Question

Carry out strategic analysis and evaluation of the given selected ONE of the organisations of choice and analyse the organisation chosen based on the three tasks as given below.

Choose ONE of the organisation below:-

1. Honda Malaysia

2. McDonald Malaysia

3. Hotel Seri Malaysia

4. Proton Malaysia

5. Giant Hypermarket Malaysia

6. Others (choice of your own)

Task 1 (20 marks)

•The product/service market mission and vision of the company chosen.

•Strategic Group Analysis.

•The main and supporting activities and resources of the company.

•The stakeholders of the company.

Task 2 (45 marks)

• Conduct the basis of competition Model (Porter's generic) on the company chosen.

•An evaluation of how supportive operations are to the overall strategy of the company chosen.

•An analysis of how the company chosen ensures it can meet its performance objectives.

Task 3 (35 marks)

•A comparison with competitors in the same industry (comparison from the price, services, profit, strategic, etc.).

•Conclusions (SWOT and conclusions).

Note: The assessment which supports with the evidence of survey, questionnaires and other relevant materials which support the assessment need and which portraits the additional efforts from the students will be awarded extra marks.

Answer 1

Organization Chosen is McDonald Malaysia

TASK1

Company's Mission Statement: The mission statement of the company is to maintain a quality product, excellent service to the customer, maintain cleanliness in the restaurant and value for money concept. To become the leader in Quick Service Restaurant (QSR) and to earn the maximum profits. Also consistently fulfil the need of customers, employees and society.

VISION STATEMENT: To become one of the favourite places for dining and to eat out destination.

STRATEGIC GROUP ANALYSIS:

The restaurant is growing its popularity in Malasia due to its value for money concept, where it attracts buyers for more good nos of products according to the choice of the buyers. The company is conducting market research in a regular mode to update the latest trends in the change of the mindset of the consumers towards the foods.

STAKEHOLDER OF THE COMPANY:

Golden Arches Sdn Bhd is the prime stakeholder of McDonald Malaysia, which operates the business since 1980 and successively drive the business in the Malaysia market.

TASK-2

Porter's Model:

Porter 5 Forces	High	Moderate	Low
The threat of New Entrant
Bargaining power of Suppliers
Bargaining power of Buyers
The Threat of Substitute products
Rivalry among existing industry firms

All the parameters of Porter's model will be examined in the market through various market research tools and conclusion can be drawn on the basis of high, moderate or low.

Rivalry among existing industry firms

The fast-food industry is facing high intensity of competition. The rivalry is strong because the competition is focusing on providing the best service and product variety. Other competitors such as KFC and A&W create an intense rivalry among the fast-food providers. Rivalry such as KFC is constantly providing more choices ranging from fried chickens to burgers and to side snacks such as potato wedges and salad. Moreover, competitors equal in size and power and growth in the industry.

Threats from substitute products

Factors that caused the firm to lose its sales profit is the limited choice of product they offer. Therefore, many people will go to substitute products. The substitute products for McDonald’s will be the other fast-food chain, for example, Burger King and roadside burger stalls. Although McDonald’s has applied 24 hours all around, however, roadside burger stall that operates until late at night and other fast food restaurant are also operating 24 hours service.

The threat of new entrants

New entrants pose threats and increase competition in the industry. The lesser the threat of new entrants, the greater will be an industry’s attractiveness as it is in the retailing industries. Due to the low switching cost and lack of product differentiation, new competitors can easily enter the market. For example, McDonald’s face competition from Carl’s Junior and Wendy’s which are quite new in the Malaysian market still.

Bargaining power of suppliers

The bargaining power of suppliers is viewed as a threat because the quality of the supplied products is highly dependent on them. They can either raise the prices or lowering the quality of the suppliers are powerful. In the fast-food industry case, the power of suppliers is relatively low because the inputs are standardized, low switching costs and there are a lot of substitutions of the supplier.

