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    Product positioning map, and perform EPS/EBIT calculations

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    Prepare a product positioning map, and perform EPS/EBIT calculations based on the following information.

    (1-1-10 Data) Lets say McDonald's needs to raise $1 billion to expand into Africa. Determine whether McDonald's should have used all debt, all stock, or a 50-50 combination of debt and stock to finance this market-development strategy. Assume a 38 percent tax rate, 5 percent interest rate, McDonad's stock price of $50 per share, and an annual dividend of $0.30 per share of common stock. The EBIT range for 2010 is between $6.332 billion and $9 billion. A total of 1 billion shares of common stock are outstanding. Develop an EPS/EBIT chart to reflect your analysis.

    Discuss in a two page APA formatted paper, how the product positioning is aligned with McDonald's corporate strategy. Identify potential gaps in the product line or weaknesses in positioning. Describe the relevance of the EPS/EBIT chart and why it is significant with respect to stategy implementation.

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    Solution Preview

    The response addresses the query posted in 649 words with APA References.

    //The product positioning plays an important role in relation to the corporate strategy of an organization. In this context, the product positioning map of McDonald's and its integration with the corporate strategy is explained below.//

    (See diagram in attached file)

    McDonald's product positioning map can be considered quite aligned with its corporate strategy of expanding business across the globe. In its global business corporate strategy, the company undertakes products and service customization which is thoroughly reflected in its position map. The positioning map of the company is showing that products of the company can be placed in the category of high quality and low price quadrant which is quite suitable in existing market place. With the help of this strategy measure the company can be able to cater a mass population and in the context of high competition prevailing in the marketplace, the company ...

    Solution Summary

    The expert examines product positioning map, and performs EPS.EBIT calculations. The response addresses the query posted in 649 words with APA References.