STRATEGIC MANAGEMENT APPLIED AT SANOFI- AVENTIS PAHRMACEUTICAL

McDonalds CASE STUDYGroup MembersHiba MunnawerSidra JavedMaria MustafaZakia Siddiqui

STRATEGY FORMULATION FRAME WORK1. INPUT STAGEEFEIFECPM

2. MATCHING STAGETOWS MATRIXSPACE MATRIXBCG MATRIXIE MATRIXGRAND STRATEGY MATRIX

3.DECISION STAGEQSPM

1. INPUT STAGEKey External FactorsWeightRatingWeighted ScoreOPPORTUNITIESRespond to social changes - by innovation within healthier lifestyle foods0.1240.48Joint ventures with retailers or acquisitions0.230.6Introducing new food items and products0.240.08THREATSConsumer focus on nutrition and healthier lifestyles.0.1540.6Recession or down turn in economy0.0830.24Major competitors, like YUM, Burger King, Wendy's0.0930.27New entrants in the industry0.0620.12Fluctuation in Exchange Rates0.130.3TOTAL1.002.69 EXTERNAL FACTOR EVALUATION MATRIX (EFE):

ANALYSIS OF EFE MATRIX:

EFE Matrix shows it is managing its opportunities and threats average.Actions:Acquire small food companies to attract heavy trafficMake contracts with major educational institutions and corporationsintroduce healthier products with low calories and fats

Key Internal FactorsWeightRatingWeighted ScoreSTRENGTHS Strong global presence in more than 100 countries0.140.4market leader in both the domestic as well as the international markets0.240.8Large number of loyal customer0.0830.24Strong R&D0.0830.24Standardized quality products0.0530.15Convenient and extended hours 0.0520.10Value based pricing0.0630.18Focused on customers comfort by making different zones for different customers0.0530.15Good CSR0.0520.10WEAKNESSESsued multiple times for serving unhealthy food0.1540.6weak in analyzing the needs of customers0.0840.32Do not disclose proper information to customers0.0430.12Attracting kids due to which parents are going against them0.0120.02TOTAL1.003.42INTERNAL FACTOR EVALUATION MATRIX (IFE):ANALYSIS OF IFE MATRIX:

IFE Matrix shows that McDonalds is managing strength and weaknesses very wellActions:It should maintain its leadership position to overcome its weaknessesShould provide the healthy low calories foodShould disclose the proper information to customers to avoid legal actions

McDonalds YUMBURGER KINGCritical SUCCESS FACTORS WEIGHTRATING

W.SC

RATING

W.SC

RATINGW.SCProduct Quality0.2530.754130.75Price Competitiveness0.230.630.630.6Market Share0.240.830.620.4R& D0.0520.120.120.1Financial Position0.140.430.320.2Consumer Loyalty0.230.630.620.4Total1.00

3.253.22.45 4 = superior, 3 = above average, 2 = average, 1 = poor.

CPMANALYSIS OF CPM:

CPM shows that McDonalds is doing well as compare to its competitorsActions:It should emphasize on its product quality as it is lacking as compare to YUMS McDonalds should also focus on R&D to gain competitive advantage2. MATCHING STAGETOWS STRATEGIES:

STRENGTHS (S):Value based pricing Strong R&D Strong global presence in more than 100 countriesStandardized quality products market leader in both the domestic as well as the international markets Large number of loyal customer Good CSR Focused on customers comfort by making different zones for different customers Convenient and extended hours WEAKNESSES (W):sued multiple times for serving unhealthy food weak in analyzing the needs of customers Do not disclose proper information to customers Attracting kids due to which parents are going against them OPPORTUNITIES (O):Respond to social changes - by innovation within healthier lifestyle foods Joint ventures with retailers or acquisitions Introducing new food items and products

S-O STRATEGIESintroducing new menus with nutritious ingredients (S2,S3,O1,O2,O3)Entering new market by Acquisition and Mergers(S3,S5,O2)W-O STARTEGIES: Providing healthier products to avoid legal actions(W1,O1,O3)Providing proper information to customers on product ingredients through proper advertisement (W4,O1)THREATS (T):Consumer focus on nutrition and healthier lifestyles. Recession or down turn in economy Major competitors, like YUM, Burger King, Wendy's New entrants in the industry Fluctuation in Exchange Rates S-T STRATEGIESProviding healthier products through R&D (S2,S4,T1)Reduce threat of competitors by bringing new innovative products through strong R&D and by focusing more on loyal customers (S1,S2,S3,S6,T3) W-T STRATEGIES

