busn 5000 week 2 sriram prathi
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BUSN 5000
Homework 2
Sriram Prathi | 4231966
Please open this document in Microsoft Word and respond directly in this document without
modification of the text in bold.
This way the answer will be in the same place and in the
same format for every student.
You will submit this Word file in Canvas.
If you have any trouble, reach out to your instructor
in a timely manner.
Question 1 – Choose a market in which McDonalds currently operates.
Provide a thorough
SWOT analysis of McDonalds in that market.
For each of the four components, provide one
paragraph outlining your observations.
Then in one additional sentence, identify one key
observation.
Please use the separate headings for each component to clearly delineate the
four parts.
ANSWER: I would like to consider India as a market.
Strengths
–
1.Since India has large vegetarian population, McDonalds has created a new
menu
which suits Indian market by offering veg items such as McAloo tiki burger and
McVeggie burger.
2. India has been growing fastly in terms of digital and technology, taking this as an advantage
McDonalds is now accepting mobile orders and also providing delivery services.
3.McDonalds maintains good quality and taste across all its stores in India. Customers are
going to get the same quality and taste irrespective of the store location.
Key Observation
–
McDonalds ability to change its menu according to Indian market with
vegetarian options gives it a competitive advantage in the country.
Weaknesses
–
1.McDonalds can face an huge amount of competition from local fast food
chains and street food vendors which offers more affordable options.
2.McDonalds in India has more prices than the fast food chains and street foods and this point
gives an advantage to the fast food chains to pull the customers towards them.
3. McDonalds is not widespread in India, it is currently operating in cities and there are no
McDonalds in towns.
Key Observation
–
To overcome its shortcomings in the Indian market, McDonald's must
address the pricing issue and modify the impression of fast food as unhealthy.
Opportunities
–
1. There is an good opportunity for McDonalds to expands its stores to tier 2
and tier 3 cities as small towns in India are growing too fastly.
BUSN 5000
Homework 2
Sriram Prathi | 4231966
2. McDonalds can also do more research and could also try to include more local items in
their menu which can pull the customers towards them.
3. The growing popularity of online meal delivery platforms in India provides an opportunity
for McDonald's to improve its delivery services and get a greater portion of the online food
industry.
Key Observation
–
McDonalds has the potential
to expand its stores to the small towns as
they are growing rapidly and they can also try to include few more local items in the menu
which might help McDonalds grow fastly in the market.
Threats
–
1. One of the biggest threats to McDonalds would be the fast food chains and street
foods as they are more related to the cultural preferences and affordability options.
2.Local markets have a good understanding on traditional and cultural preferences and on
how exactly
the market works.
3.
Regulatory obstacles, such as license requirements, food safety rules, and ingredient
sourcing limitations, might stymie McDonald's operations in India.
Key Observation
–
McDonalds need to do more research and go through some cultural
preferences and have to manage regulatory challenges inorder to minimize its threats.
Question 2 – Based on your SWOT analysis, provide an executive summary of your findings as
well as a recommendation for ten-year strategy to improves McDonalds competitive position
in this market.
Do not quote directly from any source including ChatGPT.
Rely on your own
reasoning.
Limit 300 words.
ANSWER:
Based on the SWOT analysis above of McDonalds in the Indian market, there are several key
findings that has taken place. McDonalds has good strengths such as bringing up the new
menu by including veg items and also by providing mobile ordering and fast delivery services.
However, disadvantages include fierce rivalry from local options, price sensitivity, the notion
that fast food is unhealthy, and limited availability in smaller areas. Expansion into tier 2 and
tier 3 cities, the introduction of localized menu items, and the strengthening of online delivery
services all present opportunities. Competition from local businesses, cultural preferences for
traditional food, and regulatory issues are all threats.
Recommendation for ten-year strategy to improve competitive position in the market:
1.McDonalds should focus on expanding its stores to tier 2 and tier 3 cities by identifying good
locations and giving franchises to the local business people.
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