1.0 world affect the sales of McDonald. It is


The first Mc Donald’s restaurant was established in San
Bernardino, California by Maurice and Richard McDonald in 1948 (Encyclopaedia
Britannica, 2018). Mc Donald (2018), Mc Donald is one of the global food
service retailer in the world which have 36000 locations in over countries. Mc
Donald is a company restaurant which provide locally relevant of food and
drinks sold at different price in over 100 countries (Reuters, 2018). McDonald
(2018) state they serves 68 million of people over 119 countries every day to
become number one quick service in the world.

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The mission of McDonald is to be
favourite place and way to eat for the customers. McDonald also wants to
inspired customers which delight them with unmatched quality, service, and
cleanliness and value every time (McDonald, 2017). The vision of McDonald is to
be the best quick service restaurant experience for the customers (McDonald,

Situation Analysis

2.1 Macro Environment (EPISTLE)


Pratap (2016) state the heavily
from the economic environment will affect McDonald. (Burks (2018) mention the
economic downturn of the world affect the sales of McDonald. It is because
consumer has fewer budgets to spend in the bad economy situation which consumer
prefer to cook at home to save money. Wilson (2011) state economic factor of
inflation increase the cost of ingredient of McDonald such as Big Mac beef,
McCafe coffee bean and other ingredient will affect the consumer preferences
because of the price increased.


In the fast food industry, the
government wanted to improve the health and reducing the rate of obesity among
the people (UKEssays, 2018). SACN (2003) state the government will take action
to reduce the salt intake of population to decrease the risk of high blood
pressure which will cause stroke and premature death from heart disease.
McDonald has reduced the amount of salt about 14% and 75% about its product
will make continuous improvement in future (Food Standards Agency, 2005). U.S.
Food and Drug Administration (2017) state nutrition labelling is required in
chain restaurants and similar retail food establishment to provide visible
information about the foods to consumers. The policy of nutrition information
on food label will affect the consumer dietary patterns which will brings some
impact towards the fast food industry (Grunert and Wills, 2007).


Expert market (2018) state
McDonald using New Point of Sale (POS) system which called as NP6. The NewPOS
system enables McDonald to manage their supply chain, productivity of staff and
speed up the ordering process and customer services. Scribd (2018) state McDonald
enable to analysis the incoming data about the length of stay, level of sales
and the usage of customers in wireless service to make decision in provide
wireless services in their restaurant through implement Decision Support System
(DSS). According to UKESSAYS (2015), McDonald implements Management Information
System (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 decision


Greenspan (2017) state healthy
lifestyle trend of the market will be threat and opportunity for McDonald. Most
of the McDonald products contain high sugar and high fat foods which will cause
obesity and diabetes to consumers will be a threat for McDonald (Robbins,
2010). But, this also is an opportunity for McDonald because it helps McDonald
to improve its products menu and the product of the taste healthier through
lower in fat, salt and sugar content within the product. (Strom, 2013).


Appspire (2017) mention McDonald
has introduced mobile apps ordering for consumer to make their ordering faster
and convenient way. The mobile apps also increase the ability of customers to
customize their ordering and decrease the human error during the ordering
process. Whipp (2016) state McDonald will introduced in-store mobile order and
payment with self- service which allow customers to make their own order and
payment via touch-screen (Peterson, 2017). 
The in-store mobile order will increase the speed and reduce the human
error in ordering process and allows customers to customize their food and
drinks based on their preferences (Peterson, 2017).


Miler and Rosenberg (2016) state
set higher minimum wages will be a threat for McDonald because the forced wage
hikes will affect the health of the franchisees and business. The increase of
labour wages will force franchisees to increase the price of food to cover the
high labour cost (Baertlein, 2015). This action will reduce the traffic growth
of McDonald and affect the perspective of investors towards McDonald business
(Miler and Rosenberg, 2016). Campbell et.al. (2008) state McDonald must follow
the form of public health inspection system related to the food producers and
the McDonald employees must complete the employees training related to Standard
of Business Conduct, anti-bribery law and different laws, regulation and company
specific policies (Mc Donald, 2018). McDonald Corporation (2015) state McDonald
has quality centers around the world to ensure the quality standards met the
requirement and collaborate with suppliers consistently.


