1.0 IntroductionThe first Mc Donald’s restaurant was established in SanBernardino, California by Maurice and Richard McDonald in 1948 (EncyclopaediaBritannica, 2018). Mc Donald (2018), Mc Donald is one of the global foodservice retailer in the world which have 36000 locations in over countries. McDonald is a company restaurant which provide locally relevant of food anddrinks sold at different price in over 100 countries (Reuters, 2018). McDonald(2018) state they serves 68 million of people over 119 countries every day tobecome number one quick service in the world. The mission of McDonald is to befavourite place and way to eat for the customers.
McDonald also wants toinspired customers which delight them with unmatched quality, service, andcleanliness and value every time (McDonald, 2017). The vision of McDonald is tobe the best quick service restaurant experience for the customers (McDonald,2018). 2.0 Situation Analysis 2.
1 Macro Environment (EPISTLE)2.1.1 EconomicPratap (2016) state the heavilyfrom the economic environment will affect McDonald. (Burks (2018) mention theeconomic downturn of the world affect the sales of McDonald. It is becauseconsumer has fewer budgets to spend in the bad economy situation which consumerprefer to cook at home to save money. Wilson (2011) state economic factor ofinflation increase the cost of ingredient of McDonald such as Big Mac beef,McCafe coffee bean and other ingredient will affect the consumer preferencesbecause of the price increased. 2.1.
2 PoliticalIn the fast food industry, thegovernment wanted to improve the health and reducing the rate of obesity amongthe people (UKEssays, 2018). SACN (2003) state the government will take actionto reduce the salt intake of population to decrease the risk of high bloodpressure which will cause stroke and premature death from heart disease.McDonald has reduced the amount of salt about 14% and 75% about its productwill make continuous improvement in future (Food Standards Agency, 2005). U.S.Food and Drug Administration (2017) state nutrition labelling is required inchain restaurants and similar retail food establishment to provide visibleinformation about the foods to consumers.
The policy of nutrition informationon food label will affect the consumer dietary patterns which will brings someimpact towards the fast food industry (Grunert and Wills, 2007). 2.1.3 InformationExpert market (2018) stateMcDonald using New Point of Sale (POS) system which called as NP6. The NewPOSsystem enables McDonald to manage their supply chain, productivity of staff andspeed up the ordering process and customer services. Scribd (2018) state McDonaldenable to analysis the incoming data about the length of stay, level of salesand the usage of customers in wireless service to make decision in providewireless services in their restaurant through implement Decision Support System(DSS).
According to UKESSAYS (2015), McDonald implements Management InformationSystem (MIS) within their organization through a set of process of collecting,processing, storing and transmits the important and relevant data about people,technology and information for the management operation in their decisionmaking.2.1.4 SocialGreenspan (2017) state healthylifestyle trend of the market will be threat and opportunity for McDonald. Mostof the McDonald products contain high sugar and high fat foods which will causeobesity and diabetes to consumers will be a threat for McDonald (Robbins,2010). But, this also is an opportunity for McDonald because it helps McDonaldto improve its products menu and the product of the taste healthier throughlower in fat, salt and sugar content within the product. (Strom, 2013).
2.1.5 TechnologyAppspire (2017) mention McDonaldhas introduced mobile apps ordering for consumer to make their ordering fasterand convenient way. The mobile apps also increase the ability of customers tocustomize their ordering and decrease the human error during the orderingprocess. Whipp (2016) state McDonald will introduced in-store mobile order andpayment with self- service which allow customers to make their own order andpayment via touch-screen (Peterson, 2017). The in-store mobile order will increase the speed and reduce the humanerror in ordering process and allows customers to customize their food anddrinks based on their preferences (Peterson, 2017).
2.1.6 LegalMiler and Rosenberg (2016) stateset higher minimum wages will be a threat for McDonald because the forced wagehikes will affect the health of the franchisees and business. The increase oflabour wages will force franchisees to increase the price of food to cover thehigh labour cost (Baertlein, 2015). This action will reduce the traffic growthof McDonald and affect the perspective of investors towards McDonald business(Miler and Rosenberg, 2016).
Campbell et.al. (2008) state McDonald must followthe form of public health inspection system related to the food producers andthe McDonald employees must complete the employees training related to Standardof Business Conduct, anti-bribery law and different laws, regulation and companyspecific policies (Mc Donald, 2018). McDonald Corporation (2015) state McDonaldhas quality centers around the world to ensure the quality standards met therequirement and collaborate with suppliers consistently.
2.1.7 EnvironmentAccording to McDonald (2018),McDonald attends the program of federal government Energy EfficienciesOpportunities (EEO) and reports its energy use to make continuous improvement.
