Assurance of Learning Exercise 4A Performing a Financial Ratio Analysis for McDonald's Corporation (MCD) M. Purpose Financial ratio analysis is one of the best techniques for identifying and evaluating internal strengths and weaknesses. Potential investors and current shareholders look closely at firms financial ratios, making detailed comparisons to industry averages and to previous periods of time. Financial ratio analyses provide vital input information for developing an IFE Matrix. Instructions Step 1 On a separate sheet of paper, number from 1 to 20. Referring to McDonald's income statement and balance sheet (pp. 31-32), calculate 20 financial ratios for 2008 for the company. Use Table 4-7 as a reference. Step 2 In a second column, indicate whether you consider each ratio to be a strength, a weakness, or a neutral factor for McDonald's Step 3 Go to the Web sites in Table 4-6 that calculate McDonald's financial ratios, without your having to pay a subscription (fee) for the service. Make a copy of the ratio information provided and record the source. Report this research to your classmates and your professor. M. Assurance of Learning Exercise 4B Constructing an IFE Matrix for McDonald's Corporation Purpose This exercise will give you experience in developing an IFE Matrix. Identifying and prioritizing factors to include in an IFE Matrix fosters communication among functional and divisional man- agers. Preparing an IFE Matrix allows human resource, marketing, production/operations, finance/accounting, R&D, and management information systems managers to articulate their concerns and thoughts regarding the business condition of the firm. This results in an improved collective understanding of the business. Instructions Step 1 Join with two other individuals to form a three-person team. Develop a team IFE Matrix for McDonald's Step 2 Compare your team's IFE Matrix to other teams' IFE Matrices. Discuss any major differences. Step 3 What strategies do you think would allow McDonald's to capitalize on its major strengths? What strategies would allow McDonald's to improve upon its major weaknesses? Assurance of Learning Exercise 4C Constructing an IFE Matrix for My University Purpose This exercise gives you the opportunity to evaluate your university's major strengths and weak- nesses. As will become clearer in the next chapter, an organization's strategies are largely based upon striving to take advantage of strengths and improving upon weaknesses. Instructions Step 1 Join with two other individuals to form a three-person team. Develop a team IFE Matrix for your university. You may use the strengths/weaknesses determined in Assurance of Leaming Exercise ID. Step 2 Go to the board and diagram your team's IFE Matrix. Step 3 Compare your team's IFE Matrix to other teams' IFE Matrices. Discuss any major differ- Step 4 What strategies do you think would allow your university to capitalize on its major strengths? What strategies would allow your university to improve upon its major weak- nesses? ences, Assurance of Learning Exercise 4A Performing a Financial Ratio Analysis for McDonald's Corporation (MCD) M. Purpose Financial ratio analysis is one of the best techniques for identifying and evaluating internal strengths and weaknesses. Potential investors and current shareholders look closely at firms financial ratios, making detailed comparisons to industry averages and to previous periods of time. Financial ratio analyses provide vital input information for developing an IFE Matrix. Instructions Step 1 On a separate sheet of paper, number from 1 to 20. Referring to McDonald's income statement and balance sheet (pp. 31-32), calculate 20 financial ratios for 2008 for the company. Use Table 4-7 as a reference. Step 2 In a second column, indicate whether you consider each ratio to be a strength, a weakness, or a neutral factor for McDonald's Step 3 Go to the Web sites in Table 4-6 that calculate McDonald's financial ratios, without your having to pay a subscription (fee) for the service. Make a copy of the ratio information provided and record the source. Report this research to your classmates and your professor. M. Assurance of Learning Exercise 4B Constructing an IFE Matrix for McDonald's Corporation Purpose This exercise will give you experience in developing an IFE Matrix. Identifying and prioritizing factors to include in an IFE Matrix fosters communication among functional and divisional man- agers. Preparing an IFE Matrix allows human resource, marketing, production/operations, finance/accounting, R&D, and management information systems managers to articulate their concerns and thoughts regarding the business condition of the firm. This results in an improved collective understanding of the business. Instructions Step 1 Join with two other individuals to form a three-person team. Develop a team IFE Matrix for McDonald's Step 2 Compare your team's IFE Matrix to other teams' IFE Matrices. Discuss any major differences. Step 3 What strategies do you think would allow McDonald's to capitalize on its major strengths? What strategies would allow McDonald's to improve upon its major weaknesses? Assurance of Learning Exercise 4C Constructing an IFE Matrix for My University Purpose This exercise gives you the opportunity to evaluate your university's major strengths and weak- nesses. As will become clearer in the next chapter, an organization's strategies are largely based upon striving to take advantage of strengths and improving upon weaknesses. Instructions Step 1 Join with two other individuals to form a three-person team. Develop a team IFE Matrix for your university. You may use the strengths/weaknesses determined in Assurance of Leaming Exercise ID. Step 2 Go to the board and diagram your team's IFE Matrix. Step 3 Compare your team's IFE Matrix to other teams' IFE Matrices. Discuss any major differ- Step 4 What strategies do you think would allow your university to capitalize on its major strengths? What strategies would allow your university to improve upon its major weak- nesses? ences