Mcdonald's Swot Analysis

In: Business and Management

Submitted By faby1978
Words 823
Pages 4
SWOT ANALYSIS

S – Strengths or Core Competencies

* Strong global presence, considered a market leader in all markets.

McDonald’s is a global company that “operates more than 23,500 restaurants in 109 countries.”1 The company’s strong global presence is an significant advantage for them, because it gives them the ability to “play” with economic fluctuations of each country.

By being spread out in different regions, the company is able to contest the economic fluctuations which are localized by country. McDonald’s has an advantage as it can operate effectively even in an economic downturn as at such times people seek out comfort food more.

* Relies upon economies of scale for cost reduction.

Any corporation registered and operating in more than one country at a time, usually with its headquarters in a single country. A firm's advantages in establishing itself multinationally include both vertical and horizontal economies of scale (reductions in cost that result from an expanded level of output). Critics usually regard the multinational corporation as destructive of local economies abroad and as prone to monopolistic practices

* Very loyal employees and management

monopolistic practices The company has known to have very loyal employees and management. The twenty of its fifty top employees started as low level restaurant employees at McDonald’s. The caring attitude of the company towards its employees is also shown by the fact that around its 67,000 managers were initially hired as restaurant staff. For this reason, “the McDonald’s was listed in the Fortune Magazine 2005 as the “Best Place to Work for Minorities.” 2 McDonalds invests over $1 billion every year in training its staff, and every year over 250,000 employees graduate from McDonald’s training facility, Hamburger University. All this shows the employee strength of the company.…...

Similar Documents

Swot Analysis

...SWOT Analysis on McDonald’s:   Strength: * McDonalds has built up huge brand equity. It is the No. 1 fast-food company by sales, with more than 31,000 restaurants serving burgers and fries in almost 120 countries. Sales, 2007 (11,4009 million), 5.6% sales growth. The business was ranked number one in Fortune Magazine's 2008 list of most admired food service companies. * Globalization: 31,000 restaurants serving 120 countries. Of the 31,000restaurants at least14,000 restaurants in the US * Good innovation and product development. It continually innovates to retain customers in the business. * The McDonalds brand offers consumers choice, reasonable value and great service * Large amounts of investment have gone into supporting its franchise network,75% of stores are franchises * Loyal staff and strong management team. * Very strong brand name * Recognizable characters. One of the world's most recognizable logos (the Golden Arches) and spokes character (Ronald McDonald the clown). According to the Packard Children's Hospital's Center for Healthy Weight children age 3 to 5 were given food in the McDonalds packaging and then given the same food without the packaging, and they preferred the food in the McDonald's packaging every single time. * Large target group * New stores almost 100% guaranteed to succeed * Ability to adapt when faced with criticism * Play Area for children * Successful advertisement......

Words: 803 - Pages: 4

Swot Analysis

...SWOT Analysis A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as strengths (S) or weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats (T). Such an analysis of the strategic environment is referred to as a SWOT analysis. The SWOT analysis provides information that is helpful in matching the firm's resources and capabilities to the competitive environment in which it operates. As such, it is instrumental in strategy formulation and selection. The following diagram shows how a SWOT analysis fits into an environmental scan: SWOT Analysis Framework Environmental Scan / \ Internal Analysis External Analysis / \ / \ Strengths Weaknesses Opportunities Threats | SWOT Matrix Strengths A firm's strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage. Examples of such strengths include: patents strong brand names good reputation among customers cost advantages from proprietary know-how5/10/13 SWOT Analysis www.quickmba.com/strategy/swot/ 2/4 exclusive access to high grade natural resources favorable access to distribution networks Weaknesses The absence of certain strengths may be viewed as a weakness. For example, each of the following may be considered weaknesses: lack of patent protection a weak brand name poor reputation among......

