Heidi Dunham Strategic Management Week 7 & 8 Assignment Chapter 6 6A SWOT Matrix for McDonald's Strengths Current ratio

(Can securely meet their Inventory turnover Return On Equity (Net income per Net income growth Dividends Opportunities International growth Menu innovations Low interest rates for capital growth Can go green Can add healthier items Threats Competitors Regulations targeting unhealthy fast food New products have established Economy Inflation SO Strategies Open franchises in developing countries Add healthier items to reach new Incorporate more "green" practices to

ST Strategies Add healthier items to stand out from Use brand recognition to market good Incorporate more green practices to

Weaknesses Accounts receivables turnover (Takes too Sales growth Debt to equity ratio Long-term debt to equity ratio Asset turnover (Not generating sufficient WO Strategies Open franchises in developing countries Add healthier items to be accepted by

WT Strategies Add healthier items to not fall behind Use brand recognition to market good

6B SPACE Fiscal Conservativ Position 6 5 4 3 2 1 1 -6 -5 -4 -3 -2 -1 -1 -2 -3 -4 -5 -6 Defensive Stability Position Competitve 2 3

Aggressive

x 4 5 6 Industry

Competitive

6D QSPM Matrix for McDonald's Expand into developing countries Weight Key Factors Opportunities International growth Menu innovations Low interest rates for capital growth Can go green Can add healthier items Threats Competitors Regulations targeting unhealthy fast food New products have established competitors Economy Inflation Strengths Current ratio (Can securely meet their short-term obligations) Inventory turnover Return On Equity (Net income per stockholder's investment) Net income growth Dividends Weaknesses Accounts receivables turnover (Takes too long to collect credit sales) Sales growth Debt to equity ratio Long-term debt to equity ratio Asset turnover (Not generating sufficient volume of business for its asset investment) Total AS TAS AS TAS Develop healthier menu items

0.15 0.1 0.05 0.05 0.075

4 3 4 4

0.6 0.3 0.2 0.3

4 4

0.6 0.4

0.3

0.2 0.075 0.15 0.05 0.1 1

4 2 2 1 1

0.8 0.15 0.3 0.05 0.1

2 4 3 1 1

0.4 0.3 0.45 0.05 0.1

0.1 0.1

3 3

0.3 0.3

2 2

0.2 0.2

0.1 0.1 0.1

3 4 3

0.3 0.4 0.3

2 3 2

0.2 0.3 0.2

0.1 0.1 0.1 0.1

2 2 2 2

0.2 0.2 0.2 0.2

1 1 1 1

0.1 0.1 0.1 0.1

0.1 1

0.2 5.4

0.1 4.2

6I Grand Rapid Market Growth Quadrant II Quadrant I Market development Market penetration Product development Forward, backward, horizontal integration Related Diversification Strong Position

Weak Position

Quadrant III

Quadrant IV Related Diversification Unrelated diversification Joint Ventures

Slow Market Growth

IE Matrix for McDonald's Strong 3.0 to 4.0 3 4 Strong 3.0 to 4.0 EFE Total Weighted Scores 3 Average 2.0 to 2.99 Grow and build Backward, Forward, or Market Penetration Market Development Product Development IFE Total Weighted Scores Average 2.0 to 2.99 2

2 Weak 1.0 to 1.99

Weak 1.0 to 1.99 1