Evaluation Of The Strategic Plan Of McDonald’s In Australia

Background of McDonald’s in Australia

Effective strategic plan is essential to ignite the vision and mission of an organization. It helps in guiding the rganization to excel in te targeted and imagined future (Crawford, 2015).The paper highlights the evaluation of the strategic plan of a fast food chain of Australia , namely McDonald’s for identifying the fators to lead and manage the changes that are required for the development of the business organization.

One of the leading fast food chain in Australia is the McDonald’s. The brand mission of the company is to be the favoutite and only fast fod eatery place fpr eating and drinking in the nation. The global strategy of the company is to plan for winning (Cummings & Worley, 2014). The worldwide operational strategy of the company revoles around exceptional experiences of the cutomers and the promotion, product, place and people in the nation. The mission of the company is initiate continous improvement of the operations and enhance the experience of the customers in the national Australian market where people love fast food and cold drinks. The mission statement of McDonald’s is to be the bestest and the quickest restaurant experinecs in the Australian nation (Mahajan, 2014). The vision and the mission of the business to provide outstanding service quality

• The organizational values of McDonald’s are as follows
• To place the experience of the customers at the top
• To be committed to the people of the nation
• To believe in th organisatioal system
• To operate the business ethically
• To give back to the communities
• To grow the business profitably
• To strive for continous improvement

The main competitors of the company in Australia includes Burger King, KFC, Yum! Brands, Wendy’s, Starbucks, Subway, Bing Boy, Bucking Bull, Burger Theory, Burger Urge, Nando’s and many more. Some of the basic strengths of the competitors  includes Starbucks leading the maket of food chain in terns of share proce and market cap, global presence and reputation of KFC, strong parent company of Subway, variety of options of both veg and non veg platter and innovative options in the dessert menu (Cameron & Green,  2015).Further stronger brand image,extensive global supply chaim and diversified business by the means of subsidiaries are some of the major strengths of the competotirs of the company.

Some of the notable weakness of the McDonald’s competitors are higher rates or process, generalized stanfdards for most of the products, imitiable product ranges, lower range of services and satisfaction level of customers, old fashioned themed restaurants, lack of online presence, unhealthy fats of KFC, lack of the franchisee management, limited product mix of Subway, and other maket issues (M?d?lina, 2015).

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· Strong global brand name,reputation and image · Large share in the market · Secialized managerial trainings · Strategic plan to win · Introduction of newer product · Tecnological innovation · Better marketing strategies · Diversified range of income

Weakness

· Negative publicity of the company · High employee turnover · Unhealthy image of food · Loss of customer due to fierce competiton · Problem in relation to issues related to health (Badal, 2017) · Actions related to law · Unmanagable and unbalanced meal structures · Actions related to issues of the environment · Higher rate of dissatisfied franchisees · Declining market shates

Oppertunities

· Introduction of the low cost menu by customers · Appearance of discounts and freebies · Diverse taste angles and requirements of the customers · Growing and increasing level of health trend among the customers and the young generation

Threats

· Higher rate of competition in the market · More health conscious customers · Intensity competitors · Public health crisis · Economic recession · Serious issues related to the environment

Strategies are extremely important for the business organization for its development and profit in the market. In the Australian market, the requirement for the inclusion in the strategic plan for the McDonald’s is because of its decreasing market shares, rising level of competitors (Telang & Deshpande, 2016). The background for inclusion includes pln for the business to survive in the Australian market with rising food chains.

Strategic Goals	Strategic Objectives
Placing the customer experience at the core	Customers are the reasons for the existence of the company.
Commitment towards the people	The company provides opportunities, nurture talents and achievements for continued success.
Ethical operation	Sound ethics tends to deliver good business.
Growing the businss profitably	To provide sustained and profitable growth for the stakeholders of the company

Strategies with Assigned Priority	Timeframe	Responsible Parties	Measurable Performance Indicators
· Cost Leadership · Market penetration and getting International · Social Networking · Introdution of innovative menu	· 6 months -1 year · 30 to 42 months · 35 days · 60 days	· Accounts and management team · Operations and marketing team · Marketing team · Operations team	· Number of customers per month · Brand name and earnings per share · Brand recognition and customer preferences over other competitive firms · Customer satisfaction level

• Upgraded menu plans of the fast food
• Expansion plans of the market share of the company
• Joint ventures with the supermarket retailers
• Improement of the customer services
• Revamping marketing

The legislation and th legal policies of McDonald’s adhere to numerous procedures in the current dae.Some of the existics policies and procedures by the vusiness includes the data protection act,health and safety at work,ood safety policy,animal welfare,recycling olicy and asylum and immigration act.Among these existing policies some of them are harmful and stands against the current strategic plan  for the company (Aarons et al., 2015). These are the recycling policy;the materials which are recycled in the operation of the business often tends to draw customer dissastisfation. Furthermore,animal welfare policy as followed by the company stand as the hurdle in the pathway to introduce new non veg menu for the company.

