The report will explore the fast food industry in United Kingdom. The report will also examine the McDonald’s corporation as a firm. In addition, the report will appraise mainly on two areas for instance attractiveness of fast food industry and distinctiveness of McDonald’s corporation.
The report will use some strategic analytical tools for examples PESTEL framework and Porter’s five forces to detect the trends, key drivers, and power of the fast food industry. The analytical tools will also distinguish the attractiveness of the industry. Moreover, numerous core competences of the MacDonald’s corporation for instance their own resources, skills, and value chain will be also critically analysed through the VRIN framework to find out the competitive advantages of the Macdonald’s corporation. This will identify to recognise their distinctiveness as well.
At a glance
- Applies PESTEL and Porter’s five forces to the UK fast-food industry
- Uses VRIN to assess McDonald’s strategic competences and competitive advantages
- Includes a McDonald’s value-chain diagram based on Johnson et al
- 25 sources in the bibliography
- 8 figures and 1 table
Contents
1. EXECUTIVE SUMMARY
2. CONTENT
3. INTRODUCTION
4. EXTERNAL ANALYSIS OF THE FAST FOOD INDUSTRY IN UNITED KINGDOM
4.1 TRENDS
4.2 KEY DRIVERS
4.3 POWER
4.4 ATTRACTIVENESS
5. INTERNAL ANALYSIS OF MCDONALD’S
5.1 CORE COMPETENCE
5.2 VRIN ANALYSIS
5.3 COMPETITIVE ADVANATGE
5.4 DISTINCTIVENESS
6. CONCLUSION
Objectives and Themes
This report examines the attractiveness of the United Kingdom fast-food industry and the distinctiveness of McDonald’s within it. It asks how the industry’s external environment and competitive forces interact with the company’s internal resources and core competences.
- Political, economic, social, technological, environmental and legal influences
- Industry trends, consumer drivers and competitive forces
- Industry attractiveness and the industry life cycle
- McDonald’s resources, core competences and value chain
- VRIN analysis and competitive advantage
Excerpt from the Book
INTRODUCTION
The report will explore the fast food industry in United Kingdom. The report will also examine the McDonald’s corporation as a firm. In addition, the report will appraise mainly on two areas for instance attractiveness of fast food industry and distinctiveness of McDonald’s corporation. The report will use some strategic analytical tools for examples PESTEL framework (attached in appendix 1) and Porter’s five forces (attached in appendix 2) to detect the trends, key drivers, and power of the fast food industry. The analytical tools will also distinguish the attractiveness of the industry. Moreover, numerous core competences of the MacDonald’s corporation for instance their own resources, skills, and value chain (attached in appendix 3 and 4) will be also critically analysed through the VRIN framework to find out the competitive advantages of the Macdonald’s corporation. This will identify to recognise their distinctiveness as well.
Johnson et al., (2011) stated that there are three parts of the exploring strategy model for instances understanding the strategic position of an any industry or business organisation known as context, assessing strategic choice for the forthcoming incidence known as content and managing strategy in action known as process (shown in figure 1). Finally, these three elements are aligned in a systematic way make strategy.
Currently, the fast food industry is growing dramatically in the United Kingdom as well as all over the world and competing with their competitors in the fast food market. Therefore, industry analysis is quite significant to make long term profit and run the business smoothly. In addition, external analysis is potential to evaluate the whole fast food industry and detect the attractiveness, possible opportunities, and threats in the entire market. Moreover, internal analysis is noteworthy to identify the quality of McDonald’s corporation and their core competences act as distinctiveness.
MacDonald’s is the top and renowned fast food corporation in the fast food industry. About 1.8 million people are working in 34,000 restaurants in the world. Richard and Maurice McDonald established the business as a restaurant in 1940 in United States. Afterwards, McDonald’s was opened as a single restaurant in Woolwich located in London in 1974. At present, about 97,000 people are working in 1200 restaurants throughout the UK and Northern Ireland (McDonald's, 2016).
Chapter Summaries
EXECUTIVE SUMMARY: The report’s approach and principal conclusions are outlined.
INTRODUCTION: The author introduces the industry, McDonald’s and the strategic frameworks used in the analysis.
EXTERNAL ANALYSIS OF THE FAST FOOD INDUSTRY IN UNITED KINGDOM: The industry’s trends, drivers, competitive forces and attractiveness are considered using PESTEL, Porter’s five forces and the industry life cycle.
INTERNAL ANALYSIS OF MCDONALD’S: The report examines the company’s resources and core competences through VRIN analysis and discusses competitive advantage and distinctiveness.
CONCLUSION: The author brings together the assessments of industry attractiveness and McDonald’s competitive position.
Keywords
strategic management, McDonald’s, United Kingdom, fast-food industry, PESTEL, Porter’s five forces, VRIN, core competence, competitive advantage, industry attractiveness, value chain, industry life cycle
Frequently Asked Questions
What is the report about?
It assesses the UK fast-food industry and McDonald’s position within it.
What are its central themes?
The central themes are the external business environment, industry competition, core competences and competitive advantage.
What is the report’s primary objective?
Its objective is to assess the industry’s attractiveness and the distinctiveness of McDonald’s.
What method does the author use?
The author uses a strategic analysis based on published sources, applying PESTEL and Porter’s five forces externally and VRIN internally.
What does the main analysis cover?
It considers industry trends, drivers, market power and attractiveness before examining McDonald’s resources and competences.
Which keywords characterise the work?
Key terms include strategic management, PESTEL, Porter’s five forces, VRIN, core competence and competitive advantage.
How is Porter’s five forces framework used?
It is used to examine competitive rivalry, buyers, suppliers, substitutes and potential entrants in the fast-food market.
How does the report assess McDonald’s competences?
It uses VRIN criteria to consider whether capabilities such as price, quality, location and service time may support competitive advantage.
Which competitors are discussed alongside McDonald’s?
The discussion refers to businesses including KFC, Burger King, Domino’s, Pizza Hut and Subway.
- Quote paper
- Mr Kamalesh Dey (Author), 2016, The fast food industry in the UK. Analysis of McDonalds with PESTEL, VRIN and Porter's Five Forces, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/333863
