Business Environment McDonalds Essay Example

allows the administration to meet the expectations of various stakeholders: owners receive higher returns on their investments, suppliers can determine effective credit periods for their sales, financial institutions can assess the repayment schedule of their loans and advancements, customers can achieve satisfaction of their needs, and employers can determine the number of job vacancies to be filled in the business.

The text discusses the importance of strategic analysis and managerial tools in the process of strategic management. It emphasizes that a business's operational strategy provides strategic direction at both the corporate and business unit levels, evaluating resources, processes, and people. It also highlights that a business strategy determines market coverage and activities involved in those markets. Business strategy development focuses on long-term goals and improving daily performance in a competitive market through skills, assets, finance, relationships, technical expertise, and resource mobilization. Internal and external factors affecting competition are considered. Corporate strategy aims to meet stakeholder expectations such as owners, financial institutions, customers, suppliers, NGOs, the public, and employers. Meanwhile, business unit strategy involves making decisions about product selection, meeting customer needs, gaining advantages over competitors,and exploring new opportunities. The right strategic pick choice and execution significantly impact the business's success.The aforementioned tools can be utilized by considering multiple factors like strengths, weaknesses, opportunities, threats, political, societal, environmental, ecological, legal and technological aspects. Additionally, these tools examine market growth, product enhancement and the potential of new competitors in the competitive market. Business strategy is vital in establishing the long-term corporate plans and goals of a business while also directing the distribution of resources to attain these objectives.

The text examines the growing development of a concern and its

influence from different stakeholders. These stakeholders, including Micro & Macro environmental factors, have an important role in the organization's decision-making process and affect its performance in its immediate area of operations. Moreover, the concern's internal environment, which includes organizational culture, structure, employees, internal systems, machinery, and internal marketing also impact its strategic management and future business planning assumptions.

These factors are all inherent within the administration, having strong connections with its operational activities during scheme planning, decision-making, and day-to-day operations. The administration culture impacts the behavior and ethics of the business in its daily activities. In terms of structure, the administration consists of a managerial hierarchy at various levels - top-level, middle-level, and lower-level managers - who are engaged in technical, managerial, and operational processes. The employees refer to staff members working in the administration who execute the business operations.

Internal systems within the administration have a significant role in facilitating daily operations and contributing to business growth. Machinery and internal marketing are tools developed internally within the organization that greatly impact daily business performance. Various micro environmental factors influence the decision-making, policy-making, and strategy planning processes within the business. These factors closely affect the operational direction of the business during the decision-making process.

Following are the Micro Environmental factors impacting the concern holding close relationship between houses ; driving forces in the direction ; control.

Customers

Administration is keeping their concern activity on the footing of the clients in the market. Strategy should be planned in such a manner as to entirely carry through demands of the bing clients in the emergent market.

Employees

Recruitment ; choice of the right staff for the right type of the concern activities is an

of import portion of the procedure of strategic management.

The human resource section in the administration is responsible for assigning tasks to individuals and providing them with appropriate development opportunities in order to achieve optimal performance.

Suppliers

Building good relationships with suppliers is crucial for ensuring the availability of necessary raw materials for the business. This ensures the administration's competitive strength and the production of high-quality output.

Shareholders

Shareholders are a source of inward investments that contribute to the ongoing growth and development of the business. The changing ownership structure from private to public can impact the administration's strategy.

vitamin E. Media

The media's attention to a company's products or services has a significant impact on the company's reputation in emerging markets, particularly among consumers.

degree Fahrenheit. Competitors

The goal of selling is to differentiate a product from competitors.

The selling department is challenged with demonstrating the competitive strength of the product to showcase its superiority over rival manufacturers. Various macro environmental factors are linked to the decision-making and strategic planning process. Changes in taxes, laws, trade, customs, ecology, and government policy indicate macro changes in the environment in terms of factor analysis.

Political

These factors pertain to periodic changes in government policy that impact the country's economy. This encompasses the goods and services desired by the government, suitability of subsidies for businesses from a governmental perspective, essential business support including workforce education, national health, as well as economic infrastructure quality such as bridges, roads, and rail.

