MAR303 PRACTICE QUIZ

McDonalds decided to add the coffee shop model to the current fast-food model. Before investing in this idea, McDonalds had been sure that the new coffee shop model was suitable based on:

i. Strategic fit.

ii. An analysis of any gaps in the market.

iii. A scan of opportunities and threats in the macro environment.

iv. A review of resources and capabilities in the micro environment.

• Option i

• Options ii and iii

• Options i, ii and iii

• Options i, ii, iii and iv

Answer explanation

McDonalds decided to add the coffee shop model to its offering after months of painstaking research and strategic thinking to solve the problem of McDonalds customers wanting more than just typical fast-food products delivered in a quick and convenient way, such as hot beverages and bakery items. Which approach to competitive marketing strategy has McDonalds followed in this scenario?

• Thinking first

• Seeing first

• Doing first

• Simple rules

McDonalds intends to offer 100% certified, recycled or renewable packaging materials by the end of 2025. Where would this fall in McDonalds’ strategic management framework?

• Strategy formulation

• Strategy implementation

• Evaluation and control

• Feedback

Due to restrictions imposed under the 2020 Covid-19 pandemic, McDonalds’ global same-store sales fell 23.9% for the second quarter of 2022. Where would this fall in McDonalds’ strategic management framework?

• Strategy formulation

• Strategy implementation.

• Evaluation and control.

• Feedback

McDonald’s strategy must address the marketing, human relations, production and finance divisions. Which of the following strategies is the correct strategy to follow?

• Corporate strategy

• Business strategy

• Mindful strategy

• Functional strategy

Due to restrictions imposed under the 2020 Covid-19 pandemic, McDonalds’ global same-store sales fell 23.9% for the second quarter of 2022. Where would this fall in McDonalds’ strategic management framework?

• Strategy formulation

• Strategy implementation

• Evaluation and control

• Feedback

McDonalds currently has over 300 franchise outlets operating, which gives McDonalds an advantage when it comes to purchasing raw materials and operational efficiencies. Which of Porter’s Five Forces is this most likely to impact?

• Bargaining power of buyers

• Bargaining power of suppliers

• Threat of new entrants

• Intensity of rivalry

McDonalds recognised the growing trend of consumers reducing the amount of meat they consume, both for personal health and environmental reasons. In response to this, McDonalds introduced the McDonalds vegetarian burger to avoid losing customers. Which of Porter’s Five Forces is least likely to influenced McDonalds’ decision?

• Bargaining power of buyers

• Bargaining power of suppliers

• Threat of new entrants

• Threat of substitutes

During Covid-19 restrictions in South Africa, there was a period of time when restaurants were not allowed to operate. This meant that all South Africans could only eat home-made meals. Which of Porter’s Five Forces did this most likely impact?

• Bargaining power of suppliers

• Bargaining power of buyers.

• Threat of new entrants

• Intensity of rivalry

McDonalds in launching a new product for 2023 called the TwentyThree Burger, which will sell for only R 23.00. If Burger King SA responds by launching a Two-Three Burger for R 23.00, what type of competitor would Burger King be?

• A laid-back competitor

• Selective competitor

• Stochastic competitor

• Tiger competitor