According to McDonald (2018),
McDonald attends the program of federal government Energy Efficiencies
Opportunities (EEO) and reports its energy use to make continuous improvement.
Mc Donald also participates in the Sydney Water Drop Counts business program to
monitor water usage and improve the practice of water management and water
saving measures (McDonald, 2018). EDF (2010) mention McDonald collaborates with
EDF to come up with a new sold waste reduction plan that helps McDonald to save
about $6 million per year through reduced 30% of waste through eliminated more
than 300 million pounds of packaging, recycled 1 million of corrugated boxes
and reduce the restaurant waste (EDF, 2018). According to UKESSAYS (2015),
McDonald will convert the leftover vegetable cooking oil into biodiesel and
pumped directly to the company Victorian delivery truck fleet to replace the
burning traditional fossil to reduce about 80% less carbon emission (Collier,

2.2  Competitive
Forces (Porter)

Bargaining power of Suppliers

The bargaining power of suppliers
for McDonald will be moderate because they are highly independent within each
other’s. For suppliers, they can’t charge higher price towards McDonald because
the product provided by suppliers are low level of uniqueness (Dudovskiy,
2017). For McDonald, they have limited suppliers to select because McDonald
only select those suppliers which follow the quality guideline of McDonald such
as brand image of the QSR brand, financial clout and global presence (Pratap,
2017). Therefore, the suppliers cannot increase the price to McDonald same goes
to McDonald do not have the chance to bargain with suppliers for cheaper price
(Abuawad, 2013).

Bargaining power of Buyers

The bargaining power of buyers for
McDonald is high. It is because there are many choices for the customer to
choose within the market. Therefore, the switching cost of the consumers will
be low because there are too many options within the market (Adamkasi, 2017).
There are many firms which produce the similar characteristic like McDonald will
enable customers to easily change their demand from McDonald to other fast food
company such as KFC, Burger King, Domino and Pizza Hut, food outlets and
artisanal bakeries (Gregory, 2017).

Threat of new Entrants

The threat of new entrant for
McDonald is low because it requires high start-up capital to purchase the
franchise licence and business model (Tong, 2014). Datomonitor (2010) state
Quick Service Restaurant (QSR) has been dominated by several company such as
McDonald’s, KFC, Pizza Hut and Domino. There will be high barriers for new
entrant to enter into fast food industry due to lack of economic of scale to
compete with dominate company which long existing and remain their competitive
advantage within the fast food industry (Ibrahim, 2012).

Threat of substitute goods

The threat of substitute goods for
McDonald is high because there are several restaurant produce the similar
characteristic products like McDonald such as Wendy’s, Burger King and Sonic
Drive in (Tangient, 2018). Pratap (2017) mention this situation enable the
consumer to change their demand and preferences from McDonald to another firms.

Rivalry of Competitors

The competitive rivalry for
McDonald is high because there are many competitors within the market such as
Burger King, Starbucks, Yum Brands, Subway and other competitors (Downie,
2017). Abuawad (2013) state the competition is high within the fast food
industry because of the trend is increasing. McDonald need to catch up the
market trend and make improvement and compete on their food range, food quality
and other factors with their competitors.


2.3  Industry
Attractiveness (BCG)

There are several products which
are well known in the market such as Big Mac, Filet-o-fish, Fries and Egg
McMuffin are placing in the position of cash cow. The McDonald products in the
category of cash cow usually are the well-known product and enable to make
profit to McDonald (Jurevicius, 2013). In this category, McDonald does not
required high investment because these products are stable and well-known
within the market. The product of McDonald located at the star position will be
McCafe. In the Star category, McDonald requires high investment and good
marketing strategy which enable McDonald to gain market shares in the coffee
segment. For the McDonald products which are in the testing stage such as
McCafe smoothie offerings and Your Taste Campaign will locate at the question
mark (Andino, 2015).  In this category,
the products enable to become cash cow but required high investment and bear
the risk of failure for McDonald (Jurevicius, 2013). Lastly, the product of
McDonald such as McPizza, McWrap and McLean Deluxe are in the category of dogs
which are the products needed to remove from the organization (Jurevicius, 2013)
(Andino, 2015).

2.4  Internal
Situation Analysis (SWOT)

According to SmartDraw (2018), SWOT
analysis is a technique tool which using SWOT diagrams or matrices. QuickMBA
(2010) mention SWOT analysis enable to provide information to help organization
to identify their resources and capability to the competitive environment. SWOT
analysis usually used in marketing plan which helps organization to identify
the strength, weaknesses, opportunity and threats within the business situation
(Gregory, 2017).


