Contents
STRATEGIC MANAGEMENT......................................................................................................................................3
Strategic Management Process................................................................................................................................5
Strategic Plan and its Component parts...................................................................................................................5
1. Goal-Setting......................................................................................................................................................6
2. Analysis.............................................................................................................................................................6
3. Strategy Formulation........................................................................................................................................7
4. Strategy Implementation.................................................................................................................................8
The Implementation Process of Strategic Plans.......................................................................................................9
McDonald's in Mauritius........................................................................................................................................12
Mc Donald’s and Its Strategic Management Commerce.......................................................................................13
McDonald's Vision and Mission Statement............................................................................................................13
Vision Statement....................................................................................................................................................13
"To be the world's best quick service restaurant experience, being the best means providing outstanding
quality, service, cleanliness, and value, so that we make every customer in every restaurant smile"..............13
Mission Statement.................................................................................................................................................14
Relationship to Organizational Strategy.................................................................................................................14
Mission and Vision Statements Explained.............................................................................................................15
Purpose: The two statements do distinctly different jobs.............................................................................15
McDonald's Strategic Aims and Objectives............................................................................................................16
Factors affecting McDonald's Strategic Plan..........................................................................................................17
The Advantages of Strategic Management............................................................................................................18
McDonald’s Values.................................................................................................................................................22
Strategies................................................................................................................................................................23
Levels of strategic management............................................................................................................................23
Strategies being followed by McDonalds...............................................................................................................26
Internal Analysis.....................................................................................................................................................30
Internal environment analysis................................................................................................................................31
External Analysis.....................................................................................................................................................34
1
,Porters 5 Forces......................................................................................................................................................39
SWOT ANALYSIS......................................................................................................................................................42
Business SWOT Analysis.........................................................................................................................................42
SWOT ANAYSIS FOR McDonalds............................................................................................................................47
PESTEL ANALYSIS....................................................................................................................................................48
PESTEL TECHNIQUE applied in the context of Mc Donald.....................................................................................49
Horizontal and vertical communication in McDonalds..........................................................................................53
Conclusion..............................................................................................................................................................55
References:.............................................................................................................................................................56
2
, STRATEGIC MANAGEMENT
Strategic thinking and strategic management can be viewed as the most important activities
undertaken by any business or public sector organization. Strategic decisions are the key
decisions which have to be taken by any organization; and from the strategic decisions which
establish the framework, a series of more detailed operational decisions can be made. How
skillfully these activities are carried out determines the eventual long-term success or failure
of the organization.
Many organizations operating in the Tourism and Hospitality sectors are hindered by short-
termism, concentrating on the most pressing immediate tasks at hand, rather than looking
ahead and taking a longer-term view. This is, perhaps, understandable given the pressures of
modern business, but is not the most sensible way to manage.
It is extremely difficult for organizations to plan ahead, in the same way as it is difficult to
forecast the weather or foresee future interest rate movements, because there are so many
aspects of uncertainty and change. In order to facilitate the process of strategic management,
concepts, frameworks, tools and techniques have been developed. The overall aim of
strategic management is thus to develop a framework for thinking ahead – for planning
strategically.
Strategy
A number of writers have tried to sum up the meaning of strategy succinctly to make it easier
for students to understand. One such definition, which despite its age is still widely quoted
and adapted, was offered by Professor Chandler of Harvard Business School in 1962.
DEFINITION/QUOTATION
Strategy is the determination of the basic long-term goals and objectives of an
enterprise and the adoption of courses of action and the allocation of resources
necessary for carrying out these goals.
(Chandler, 1962)
The elements of Strategy
3
, The above definition clearly shows the three elements (or components) of strategy. The italics
in the above definition emphasize the long-term goals; actions to achieve the goals and
allocation of resources:
o The Determination of the basic long-term goals and objectives concerns the
conceptualization of coherent and attainable strategic objectives. Without objectives,
nothing else can happen. Of one does not know where he wants to go, how can one
act in such a way as to get there?
o The adoption of courses of action refers to the actions taken to arrive at the objectives
that have been previously set.
o The allocation of resources refers to the fact that there is likely to be a cost associated
with the actions required in order to achieve the objectives. Of the course of action is
not supported with adequate levels of resource, then the objectives will not be
accomplished.
The increasing importance of strategic management may be a result of several trends.
