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External Audit:
Opportunities Threats
1. Growing health trends among
consumers
2. Globalization, expansion in othercountries (especially in China &ndia!.
". #i$ersi%ication and acuisition o%other uic'ser$ice restaurants.
). Growth o% the %ast%ood industry.*. +orldwide deregulation.
. -ow cost menu that will attract thecustomers.
. /reebies and discounts.
1. 0ealth pro%essionals andconsumer acti$ists accusec#onalds o% contributing to thecountry3s health issue o% highcholesterol, heart attac's, diabetes,and obesity.
2. 4he relationship betweencorporate le$el c#onalds and its%ranchise dealers.
". c#onald3s competitors
threatened mar'et share o% thecompany both internationally anddomestically.
). 5nti5merican sentiments.*. Global recession and %luctuating
%oreign currencies.. /ast%ood chain industry is
expected to struggle to meet theexpectations o% the customerstowards health and en$ironmentalissues.
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CPM-Competitive Profile Matrix
McDonald's Burger King Yum Brands Wendy's
Critical Success
Factors
+eight 6ating +eighted7core
6ating +eighted7core
6ating +eighted7core
6ating +eighted7core
Price 8.1* ) 8.8 " 8.)* " 8.)* " 8.)*
FinancialPosition
8.89 ) 8."2 " 8."2 " 8.2) 2 8.1
Consumer
oyalty
8.18 ) 8.)8 " 8.)8 " 8."8 2 8.28
!d"ertising 8.18 " 8."8 " 8."8 ) 8.)8 2 8.28
Product #uality 8.18 ) 8.)8 " 8.)8 ) 8.)8 2 8.28
$nno"ation 8.1* " 8.)* " 8.)* " 8.)* 2 8."8
Mar%et Share 8.18 ) 8.)8 2 8.28 " 8."8 2 8.28
Management 8.8 ) 8.29 " 8.21 " 8.21 " 8.21
&loal
()pansion
8.1* ) 8.8 2 8."8 " 8.)* 1 8.1*
Total 1 3.75 3.03 3.20 2.07
External Fator Evaluation !EFE" Matrix
2
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Key ()ternal Factors Weight *ating Weighted Score
Opportunities
Growing health trends among
consumers
8.89 " 8.2)
Globalization, expansion in other countries(especially in China & ndia!. 8.12 ) 8.)9
#i$ersi%ication and acuisition o% other uic'ser$ice restaurants.
.8) " 8.12
Growth o% the %ast%ood industry. .18 " 8."8
+orldwide deregulation .8) 2 8.89
-ow cost menu that will attract the customers. .89 2 8.1
/reebies and discounts. .89 1 8.89
Threats
0ealth pro%essionals and consumer acti$istsaccuse c#onalds o% contributing to thecountry3s health issue o% high cholesterol, heartattac's, diabetes, and obesity.
8.18 " 8."8
4he relationship between corporate le$elc#onalds and its %ranchise dealers.
8.8 " 8.2
c#onald3s competitors threatened mar'etshare o% the company both internationally anddomestically.
8.12 ) 8.)9
5nti5merican sentiments. .8 2 .1)
Global recession and %luctuating %oreigncurrencies.
.8) " .12
/ast%ood chain industry is expected to struggleto meet the expectations o% the customerstowards health and en$ironmental issues.
.8) 2 .89
Total 1.00 2.#5
"
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&'(T Matrix
*
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Strengths Wea%nesses
1. 7trong brand name, image and
reputation.
2. -arge mar'et share.
". 7trong global presence.
). 7pecialized training %or managers
'nown as the 0amburger
;ni$ersity.
*. c#onalds , >!.
T+reat) &-T &trate*ie) '-T &trate*ie)
1. 0ealth pro%essionals andconsumer acti$ists accusec#onalds o% contributingto the country3s health issueo% high cholesterol, heartattac's, diabetes, and
obesity.2. 4he relationship between
corporate le$el c#onaldsand its %ranchise dealers.
". c#onald3s competitorsthreatened mar'et share o%the company bothinternationally anddomestically.
1. ore control on %ranchise dealersto maintain c#onalds reputationand uality (71, 42!.
2.
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&PACE Matrix
Financial Strength *ating (n"ironmental Staility *ating
6eturn on in$estment ) 6ate o% in%lation "
-e$erage ) #emand Changes "
@et ncome
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T+e o)ton Con)ultin* roup !C" Matrix
T+e $nternal-External !$E" Matrix
9
uadrant uadrant
uadrant Euadrant
6apid ar'et Growth
7trongCompetiti$e
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7trong 5$erage +ea'
".8 to ).8 2.8 to 2. 1.8 to1.
0igh".8 to ".
edium2.8 to2.
-ow1.8 to 1.