Economic

These are factors that influence the economic position of a country such as exchange rates, interest rates, tax variations, economic growth rate fluctuations , inflation levels , recessionary periods etc.

Increased

involvement rates directly impact the cost of borrowed capital, significantly affecting capital investments in the market. Exchange rates, on the other hand, have an impact on foreign currency transactions within an international market. Inflation increases production costs, while a higher national income leads to a growing demand for products.

degree Celsius. Social

When the tendencies in society change in the market, it results in a shift in demand for products. For example, a higher proportion of elderly people leads to increased costs for pension payments to employees who are living longer. This also prompts certain organizations to recruit older employees into their workforce.

The impact on demand in terms of ups and downs is being influenced by various factors, such as vitamin D and technological advancements. These factors contribute to the development of products and procedures within the organization. Branded products, like MP3 Players and Computer Games, can help expand into new markets due to technological advancements. In addition, innovation is aimed at reducing costs and improving quality.

vitamin E. Environmental

The business performance is greatly influenced by environmental factors, including climate and temperature changes. Fluctuations in temperature can have an impact on sectors like agriculture, tourism, and insurance, while changes in climate can affect the travel and transportation industry.

degree Fahrenheit. Legal

Changes in the legal environment of a business, such as laws against age discrimination or disability discrimination and increases in the minimum wage, can have consequences for how companies operate.

Legal changes are having an impact on the market in terms of costs, demand, and supply. This section will explore the tools of environmental analysis and SWOT analysis for

Tesco plc. Goodmayes is a well-respected and valuable supermarket located in London, offering a diverse selection of products. One of Tesco's strengths in London is its expansive supermarket that offers a wide range of reasonably priced products.

Located in a residential area in the country, this supermarket is situated in a prime spot along the route in bustling London. It offers a diverse range of products, ranging from budget-friendly options to high-end items, all available in an array of appealing colors. Serving people from different social classes residing in London - lower, middle, and upper - this supermarket is conveniently located near both the bus stop and Goodmayes railway station.

Failings

Customers often struggle to find parking at the store since there are no designated spaces for vehicles. Moreover, with only five cash counters and a help desk center, customers experience long wait times while shopping.

Opportunities

The owners have excellent prospects for expanding their business because of positive customer feedback from all demographics. They can potentially grow the store and offer a wider range of products. By implementing a self-service strategy, customers can choose items based on their preferences, resulting in potential savings in labor and capital investment. The business also has the opportunity to increase profits through efficient cost control methods.

Threats

The local market faces intense competition, as there are similar products available at lower prices. Furthermore, the limited staff and crowded environment in the supermarket can create obstacles for existing customers when it comes to selecting and verifying products. This may lead customers to prefer purchasing their desired items from nearby stores. Additionally, the lack of shop floor space inconveniences customers and encourages

them to seek alternative shopping options.

PESTEL

Strategic planning must take into account various socio-cultural factors that impact the survival of the business in the economy.

For the long term period following are the factors to be implemented expeditiously; A; efficaciously for the standing in the competitory market with respects to Sony Computers

India.

Political

Recent national; international statute laws about imports; exports of the electronic goods determines executive scheme Increase in the rate of Vat decreases the sale of the electronic goods due to the higher monetary values in the market. Govt.policies of excise responsibility levy increases load on the Sellerss. Trading policies forcible in the market along with the norms of the regulative organic structures; procedures have a important impact due to inaccessibility of the natural stuffs in clip.

Economic

National economic state of affairs of the state with abroad economic tendencies are impacting the program of scheme of the computing machine concern. With the impact of the Monetary issues, involvement rates, exchange rates, revenue enhancement issues, trade rhythms in the economic market scheme became restricted.

Lowering revenue enhancement rates has led to increased reinvestment in business growth. Lower exchange rates have made it easier to engage in imports and exports, especially for electronic products.

