Strategy Analysis

· Week 3

Strategy analysis and choice largely involve making subjective decisions based on objective information. Prior chapters in this text focused on obtaining the objective information needed in this chapter to formulate strategies and decide which particular strategies to implement. This chapter introduces important concepts that enable strategists to generate feasible alternatives, evaluate those alternatives, and choose a specific course of action. Behavioral aspects of strategy formulation are also covered in this chapter, including considerations of politics, culture, ethics, and social responsibility. Modern tools for formulating strategies are described. Material in this chapter, as well as in prior chapters, largely follows the flow of the Excel strategic planning template at www.strategyclub.com that is available for students to use freely, if desired.

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Assignment 6A

This is an individual assignment. You will not join with others to complete.

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Exercise 6A: Perform a SWOT Analysis for McDonald’s

Purpose

The SWOT Matrix is the most widely used of all strategic planning tools and techniques because it is conceptually simple and lends itself readily to discussion among executives and managers. The SWOT Matrix is effective in formulating strategies because it clearly matches a firm’s internal strengths and weaknesses with the firm’s external opportunities and threats to generate feasible strategies that should be considered. This exercise gives you practice in performing SWOT analysis for a large corporation.

Instructions

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1. Step 1: Join with two other students in class. Together, develop a SWOT Matrix for McDonald’s. Follow guidelines provided in the chapter, including notation (e.g., S4, T3) at the end of each strategy. Include two strategies in each of the four (SO, ST, WT, WO) quadrants. Be specific regarding your strategies, avoiding generic terms such as “forward integration.” Use the Cohesion Case, your answers to Assurance-of-Learning Exercise 1B, and the company’s most recent quarterly report as given at the corporate website.

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2. Step 2: Turn in the SWOT Matrix your team developed to your professor for a classwork grade. Note: Feel free to list factors and strategies vertically on a page rather than necessarily fitting everything into a nine-cell array.

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Assignment 6B

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Exercise 6B: Develop a SPACE Matrix for McDonald’s

Purpose

The SPACE Matrix is one of five matching strategic management tools widely used to formulate feasible strategies. Used in conjunction with the SWOT, BCG, IE, and GRAND matrices, the SPACE Matrix can be helpful in devising a strategic plan because hard choices normally must be made between attractive strategic options. This exercise gives you practice in developing a SPACE Matrix.

Instructions

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1. Step 1: Review McDonald’s business as described in the Cohesion Case as well as the company’s most recent Form 10K and quarterly report.

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2. Step 2: Review industry and competitive information pertaining to McDonald’s.

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3. Step 3: Develop a SPACE Matrix for McDonald’s. What strategies do you recommend for McDonald’s given your SPACE analysis? Avoid generic, vague terms such as “market development.”

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Exercise 6C

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Exercise 6C: Develop a BCG Matrix for McDonald’s

Purpose

Portfolio matrices are widely used by multidivisional organizations to help identify and select strategies to pursue. A BCG analysis identifies particular divisions that should receive fewer resources than others. It may identify some divisions that need to be divested. This exercise gives you practice in developing a BCG Matrix.

Instructions

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1. Step 1: Place the following five column headings at the top of a separate sheet of paper: Divisions, Revenues, Profits, Relative Market Share Position, and Industry Growth Rate. Down the far left of your page, list McDonald’s divisions and segments. Now turn back to the Cohesion Case and find information to fill in all the cells in your data table.

1. Step 2: Based on McDonald’s segment data given in the Cohesion Case, complete a BCG Matrix for the company.

1. Step 3: Compare your BCG Matrix to other students’ matrices. Discuss any major differences.

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Exercise 6D

Submit Here. Although instructions say work with others, this is an individual assignment

Exercise 6D: Develop a QSPM for McDonald’s

Purpose

This exercise gives you practice in developing a QSPM to determine the relative attractiveness of various strategic alternatives.

Instructions

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1. Step 1: Join with two other students in class to develop a joint QSPM for McDonald’s.

1. Step 2: Compare your team’s QSPM to those of other teams.

1. Step 3: Discuss any major differences.