Mc Donald also participates in the Sydney Water Drop Counts business program tomonitor water usage and improve the practice of water management and watersaving measures (McDonald, 2018). EDF (2010) mention McDonald collaborates withEDF to come up with a new sold waste reduction plan that helps McDonald to saveabout $6 million per year through reduced 30% of waste through eliminated morethan 300 million pounds of packaging, recycled 1 million of corrugated boxesand reduce the restaurant waste (EDF, 2018). According to UKESSAYS (2015),McDonald will convert the leftover vegetable cooking oil into biodiesel andpumped directly to the company Victorian delivery truck fleet to replace theburning traditional fossil to reduce about 80% less carbon emission (Collier,2012).
2.2 CompetitiveForces (Porter)2.2.1 Bargaining power of SuppliersThe bargaining power of suppliersfor McDonald will be moderate because they are highly independent within eachother’s. For suppliers, they can’t charge higher price towards McDonald becausethe product provided by suppliers are low level of uniqueness (Dudovskiy,2017). For McDonald, they have limited suppliers to select because McDonaldonly select those suppliers which follow the quality guideline of McDonald suchas brand image of the QSR brand, financial clout and global presence (Pratap,2017). Therefore, the suppliers cannot increase the price to McDonald same goesto McDonald do not have the chance to bargain with suppliers for cheaper price(Abuawad, 2013). 2.
2.2 Bargaining power of BuyersThe bargaining power of buyers forMcDonald is high. It is because there are many choices for the customer tochoose within the market. Therefore, the switching cost of the consumers willbe low because there are too many options within the market (Adamkasi, 2017).There are many firms which produce the similar characteristic like McDonald willenable customers to easily change their demand from McDonald to other fast foodcompany such as KFC, Burger King, Domino and Pizza Hut, food outlets andartisanal bakeries (Gregory, 2017).
2.2.3 Threat of new EntrantsThe threat of new entrant forMcDonald is low because it requires high start-up capital to purchase thefranchise licence and business model (Tong, 2014). Datomonitor (2010) stateQuick Service Restaurant (QSR) has been dominated by several company such asMcDonald’s, KFC, Pizza Hut and Domino. There will be high barriers for newentrant to enter into fast food industry due to lack of economic of scale tocompete with dominate company which long existing and remain their competitiveadvantage within the fast food industry (Ibrahim, 2012). 2.2.
4 Threat of substitute goodsThe threat of substitute goods forMcDonald is high because there are several restaurant produce the similarcharacteristic products like McDonald such as Wendy’s, Burger King and SonicDrive in (Tangient, 2018). Pratap (2017) mention this situation enable theconsumer to change their demand and preferences from McDonald to another firms.2.2.5 Rivalry of CompetitorsThe competitive rivalry forMcDonald is high because there are many competitors within the market such asBurger King, Starbucks, Yum Brands, Subway and other competitors (Downie,2017). Abuawad (2013) state the competition is high within the fast foodindustry because of the trend is increasing. McDonald need to catch up themarket trend and make improvement and compete on their food range, food qualityand other factors with their competitors.
2.3 IndustryAttractiveness (BCG)There are several products whichare well known in the market such as Big Mac, Filet-o-fish, Fries and EggMcMuffin are placing in the position of cash cow. The McDonald products in thecategory of cash cow usually are the well-known product and enable to makeprofit to McDonald (Jurevicius, 2013). In this category, McDonald does notrequired high investment because these products are stable and well-knownwithin the market. The product of McDonald located at the star position will beMcCafe. In the Star category, McDonald requires high investment and goodmarketing strategy which enable McDonald to gain market shares in the coffeesegment.
For the McDonald products which are in the testing stage such asMcCafe smoothie offerings and Your Taste Campaign will locate at the questionmark (Andino, 2015). In this category,the products enable to become cash cow but required high investment and bearthe risk of failure for McDonald (Jurevicius, 2013). Lastly, the product ofMcDonald such as McPizza, McWrap and McLean Deluxe are in the category of dogswhich are the products needed to remove from the organization (Jurevicius, 2013)(Andino, 2015). 2.4 InternalSituation Analysis (SWOT)According to SmartDraw (2018), SWOTanalysis is a technique tool which using SWOT diagrams or matrices. QuickMBA(2010) mention SWOT analysis enable to provide information to help organizationto identify their resources and capability to the competitive environment.
