Monitoring competitors’ performance and strategies is a key aspect of an external audit. This exercise is designed to give you practice evaluating the competitive position of organizations in a given industry and assimilating that information in the form of a Competitive Profile Matrix.

Instructions

Step 1 Gather your information from Assurance of Learning Exercise 1A. Also, turn back to the Cohesion Case and review the section on competitors.

Step 2 On a separate sheet of paper, prepare a Competitive Profile Matrix that includes McDonald’s, Burger King Holdings, and Yum! Brands, Inc.

Step 3 Turn in your Competitive Profile Matrix for a classwork grade.

Data from Exercises 1A

Instructions

Step 1 Go to www.mcdonalds.com, which is McDonald’s Web site. Click on the word Search.Then type in the words Annual Report. Then print the 2009 McDonald’s Annual Report.This document may be 100 pages, so you may want to print it in your college library ororder the report directly from McDonald’s as indicated on the Web site. The Annual Reportcontains excellent information for developing a list of internal strengths and weaknesses for MCD.

Step 2 Go to your college library and make a copy of Standard & Poor’s Industry Surveys for therestaurant industry. This document will contain excellent information for developing a list ofexternal opportunities and threats facing MCD.

Step 3 Go to the www.finance.yahoo.com Web site. Enter MCD. Note the wealth of informationon McDonald’s that may be obtained by clicking any item along the left column. Click onCompetitors down the left column. Then print out the resultant tables and information. Note that McDonald’s two major competitors are Yum! Brands, Inc. and Burger King Holdings.

Step 4 Using the Cohesion Case, the www.finance.yahoo information, the 2009 Annual Report,  and the Industry Survey document, on a separate sheet of paper list what you consider to
be MCD’s three major strengths, three major weaknesses, three major opportunities, and  three major threats. Each factor listed for this exercise must include a %, #, $, or ratio to reveal some quantified fact or trend. These factors provide the underlying basis for a strategic plan because a firm strives to take advantage of strengths, improve weaknesses, avoid threats, and capitalize on opportunities.

Step 5 Through class discussion, compare your lists of external and internal factors to those developed by other students and add to your lists of factors. Keep this information for use in later exercises  at the end of other chapters.

Step 6 Be mindful that whatever case company is assigned to your team of students this semester, you  can start to update the information on your company by following the steps just listed for any  publicly-held firm.