T+e uantitative &trate*i Plannin* Matrix
!&PM"
Strategy ,
()pand -urther in
!sia y adding .//restaurants
Strategy 0
!pplying / grams
Trans -at in all1orld1ide
McDonald'srestaurants
4e $nternal Fator) 'ei*+t A& TA& A& TA&
&tren*t+)
7trong brand name, image and reputation 0.12 0.# 0.#
-arge mar'et share 0.10 0.0 2 0.20
7trong global presence 0.0 0.12 2 0.0#
7pecialized training %or managers 'nown as the0amburger ;ni$ersity
0.0 - - - -
c#onalds
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7trong %inancial per%ormance and position 0.0# 0.32 0.32
ntroduction o% new products 0.0% - - - -
Customer %ocus (centric! 0.0% 1 0.0% 0.2
7trong per%ormance in the global mar'etplace0.0# 3 0.2 1 0.0#
'eane))e)
;nhealthy %ood image 0.0# 1 0.0# 0.32
0igh 7ta%% 4urno$er including 4opmanagement
0.10 - - - -
Customer losses due to %ierce competition 0.0 3 0.12 1 0.0
-egal actions related to health issues= use o%trans %at & bee% oil
0.0 1 0.0 0.1%
;ses 0C/C22 to ma'e polystyrene that iscontributing to ozone depletion
0.0 - - - -
S2BTOT! ,+// 0+34 0+4/
Strategy ,
()pand -urther in!sia y adding
.// restaurants
Strategy 0
!pplying / gramsTrans -at in all
1orld1ideMcDonald's
restaurants
4e External Fator) 'ei*+t A& TA& A& TA&
(pportunitie)
Growing health trends among consumers 0.0# 1 0.0# 0.32
Globalization, expansion in other countries(especially in China & ndia!
0.12 0.# 1 0.12
#i$ersi%ication and acuisition o% other uic'ser$ice restaurants
0.0 - - - -
Growth o% the %ast%ood industry 0.10 0.0 0.0
+orldwide deregulation 0.0 0.1% 1 0.0
-ow cost menu that will attract the customers 0.0# - - - -
/reebies and discounts 0.0# - - - -
T+reat)
0ealth pro%essionals and consumer acti$ists accusec#onalds o% contributing to the country3s health
issue o% high cholesterol, heart attac's, diabetes, andobesity
0.10 1 0.10 0.0
18
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4he relationship between corporate le$elc#onalds and its %ranchise dealers
0.08 0.3% 1 0.08
c#onald3s competitors threatened mar'et share o%the company both internationally and domestically
0.12 0.# 0.#
5nti5merican sentiments 0.07 - - - -
Global recession and %luctuating %oreign currencies 0.0 - - - -
/ast%ood chain industry is expected to struggle tomeet the expectations o% the customers towardshealth and en$ironmental issues
0.0 1 0.0 0.1%
S2BTOT! ,+// 0+,/ 0+/,
S2M TOT! !TT*!CT$5(6(SS SCO*( 4+44 4+4,
,eommendation)
()pand -urther into !sia mar%ets o"er a 07year period y adding .//restaurants per year at a cost o- 84 illion annually9 and applying / gramsTrans -at in all 1orld1ide McDonald's restaurants+
$ntrodution/
c#onalds Corporation is the worlds largest chain o% %ast %ood restaurants,ser$ing nearly ) million customers daily through more than "1,888 restaurantsin 11 countries worldwide. c#onald3s sells $arious %ast %ood items and so%t
drin's including, burgers, chic'en, salads, %ries, and ice cream. any
11
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c#onalds restaurants ha$e included a playground %or children and ad$ertisinggeared toward children, and some ha$e been redesigned in a more natural style,with a particular emphasis on com%ort: introducing lounge areas and %ireplaces,and eliminating hard plastic chairs and tables.
?ach c#onalds restaurant is operated by a %ranchisee, an a%%iliate, or thecorporation itsel%. 4he corporations re$enues come %rom the rent, royalties and%ees paid by the %ranchisees, as well as sales in companyoperated restaurants.c#onalds re$enues grew 2F o$er the three years ending in 288 to 22.9
billion, and F growth in operating income to ". billion.1
9i)tor anal)i)/
4he business began in 1)8, with a restaurant opened by brothers #ic'
and ac c#onald in 7an Aernardino, Cali%ornia. 4heir introduction o% the H7peedee 7er$ice 7ystemH in 1)9 established
the principles o% the modern %ast%ood restaurant.
4he original mascot o% c#onalds was a man with a che%s hat on top o%
a hamburger shaped head whose name was H7peedee.H 7peedee was
e$entually replaced with 6onald c#onald in 1".
4he present corporation dates its %ounding to the opening o% a %ranchised
restaurant by 6ay Iroc, in #es
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public debates about obesity, corporate ethics and consumer
responsibility.2
:i)ion
4o be the best and leading %ast %ood pro$ider around the globe
Mi))ion
c#onalds brand mission is to be our customers %a$orite place and way to eat,and impro$e our operations to pro$ide the most delicious %ast %ood that meet ourcustomers expectations.