Strongly analyzing the needs of customers in order to reduce the threat of new entrants and of existing competitors (W2,T3,T4)SPACE MATRIXFINANCIAL STRENGTHRatingsEarnings per share liquidityNet income ROI635519INDUSTRY STRENGTHGrowth Potential (increasing demand). Technological knowhow (Requirement high)Ease of entry into the marketFinancial stability525315ENVIRONMENTAL STABILITYCompetitive Pressure is High Rate of inflation Price range Demand variability-1-5-3-1-10

COMPETITIVE ADVANTAGEMarket shareProduct quality Technological know howControl over distributers-1-3-3-3-10CONCLUSIONFS Average is 19/4 =4.75IS Average is 15/4=3.75ES Average is -10/4=-2.5CA Average is -10/4=-2.5Directional Vector Coordinates:x-axis: -2.5+3.75=1.25y-axis: 4.75+(-2.5)=2.25-6 Worst -1 Best-6 Worst -1 Best+1 Worst +6 Best+1 Worst +6 BestSPACE MATRIXANALYSIS:SPACE Matrix shows that McDonalds should aggressively go forForward integration (joint ventures with retailers)Product development (launch new innovative products such as sandwiches with more healthier ingredients)

BCG MATRIX

STRONG3.0 TO 4.0AVERAGE2.0 TO 2.99WEAK1.0 TO 1.99HIGH3.0 TO 4.0IIIIIIMEDIUM2.0 TO 2.99 IV V VILOW1.0 TO 1.99VIIVIIIIX

IE MATRIX:THE IFE TOTAL WEIGHTED SCORETHE EFETOTALWEIGHTED SCOREMcDonalds ANALYSIS OF IE IE Matrix shows the MacDonald's in IV quadrant i.e. the BUILD AND GROW ACTIONS:It should go for,Forward integration (joint ventures with retailers)Product development (launch new innovative products such as sandwiches with more healthier ingredients)

GRAND MATRIX

MacDonald'sANALYSIS OF GRAND MATRIXACTIONS:It should go for,Forward integration (joint ventures with retailers)Product development (launch new innovative products such as sandwiches with more healthier ingredients)Market penetration by attracting non users of the product through intensive advertising and by providing healthier products3. DECISION STAGESTRATEGIC ALTERNATIVESprovide the healthy low calories foodEntering new markets through acquisitions and mergersWEIGHTASTASASTASOPPORTUNITIES:Respond to social changes - by innovation within healthier lifestyle foods 0.124 0.4840.48Joint ventures with retailers or acquisitions 0.230.6Introducing new food items and products 0.240.840.8THREATSConsumer focus on nutrition and healthier lifestyles. 0.1540.630.45Recession or down turn in economy 0.083.24Major competitors, like YUM, Burger King, Wendy's 0.0940.3630.27New entrants in the industry 0.0630.1820.12Fluctuation in Exchange Rates 0.140.4SUM TOTAL ATTRACTIVENESS OF SCORE 1.002.343.36

QSPMWEIGHTASTASASTASSTRENGTHS Strong global presence in more than 100 countries0.140.4market leader in both the domestic as well as the international markets0.230.640.8Large number of loyal customer0.0840.3240.32Strong R&D0.0840.3220.16Standardized quality products0.0530.1530.15Convenient and extended hours 0.0520.10Value based pricing0.0620.1230.18Focused on customers comfort by making different zones for different customers0.05Good CSR0.0520.10WEAKNESSsued multiple times for serving unhealthy food0.1540.2030.45weak in analyzing the needs of customers0.0830.2430.24Do not disclose proper information to customers0.0420.0820.08Attracting kids due to which parents are going against them0.0130.03SUB TOTAL ATTRACTIVENESS OF SCORE1.002.262.78provide the healthy low calories foodEntering new markets through acquisitions and mergersprovide the healthy low calories food

Entering new markets through acquisitions and mergers

Total attractiveness score4.66.1422