Business Strategies Issues Faced by Mcdonalds-Myassignmenthelp.com

Question: Critically analyse an Organisation of your choice on the Competitive advantages. Thereafter, formulate and propose to Implement strategies to overcome identified issues for the Organisation. Answer: Literature review: Must deal with the issues. Compare and contrast Analysis: Financial ratio analysis: Current ratio: Current asset for 2016 is 1.40 while in 2015 was 3.27. This shows the McDonalds had excess current assets in 2015 and acquire excess liabilities in 2016 but did not increase current assets. Thus, resulted in less poor performance as per current ratio (corporate.mcdonalds.com, 2017). Similarly show quick ratio and write on liquidity status of the company SWOT analysis: Strengths- Multinational fast food chain, Presence in over hundred countries. Product line consisting of burgers, wraps, deserts and so on catering to a large number of customers Weakness- Faces criticisms due to health problems fast foods items cause. Faces challenges from other multinational brands and local fast food makers Opportunities- Expansion of product line to incorporate local flavours Providing more healthy food items like boiled chicken Threats- Threats from new competitors both internationally and locally. Threats from health foods Political instability and economic downturns PESTLE analysis: Political: Government policies, taxes. Economic: Labour conditions, resource availability, local sources, changing currency exchange rate Social: Growing preferences in some societies for fast food is a driver. Changing preferences of people to consume healthier fast food requires innovation. Technological: Modern hygienic food manufacturing technology, online order acceptance, digital presence Legal: Legal complication due to presence in multiple countries, law suits filed by several organisations like NGOs against the company for selling unhealthy fast food. Environmental: Sustainable operations. Porters five-force analysis: Threats from new entrants, threats from substitutes and so on must connect to SWOT and PESTLE. Finding: High operating costs and decreasing amount of assets against increasing liabilities. Disruption in business in emerging markets like Asia and North America (foodworldnews.com, 2017) High operation costs Stiff competition References: Annual Reports :: McDonalds. (2017).Corporate.mcdonalds.com. Retrieved 14 November 2017, from https://corporate.mcdonalds.com/mcd/investors/financial-information/annual-report.html News, F. (2017).McDonalds Closing Stores: Consistent Sales Drops In US, Australia And Asia Mean McDonalds Closing HUNDREDS Of Restaurants.Food World News. Retrieved 14 November 2017, from https://www.foodworldnews.com/articles/17725/20150423/mcdonald-s-closing-stores-consistent-sales-drops-in-us-australia-and-asia-mean-mcdonald-s-closing-hundreds-of-restaurants.htm