:alue)
>ur $alues summarized in H.7.C. & E.H.
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T+e T+reat of Entrant)
-arge established companies with strong brand identities such as c#onald3sAIC, B;, and +?@ do ma'e it more di%%icult to enter and succeed within
the mar'etplace= new entrants %ind that they are %aced with price competition%rom existing chain restaurants.
ar*ainin* Po;er of uer)
-ow bargaining power o% buyers.
ar*ainin* po;er of )upplier)
Aargaining power o% suppliers within the %ast %ood industry would be relati$elysmall, unless the main ingredient o% the product is not readily a$ailable.
T+reat of &u
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AIC, B;, and +?@. 4hey compete with international, national, regional,local, retailers o% %ood products (restaurants, uic' ser$ice, pizza, co%%ee shops,and supermar'ets!.
PE&TE= Frame;or/
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External Audit:
Opportunities Threats
9. Growing health trends among
consumers
. Globalization, expansion in other
countries (especially in China &ndia!.18. #i$ersi%ication and acuisition o%
other uic'ser$ice restaurants.11. Growth o% the %ast%ood industry.12. +orldwide deregulation.1". -ow cost menu that will attract the
customers.1). /reebies and discounts.
. 0ealth pro%essionals andconsumer acti$ists accusec#onalds o% contributing to thecountry3s health issue o% high
cholesterol, heart attac's, diabetes,and obesity.9. 4he relationship between
corporate le$el c#onalds and its%ranchise dealers.
. c#onald3s competitorsthreatened mar'et share o% thecompany both internationally anddomestically.
18. 5nti5merican sentiments.11. Global recession and %luctuating
%oreign currencies.12. /ast%ood chain industry is
expected to struggle to meet theexpectations o% the customerstowards health and en$ironmentalissues.
1
-egal:
-egislation %or product.
7ustained logo.
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CPM-Competitive Profile Matrix
McDonald's Burger King Yum Brands Wendy's
Critical Success
Factors
+eight 6ating +eighted7core
6ating +eighted7core
6ating +eighted7core
6ating +eighted7core
Price 8.1* ) 8.8 " 8.)* " 8.)* " 8.)*
Financial
Position
8.89 ) 8."2 " 8."2 " 8.2) 2 8.1
Consumeroyalty
8.18 ) 8.)8 " 8.)8 " 8."8 2 8.28
!d"ertising 8.18 " 8."8 " 8."8 ) 8.)8 2 8.28Product #uality 8.18 ) 8.)8 " 8.)8 ) 8.)8 2 8.28
$nno"ation 8.1* " 8.)* " 8.)* " 8.)* 2 8."8
Mar%et Share 8.18 ) 8.)8 2 8.28 " 8."8 2 8.28
Management 8.8 ) 8.29 " 8.21 " 8.21 " 8.21
&loal
()pansion
8.1* ) 8.8 2 8."8 " 8.)* 1 8.1*
Total 1 3.75 3.03 3.20 2.07
1
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External Fator Evaluation !EFE" Matrix
Key ()ternal Factors Weight *ating Weighted Score
Opportunities
Growing health trends among
consumers
8.89 " 8.2)
Globalization, expansion in other countries(especially in China & ndia!.
8.12 ) 8.)9
#i$ersi%ication and acuisition o% other uic'ser$ice restaurants.
.8) " 8.12
Growth o% the %ast%ood industry. .18 " 8."8
+orldwide deregulation .8) 2 8.89
-ow cost menu that will attract the customers. .89 2 8.1
/reebies and discounts. .89 1 8.89
Threats
0ealth pro%essionals and consumer acti$istsaccuse c#onalds o% contributing to thecountry3s health issue o% high cholesterol, heartattac's, diabetes, and obesity.
8.18 " 8."8
4he relationship between corporate le$elc#onalds and its %ranchise dealers.
8.8 " 8.2
c#onald3s competitors threatened mar'etshare o% the company both internationally anddomestically.
8.12 ) 8.)9
5nti5merican sentiments. .8 2 .1)
Global recession and %luctuating %oreigncurrencies.
.8) " .12
/ast%ood chain industry is expected to struggleto meet the expectations o% the customerstowards health and en$ironmental issues.
.8) 2 .89
Total 1.00 2.#5
19
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$nternal Fator Evaluation !$FE" Matrix
Key $nternal Factors Weight *ating Weighted Score
Strengths
7trong brand name, image andreputation+
8.12 ) 8.)9
-arge mar'et share. 8.18 ) 8.)8
7trong global presence. 8.8) " 8.12
7pecialized training %or managers'nown as the 0amburger ;ni$ersity.
