'

and ac c#onald in 7an Aernardino, Cali%ornia. 4heir introduction o% the H7peedee 7er$ice 7ystemH in 1)9 established

the principles o% the modern %ast%ood restaurant.

4he original mascot o% c#onalds was a man with a che%s hat on top o%

a hamburger shaped head whose name was H7peedee.H 7peedee was

e$entually replaced with 6onald c#onald in 1".

4he present corporation dates its %ounding to the opening o% a %ranchised

restaurant by 6ay Iroc, in #es


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public debates about obesity, corporate ethics and consumer

responsibility.2

:i)ion

4o be the best and leading %ast %ood pro$ider around the globe

Mi))ion

c#onalds brand mission is to be our customers %a$orite place and way to eat,and impro$e our operations to pro$ide the most delicious %ast %ood that meet ourcustomers expectations.

:alue)

>ur $alues summarized in H.7.C. & E.H.


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T+e T+reat of Entrant)

-arge established companies with strong brand identities such as c#onald3sAIC, B;, and +?@ do ma'e it more di%%icult to enter and succeed within

the mar'etplace= new entrants %ind that they are %aced with price competition%rom existing chain restaurants.

ar*ainin* Po;er of uer)

-ow bargaining power o% buyers.

ar*ainin* po;er of )upplier)

Aargaining power o% suppliers within the %ast %ood industry would be relati$elysmall, unless the main ingredient o% the product is not readily a$ailable.

T+reat of &u


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AIC, B;, and +?@. 4hey compete with international, national, regional,local, retailers o% %ood products (restaurants, uic' ser$ice, pizza, co%%ee shops,and supermar'ets!.

PE&TE= Frame;or/


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External Audit:

Opportunities Threats

9. Growing health trends among

consumers

. Globalization, expansion in other

countries (especially in China &ndia!.18. #i$ersi%ication and acuisition o%

other uic'ser$ice restaurants.11. Growth o% the %ast%ood industry.12. +orldwide deregulation.1". -ow cost menu that will attract the

customers.1). /reebies and discounts.

. 0ealth pro%essionals andconsumer acti$ists accusec#onalds o% contributing to thecountry3s health issue o% high

cholesterol, heart attac's, diabetes,and obesity.9. 4he relationship between

corporate le$el c#onalds and its%ranchise dealers.

. c#onald3s competitorsthreatened mar'et share o% thecompany both internationally anddomestically.

18. 5nti5merican sentiments.11. Global recession and %luctuating

%oreign currencies.12. /ast%ood chain industry is

expected to struggle to meet theexpectations o% the customerstowards health and en$ironmentalissues.

1

-egal:

-egislation %or product.

7ustained logo.


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CPM-Competitive Profile Matrix

McDonald's Burger King Yum Brands Wendy's

Critical Success

Factors

+eight 6ating +eighted7core




Price 8.1* ) 8.8 " 8.)* " 8.)* " 8.)*

Financial

Position

8.89 ) 8."2 " 8."2 " 8.2) 2 8.1

Consumeroyalty

8.18 ) 8.)8 " 8.)8 " 8."8 2 8.28

!d"ertising 8.18 " 8."8 " 8."8 ) 8.)8 2 8.28Product #uality 8.18 ) 8.)8 " 8.)8 ) 8.)8 2 8.28

$nno"ation 8.1* " 8.)* " 8.)* " 8.)* 2 8."8

Mar%et Share 8.18 ) 8.)8 2 8.28 " 8."8 2 8.28

Management 8.8 ) 8.29 " 8.21 " 8.21 " 8.21

&loal

()pansion

8.1* ) 8.8 2 8."8 " 8.)* 1 8.1*

Total 1 3.75 3.03 3.20 2.07

1


18/26

External Fator Evaluation !EFE" Matrix

Key ()ternal Factors Weight *ating Weighted Score

Opportunities

Growing health trends among

consumers

8.89 " 8.2)

Globalization, expansion in other countries(especially in China & ndia!.

8.12 ) 8.)9

#i$ersi%ication and acuisition o% other uic'ser$ice restaurants.

.8) " 8.12

Growth o% the %ast%ood industry. .18 " 8."8

+orldwide deregulation .8) 2 8.89

-ow cost menu that will attract the customers. .89 2 8.1

/reebies and discounts. .89 1 8.89

Threats

0ealth pro%essionals and consumer acti$istsaccuse c#onalds o% contributing to thecountry3s health issue o% high cholesterol, heartattac's, diabetes, and obesity.

8.18 " 8."8

4he relationship between corporate le$elc#onalds and its %ranchise dealers.

8.8 " 8.2

c#onald3s competitors threatened mar'etshare o% the company both internationally anddomestically.

8.12 ) 8.)9

5nti5merican sentiments. .8 2 .1)

Global recession and %luctuating %oreigncurrencies.

.8) " .12

/ast%ood chain industry is expected to struggleto meet the expectations o% the customerstowards health and en$ironmental issues.