Words: 557 - Pages: 3

Mcdonald's Company Analysis

...The McDonald's Corporation (NYSE: MCD) is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries.[4][5] Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald; in 1948 they reorganized their business as a hamburger stand using production line principles. Businessman Ray Kroc joined the company as a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth.[6] A McDonald's restaurant is operated by either a franchisee, an affiliate, or the corporation itself. McDonald's Corporation revenues come from the rent, royalties, and fees paid by the franchisees, as well as sales in company-operated restaurants. In 2012, McDonald's Corporation had annual revenues of $27.5 billion, and profits of $5.5 billion.[7] McDonald's primarily sells hamburgers, cheeseburgers, chicken, french fries, breakfast items, soft drinks, milkshakes, and desserts. In response to changing consumer tastes, the company has expanded its menu to include salads, fish, wraps, smoothies, and fruit.[8] Headquarters McDonald's Plaza, located in Oak Brook, Illinois is the headquarters of McDonald's The McDonald's headquarters complex, McDonald's Plaza, is located in Oak Brook, Illinois. It sits on the site of the former headquarters and stabling area of Paul Butler, the founder of Oak Brook.[10] McDonald's......

Words: 2140 - Pages: 9

Analysis Mcdonald’s Franchise in Viet Nam

...Individual Assignment Analysis McDonald’s Franchise in Viet Nam Name: Le Quang Hieu ID student: BA60114 Class: BA0662 Lecturer: Nguyen Quoc Cuong Subject: Entrepreneurial Small Business Individual Assignment Table of contents I. McDonald’s background 1. History 2. Mission and Vision 3. Business objective II. SWOT analysis III. Advantage and disadvantage of MacDonald franchise IV. Investment decision V. Summary VI. References FPT University – BA0662 Page 1 Individual Assignment I. Background of MacDonald 1.1. History McDonalds’s is a business corporation system of fast food restaurants with approximately 31,000 restaurants in 119 countries to serve 43 million passengers a day under its own brand. The McDonalds’s restaurant concept was introduced in San Bernardino, California by Dick and Mac McDonald’s in May 15, 1940. It was modified and expanded by their business partner, Ray Kroc, of Oak Park, Illinois, who later bought out the business interests of the McDonald’s brothers in the concept and went on to found McDonalds’s Corporation in April, 15, 1955. 1.2. Mission and Vision  Mission McDonalds’s brand mission is to "be our customers' favorite place and way to eat." Our worldwide operations have been aligned around a global strategy called the Plan to Win centering on the five basics of an exceptional customer experience - People, Products, Place, Price. We are committed to improving our operations and enhancing our customers' experience.  Vision...

Words: 1708 - Pages: 7

Swot Analysis

...SWOT Analysis for McDonald’s Yolanda Jennings Columbia Southern University  Abstract This paper explores the Strengths, Weaknesses, Opportunities and Threats (SWOT) of McDonald’s. The analysis will list several examples of each.   Strengths: 1. Strong brand name, image and reputation: The image of McDonald’s is recognized everywhere whether it be from the golden arches that light up the sky or the face of Ronald McDonald. It is the number one fast food company by sales, with more than 31,000 restaurants in over 120 countries. 2. Partnership with the best brands: McDonald’s offers the most popular brands in its restaurants. Companies such as Coca Cola, Dannon Yogurt and Heinz Ketchup are among the few that have ventured into business with them. 3. More than 80% of restaurants are owned by independent franchisees. This opens the market for future restaurants in more places which equates to more profits for the company.. 4. Children targeting: McDonald’s successfully targets very young children through its offering of playgrounds on the premises, toys with its meals and advertisements on billboards and in commercials. The toys they select are chosen based on the most current trends in movies, television shows and games. 5. Locations: Not only are there locations on public streets but McDonald’s has partnered with Wal-Mart, airports and theme parks to take advantage of highly frequented places. Weaknesses: 1. Unhealthy food menu:......

