Posted: September 3rd, 2013







Financial strength Rating Environmental Stability Rating
ROE 4 Price elasticity of demand -2
Income (net) 5 Inflation rate -1
Leverage 3 Changes in demand -4
Return on equity 6 Competitive pressure -2
Cash flow 5 Obstacle to enter new markets -2
Earning per share 4 Risk involved in business -3
Average 4.5 Average 2.3
Competitive Advantage Rating Industry strength Rating
Dominion over other parties -2 Ease of entering new markets 3
Quality of the product -2 Stability of finances 4
Market share -1 Growth potential 6
Customer loyalty -2 Utilizing resource 3
    Potential of profits 4
    Variability of demand 4
Average 1.75 Average 4


The directional vector of this matrix leads aggressive strategies. The results of the matrix show that financial strength and industrial strength are the best compared to the others. It therefore shows, for McDonald to achieve it goals and objectives, it has to apply aggressive strategies. The main strategy involves expanding in Asian countries. For the next two years, this company should start at 500 restaurants in Asia. Another key strategy is to decrease Trans fat in all McDonald restaurants. Preferably, there should be no grams of fat at all.

Question 2

I like your answer because it clearly defines the figures and variables in the table. The example of the SPACE matrix is an appropriate way of practicing what we have learnt. It even makes it better because this is a group’s work. Working together helps us clarify difficult areas. The knowledge acquired from this table will not only be useful in class work but also in our business career fields. Those who will become strategic managers will be involved in formulating such strategies for their company.

Question 3

I agree with your message because it is based on facts about McDonald. This is highly advisable for this company to use the proposed strategies. There have been so many controversies about the snacks sold in these restaurants. People say that they encourage obesity because they are rich in fats. Producing fat-free foods is a brilliant strategy of ending debates and conflicts. The expansion of the company will bring in increased profits and more employment opportunities.

Question 4

The topic that has made the greatest impact to me is strategic management. I have realized how crucial it is to have strategies of how to do something. In business, strategic plans are made to ensure that all participants are working towards the same achievements. A business formulates strategies to enable it achieve the goals and objectives it has set. From this topic, I learn that having strategies is an essential element of success. If I want to attain certain grades at school, I need to make specific strategies of how I will work to achieve my goals. It is not wise to operate without have a plan. Having no plans will make a person lose focus of what he or she is expected to do. This is why I need to learn how to plan and adhere to the plan. Another important lesson from this topic is learning how to formulate the best strategies. Choosing inappropriate strategies will lead to failure. I will apply this knowledge to improve my academic performance. Before I choose which strategies to use, I will identify areas of strength and weakness and make the right decisions. I am sure my knowledge in strategic management will help me improve my grades.


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