SWOTanalysis usually used in marketing plan which helps organization to identifythe strength, weaknesses, opportunity and threats within the business situation(Gregory, 2017). 2.4.1 StrengthsAccording to Hup Krull 2010mention the strength of McDonald will be expanding the range of the menuchoices such as coffees, smoothies and Angus Burger. It enables McDonald toprovide more choices or come up with new products to attract market shares andmore option for the consumers to select. One of the strength for McDonald willbe strong brand name, image and reputation. It is because McDonald has built upstrong brand equity in the fast food industry with 31000 restaurants among 120countries (Hubpage, 2016). McDonald has become one of the recognise brand infast food industry which become one of the competitive advantage to maintain inthe top food chain (VisionSharp, 2016).
The strong brand awareness is one ofthe strength for McDonald. It is because it enables McDonald to introduce newproducts to public more efficiency and less cost on their advertising due tothe brand image of McDonald recognized by worldwide (Jurevicius, 2018). 2.
4.2 WeaknessesDalavagas(2015) state weaknesses of McDonald will be negative publicity due to theperception of public towards McDonald products is unhealthy which containoverload fat, carbs, salt and sugar. This shows that many consumers which veryconcern about their healthy will not choose to have meal in McDonald because itwill affect their health.
According to Small (2014), the weaknesses of McDonaldis high turnover rate of employees within the organization due to the job scopeof McDonald such as just flipping burger and dead end job. The high turnoverrate of employee will be a heavy cost such as recruitment, administration andselection cost for McDonald because McDonald invest huge amount to educate anexperience workers (UKESSAYS, 2018). 2.4.3 OpportunitiesBrewer (2012) states McDonald canimprove its product menu through introduce new healthier food items for theconsumers who concern about their healthy. One of the opportunity for McDonaldwill be more concern about the consumer needs and wants through introducecustomizable burger such as McWraps which enable McDonald to attract moreconsumers and gain more market shares as well (Levy, 2014). Greenspan (2017) state McDonald has a hugeopportunity to enter into some countries which haven’t entered using marketdevelopment strategy which establish operation within Middle Western countriesand expand its business in developing countries such as Asian Economics.
2.4.4 Threats Orji (2005) state the fast foodindustry is very competitive because McDonald needs to compete with competitorsthrough expensive promotional tools which will reduce the profit margin to gainmarket shares. Besides that, The unfavourable currency exchange rate and slowglobal economy will be a threat for McDonald because McDonald is a global companyand the unfavourable exchange rate will affect the net income of McDonald (CBS,2014). Watson (2015) states the eating behaviors of the younger customers aremoving towards to healthier eating habits.
This rise of health- consciousconsumers will bring huge impact towards the profit of McDonald in future dueto the perception of public thinks that McDonald is an unhealthy food(Dalavagas, 2015).2.5 Considerationof Strategic Options (Ansoff and Porter)2.5.1 Ansoff MatrixMarket Penetration is selling theexisting products in the existing markets. For example, Mc Donald’s provide aspecial meal for kids which is “Happy Meal” since June 1979.
Marketdevelopment is selling the existing products in the new market. Mc Donald’s hasmore than 31,000 business outlets In 119 countries around the world, but therehave no any outlet in some of the country such as Uruguay, Venezuela and Yemen.Therefore, Mc Donald’s can try to expand their business to other countrieswhich have no any outlet. ProductDevelopment is selling new products in existing markets.
For example, McDonald’s sell the new type foods in their organization such as McSpaghetti,McPizza, McSteak and so on.Diversificationis selling the new products in the new market. For example, Mc Donald’s canprovide laundry which allow the customers having their meal while waiting forthe washing process.2.5.2 Porter Generic StrategicThe generic strategy of McDonaldis cost leadership which McDonald offers their products cheaper than thecompetitors such as Arby’s (Gregory, 2017).
In long term perspective, McDonaldable to achieve economic scale because it is franchise mode which can purchasetheir raw materials and produce their product in large quantity (Hu and Xie,2013). McDonald can successfully offer low price products to consumers becausethey are hiring and train inexperience labour rather than recruit experiencedstaff which required high wages. This system enables McDonald to save money inlabour cost and offer low price of food to consumers (Scilly, 2018). 3.0 Strategic Implementation on Information Technology Nowadays is the world of technology and it plays a vitalrole in human every sphere of life.
Most of the human are commonly depend onthe information technology within their daily life. For business as well, theyare also keep improving their technology within the organization to catch upthe market trend of the market. Firstly, Mc Donald’s is usingcomputer based ordering system to place the order. They are using the computerwhich has the all the records of the foods and drinks, so that they just haveto click on the foods or drinks which are ordering by the customers.
