The inner environment examination and research is conducted after the external environment evaluation. While the external environment analysis looks for to identify opportunities and threats in the external environment, the inner environment analysis looks for to identify the strengths and weakness of business. It focuses on factors that are interior of the business, some of which may be easily transformed or improved upon. The three models are resources, features and center competences which Impact when identifying inner factors of the business.
It is important to distinguish between your resources and the features of the firm, resources will be the productive assets possessed by the company; capabilities are the particular organization can do. Regarding to (Ivythesis, 2010), the bond between the source and capabilities of a firm in the region of business makes a competitive edge. For the reason that the capabilities and resources permit the organization to set-up value and gain some type of benefits from the rivals.
1. 1 Resources
To take a wider view of an firm's resources it is helpful to identify tow principal types of source: tangible and intangible
1. 1. 1 Tangible Resources
Tangible resources will be the easiest to recognize and assess: financial resources, human resources, physical resources and organizational.
Tangible Resources
Physical
The physical resources of McDonalds are the restaurant location which will be at UCTI building with the average sitting capacity of 50 persons. The restaurant has the latest cooking food and storing equipment. The restaurant has the facility of Play Place for students and has one tv set.
Human resource
Human reference is most important reference of any business unit wherever on earth. The strength of any organization is not the machine, equipment or its cash flows; rather these are employees that make a business great and competitive.
McDonald's identifies that employee satisfaction is a critical component in its goal of achieving 100 percent customer satisfaction. Its employees can be found world-class, award-winning training and the ability for career development.
Hiring Personnel
There is no criterion therefore for selecting employees, what's important is integrity, inspiration and some educational requirements.
In the workforce, qualities, which are sought, are anatomy, motivation and ability to work more time. While for administrator the characteristics required are command, energy and attraction
Financial
McDonald's can be involved, now information is available about its funding activities. McDonald's is dealing with two banks particularly CIMB and MayBank. These two banks are caring for any financial activity for McDonald's outside and inside the united states and also provide short-term loans to the company.
Organizational
McDonald serve as training center where day-to-day instruction and shoulder-to-shoulder interaction between professionals and staff are emphasized. Training starts with one-on-one education before a crew-person cooks the first French fries as well as for new entrants to the labor force, the company offers an important base:
Teaching interpersonal and organization skills.
Crew-members can also learn the importance of teamwork.
Discipline and responsibility.
1. 1. 2 Intangible resources
1. 2 Capabilities
McDonald applied an important part of translating directions and operating techniques into features. The successful businesses used the data as part of the fundamental change in their corporations. In addition, the McDonald pioneered the transformation through systematization which is appropriate in their processes.
The idea of systematization presumes that the company can more totally articulate the techniques within its capabilities.
With concern of knowledge management, McDonald Company is generally utilizing the McDonald's system. The essence of systematization of knowledge is accompanied by every electric outlet with a detailed set of rules. Therefore, the operating tactics became part of each worker and given a thorough attention from the management through working out programs.
Capabilities are highly essential in the next areas:
Capabilities
Inbound Logistics
Organizing the way to obtain food and materials to restaurants through approved third party logistics providers.
Production huge plants denoted exclusive to McDonald control food
Operations
R&D in field research needs of customers.
Quality development in collaboration with good suppliers
Forward integration through franchisees with control over store presentation, menu items etc. and enhance participation in process improvement.
Outbound Logistics
It is the concern of the franchisee.
Outbound logistics are growing as a part of McDonald recycling system integrating in the logistics of syndication center.
Sales & Marketing
Long term marketing aims are divided into short term measurable targets, which McDonalds uses as milestones.
Country teams are given autonomy in marketing combine decision.
Services
Services provided by the firms enrollment standards
Core competencies
Core competencies are about providing increase customer value. This numerous chance to the company; it can be about innovative new products or discovering the new market specific niche market.
Same is the situation with MacDonald advertising burger is not their central competence instead providing convenience and customer oriented insurance plan is their strongest point.
Following will be the McDonald's center competencies which makes it stand forward among its competition in industry:
McDonald's play area: McDonald's introduced the play area of students, like participating in chess titans till.
Product variety: McDonald's keeps on changing a providing innovation directly into burger, salads, desserts, beverages and sandwiches variety.
For development McDonald's have to test out new products. It's advocated that McDonald's should rely on test marketing to check on new menu if it would like to keep up a constant expansion.
