Essay on The Business Environment at Mcdonalds

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Contents Page:
Table of Contents
Contents Page: 2
Introduction 3
Choosing an Organization 3
Brief introduction to McDonalds 4
Aims of the Report 4
SAFE Framework 5
Strategic option 1 6
Frozen Foods 6
Strategic Option 2 11
McDonalds in a Supermarket 11
Strategic Option 3 15
McCafe 15
Conclusion 19
References 20
Appendices 21

Choosing an Organization

McDonalds was chosen to be the organization as a group decision. The reason being that it was an organization recognized all over the world, having a high profile and a strong iconic brand. Given the size of the organization, it was decided that there are a lot of strategic options available to McDonalds.

Brief introduction to McDonalds

McDonalds was
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These 3 strategic options selected by the group have been individually examined and evaluated using the framework SAFE, developed by Johnson & Scholes (2008). SAFE would be used to assess whether the strategies are Suitable, Acceptable and Feasible. Looking at the evaluation of the 3 strategies using SAFE would allow identifying and determining the chosen strategic option for McDonalds.

The 3 strategies are shown in figure 1:

(Figure 1)

SAFE Framework

To evaluate the 3 strategic options the SAFE framework would be used, below explains how the SAFE framework works and what each of the stages mean:
Johnson, Scholes and Whittington argue that for a strategy to be successful it must satisfy three criteria shown in figure 2 (, 2014):

(Figure 2) (, 2014)

Strategic option 1
Frozen Foods

The first option available to McDonalds is frozen foods. This option would allow McDonalds to enter a new market, thus leading to potentially increasing their profit margins. Since McDonalds are successfully established, consumers may not hesitate to buy the McDonalds product frozen at their local supermarket, as this would give them a choice and time period of when they can cook it. An article from the Guardian mentions, ‘sales of frozen food have increased and more upmarket options have become available’ (Hardwick, 2014). This statement shows how McDonalds can

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