Words: 1256 - Pages: 6

Swot Analysis

...PURPOSE OF A SWOT ANALYSIS 1 The Purpose of a SWOT Analysis Charles Anderson Joyner III Grantham University PURPOSE OF A SWOT ANALYSIS 2 Abstract Every business to include the largest ones that control their areas of industry--has a limited supply of manpower, production capacity and capital. Evaluating the company’s strengths, weaknesses, opportunities, and threats helps it determine how to allocate these resources in a manner that will result in the highest possible potential for revenue growth and profitability. The management team examines where the company can compete most effectively. The company more times than not discovers competitive strengths that have not been fully utilized in the past in addition to critical areas that needs to be improved in order for the business to more effectively compete. A realistic assessment also prevents strategic blunders like entering a market with products that are clearly inferior to what well-entrenched competitors are offering. Continuous improvement in all areas of a company’s operations is an important aspect of staying ahead of competitors. Weaknesses and opportunities can--and must--be turned into future strengths. PURPOSE OF A SWOT ANALYSIS ...

Words: 1304 - Pages: 6

Mcdonald's Swot Analysis

...world. McDonald’s is the largest fast food restaurant chain in terms of total world sales (8%). It is the second largest outlet operator with more than 34,000 outlets, serving 69 million consumers every day in 119 countries. 2. Brand recognition valued at $40 million. Company’s brand is the most recognized brand in fast food industry and is valued at $40 billion. McDonald’s is also famous by the Ronald McDonald clown. 3. $2 billion advertising budget. McDonald’s spends on advertising more than the next 4 fast food restaurant chains combined. 4. Locally adapted food menus. The fast food chain is operating in many diverse cultures where tastes in food are extremely different than those of US or European consumers. Thus ability to adapt to local tastes is one of McDonald’s strengths. 5. Partnership with best brands. McDonald’s offers only most popular brands in its restaurants, such as: Coca Cola, Dannon Yogurt, Heinz ketchup and others. 6. More than 80% of restaurants are owned by independent franchisees. Therefore, McDonald’s can focus more on perfecting its serving system and marketing campaigns. 7. Children targeting. The business successfully targets very young children through offering playgrounds, toys with its meals and advertisements. Weaknesses 1. Negative publicity. McDonald’s is heavily criticized for offering unhealthy food to its customers, stimulating obesity and strong marketing focus on very young children. 2. Unhealthy food menu. Although McDonald’s......

Words: 770 - Pages: 4

Swot Analysis

... the Beatles sang, advising: For other uses, see SWOT. SWOT analysis, with its four elements in a 2x2 matrix. SWOT analysis (alternatively SWOT Matrix) is a structured planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. A SWOT analysis can be carried out for a product, place, industry or person. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. The technique is credited to Albert Humphrey, who led a convention at the Stanford Research Institute (now SRI International) in the 1960s and 1970s using data from Fortune 500 companies.[1][2] The degree to which the internal environment of the firm matches with the external environment is expressed by the concept of strategic fit. Setting the objective should be done after the SWOT analysis has been performed. This would allow achievable goals or objectives to be set for the organization. * Strengths: characteristics of the business or project that give it an advantage over others * Weaknesses: are characteristics that place the team at a disadvantage relative to others * Opportunities: elements that the project could exploit to its advantage * Threats: elements in the environment that could cause trouble for the business or project Identification of SWOTs is important because they can inform later steps......

Words: 1507 - Pages: 7

Mcdonald’s Marketing Analysis

...McDonald’s Marketing Analysis I. Introduction As an international food giant McDonald's, founded in the mid-1950s the United States because of the time needed, founder of the American working class to seize the opportunity of rapid economic development under the convenient diet, targeting market segments and demand characteristics, the product of precise positioning and quick success. Today McDonald's has grown into the world's largest restaurant group in 109 countries opened a 25,000 stores, annual turnover of over 3.4 billion U.S. dollars. II. Analysis McDonald's can be seen from the development processing, McDonald's grasp of market segmentation for positioning is very accurate, which is one important reason for the success of McDonald's. Consumer market segments based primarily geographical factors, human factors, psychological factors, buy behavioral factors, each consumer group is a market segment, each segment is made with the same needs and desires of consumers buying group composed of McDonald's is based on geographic, demographic and psychological factors were accurate market subdivision, and implement the appropriate strategy to achieve its marketing goals. On geographical factors, different regions have different overall eating habits and cultural backgrounds. McDonald had adequate market research, a full analysis of regional differences. Things as who the U.S. Department of coffee taste is not the same, we must the market segments for different......