8.8) " 8.12
c#onalds
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&'(T Matrix
28
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21
Strengths Wea%nesses
18. 7trong brand name, image and
reputation.
11. -arge mar'et share.
12. 7trong global presence.
1". 7pecialized training %or managers
'nown as the 0amburger
;ni$ersity.
1). c#onalds !.2. ?xpansion in mar'et share by morein$estments in 5sia (72, >2!.
2. inimize customers losses bypro$ide low cost menu anddiscounts (+", >, >!.
T+reat) &-T &trate*ie) '-T &trate*ie)
. 0ealth pro%essionals andconsumer acti$ists accusec#onalds o% contributingto the country3s health issueo% high cholesterol, heartattac's, diabetes, and
obesity.9. 4he relationship between
corporate le$el c#onaldsand its %ranchise dealers.
. c#onald3s competitorsthreatened mar'et share o%the company bothinternationally anddomestically.
". ore control on %ranchise dealersto maintain c#onalds reputationand uality (71, 42!.
).
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&PACE Matrix
Financial Strength *ating (n"ironmental Staility *ating
6eturn on in$estment ) 6ate o% in%lation "
-e$erage ) #emand Changes "
@et ncome
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T+e o)ton Con)ultin* roup !C" Matrix
T+e $nternal-External !$E" Matrix
2"
uadrant uadrant
uadrant Euadrant
6apid ar'et Growth
7trongCompetiti$e
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7trong 5$erage +ea'
".8 to ).8 2.8 to 2. 1.8 to1.
0igh".8 to ".
edium2.8 to2.
-ow1.8 to 1.
T+e uantitative &trate*i Plannin* Matrix
!&PM"
Strategy ,
()pand -urther in
!sia y adding .//restaurants
Strategy 0
!pplying / grams
Trans -at in all1orld1ide
McDonald'srestaurants
4e $nternal Fator) 'ei*+t A& TA& A& TA&
&tren*t+)
7trong brand name, image and reputation 0.12 0.# 0.#
-arge mar'et share 0.10 0.0 2 0.20
7trong global presence 0.0 0.12 2 0.0#
7pecialized training %or managers 'nown as the0amburger ;ni$ersity
0.0 - - - -
c#onalds
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7trong %inancial per%ormance and position 0.0# 0.32 0.32
ntroduction o% new products 0.0% - - - -
Customer %ocus (centric! 0.0% 1 0.0% 0.2
7trong per%ormance in the global mar'etplace0.0# 3 0.2 1 0.0#
'eane))e)
;nhealthy %ood image 0.0# 1 0.0# 0.32
0igh 7ta%% 4urno$er including 4opmanagement
0.10 - - - -
Customer losses due to %ierce competition 0.0 3 0.12 1 0.0
-egal actions related to health issues= use o%trans %at & bee% oil
0.0 1 0.0 0.1%
;ses 0C/C22 to ma'e polystyrene that iscontributing to ozone depletion
0.0 - - - -
S2BTOT! ,+// 0+34 0+4/
Strategy ,
()pand -urther in!sia y adding
.// restaurants
Strategy 0
!pplying / gramsTrans -at in all
1orld1ideMcDonald's
restaurants
4e External Fator) 'ei*+t A& TA& A& TA&
(pportunitie)
Growing health trends among consumers 0.0# 1 0.0# 0.32
Globalization, expansion in other countries(especially in China & ndia!
0.12 0.# 1 0.12
#i$ersi%ication and acuisition o% other uic'ser$ice restaurants
0.0 - - - -
Growth o% the %ast%ood industry 0.10 0.0 0.0
+orldwide deregulation 0.0 0.1% 1 0.0
-ow cost menu that will attract the customers 0.0# - - - -
/reebies and discounts 0.0# - - - -
T+reat)
0ealth pro%essionals and consumer acti$ists accusec#onalds o% contributing to the country3s health
issue o% high cholesterol, heart attac's, diabetes, andobesity
0.10 1 0.10 0.0
2*
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4he relationship between corporate le$elc#onalds and its %ranchise dealers
0.08 0.3% 1 0.08
c#onald3s competitors threatened mar'et share o%the company both internationally and domestically
0.12 0.# 0.#
5nti5merican sentiments 0.07 - - - -
Global recession and %luctuating %oreign currencies 0.0 - - - -
/ast%ood chain industry is expected to struggle tomeet the expectations o% the customers towardshealth and en$ironmental issues
0.0 1 0.0 0.1%
S2BTOT! ,+// 0+,/ 0+/,
S2M TOT! !TT*!CT$5(6(SS SCO*( 4+44 4+4,
,eommendation)
()pand -urther into !sia mar%ets o"er a 07year period y adding .//restaurants per year at a cost o- 84 illion annually9 and applying / gramsTrans -at in all 1orld1ide McDonald's restaurants+
2