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1Name:University:Course:Tutor:Date: SWOT Analysis for McDonalds Strengths SWOT has been in existence globally since 1955 and is one of the competitors in the US.It has been ranked on top in Fortune Magazines food service companies as the most loved andadmired company and the best place for the minorities to work in. McDonald has been brandedas a brand of equity whereby, most of its employees who have been loyal to the company startedat restaurant level employees and since then, they have been promoted to restaurant managersand assistant managers (McDonalds, 2011). McDonald is always known to be on the right sideof the street due to its Cultural diversity in the foods that are provided. A part from that, it hasexcellent locations in theme parks, airports, Wal-Mart stores, and along most well traveled roadsand that is why it has its operations globally. McDonalds also invests good amount of money totrain its staff until they graduate from that facility.. McDonald is also known to offer the best fries, use of top quality beef and chicken productsnationally. With those services, consumers are always offered with nutritional information andrules for food safety are always put in place. There sales growth has also gone high with the useof brand name processed items like Kraft cheese, Dannon Yogurt, and Dasani Water. Weaknesses
2 McDonald’s weakness is the high turnover of those wanting to be trained, training cost islikely to be a constraint and Pizza being the most demanding one, its supply is also likely to fall.According to Marketing teacher, (2010) there are also concerns on quality management which isreally affecting the company as the network is huge and the quality cannot be checked across itsfranchise network and also lack of concentration on the health of workers due to high cooking ofburgers and grease fried foods. McDonald has also been focusing on how to derive big numberof profits and revenues from the burgers and hot food items but consumers have decided to payattention to the organic foods. Economic wise, there are likely to experience fluctuations in net and operating profitsmaking impacts on the investors. Opportunities McDonald is likely to open more joint ventures with several different retailers, expandingits business into newly developed parts of the world and advertising in regards to being moresocially responsible in the environment. They have also introduced healthier food programs withtheir growing awareness. Creation of more plays places for the children with the enticing beverage choices andmore upscale appearance to attract a more upscale clientele has also been put into consideration(Datamonitor, 2010). Technology wise, McDonald’s plan is to advertise the capabilities of WI-FIinternet services in the branches and being more responsible to the social changes of the health.Open products up to allergen free options such as peanut free and gluten free foods. McDonald’s has also been recognized and approved by FDA to be the first Quick serviceand fast food restaurant with very low calorie and fat hamburger Threats
3 With all the above, there is criticism from children to the adults on their marketsstrategies has become a threat. They have had to encounter the law due to the provision ofunhealthy foods that have alleged addictive additive hence consumers avoiding these unhealthydiets. The economy is also affecting them. Each day the economy rises, and the more it rises, theless the consumer number and this has been affecting the sales of the retailers (Broughton, 2010).The higher the economy the lower the consumption of fast food hence affecting the spending andrestaurant visits The number of companies opening the same business is also very high likeBurger King, Taco Bell, Starbucks, KFC, Wendy’s, Sonic Drive, Pizza hut and local small andfast food restaurants etc. hence minimizing their chances of competition.Sample Graph of McDonald’s SWOT Analysis
4 ReferencesBroughton, R. (2010). McDonalds SWOT. Retrieved on 21st March 2011 http://www.quality-assurance-solutions.com/mcdonalds-swot.htmlDatamonitor, (2008). Premium Company Profile: McDonald’s Corporation. Retrieved on 21st March 2011 http://www.researchandmarkets.com/reportinfo.asp? report_id=606895&tracker=relatedDatamonitor. (2010). McDonalds Corporation - SWOT Analysis. Retrieved on 21st March 2011 http://www.researchandmarkets.com/reports/556290/mcdonalds_corporation_swot_analy sis.pdfMarketingteacher. (2010). SWOT Analysis McDonald. Retrieved on 21st March 2011 http://www.marketingteacher.com/swot/mcdonalds-swot.htmlMcDonalds. (2011). McDonalds Corporation in The New Millennium. Retrieved on 21st March 2011 http://www.docstoc.com/docs/14207940/McDonalds-%E2%80%93-SWOT-Analysis