PART II. CASE ANALYSIS: Read the instant case carefully, then answer the questions fully. (20 pts.)

When most firms were struggling in 2008, McDonalds increased its revenues from $22.7 billion in 2007 to $23.5 billion in 2008. Headquartered in Oak Brook, Illinois McDonalds net income nearly doubled during that time from $2.4 billion to $4.3 billionquite impressive. Fortune magazine in 2009 rated McDonalds as their 16th Most Admired Company in the World in terms of their management and performance. McDonalds added 650 new outlets in 2009 when many restaurants struggled to keep their doors open. McDonalds low prices and expanded menu items have attracted millions of new customers away from sit-down chains and independent eateries. Jim Skinner, CEO of McDonalds, says, We do so well because our strategies have been so well planned out. McDonalds served about 60 million customers every day in 2009, 2 million more than in 2008. Nearly 80 percent of McDonalds are run by franchisees (or affiliates).

McDonalds in 2009 spent $2.1 billion to remodel many of its 32,000 restaurants and build new ones at a more rapid pace than in recent years. This is in stark contrast to most restaurant chains that are struggling to survive, laying off employees, closing restaurants, and reducing expansion plans. McDonald's restaurants are in 120 countries. Going out to eat is one of the first activities that customers cut in tough times. A rising U.S. dollar is another external factor that hurts McDonalds. An internal weakness of McDonalds is that the firm now offers upscale coffee drinks like lattes and cappuccinos in over 7,000 locations just as budget conscious consumers are cutting back on such extravagances. About half of McDonalds 31,000 locations are outside the United States. But McDonalds top management team says everything the firm does is for the long term. McDonalds for several years referred to their strategic plan as Plan to Win. This strategy has been to increase sales at existing locations by improving the menu, remodeling dining rooms, extending hours, and adding snacks. The company has avoided deep price cuts on its menu items. McDonalds was only one of three large U.S. firms that saw its stock price rise in 2008. The other two firms were Wal-Mart and Family Dollar Stores. Other strategies being pursued currently by McDonalds include replacing gasoline-powered cars with energy-efficient cars, lowering advertising rates, halting building new outlets on street corners where nearby development shows signs of weakness, boosting the firms coffee business, and improving the drive-through windows to increase sales and efficiency. McDonalds receives nearly two thirds of its revenues from outside the United States. The company has 14,000 U.S. outlets and 18,000 outlets outside the United States. McDonalds feeds 58 million customers every day. The company operates Hamburger University in suburban Chicago. McDonald's reported that first quarter 2009 profits rose 4 percent and same-store sales rose 4.3 percent across the globe. Same-store sales in the second quarter of 2009 were up another 4.8 percent.

Questions:

4. Analyze the success factors that has made McDonaldss to make a success in difficult time?

5. Identify and categorize the external and internal factors that impacted Macdonald.

## please provide a short answers