How can I content these case study with the five competitive Force that shape St

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How can I content these case study with the five competitive Force that shape Strategy? How can I content these case study with the five competitive Force that shape Strategy?
2- Also, how summarized it? W15400 MCDONALD'S JAPAN (A): THE SHANGHAI HUSI DEBACLE1 Derek Lehmberg wrote this case solely to provide material for class discussion. The author does not intend to ilmlustrate either disguised certain narmes and other identrying effective information to protect confidentiality. or ineffective handling of a managerial situation. The author may have This publication may not be transmitted photocopied, digitized or otherwise reproduced i permission of the copyright holder. Reproduction of this matenil is not organization. To arder copies or request permission to reproduce matenials, University, London, Ontanio, Canada, NGG ON1; ()519.661.3208, (e) cases@ivey.ca; www.iveycases.oom. in any form or by any means without the covered under authorization by any reproduction rights contact Ivey Publishing, Ivey Business School, Westenm Version: 2016-03-24 Copynight 2015 Richard Ivey School of Business Foundation There is almost no one [in Japan] who has not eaten at McDonald's at least once. -Eiko Harada On July 22, 2014, Sarah Casanova, CEO of McDonald's Japan (MDJ), was facing a sudden and unexpected crisis amidst what was an already difficult situation. Two days earlier, a video recording exposing troubling food safety violations at Shanghai Hust, China-based supplier of chicken nuggets to MDJ, had been broadcast on Chinese television. The video alleged Shanghai Husi of using expired meats, and showed workers picking up meat and chicken that had fallen on the floor and putting it back into the production equipment. The following day, MDJ had halted sales of chicken nuggets as the news spread in Japan. MDJ was preparing to release its first half-year earnings results, and planned to hold a press conference for this purpose on July 29. McDonald's Holdings Japan, a publicly listed holding company that owned MDJ, had reported decreasing revenues since 2008 and declining profits since 2011 (see Exhibit 1). The upcoming results would confirm the continuation of these downward trends. Customer visits year-on-year for each of the last 12 months, and same-store sales were down for every month but January (see Exhibit 2). Casanova, a Canadian national who had been appointed to the CEO position of MDJ in August 2013, and to the CEO position of its holding company in March 2014, had been conducting market research to identify opportunities to turn around the situation. Developing and successfull were down implementing a turnaround would be even harder if McDonald's reputation for food safety was damaged. MCDONALD'S CORPORATION McDonald's Corporation reported worldwide revenues of $28 bilion for 2013 There were more than 35,000 McDonald's locationsy about 80 per cent of which were franchised. The company operated in 119 countries. nt is authorized for use only by Haifa Alamn in Organization Analysis; SP 17 tauht by Professor Moly Burke Dominican University-ilinois from January 2017 to N

Explanation / Answer

McDonald's Japan strategy changed over time. The five competitive forces shaping the strategies can be summarized as given below :-

1. Threat of new entrants - The fast food industry has a moderate degree of threat of new entrants as Japanese people have preferred healthy food options over fast food and as per their local culture. They do not switch brands easily unless a strong reason is available for changing the loyalties.

2. Threat of substitutes - McDonald's Japan faced high threat of substitutes which strengthened over time as it changed its strategy from more company owned stores to franchisee stores and the quality of food was comprised.

3. Bargaining power of customers - Since the fast food industry was introduced by McDonald's Japan the bargaining power of customers increased from low to moderate as more options became available in Japanese market and McDonald's brand started weakening due to lack of consistency in strategy and clarity.

4. Bargaining power of suppliers - Supplier bargaining power is moderate as there was considerable options available in market. Since McDonald was present over years in Japan it has been able to build a supplier network which needed improvement with expansion.

5. Industry competition - McDonald faced high competition as the economy and market conditions changed giving rise to various alternatives and consumer tastes were developed for fast food industry. It tried various strategies to deal with competition which failed due to financial viability and inconsistency in quality and service.

McDonald Japan was facing problems due to rising competition and costs. The profitability was compromised for market expansion and the strengths of the brand were lost in order to adopt changes in the strategy and drive growth. There was a need to continue on the proven strengths and market consolidation in wake of competition.

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