Words: 1879 - Pages: 8

Mcdonald’s Swot & Space Matrix

...McDonald’s SWOT & Space Matrix Columbia Southern University Business Policy and Strategy SWOT Matrix of McDonald’s STRENGTHS Biggest Fast Food ChainMcDonald’s Brand is popular throughout the world Strong brandChildren are there focus | WEAKNESSESNo new products introduce with the fast food industryNegative publicity from activists who protect animal’s rights.Known for having unhealthy menu Have not tap into the pizza market | OPPORTUNITIESTap into the Coffee and smoothie marketExpanding its brand to the next level Joining forces with Larger retailersBreaking into home delivery health food market | THREATSBlame for contributing to unhealthy eating habits The global economic downturn threatens to harm McDonald’s revenues. Strong competition from fast food chains in the developed marketCurrency fluctuations overseas are a factor in McDonald’s overall earning | McDonald’s is leading from the front when it comes to fast food industry in the world. It’s presence it felt around the world with over 31,000 restaurants and franchisees spread out in 119 different countries give it the financial overhead to out due it competition. Overall from year to year McDonald’s has proven that they can continue to grow and increase its net profit over 1.1 billion dollars since 20008 to current weighing in at net profit as of 2012 of 5.4 billion dollars. The fast food chain competitors have not changed over the year and still are lingering on Burger King’......

Words: 645 - Pages: 3

Mcdonald’s Strategic Analysis

...McDonald’s Keanu Gordon-Williams Lujack McReynolds 11/29/2012 Table of Contents Executive Summary LM………………………………………………………………………… 3 Introduction KGW ……………………………………………………………………………….5 External Analysis KGW .…………………………………………………………………………5 General Environment KGW……………………………………………………………... 5 Technological Factors KGW ....…………………………………………………..5 Economic Factors KGW ………………………………………………………… 6 Demographic Factors KGW..……………………………………………………..7 Global Factors KGW ……………………………………………………………. 7 Sociocultural Factors KGW..……………………………………………………..7 Industry Environment KGW .……………………………………………………………. 8 Opportunities KGW..…………………………………………………………….. 8 Threats KGW..…………………………………………………………………… 9 Porter’s Five Forces KGW...………………………………………………………………9 Threats of New Entrants KGW …………………………………………………...9 Bargaining Power of Buyers KGW……………………………………………...10 Bargaining Power of Suppliers KGW……………………………………………10 Threat of Substitutes KGW………………………………………………………10 Internal Rivalry KGW……………………………………………………………11 Internal Analysis LM…………………………………………………………………………….11 Core Competencies and Competitive Advantages LM…………………………………..11 Sustainable Competitive Advantages LM……………………………………………… 13 Organizational Culture and Leadership LM …………………………………………….14 Strategic Alternatives KGW & LM ……………………………………………………………..20 Business Strategy LM …………………………………………………………………...20 Corporate Strategy KGW………………………………………………………………. 21 Global Strategy KGW………………………………………………………………….. 22 ...

Words: 6436 - Pages: 26

Mcdonald's Analysis

...company based on which an investor can determine whether a stock is undervalued or overvalued. In this case, McDonald’s performance is expected to fall during 2015 and 2016. There is an expectation of slow revamps from 2017 in a stable phase. The determined value clearly indicates that the stock is currently overvalued, and it will not be a worthy decision to invest in this stock. Key Details of the Valuation Model It is essential to make an investment in a stock only after making a detailed analysis of the company and after fundamental analysis. In this case, determining the intrinsic value of share based on the future earnings is essential as it indicates the actual value of the stock. Valuation of stock is made based on the free cash flow available to the equity shareholders. Free cash flow available to equity shareholders indicates the amount of cash that is available for the company after meeting all their expenses including the debt repayment, preferred shareholders dividend. It will indicate whether the company has sufficient cash balance or not a positive FCFE is always good and indicates good financial health of the company. For determining the FCFE, it is essential to prepare the projected financial statement for the company based on the forecasted growth rate in the revenue, expenses, assets, and liabilities. Historical financial statement analysis will enable in identifying the business trend and provides an indication of the future growth.......