Increasing competition in most countries has made it difficult for some companies to
compete. Modern and cheaper transportation and communication have led to increasing
4
STRATEGIC MANAGEMENT......................................................................................................................................3
Strategic Management Process................................................................................................................................5
Strategic Plan and its Component parts...................................................................................................................5
1. Goal-Setting......................................................................................................................................................6
2. Analysis.............................................................................................................................................................6
3. Strategy Formulation........................................................................................................................................7
4. Strategy Implementation.................................................................................................................................8
The Implementation Process of Strategic Plans.......................................................................................................9
McDonald's in Mauritius........................................................................................................................................12
Mc Donald’s and Its Strategic Management Commerce.......................................................................................13
McDonald's Vision and Mission Statement............................................................................................................13
Vision Statement....................................................................................................................................................13
"To be the world's best quick service restaurant experience, being the best means providing outstanding
quality, service, cleanliness, and value, so that we make every customer in every restaurant smile"..............13
Mission Statement.................................................................................................................................................14
Relationship to Organizational Strategy.................................................................................................................14
Mission and Vision Statements Explained.............................................................................................................15
Purpose: The two statements do distinctly different jobs.............................................................................15
McDonald's Strategic Aims and Objectives............................................................................................................16
Factors affecting McDonald's Strategic Plan..........................................................................................................17
The Advantages of Strategic Management............................................................................................................18
McDonald’s Values.................................................................................................................................................22
Strategies................................................................................................................................................................23
Levels of strategic management............................................................................................................................23
Strategies being followed by McDonalds...............................................................................................................26
Internal Analysis.....................................................................................................................................................30
Internal environment analysis................................................................................................................................31
External Analysis.....................................................................................................................................................34
1
,Porters 5 Forces......................................................................................................................................................39
SWOT ANALYSIS......................................................................................................................................................42
Business SWOT Analysis.........................................................................................................................................42
SWOT ANAYSIS FOR McDonalds............................................................................................................................47
PESTEL ANALYSIS....................................................................................................................................................48
PESTEL TECHNIQUE applied in the context of Mc Donald.....................................................................................49
Horizontal and vertical communication in McDonalds..........................................................................................53
Conclusion..............................................................................................................................................................55
References:.............................................................................................................................................................56
2
, STRATEGIC MANAGEMENT
Strategic thinking and strategic management can be viewed as the most important activities
undertaken by any business or public sector organization. Strategic decisions are the key
decisions which have to be taken by any organization; and from the strategic decisions which
establish the framework, a series of more detailed operational decisions can be made. How
skillfully these activities are carried out determines the eventual long-term success or failure
of the organization.
Many organizations operating in the Tourism and Hospitality sectors are hindered by short-
termism, concentrating on the most pressing immediate tasks at hand, rather than looking
ahead and taking a longer-term view. This is, perhaps, understandable given the pressures of
modern business, but is not the most sensible way to manage.
It is extremely difficult for organizations to plan ahead, in the same way as it is difficult to
forecast the weather or foresee future interest rate movements, because there are so many
aspects of uncertainty and change. In order to facilitate the process of strategic management,
concepts, frameworks, tools and techniques have been developed. The overall aim of
strategic management is thus to develop a framework for thinking ahead – for planning
strategically.
Strategy
A number of writers have tried to sum up the meaning of strategy succinctly to make it easier
for students to understand. One such definition, which despite its age is still widely quoted
and adapted, was offered by Professor Chandler of Harvard Business School in 1962.
DEFINITION/QUOTATION
Strategy is the determination of the basic long-term goals and objectives of an
enterprise and the adoption of courses of action and the allocation of resources
necessary for carrying out these goals.
(Chandler, 1962)
The elements of Strategy
3
, The above definition clearly shows the three elements (or components) of strategy. The italics
in the above definition emphasize the long-term goals; actions to achieve the goals and
allocation of resources:
o The Determination of the basic long-term goals and objectives concerns the
conceptualization of coherent and attainable strategic objectives. Without objectives,
nothing else can happen. Of one does not know where he wants to go, how can one
act in such a way as to get there?
o The adoption of courses of action refers to the actions taken to arrive at the objectives
that have been previously set.
o The allocation of resources refers to the fact that there is likely to be a cost associated
with the actions required in order to achieve the objectives. Of the course of action is
not supported with adequate levels of resource, then the objectives will not be
accomplished.
The increasing importance of strategic management may be a result of several trends.
Increasing competition in most countries has made it difficult for some companies to
compete. Modern and cheaper transportation and communication have led to increasing
4