Social

Changes in lifestyle trends, consumer sentiments, media, laws, and ethical issues greatly impact the company's marketing strategy. The company aims to adhere to the principle of "let the buyer beware" in order to establish a long-term sales strategy that caters to customer preferences and current market trends.

Technological

The company's focus is on research and development, innovation, technological access, mechanisms, and global communication. The abundant use of technology and incorporation of the latest advancements supports

the company's growth and facilitates product and market development in a competitive environment.

Environmental

Market values, global values, investor values, and ecological and global factors have a significant impact on the global marketing of computers. The company specializes in customer-oriented products, specifically in electronics, which enables them to capture a large share of the market (e.g., MP3 players, digital CDs).

Legal

Laws pertaining to the usage responsibility have an impact on the company's interprovincial business. Information technology acts are responsible for maintaining the exclusive sale of imported electronic goods from European countries within the country. This reduces the company's turnover due to limitations on market entry and competition in the domestic market. These Pestel factors can also be analyzed in SWOT analysis to effectively plan and meet stakeholder expectations.

Boston Box Matrix

The Boston Box Matrix evaluates an organization's products based on their market share and potential for growth and development.

The diagram depicts the initial location of Eventemps Ltd., a catering products agency in London. There are newly introduced Question Marks in the market, which are experiencing rapid growth. The company entered the market with a small market share and aimed to enhance their position through investments. If the Question Marks are developed successfully, this will result in high market shares and they will become Stars.

Stars are products in their growing stage. Additional investment is required to maintain their high market share. When the market growth slows down, saturation occurs. Products with a high market share generate positive cash flow. A well-balanced portfolio could be achieved by using the cash flow from cash cows to invest in question marks and stars.

If

hard currency cattles are well positioned, they can maintain stable demands in the face of new products being released into markets. Dogs represent products with a low market share and a low growth rate. Products in all other categories can become Dogs. Even in unfavorable circumstances, Dogs can still be profitable.

This theoretical account simplifies the business's scheme planning. Two parts of the strategic analysis are selected to reveal valuable insights in the company's product portfolio and the remedial actions taken to improve it.

Porters Generic strategies for E7 General shops at the Romford Road, London.

Cost Leadership Strategy

This generic strategy focuses on achieving lower costs and optimal quality. The shop sells its products at average sales prices to increase profits, and sometimes sells below average prices to maintain market share.

During periods of price wars, profitability was maintained but competition suffered losses. When the price war ended, the industry matured and prices declined. At that time, the store was able to continue generating profits by producing at lower costs. The business always targeted a wide market.

Differentiation Strategy

This particular strategy aided in the development of unique products. Customers perceived them to be superior or different from competing products, allowing premium prices to be charged.

Internal strength of the store was strengthened by accessing scientific research and having an extremely efficient merchandise development squad.

Focus Strategy

The focus strategy of the store was to concentrate on cost advantage and product differentiation. This allowed the store to enjoy a higher degree of consumer loyalty in the competitive market and enabled the development of a wide range of products.

Conclusion & Recommendation

Based on the overall findings of the study, it can be inferred that strategic planning

is a long-term goal for every organization.

It determines the projected future activity. It helps the administration utilize available resources efficiently in a competitive market. It facilitates market and product development in both micro and macro business environments. It establishes a suitable and acceptable standard for meeting stakeholders' expectations. To develop a sustainable standing in this challenging business environment, it is advisable for every company to:

1. Use strategic analytical tools to classify and assess available resources for timely execution.
2. Make strategic planning and development the guiding goal for achieving success.

References:
1. James, R 2008, Operational Strategy Planning, Strategic Management, London, UK5642632159
2. Hudson, A 2009, Activities of Market segmentation: Business Strategy, Richard, Cambridge, UK75894561
3. Philip, S 2009, The Legal ;AThe regulatory environment of the concern includes the following strategic planning premises:
- Landmark, ISBN4568951
- Robinson, V 2007, Resource Optimization in the concern: Trade Strategy, Romford Publications, London, UK45685
- Taylor, F 1982, Business Development Strategy, The Business Environment, Ferguson Education, Paris, FN4589756.