Words: 2076 - Pages: 9

Swot Analysis

...SWOT Analysis Toni Dominguez BUS/210 August 10, 2014 Melanie Wright SWOT Analysis A SWOT analysis is used to identify the strengths, weaknesses, opportunities, and threats of a business. Hill  (n.d.) " SWOT analysis is a process where the management team identifies the internal and external factors that will affect the company’s future performance" (para. 1). A SWOT analysis is typically used at the beginning stages of the business, after a business plan has been completed, to determine any potential risks or assets. However, an analysis can be completed anytime a change is made internally or externally that can impact the business and is recommended for review of your business every 6 months (Shouldis, 2012).. The Java Culture coffee has completed their business plan for a new coffee shop in a prime location near University of Oregon. They are looking to provide a comfortable and relaxing shop for customers to enjoy coffee with friends while providing excellent customer service. The owners have secured their financing, determined their budget for employees and the day to day needs of the business, lease, and forecasted sales based off the market for the first year. Now the owners will need to complete a SWOT analysis to determine any unseen risks or assets to their business that might be impacting to their success. A SWOT analysis will start with the strengths in the business. In reviewing the business plan for the Java Culture coffee shop they have......

Words: 875 - Pages: 4

Swot Analysis

...Definition: SWOT analysis is not only limited to profit-seeking organizations but also may be used in any decision-making situation when it is desired for an organization. It is use to develop a plan that takes into consideration many different internal and external factors, and maximizes the potential of the strengths and opportunities while minimizing the impact of the weaknesses and threats. This remarkable technique was provided by Albert S Humphrey, one of the founding fathers of what we know today as SWOT analysis. SWOT analysis came from the research conducted at Stanford Research Institute from 1960-1970. A strategic planning method which is used to evaluate the Strengths, Weakness, Opportunities and Threats involved in a project or in a business or in an organizations venture. The team members and the managers mainly use this analysis on behalf of an organization. It specifies the objective of any business venture or project to identify both the external and internal factors which are sometimes favorable and unfavorable to achieve that objective. Strengths, Weaknesses, Opportunities and Threats (SWOT): It is the first stage of planning and helps marketers to focus on key issues. SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors. Opportunities and threats are external factors. The factors (internal and external) may include all of the 4P's; as well as personnel, finance, manufacturing capabilities...

Words: 1436 - Pages: 6

Swot Analysis

...Advantages and disadvantages of using SWOT analysis to develop corporate strategy. Discuss using examples related to at least two companies. Introduction SWOT analysis SWOT analysis can also be called as SLOT analysis which is a strategic planning or direction for making decision based on available resources to determine valuate the Strength, Weaknesses/limitations, Opportunities, and Threats involved in a project or in a small business (business venture). It mentions the objective of business or a collaborative  enterprise project and recognizes the internal, external factors which come in the achieving of objective. This method of analysis is prepared by an American businessman and a management consultant named Albert S Humphrey (Stanford University in the 1960s and 1970s). An objective of a project or a business venture should be only started after the SWOT analysis has been carried out. It would be easy for the organization to achieve its targets/objective. With the help of SWOT analysis decision makers are able to ascertain after a calculation that whether the objective they are planning is capable of been done or not. If not they must choose the distinct objective and the process is done over again. (Source : http://www.google.co.uk/imgres?imgurl=http://swotanalysistemplate.com/wp-content/uploads/2010/04/Slide5.jpg&imgrefurl=http://swotanalysistemplate.com/&h=302&w=604&sz=36&tbnid=ntJM-sR_xbjS7M:&tbnh=61&tbnw=121&prev=/sea...

Words: 3937 - Pages: 16