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CHAPTER 1 • THE NATURE OF STRATEGIC MANAGEMENT 37

ASSURANCE OF LEARNING EXERCISES

Assurance of Learning Exercise 1A

Gathering Strategy Information

Purpose
The purpose of this exercise is to get you familiar with strategy terms introduced and defined
in Chapter 1. Let’s apply these terms to McDonald’s Corporation (stock symbol = MCD).

Instructions
Step 1 Go to www.mcdonalds.com, which is McDonald’s Web site. Click on the word Search.
Then type in the words Annual Report. Then print the 2009 McDonald’s Annual Report.
This document may be 100 pages, so you may want to print it in your college library or
order the report directly from McDonald’s as indicated on the Web site. The Annual Report
contains excellent information for developing a list of internal strengths and weaknesses for
MCD.
Step 2 Go to your college library and make a copy of Standard & Poor’s Industry Surveys for the
restaurant industry. This document will contain excellent information for developing a list of
external opportunities and threats facing MCD.
Step 3 Go to the www.finance.yahoo.com Web site. Enter MCD. Note the wealth of information
on McDonald’s that may be obtained by clicking any item along the left column. Click on
Competitors down the left column. Then print out the resultant tables and information.
Note that McDonald’s two major competitors are Yum! Brands, Inc. and Burger King
Holdings.
Step 4 Using the Cohesion Case, the www.finance.yahoo information, the 2009 Annual Report,
and the Industry Survey document, on a separate sheet of paper list what you consider to
be MCD’s three major strengths, three major weaknesses, three major opportunities, and
three major threats. Each factor listed for this exercise must include a %, #, $, or ratio to
reveal some quantified fact or trend. These factors provide the underlying basis for a
strategic plan because a firm strives to take advantage of strengths, improve weaknesses,
avoid threats, and capitalize on opportunities.
Step 5 Through class discussion, compare your lists of external and internal factors to those developed
by other students and add to your lists of factors. Keep this information for use in later exercises
at the end of other chapters.
Step 6 Be mindful that whatever case company is assigned to your team of students this semester, you
can start to update the information on your company by following the steps just listed for any
publicly-held firm.

Assurance of Learning Exercise 1B

Strategic Planning for My University
Purpose
External and internal factors are the underlying bases of strategies formulated and implemented
by organizations. Your college or university faces numerous external opportunities/threats and
has many internal strengths/weaknesses. The purpose of this exercise is to illustrate the process
of identifying critical external and internal factors.