This canprovide an efficient service for the customers. Other than that, the Mc Donald’salso provide the self-service touch screen kiosk in the year 2015. The conceptis easy to understand and it is using the touch screen system to access themenu, place the order and make the payment. When the customers success make the payment, they have been given areceipt with an order number, then take the receipt to the counter when theorder number appears at the screen and collect the food at the counter.
This isto increase the speed and reduce the human error in ordering process and allowscustomers to customize their food and drinks based on their preferences.4.0 Identification & Description of Security ThreatPhishing is a technique used to gain personal informationfor purposes of identity theft (Russell Kay, 2018). It is a fraud which attackthe users when the users log in their E-mail address and password or anysecurity information.
It is one of the famous threats or cybercriminals whichcan trick someone easily in clicking a malicious link. Because these e-mailsand web pages look credibility, so that’s why the users who cheated by phishinggetting more and more nowadays.Phishing attacks mostly trickssomeone through social network techniques such as sending the email address,any login information, creating web pages to collect the information of theusers or through other social network including the messages that sent by theusers. The pre-phishing attack may exposethe names, job titles and e-mail address of the victims. The information isenough for the phisher tricks the users premeditatedly, so they will use theinformation that can be used to craft a believable email to cheat more securityinformation from the victims. There are some of the more commontypes of phishing attacks. First, spear phishing attacks.
Spear phishingattacks are cheating the users through e-mail by seeking unauthorized access tosensitive information. Next is whaling attacks. Whaling is a type of fraud thattargets high-profile end users. Besides, pharming is when the users installedthe malicious code on a computer or a server, the server will install the maliciouscode without the permission of the users.Image above shows the example ofphishing e-mail. The e-mails may appear in the mail box of the users whofrequently uses eBay or any other online service. 5.0 Statistical Risk Analysis of Security ThreatMc Donald’s has provide freeWi-Fi and use the application to order the meals and make the paymenttransaction online.
TheIT security threat which has been chosen that will affects Mc Donald’s involvein phishing attack. Mc Donald’s has provide free Wi-Fi to the customers whodine in at Mc Donald’s, so there are a lot of students will choose to do theirhomework at Mc Donald due to the free Wi-Fi. In this generation, there are alot of IT genius in the world, so the phishing problems are getting more and moreserious. Threat/incidents Criterion 1 Impact on Revenue Criterion 2 Impact on Profit Criterion 3 Impact on Reputation Weighted Impact Score Custom Weight 50 30 20 100 Web page attacked by phisher 0.4 0.3 0.4 34 Fake e-mail address sent by phisher 0.4 0.
3 0.4 37 Phone application attacked by phisher 0.3 0.2 0.2 25 Table 5.1 IT threat of the PhishingproblemThe table shows the IT threatof the Phishing problem. Before the users connect to the Wi-Fi, they have tofill in some of their personal information such as name, e-mail address and soon. In this moment, the phisher is attempting to embed the e-mail address ofthe users and cheat the users by sending the phishing e-mail to trick theusers.
Nowadays, most of the peoplelike to get something free with purchase, so the phisher will take theadvantage of human’s weaknesses by sending the fake gift certificate e-mail tothe victims and guide them to click on the “claim” button. . Other than that, they will also imitatefake comments like a normal website.Besides, the Mc Donald’s alsoprovide a mobile application which is for the phone users easy to make an orderin Mc Donald’s. The users are required to fill in their e-mail address andpassword to register a Mc Donald’s account due to save the history of ordering.When the users finish the ordering, they are required to choose the payment ofthe meals, if they choose credit card as the payment, then they have to fill inthe account information.
In this moment, the phisher can get the information ofthe users easily. This is seriously involve in the phishing attack. 6.0 Conclusions and RecommendationsMc Donald is one of the global food service retailer in theworld which have 36000 locations in over countries.
The objective of McDonald’s is to become the world’s leading quick service fast food brand.Obviously, they have achieve their goal. Mc Donald’s provide a good orderingsystem which can provide a good and efficient service to the customers. This isvery convenience for the customers who only have one hour lunch break.Other than that, Mc Donald’s alsobuild the good relationship with the suppliers and customers. Although the foods of Mc Donald’sare oily and fat, still got a lot of people willing to have their three mealsat Mc Donald’s. But still have exception.
Because of most of the foods of McDonald’s are meat, and this may influence Mc Donald’s lost a vegetariancustomers. So, Mc Donald’s can try to provide a healthy meal with vegetable forthe vegetarian to gain more customers and increase the sale of theorganization. There are several ways to improveIT security. The IT threat of the McDonald’s can increase the employees’ knowledge of IT.
Other than that, theorganization can secure the computers, servers and wireless networks. Lastly,can also regularly update software to the latest versions.