According to Hup Krull 2010
mention the strength of McDonald will be expanding the range of the menu
choices such as coffees, smoothies and Angus Burger. It enables McDonald to
provide more choices or come up with new products to attract market shares and
more option for the consumers to select. One of the strength for McDonald will
be strong brand name, image and reputation. It is because McDonald has built up
strong brand equity in the fast food industry with 31000 restaurants among 120
countries (Hubpage, 2016). McDonald has become one of the recognise brand in
fast food industry which become one of the competitive advantage to maintain in
the top food chain (VisionSharp, 2016). The strong brand awareness is one of
the strength for McDonald. It is because it enables McDonald to introduce new
products to public more efficiency and less cost on their advertising due to
the brand image of McDonald recognized by worldwide (Jurevicius, 2018).


(2015) state weaknesses of McDonald will be negative publicity due to the
perception of public towards McDonald products is unhealthy which contain
overload fat, carbs, salt and sugar. This shows that many consumers which very
concern about their healthy will not choose to have meal in McDonald because it
will affect their health. According to Small (2014), the weaknesses of McDonald
is high turnover rate of employees within the organization due to the job scope
of McDonald such as just flipping burger and dead end job. The high turnover
rate of employee will be a heavy cost such as recruitment, administration and
selection cost for McDonald because McDonald invest huge amount to educate an
experience workers (UKESSAYS, 2018).


Brewer (2012) states McDonald can
improve its product menu through introduce new healthier food items for the
consumers who concern about their healthy. One of the opportunity for McDonald
will be more concern about the consumer needs and wants through introduce
customizable burger such as McWraps which enable McDonald to attract more
consumers and gain more market shares as well (Levy, 2014).  Greenspan (2017) state McDonald has a huge
opportunity to enter into some countries which haven’t entered using market
development strategy which establish operation within Middle Western countries
and expand its business in developing countries such as Asian Economics.


Orji (2005) state the fast food
industry is very competitive because McDonald needs to compete with competitors
through expensive promotional tools which will reduce the profit margin to gain
market shares. Besides that, The unfavourable currency exchange rate and slow
global economy will be a threat for McDonald because McDonald is a global company
and the unfavourable exchange rate will affect the net income of McDonald (CBS,
2014). Watson (2015) states the eating behaviors of the younger customers are
moving towards to healthier eating habits. This rise of health- conscious
consumers will bring huge impact towards the profit of McDonald in future due
to the perception of public thinks that McDonald is an unhealthy food
(Dalavagas, 2015).

2.5  Consideration
of Strategic Options (Ansoff and Porter)

Ansoff Matrix

Market Penetration is selling the
existing products in the existing markets. For example, Mc Donald’s provide a
special meal for kids which is “Happy Meal” since June 1979.

development is selling the existing products in the new market. Mc Donald’s has
more than 31,000 business outlets In 119 countries around the world, but there
have 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 countries
which have no any outlet.

Development is selling new products in existing markets. For example, Mc
Donald’s sell the new type foods in their organization such as McSpaghetti,
McPizza, McSteak and so on.

is selling the new products in the new market. For example, Mc Donald’s can
provide laundry which allow the customers having their meal while waiting for
the washing process.

Porter Generic Strategic

The generic strategy of McDonald
is cost leadership which McDonald offers their products cheaper than the
competitors such as Arby’s (Gregory, 2017). In long term perspective, McDonald
able to achieve economic scale because it is franchise mode which can purchase
their raw materials and produce their product in large quantity (Hu and Xie,
2013). McDonald can successfully offer low price products to consumers because
they are hiring and train inexperience labour rather than recruit experienced
staff which required high wages. This system enables McDonald to save money in
labour cost and offer low price of food to consumers (Scilly, 2018).


 Strategic Implementation on Information Technology

Nowadays is the world of technology and it plays a vital
role in human every sphere of life. Most of the human are commonly depend on
the information technology within their daily life. For business as well, they
are also keep improving their technology within the organization to catch up
the market trend of the market.

Firstly, Mc Donald’s is using
computer based ordering system to place the order. They are using the computer
which has the all the records of the foods and drinks, so that they just have
to click on the foods or drinks which are ordering by the customers. This can
provide an efficient service for the customers.

