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A McDonald's restaurant in Muscat, Oman. This Porter's Five Forces analysis of McDonald's Corporation indicates that external factors in the fast food restaurant chain industry environment emphasize competition, customers, and substitution as the strongest forces affecting the business. McDonald's Corporation expands internationally through strategies that account for the external factors in the industry environment, as identifiable through a Five Forces analysis of the business. Michael E. Porter's Five Forces Analysis model provides valuable information to support strategic management, especially in addressing relevant issues in the external environment of the business. These issues are based on external factors that represent the degree of competitive rivalry in the industry, the bargaining power of customers or buyers, the bargaining power of suppliers, the threat of substitution, and the threat of new entrants. In this Five Forces analysis of McDonald's, the forces are mainly within the fast food restaurant industry. As the leading restaurant chain business in the world, the company is an example of effective strategic management, especially in dealing with competition in different markets worldwide. This status shows that McDonald's strategic direction is appropriate to the external factors, such as the ones identified in this Five Forces analysis. Summary & Recommendations: Porter's Five Forces Analysis of McDonald's Corporation Summary. In this Five Forces analysis, McDonald's experiences the effects of external factors at varying intensities, based on the variations among markets around the world. For example, the U.S. market presents a competitive landscape different from that of the European market. The company must implement strategies to meet these external factors and minimize their negative impacts. Recommendations. The results of this Five Forces analysis show that McDonald's Corporation needs to prioritize the strategic issues related to competition, consumers, and substitutes, all of which exert a strong force on the company and its external environment. The other forces (the bargaining power of suppliers and the threat of new entrants) are also significant to the business, although to a lower extent. In this regard, a recommendation is to strengthen the business by building on the strengths enumerated in the SWOT analysis of McDonald's Corporation. The company's managers must focus on reducing the effects of competitors and substitutes on revenues and market share. McDonald's marketing mix or 4Ps partly supports such effort. Also, it is recommended that McDonald's make its product innovation process more aggressive. While the food service industry is saturated with aggressive firms, new products can attract new customers and retain more customers. In relation, based on this Porter's Five Forces analysis, McDonald's can implement higher quality standards to address the forces of competition and substitution. Instructions: Part I: Considering the combination of market conditions, this Porter's Five Forces analysis of McDonald's establishes the following intensities of the five forces: (70 points) 1. Competitive rivalry or competition - Strong Force 2. Bargaining power of buyers or customers - Strong Force 3. Bargaining power of suppliers - Weak Force 4. Threat of substitutes or substitution - Strong Force 5. Threat of new entrants or new entry - Moderate Force Please discuss and apply 5 porters' five analysis to the McDonald's company based on the above list. Part II: Match the statements below with a force based on porter's five forces: (10points) Competitive rivalry or competition Bargaining power of buyers or customers Bargaining power of suppliers Threat of substitutes or substitution Threat of new entrants or new entry ) 1. What distinguishes your company from the competition 2. How much does it cost and how long does it take to enter your market? )