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Swot Analysis: 1. Strength

McDonald's has several strengths including its long history, promotion of employees to managers, $1 billion annual investment in training, and status as a multinational corporation operating in over 119 countries. However, it also has weaknesses such as failing to compete with pizza chains, high employee turnover increasing training costs, and negative investor relations due to decreasing profits. Opportunities exist in introducing healthier menu options and providing an upgraded dining experience. Threats include criticism over marketing to children and lawsuits over unhealthy food. Changing political, economic, technological and social factors also impact McDonald's business environment.

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34 views3 pages

Swot Analysis: 1. Strength

McDonald's has several strengths including its long history, promotion of employees to managers, $1 billion annual investment in training, and status as a multinational corporation operating in over 119 countries. However, it also has weaknesses such as failing to compete with pizza chains, high employee turnover increasing training costs, and negative investor relations due to decreasing profits. Opportunities exist in introducing healthier menu options and providing an upgraded dining experience. Threats include criticism over marketing to children and lawsuits over unhealthy food. Changing political, economic, technological and social factors also impact McDonald's business environment.

Uploaded by

shubhamshubhshubh20
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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SWOT ANALYSIS

1. Strength:
McDonald had the great history and the achievement throughout its long experience period.
Almost 67000 managers were promoted every year from the team members and McDonald is
investing $ 1 billion in training employees every year.

 2008 no.1 food service company in fortune magazine


 World’s most famous logos
 Multinational corporation operating more than 119 countries all over the world having
more than 32000 restaurants
 Flexible culture adopted organization
 Excellent food preparation style and food safety

2. Weakness:
 Failure of competing with fast food pizza chain
 Expenditure of the more money on training due to high turnover of employees
 Capitalization to organic food
 Negative impact between investors relationship due to decreasing ratio

3. Opportunity:
It is the great opportunity for the McDonald the introduction of healthy hamburger and it
would be the first fast food to sell low fat low calorie hamburger with alternatives with FDA
approval

McDonald had the opportunity to provide more upscale setting style instead of industrial
Formica restaurant setting like they are providing in New York to capture more market share.

They should add more value box meal in their menu in wide range of verities
Breakfast menu, chicken, beverage and other convenience categories like special coffees etc
are not only became the reason of the increase the sale in recession period but also is the
reason in increase the number of the customers visiting the restaurants.

4. Threat:
Due to ‘’cradle to grave’’ marketing they had created negative and criticized impression
toward some of the parents of the children especially from some of the advocate parents
which they thought is marginally ethical

Many times in the past they had sued due to unhealthy food containing additive additives

There is a documentary conducted by Michael Sulock’’ super size me ’’ in 2004 in which he


went through McDonald diet for one month and got cirrhosis of the lever. As the result from
the documentary McDonald had to remove the super size option from their dive thru window

Food supply contamination

There is a huge competition among the competitors like burger king, star bucks, taco bell,
KFC and Wendy’s
PEST ANALYSIS:

Political factor:

The new government of UK has recently increased the taxes due to this increment cost of the
raw material as well has increased. Most of the trading policies employment lows taxation
corporation and the customers are in the favour of McDonald corporation and the company’s
revenue is also going up as compare to past.

Economic factor:

In 2009 McDonald had generated the revenue $22.7 billion where the operating profit was
$6.8 billion and from the past five years the annual increment is 4.9% while the interest rates
are increased and the inflation is going down day by day. The economic growth is going up
exchange rates are as well increased and in the business life cycle McDonald is at the
maturity level.

Technological factor:

At this stage of competitor technological environment for the company success full
operations technology is the key element because the company needs latest machines and
other equipment to provide good and fast customer service satisfaction. Being a world’s no.1
and leading brand for the food service retailer company must need to consider the latest
technology for the preparation and serving the food in more efficient way in challenging
environment. UK government is spending more at research.

Social factor:

McDonald is well known brand all over the world and McDonald corporation is very
conscious health & safety and welfare point of view. In every country they had divided their
marketing strategy demographically according to the related culture of that particular region.
It differs according to challenging changing life style of different regions of the world. Like
m the menu in term of taste and spice is totally different in UK as compare to Asia especially
in India.

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