BTEC Business Level 3: Unit 5 International Business Assignment 3. Distinction criteria met. This Assignment is very well structured with easy to read subheadings and appropriate images. Using this Assignment as your template will ensure you attain Distinction. This document includes P5, P6,M3,M4,D...
Unit 5: international business
Task 3: Examine strategic and operational approaches to developing international trade
P5: Explain the current strategic approach of an international business organisation.
P6: Explain reasons for own recommendations for the future strategic direction of an
international business organisation.
M3: Analyse the current strategic international approach of a business organisation.
M4: Analyse the future strategic direction of an international business organisation, with
rationale for own recommendations.
D3: Justify own recommendations for the future strategic direction of an international
business organisation.
A business strategy is defined as a long-term strategy for a company with particular goals and
objectives that must be met within a certain time frame and with the assets present. It is a
management strategy devised by top management to ensure that the company performs
profitably.
Swot analysis
Strengths
McDonald's is one of the most well-known brands in the fast-food sector. This is beneficial to
the business because it functions as a marketing device for its goods. McDonald's brand
awareness is worth an estimated $40 million. As a result of this condition, the company is
able to draw a lot of attention from clients all around the world. This has the benefit of raising
the firm's client conversion rate and, as a response, causes revenues to come in. McDonald's
has a $2 million marketing budget. In comparison to other fast-food providers, such a budget
is quite large, allowing business to reach the majority of its current customers while also
recruiting new ones. As a result, McDonald's has been able to maintain its dominance in the
fast-food sector. Partnerships are critical to any organizations, in order to have the ability to
gain market awareness. As a result, the firm has embraced a partnership strategy. The
company's partnership selection is critical because it must ensure that the alliance it has
formed will help it thrive within the sector. As a result, brands like Coca-Cola aid in brand
awareness and appeal for McDonald's.
Weaknesses
McDonald's has a number of flaws that, if not remedied, might cause the firm to fall short of
its goals. Despite the fact that McDonald's has implemented techniques to provide various
health options at its locations, the menu has been heavily criticized because it includes drinks
and meals that are not as nutritious as they should be. As a result, the corporation is
constantly confronted with protests from organizations and individuals opposed to harmful
food patterns. As a result, McDonald's has seen a significant drop in popularity as a
consequence of such protests. The corporation is no longer able to set itself apart from other
fast-food providers. As a result, the corporation is in danger of losing market share due to
, competition. Considering such a risk, the corporation has chosen to maintain its leading
position through price wars, lowering its pricing rather than adding further features to the
products it sells. A Mac job is a slang term for a low skilled job and hence pays poorly and
offers little opportunity for promotion. Employees at this company have an unfavorable
attitude toward working on a Mac job. As a result, staff performance suffers, resulting in an
increase in employee turnover. Increased training costs occur from high staff turnover and
low work performance, leading to high total costs incurred by the organization while
attempting to maintain its market position.
Opportunities
Many individuals are becoming more conscious of their food patterns as a result of the
numerous ailments that have arisen as a result of consuming unhealthy foods and beverages.
As a result, the business can focus on providing nutritious food. Because there is a growing
need for nutritious foods, such an opportunity may arise. McDonald's wants to open a
vegetarian-only restaurant in India as a result of such an opportunity. Customers' habits have
a significant role in deciding whether or not a company can meet its objectives. McDonald's
now has the potential to identify new demands that the company can fill as a result of
changing client habits.
Threats
Many groups, individuals, and the government are campaigning for the inclusion of nutritious
meals and beverages on all fast-food menus. Obesity prevention in adults and youth is the
focus of such campaigning. As a result, McDonald's has been required to change its menu to
include healthier options, as opposed to what the company has previously offered. This will
have a significant impact on its revenue. Many individuals, particularly the locals, are leaning
to traditional foods. The fact that many local fast-food restaurants are in the business of
changing the way they provide and serve meals might be ascribed to this turn of events. One
of the modifications introduced was to include local flavours on the menus of the eateries.
Such developments, such as the rise in the number of local fast-food restaurants and the low
pricing they offer, pose a significant challenge to McDonald's market position in the fast-food
business.
Strategic aims and objectives
McDonald's key goals are to deliver delicious cuisine in a friendly and fun setting, to be a
socially conscious corporation, and to give stockholders a good return and increase their
value. The majority of McDonald's customers are teenagers and children. The firm strives to
provide high-quality meals, timely service, and good value for money to its consumers and
tries to work as efficiently as possible. McDonald's business plan is to provide fast food to its
customers at a cheap, competitive price while also making a profit by lowering product costs
and expanding the business globally. Operations strategies are critical to accomplishing
organizational objectives. McDonald's strategic plan focuses on delivering long-term
development and enhancing guest counts, a dependable indicator of the company's
performance that is critical to increasing sales and shareholder value. They also work on their
corporate social responsibility. This assures that the products they serve are manufactured in
a safe and ethical manner, with minimal environmental impact (by recycling and
utilizing reusable packaging). They also achieve this by including more fruits and vegetables
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