Bargaining power of buyers

As the competition among rival become intense in attracting potential customer and maintaining loyal customer. According to Viljoen & Dann (2000), buyers play an important role in deciding the shape of the market as they can drive prices down and make unreasonable demands regarding quality, delivery and terms of payment. In McDonald’s case, buyers assert higher bargaining power because of the low switching cost to another brand (Burger King). For instances, McDonald’s cannot set high prices on their products as the consumer can easily opt for another burger.

SUPPORTIVE OPERATIONS:

The supportive operation to make the business success depends on the effective staff who may carry the entire operation in a systematic way to render the service to the customer in time and according to the choice of the consumer. Technology is another supportive mechanism to operate the business effectively.

MEET THE PERFORMANCE OBJECTIVES:

To meet the performance objectives the company must adhere to the mission and vision statement. Also, it should work towards the variety of the menu and environment-related issues. It will train their staff to become friendly to the consumer s and in time service delivery must be a key criterion to meet the objective whether it is an offline mode of service or online mode of service.

TASK-3

A comparison with competitors in the same industry:

Competitor Analysis

This part evaluates the strategy that McDonald used compared with its main competitor of a similar product. It identifies whether McDonald is a market leader, followers, niche market challengers in its own type of products and the whole market’s position.

Issues	McDonald’s	Burger King	KFC
Main Products	Burger	Burger	Fried Chicken, Burger
Additional Products	Fried Chicken, Porridge	Curly Fries	Wedges, Mash Potato
Price and service	Economical and affordable Excellent service	Bit higher and service is not that good.	High price and queueing time is high
Origin	United States	United States	United States
Profits to earn	Maximum	Moderate	Moderate
Rank in Malaysia	2	3	1
Overall strategy	Will be No 1 Food chain restaurant in Malaysia	To become the no/2 food restaurant after Mc Donald	To acquire the online platform quickly as online buyers are increasing.

SWOT ANALYSIS AND CONCLUSION

Strength

The strong global present becomes one of the biggest strength McDonald’s has. It makes McDonald’s able to capture a large market in other countries such as Malaysia. McDonald’s expand their market has proven successful which is supported by brand recognition. It generated more sales and gain market share. McDonald’s product innovation is the other strength it has. The innovation of fast food which is different in every country it enters is a good strategy for localizing the taste and preference of customers. McDonald’s offers Ayam Goreng which is only available in Malaysia and McCurry Pan in India. McDonald's also offered 24 hours delivery services which enable consumers to enjoy foods during midnight if they feel hungry. This is the core competencies for McDonald's over its competitors where KFC, Subway, Burger King and others do not have 24 hours delivery service.

Weakness

McDonald’s has a low width of the product caused by the saturated market in the food industry has made McDonald’s difficult to add new outlets in their menu lists. The last breakthrough for McDonald’s is their chicken nugget in 1983. the increase of competition such as KFC, A&W, Burger King, and Subway, has created tight price competition. McDonald’s unable to earn much revenue from this price competition. Health concern becomes one of the major weaknesses of McDonald's where many people complaint with the oily foods that are offered.

Opportunity

The fast-food trend in Malaysia has benefited McDonald's as they are able to capture more market share and customers. Malaysian would like to eat outside with the increasing of number of women workers. They would like to look at a convenient place to eat as McDonald's provide it for them. The technology advance has improved McDonald’s services efficiency as their customer able to order through phone and online. The growing internet users in Malaysia supported for this kind of service. 24 hours service will open a revenue window for McDonald's as customers look for a quick meal at late at night.

Threat

The increase of competitions from KFC, Subway, Burger King, and others has made the competition for market share in Malaysia tighter. Customers have more range of fast food being offered and they would have no brand loyalty with one brand. McDonald's need to fight back with their promotion and advertisement to gain the customers feel. They need to spend a large amount of money on it. The health concern has become the main treatment for McDonald's as most customers concern on healthy foods. Fast food is considered unhealthy because of too oily. This will reduce the number of customers to purchase McDonald's foods.