Other than that, the Mc Donald’s
also provide the self-service touch screen kiosk in the year 2015. The concept
is easy to understand and it is using the touch screen system to access the
menu, place the order and make the payment. 
When the customers success make the payment, they have been given a
receipt with an order number, then take the receipt to the counter when the
order number appears at the screen and collect the food at the counter. This is
to increase the speed and reduce the human error in ordering process and allows
customers to customize their food and drinks based on their preferences.

 Identification & Description of Security Threat

Phishing is a technique used to gain personal information
for purposes of identity theft (Russell Kay, 2018). It is a fraud which attack
the users when the users log in their E-mail address and password or any
security information. It is one of the famous threats or cybercriminals which
can trick someone easily in clicking a malicious link. Because these e-mails
and web pages look credibility, so that’s why the users who cheated by phishing
getting more and more nowadays.

Phishing attacks mostly tricks
someone through social network techniques such as sending the email address,
any login information, creating web pages to collect the information of the
users or through other social network including the messages that sent by the

The pre-phishing attack may expose
the names, job titles and e-mail address of the victims. The information is
enough for the phisher tricks the users premeditatedly, so they will use the
information that can be used to craft a believable email to cheat more security
information from the victims.

            There are some of the more common
types of phishing attacks. First, spear phishing attacks. Spear phishing
attacks are cheating the users through e-mail by seeking unauthorized access to
sensitive information. Next is whaling attacks. Whaling is a type of fraud that
targets high-profile end users. Besides, pharming is when the users installed
the malicious code on a computer or a server, the server will install the malicious
without the permission of the users.

Image above shows the example of
phishing e-mail. The e-mails may appear in the mail box of the users who
frequently uses eBay or any other online service.

 Statistical Risk Analysis of Security Threat

Mc Donald’s has provide free
Wi-Fi and use the application to order the meals and make the payment
transaction online.

IT security threat which has been chosen that will affects Mc Donald’s involve
in phishing attack. Mc Donald’s has provide free Wi-Fi to the customers who
dine in at Mc Donald’s, so there are a lot of students will choose to do their
homework at Mc Donald due to the free Wi-Fi. In this generation, there are a
lot of IT genius in the world, so the phishing problems are getting more and more


Criterion 1
Impact on

Criterion 2
Impact on

Criterion 3
Impact on

Impact Score

Custom Weight





Web page
attacked by phisher





Fake e-mail
address sent by phisher





application attacked by phisher





Table 5.1 IT threat of the Phishing

The table shows the IT threat
of the Phishing problem. Before the users connect to the Wi-Fi, they have to
fill in some of their personal information such as name, e-mail address and so
on. In this moment, the phisher is attempting to embed the e-mail address of
the users and cheat the users by sending the phishing e-mail to trick the

Nowadays, most of the people
like to get something free with purchase, so the phisher will take the
advantage of human’s weaknesses by sending the fake gift certificate e-mail to
the victims and guide them to click on the “claim” button.  . Other than that, they will also imitate
fake comments like a normal website.

Besides, the Mc Donald’s also
provide a mobile application which is for the phone users easy to make an order
in Mc Donald’s. The users are required to fill in their e-mail address and
password 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 of
the meals, if they choose credit card as the payment, then they have to fill in
the account information. In this moment, the phisher can get the information of
the users easily. This is seriously involve in the phishing attack.

 Conclusions and Recommendations

Mc Donald is one of the global food service retailer in the
world which have 36000 locations in over countries. The objective of Mc
Donald’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 ordering
system which can provide a good and efficient service to the customers. This is
very convenience for the customers who only have one hour lunch break.

Other than that, Mc Donald’s also
build the good relationship with the suppliers and customers.

Although the foods of Mc Donald’s
are oily and fat, still got a lot of people willing to have their three meals
at Mc Donald’s. But still have exception. Because of most of the foods of Mc
Donald’s are meat, and this may influence Mc Donald’s lost a vegetarian
customers. So, Mc Donald’s can try to provide a healthy meal with vegetable for
the vegetarian to gain more customers and increase the sale of the

There are several ways to improve
IT security.  The IT threat of the Mc
Donald’s can increase the employees’ knowledge of IT. Other than that, the
organization can secure the computers, servers and wireless networks. Lastly,
can also regularly update software to the latest versions.