CASE STUDY

ON
BUSINESS POLICY AND STRATEGY

GURU GOBIND SINGH INDRAPRASTHA

UNIVERSITY
In partial fulfilment of the requirement for the award
of the degree of
BACHELOR OF BUSINESS
ADMINISTRATION
Batch 2020 - 23

SUBMITTED BY:
TANNU RATHEE

SUBMITTED TO:
DR. ANUBHUTI MA’AM
ENROLLMENT NO:
12450601720

NEW DELHI INSTITUTE OF

MANAGEMENT 61A,
TUGHLAKABAD, NEW
DELHI-62

Q1: Internal Strengths and Weaknesses for McDonald's (MCD):

Internal Strengths:
• Strong financial performance: McDonald's demonstrated
impressive revenue growth and increased net income during a
challenging economic period.
• Brand recognition: McDonald's is a globally recognized brand with
a strong reputation and widespread presence in 120 countries.
• Extensive global network: With thousands of outlets worldwide,
McDonald's has a wide reach and market penetration.
• Effective franchise system: Nearly 80% of McDonald's restaurants
are run by franchisees, enabling rapid expansion and local
adaptation.
• Menu innovation and diversity: McDonald's expanded menu items
and introduced upscale coffee drinks, attracting new customers
and increasing sales.
• Strategic planning: McDonald's emphasized long-term strategies,
such as "Plan to Win," to drive sales growth and improve
customer experience.
• Operational efficiency: McDonald's focuses on improving drive-
through windows, extending hours, and remodeling dining rooms
to enhance efficiency and customer satisfaction.
Internal Weaknesses:
• Exposure to economic conditions: A weak economy and a rising
U.S. dollar can impact McDonald's sales and profitability.
• Reliance on low prices: While McDonald's low prices attract
customers, the introduction of upscale coffee drinks may
contradict budget-conscious consumer trends.
• Dependence on franchisees: The heavy reliance on franchisees
could result in variations in quality, service, and brand consistency
across different locations.
• Limited health-conscious options: McDonald's menu still lacks a
wide range of healthy food options, which could deter health-
conscious customers.
• Negative perception: McDonald's faces criticism for its impact on
public health, environmental sustainability, and labor practices,
which can affect its brand image.
Q2: External Opportunities and Threats facing McDonald's (MCD):
External Opportunities:
• Global expansion: McDonald's can continue expanding into new
markets and leverage its brand recognition and successful
franchise system.
• Growing coffee market: The opportunity to capitalize on the
increasing popularity of coffee and expand the coffee business
can drive additional sales.
• Shift towards healthier options: As consumer preferences shift
towards healthier eating, McDonald's can develop and promote
healthier menu items to attract health-conscious customers.
• Technological advancements: McDonald's can leverage
technology for enhanced customer experiences, online ordering,
delivery services, and mobile app innovations.
• Environmental sustainability: The rising focus on sustainability
presents opportunities for McDonald's to improve its practices and
attract environmentally conscious customers.
External Threats:
• Intense competition: McDonald's faces intense competition from
 other fast-food chains, quick-service restaurants, and independent
eateries.
• Economic downturns: During tough economic times, consumers
may reduce spending on dining out, impacting McDonald's sales.
• Changing consumer preferences: Shifting consumer preferences
towards healthier options and sustainability may pose challenges
for McDonald's traditional menu and practices.
• Regulatory changes: Evolving regulations related to labor
practices, health and safety, and environmental impact can create
challenges and increased costs.
• Negative public perception: Criticism related to fast food's impact
on health, sustainability, and labor practices can affect
McDonald's reputation and customer perception.
It's important to note that the strengths, weaknesses,
opportunities, and threats presented here are based on the
information provided from a specific time period (2007-2009).
Actual circumstances and factors may have changed since then,
so it's advisable to conduct further research to obtain the most up-
to-date analysis.

CASE STUDY 2
Q1: Vision Statement and Mission Statement for Walmart: Vision
Statement: "To be the global leader in retail, providing customers
with a wide assortment of high-quality products at everyday low
prices while fostering a culture of excellence, innovation, and
sustainability."

Mission Statement: "To save people money so they can live

better. We aim to offer a broad range of products and services,
provide convenient access to quality goods, create opportunities
for associates, support local communities, and be a responsible
corporate citizen."
 Q2: The Principal Value of a Vision and Mission Statement: The
vision and mission statements serve as guiding principles for an
organization and provide several benefits:
• Strategic Direction: Vision and mission statements provide a clear
sense of purpose, direction, and long-term goals for the
organization. They guide decision-making, resource allocation,
and strategic planning processes.
• Alignment: A well-crafted vision and mission statement help align
the actions and efforts of employees at all levels, ensuring that
they work towards a common goal. It promotes unity, cohesion,
and a shared understanding of the organization's objectives.
• Communication: Vision and mission statements effectively
communicate the organization's values, aspirations, and priorities
to internal and external stakeholders. They convey the
organization's identity and brand to customers, employees,
investors, and the public.
• Inspiration and Motivation: A compelling vision and mission
statement inspire employees, instilling a sense of purpose and
motivating them to perform at their best. They provide a sense of
pride, belonging, and a shared commitment to achieving the
organization's goals.
• Decision-making Framework: Vision and mission statements
serve as a framework for evaluating and making strategic
decisions. They help leaders and employees align their actions
with the organization's overarching objectives and values.

Q3: The Frequency of Changing Vision and Mission Statements:

Vision and mission statements are intended to provide long-term
direction and remain relatively stable over time. However, they
may need to be periodically reviewed and revised under certain
circumstances, such as:
• Significant Organizational Changes: If there are major shifts in the
organization's structure, strategy, or business model, the vision
and mission statements may need to be updated to reflect the
new direction.
• Market and Industry Changes: If there are substantial changes in
the external environment, market dynamics, or industry trends,
the vision and mission statements may require adjustments to
ensure relevance and alignment.
• Mergers, Acquisitions, or Rebranding: When organizations
undergo significant changes due to mergers, acquisitions, or
rebranding efforts, it may be necessary to revise the vision and
mission statements to reflect the new identity and strategic
objectives.
While it is essential to periodically review the vision and mission
statements, they should not be changed frequently. Constant
revisions can undermine the stability and consistency needed for
effective strategic planning and organizational alignment.