Perform an Internal Factor Evaluation on Mc donaldsInternal Factor Evaluation on Mc donaldsMcDonald’s Corporation is the world’s largest chain of fast food restaurants,serving nearly 47 million customers daily through more than 31,000 restaurantsin 119 countries worldwide. McDonald’s sells various fast food items and softdrinks including, burgers, chicken, salads, fries, and ice cream. ManyMcDonald’s restaurants have included a playground for children and advertisinggeared toward children, and some have been redesigned in a more ‘natural’ style,with a particular emphasis on comfort: introducing lounge areas and fireplaces,and eliminating hard plastic chairs and tables.Each McDonald’s restaurant is operated by a franchisee, an affiliate, or thecorporation itself. The corporations’ revenues come from the rent, royalties andfees paid by the franchisees, as well as sales in company-operated restaurants.McDonald’s revenues grew 27% over the three years ending in 2007 to $22.8 billion, and 9% growth in operating income to $3.9 billion.1History analysis:The business began in 1940, with a restaurant opened by brothers Dick and Mac McDonald in San Bernardino, California.Their introduction of the “Speedee Service System” in 1948 establishedthe principles of the modern fast-food re……………………Large established companies with strong brand identities such as McDonald’sBKC, YUM, and WEN do make it more difficult to enter and succeed within themarketplace; new entrants find that they are faced with price competition fromexisting chain restaurants.Bargaining Power of BuyersLow bargaining power of buyers.Bargaining power of suppliersBargaining power of suppliers within the fast food industry would be relativelysmall, unless the main ingredient of the product is not readily available.Threat of SubstitutesThis could range from a competitive fast food restaurant to family restaurant toa home cooked meal.5Competitive RivalryThe strength of competition in this industry is very high; the main rivals areBKC, YUM, and WEN. They compete with international, national, regional,local, retailers of food products (restaurants, quick service, pizza, coffee shops,and supermarkets).PESTEL Framework:Political:•The international operations of McDonald’s are highly influenced by theindividual state policies enforced by each government.Economic:•McDonald’s has the tendency to experience hardship in instanceswhere the economy of the respective states is hit by inflation andchanges in the exchange rates.•Market leader.•Very high target market.•Low cost and more incomes.•The rate at which the economy of that particular state grows determinesthe purchasing power of the consumers in that country.Technological•Advanced technology development.•Quality standards. 6Social:•Working within many social groups.•Increase employments.Environmental:•Quality packing.•Local manufacture using foreign su………………………….ORDER A SIMILAR PAPER WRITTEN FROM SCRATCH AND TO YOUR EXACT SPECIFICATIONS
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