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SMMC-EMI_G4_TP Progress Report 1– External Environmental Analysis, G4…
SMMC-EMI_G4_TP Progress Report 1– External Environmental Analysis
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Macro Analysis – PESTEL
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Industry Value Chain
Midstream
Quality Control System
Food safety standards
Franchise Support
Franchisee training,Operations assistance
Distribution Centers & Cold Chain Logistics
Raw material storage,Nationwide delivery,
Downstream
Customer Services
Ordering, Delivery, Self-service kiosks
Marketing & Branding
Coupons, Loyalty programs
Advertisements, App promotions
McDonald’s Restaurants
Company-owned stores
Franchised stores
Customer Relationship Management
McDonald's App
Membership & Rewards
Upstream
Food Processors
Pre-process the raw ingredients into frozen hamburger patties, fried chicken, bread, and other items
Packaging Suppliers
Paper bags, Plastic containers,Beverage cups, Straws
Agricultural Suppliers
Beef, Chicken,Potatoes, Wheat,Vegetables
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Competitor Analysis
Market Commonality
🍔Similarity in Consumer Habits
Urban lifestyle → Fast-paced dining for office workers
👨👩👧👦 Families & kids → Love Happy Meals and play areas
🌎 Western culture acceptance → Open to burgers, fries, etc.
Global Fast Food Market Trends
Health-conscious choices → Salads, low-calorie options
📱 Convenience-driven behavior → Mobile ordering, delivery platforms
💰 Similar marketing → Value combos, share meals
Store Design & Dining Experience
Standard layout – Counters, kiosks, similar ambiance
Self-service model → Streamlined ordering
📶 Extra services → Free Wi-Fi, kids' zones
👥 Customer Segments
🧒 Youth & students – major market share
👪 Families – strong loyal base
✈️ Tourists – trust the brand worldwide
Resource Commonality
🔗 Supply Chain
Global sourcing
Ex. Fries from Lamb Weston and J.R. Simplot.
🤝 Long-term suppliers
Ex.Beef from Cargill, chicken from Tyson.
Economies of scale
Ex. Bulk purchasing reduces costs for potatoes.
🏗️ Equipment & Operations
📋 Standard procedures
Ex.Consistent burger and fries cooking method.
🛠️ Unified equipment
Ex.Frymaster fryers used globally.
⚙️ Easy product rollout
Ex.New items like McChicken use the same equipment.
💻 IT Systems
Unified POS
Ex.Same POS system globally for order processing.
📊 Centralized data
Track inventory and sales in real-time.
📈 Analytics
Data used for optimizing menus and forecasting demand.
🌐 Real-time oversight
Monitoring of sales and inventory from headquarters.
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Industry Analysis – Five Force Framework
McDonald’s
Five Forces Analysis
Threat of New Entrants
Bargaining Power of Suppliers
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Industry Lifecycle
The Industry Life Cycle refers to the evolution of an industry over time.
Electric Vehicle (EV) Industry
:arrow_right: Growth Stage
At the 2025 New York Auto Show, many new electric vehicles were introduced. But there are some challenges
Supply chain issues
, especially with materials from China (like lithium and rare earth metals).
Concerns about
political tensions
between the U.S. and China, which could slow down EV production.
Recent News
1. Introduction Phase
2. Growth Phase
3. Maturity Phase
4. Decline Phase
Demand slows or shifts to new technologies
Companies may exit, pivot, or consolidate
Focus on survival rather than growth
Market becomes saturated, competition intensifies
Companies seek to maintain market share and improve efficiency
Often a time of standardization and consolidation
Demand starts increasing rapidly
Profits improve, more companies enter the market
Focus on expansion, improvement, and building a customer base
New or emerging industry
Characterized by innovation, experimentation, high costs, and risk
Few competitors, uncertain market demand
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Competitive Dynamics
actions vs. response
digital transformation
action
Announces the return of the popular Snack Wrap in 2025
response
2024/12/6-2024/12/8 Burger King is giving customers who spend $1 or more on the app a free Royal Crispy Wrap all weekend long.
Promotional price
response
2024/6/25Launched the "$5 meal package". It includes a double McChicken or a McChicken sandwich, a small order of fries, four chicken nuggets and a small soft drink.
action
2024/5/29 announced the relaunch of its "$5 Your Way Meal," which includes a Whopper Jr., fries, four chicken nuggets and a drink.
Product innovation (flavors and options)
action
2023/3/7 Launched the limited-time product "Chicken Big Mac" in Canada.
response
A simple response was made on Twitter, Instagram, TikTok and Facebook - a photo of an updated chicken Big Mac with the caption "Okay, we fixed it" and McDonald's was tagged.
G4
111212086 盧姍佾 Elaina
AI:25%
111212076 廖怡萍 Kathy
AI:50%
111212087 魏聖昕 Amy
AI: 30%
111212084 蘇芷薰 Angel
AI:30%
111242014 王聖瑩 Emma
AI:40%
110453010蔡蕙如 Helen
AI:40%
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:male-technologist:
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T
E
L
nvironment
echnology
egal
use digital and automation technologies to improve service quality and operational efficiency.
The taxation and tariff regulations vary across countries, and McDonald's must comply with local trade regulations to continue operating in the market and avoid legal risks.
Environmental regulations and climate change drive McDonald's to adopt sustainable business strategy.
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P
E
S
olitical
conomic
ocial
Global economic conditions and exchange rate fluctuations impact consumer demand
Consumer health awareness and cultural differences drive McDonald's menu adjustments to meet various needs.
McDonald's operations are influenced by government regulations, trade policies, and tariffs in different countries.
Threat of Substitutes
Bargaining Power of Buyers
1.highly competitive, with major players like Burger King, Wendy’s, KFC, Subway, Taco Bell, and more.
2.Despite strong brand loyalty, customers are highly price- and convenience-sensitive.
High
Consumers have many choices and are price-sensitive with low switching costs.
Low to Medium
While suppliers play an important role, McDonald’s global procurement power and long-term contracts reduce supplier influence.
High
Low to Medium
Entering the food service industry is relatively easy, but competing with McDonald’s global brand reputation, economies of scale, supply chain efficiency, and capital resources is extremely difficult.
Growing health consciousness and preference for plant-based or low-carb diets also pose threats.
Competitors
High
