Assurance of Learning Exercise 3D

McDonald's Burger King Holdings Yum! Brands., Inc.
Critical Success Factors Weight Rating Score Rating Score Rating Score
Advertising 0.20 3 0.60 2 0.40 2 0.40
Product Quality 0.10 2 0.20 2 0.20 3 0.30
Price Competitiveness 0.10 3 0.30 3 0.30 2 0.20
Management 0.10 3 0.30 2 0.20 2 0.20
Financial Position 0.15 3 0.45 1 0.15 2 0.30
Customer Loyalty 0.10 1 0.10 3 0.30 3 0.30
Global Expansion 0.20 3 0.60 2 0.40 2 0.40
Market share 0.05 3 0.15 1 0.05 2 0.10
Total 1.00 - 2.8 - 2 - 2.2 Rating * weight = score
1 = major weakness, 2= minor weakness, 3= minor strength

McDonald’s strategic prospects

Strengths:

“McDonald’s towers over its direct competitors in the industry with a market cap of $59.8 billion in May 2009” (David, 2011, p. 33) This as compared to is competition in which Yum! Brands and Burger King. Their market shares were $16.3 billion and $2.46 billion respectively. In 2009 they open 6,650 new stores in Europe and 8,327 new stores in APMEA (Asia/Pacific/Middle East/Asia).
McDonald’s corporate responsibility campaign in becoming socially and environmentally friendly is one strength. According to David, they “have been recognized for its efforts in inclusive excellence with respect to employing and creating opportunities for minorities (2011, p. 33). They have actively sought to reduce their “carbon footprint by using recycling packaging” (David, 2011, p. 33). In 2014, they were ranked 43rd on the Best Global Green Brands (SyncForce. 2014).
Other strengths include the fact that they are producing more innovative offerings such as the premium McWraps, “which was the 2014 MenuMasters winner for Best Menu/Line Extension” (Scarpa, 2014).

Weaknesses:
McDonald’s Weaknesses include a high employee turnover rate, a decrease in customer satisfaction, and being able to control the food