The PESTEL analysis determines the various factors of the external environment that states the threats,opportunities to the business of the McDonald’s.

Political Factors	· Threat of evolving public health policies · Increased rate of international trade agreements
Economic Factors	· Stable growth of the national economy
Social Factors	· Increased level of cultural diversity · Opportunity and threat regarding trend sof healthy life style · Increasing wealth gap
Technological Factors	· Moderate level of R and D activities in the industry · Increased level of business automation · Increased level of sales by mobile devices
Environmental Factors	· Increaed rate of intetesr for the corporate environmrntal programs · Threat of changes in the climate · Opportunity on increased emphasis on sustainable strategies of the business
Legal Factors	· Threat of new legal minimum wage levels · Threat of local health regulationsat institutions and workplaces · Threat of animal welfare regulations

Oppertunities of the business includes

• Accelerated growth rate of the fast food industry
• Conservation and utilization of green energies
• Expansion and globalization of the company food chain

Threats of the business includes

• Changing demographics
• Flunctuating and unstable rate of foreign exchanges and economies
• Down turn andincreasing rate of recession in the economy affecting the retailer sales

It is essential for McDonld’s to improve its business for strengthening its abilitie in the competitive market of Australia. To summarize, some of the changes required in the business includes change in the organizational structures,increase in the needs for the business,modification and alteration of the business plan,modification of the goals of the business, growth in the technology, alteration in the nation’s economic condition that tends to effect the profitability of McDonald’s and more (Gerhardt, Hazen & Lewis, 2014).

Situationnal awareness	Supporting structure	Strategy analysis	Resource analysis for high priority change opportunities
Change Charecteristics- Change to improve overall performance outcomes with responsible employees and notiavted attitude if the employees to work as a team to succeed organizational profit.	Team structure- · Collaborative team members. · Trained employees · Learning of new behaviors and methods of workplace Stakeholders investment- There are mainly two categories of stakeholders in McDonald’s for taking part in the planning,decision making, strategy section for improvements in the profit and sales of the company. Internal stakeholders-employee,managers. External stakeholders-suppliers,government,society	Risk assessment- Global compition, changes in the technology, financial risks,market risks and risk related to operation Anticipated Resistance- · Closing of the gap of the reputation risks. · Ensuring quality and safety of the raw materials Special Tactics- · Special trainings of the managers of McDonald’s. · Investing in the franchisee model and advertisements · Focusing in customer satisfaction	· The resource of the firm and its capibilities. · Oppertunities arising from the external environment. · Internal resources are given more focus while formulating strategies · The combination of the resources and the capibiities of McDonald’s is in terms of competitive advantage and profitability.

Main Drivers of the change	Need for change	The process of change	Resistance occurred in implementing this change	Management of the Resistance to change	Effectiveness of the Change
1. Environmental Shifts 2. Market Competition 3. Technological Changes	Political Economic Social Technological Environmental Legal	Awareness Desire Ability Reinforcement	Lack of communication Low tolerance Unwillingness Cultural differences Psychological resistance	Involvement Interactions Time and Updated technology Communiction and education	Positive Image Building Safe environment Business expansion

Background		Objectives		Target Audience		Timeline		Implementation
McDonald’s		Effective communication High customer service quality Innovative menu platter		Customer		2 – 8 months		Active listening, undisrupted attention, active response and friendly nature, Collaborative nature among the staff.

References

Aarons, G. A., Ehrhart, M. G., Farahnak, L. R., & Hurlburt, M. S. (2015). Leadership and organizational change for implementation (LOCI): a randomized mixed method pilot study of a leadership and organization development intervention for evidence-based practice implementation. Implementation Science, 10(1), 11.

Badal, P. A. (2017). McDonald’s Corporation-2015 (MCD).

Cameron, E., & Green, M. (2015). Making sense of change management: A complete guide to the models, tools and techniques of organizational change. Kogan Page Publishers.

Crawford, A. (2015). McDonald’s: A Case Study in Glocalization. Journal of Global Business Issues, 9(1), 11.

Cummings, T. G., & Worley, C. G. (2014). Organization development and change. Cengage learning.

Gerhardt, S., Hazen, S., & Lewis, S. (2014). Small Business Marketing Strategy Based on McDonald’s. ASBBS Proceedings, 21(1), 271.

M?d?lina, A. (2015). INNOVATIVE INTEGRATION OF SOCIAL RESPONSIBILITY IN BUSINESS STRATEGY. Annals of’Constantin Brancusi’University of Targu-Jiu. Economy Series, (6).

Mahajan, S. (2014). Competitive advantage through training and development in Mcdonald’s: a case study. International Journal of Management, IT and Engineering, 4(10), 403.

Telang, A., & Deshpande, A. (2016). Keep calm and carry on: A crisis communication study of Cadbury and McDonalds. Management & Marketing, 11(1), 371-379.