.8) 2 .89

Total 1.00 2.#5

19


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$nternal Fator Evaluation !$FE" Matrix

Key $nternal Factors Weight *ating Weighted Score

Strengths

7trong brand name, image andreputation+

8.12 ) 8.)9

-arge mar'et share. 8.18 ) 8.)8

7trong global presence. 8.8) " 8.12

7pecialized training %or managers'nown as the 0amburger ;ni$ersity.

8.8) " 8.12

c#onalds


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&'(T Matrix

28


21/26

21

Strengths Wea%nesses

18. 7trong brand name, image and

reputation.

11. -arge mar'et share.

12. 7trong global presence.

1". 7pecialized training %or managers

'nown as the 0amburger

;ni$ersity.

1). c#onalds !.2. ?xpansion in mar'et share by morein$estments in 5sia (72, >2!.

2. inimize customers losses bypro$ide low cost menu anddiscounts (+", >, >!.

T+reat) &-T &trate*ie) '-T &trate*ie)

. 0ealth pro%essionals andconsumer acti$ists accusec#onalds o% contributingto the country3s health issueo% high cholesterol, heartattac's, diabetes, and

obesity.9. 4he relationship between

corporate le$el c#onaldsand its %ranchise dealers.

. c#onald3s competitorsthreatened mar'et share o%the company bothinternationally anddomestically.

". ore control on %ranchise dealersto maintain c#onalds reputationand uality (71, 42!.

).


22/26

&PACE Matrix

Financial Strength *ating (n"ironmental Staility *ating

6eturn on in$estment ) 6ate o% in%lation "

-e$erage ) #emand Changes "

@et ncome


23/26

T+e o)ton Con)ultin* roup !C" Matrix

T+e $nternal-External !$E" Matrix

2"

uadrant uadrant

uadrant Euadrant

6apid ar'et Growth

7trongCompetiti$e


24/26

7trong 5$erage +ea'

".8 to ).8 2.8 to 2. 1.8 to1.

0igh".8 to ".

edium2.8 to2.

-ow1.8 to 1.

T+e uantitative &trate*i Plannin* Matrix

!&PM"

Strategy ,

()pand -urther in

!sia y adding .//restaurants

Strategy 0

!pplying / grams

Trans -at in all1orld1ide

McDonald'srestaurants

4e $nternal Fator) 'ei*+t A& TA& A& TA&

&tren*t+)

7trong brand name, image and reputation 0.12 0.# 0.#

-arge mar'et share 0.10 0.0 2 0.20

7trong global presence 0.0 0.12 2 0.0#

7pecialized training %or managers 'nown as the0amburger ;ni$ersity

0.0 - - - -

c#onalds


25/26

7trong %inancial per%ormance and position 0.0# 0.32 0.32

ntroduction o% new products 0.0% - - - -

Customer %ocus (centric! 0.0% 1 0.0% 0.2

7trong per%ormance in the global mar'etplace0.0# 3 0.2 1 0.0#

'eane))e)

;nhealthy %ood image 0.0# 1 0.0# 0.32

0igh 7ta%% 4urno$er including 4opmanagement

0.10 - - - -

Customer losses due to %ierce competition 0.0 3 0.12 1 0.0

-egal actions related to health issues= use o%trans %at & bee% oil

0.0 1 0.0 0.1%

;ses 0C/C22 to ma'e polystyrene that iscontributing to ozone depletion

0.0 - - - -

S2BTOT! ,+// 0+34 0+4/

Strategy ,

()pand -urther in!sia y adding

.// restaurants

Strategy 0

!pplying / gramsTrans -at in all

1orld1ideMcDonald's

restaurants

4e External Fator) 'ei*+t A& TA& A& TA&

(pportunitie)

Growing health trends among consumers 0.0# 1 0.0# 0.32

Globalization, expansion in other countries(especially in China & ndia!

0.12 0.# 1 0.12

#i$ersi%ication and acuisition o% other uic'ser$ice restaurants

0.0 - - - -

Growth o% the %ast%ood industry 0.10 0.0 0.0

+orldwide deregulation 0.0 0.1% 1 0.0

-ow cost menu that will attract the customers 0.0# - - - -

/reebies and discounts 0.0# - - - -

T+reat)

0ealth pro%essionals and consumer acti$ists accusec#onalds o% contributing to the country3s health

issue o% high cholesterol, heart attac's, diabetes, andobesity

0.10 1 0.10 0.0

2*


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4he relationship between corporate le$elc#onalds and its %ranchise dealers

0.08 0.3% 1 0.08

c#onald3s competitors threatened mar'et share o%the company both internationally and domestically

0.12 0.# 0.#

5nti5merican sentiments 0.07 - - - -

Global recession and %luctuating %oreign currencies 0.0 - - - -

/ast%ood chain industry is expected to struggle tomeet the expectations o% the customers towardshealth and en$ironmental issues

0.0 1 0.0 0.1%

S2BTOT! ,+// 0+,/ 0+/,

S2M TOT! !TT*!CT$5(6(SS SCO*( 4+44 4+4,

,eommendation)

()pand -urther into !sia mar%ets o"er a 07year period y adding .//restaurants per year at a cost o- 84 illion annually9 and applying / gramsTrans -at in all 1orld1ide McDonald's restaurants+

2

external audit mc_donalds

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