1. The document presents a SWOT matrix that analyzes the internal and external factors for a company. It lists the company's strengths as effective advertising, strong brand image, and global presence. Weaknesses include low customer satisfaction, high employee turnover, and over-saturation in the US real estate market. 2. The SPACE matrix assigns numerical values to variables assessing the company's financial strength, competitive advantage, environmental stability, and industry strength. Based on these scores, the directional vector places the company in the aggressive strategy quadrant. 3. The BCG matrix analyzes the company's divisions according to revenues, profits, market share, and industry growth rate. It determines that the company falls into the

1. SWOT Matrix
Strengths Weaknesses
1. Veryeffective and well- 1. Lowest Customer satisfaction
known advertising. rating in the industry.
2. Robust employee training. 2. Core product line out of sync
3. Strongest Brand Image. with healthy lifestyle trends.
4. Recognized as a community 3. High employee turnover in
oriented,socially responsible. their restaurants.
Internal Factors 5. Strong Global Presence
6. Use pure ingredients and take
4. 80% of restaurants are
franchise owned.
food safety and hygiene very 5. Assembly line approach makes
seriously. it difficult and costly to adapt
7. Constantly solid financial 6. Over-saturation of real estate
performance. in the US.
8. Strong innovation and 7. Foreign currency revenue and
product development. debt.
9. Economies of Scale 8. Struggles with fluctuations in
operating and net profits.
Opportunities Threats
1. High Potential Growth in 1. More health conscious
Quick Service Restaurant customers.
industry. 2. Food contamination could
2. Inclusion of Low fat, low damage sales, reputation, etc.
calorie, healthy hamburgers. 3. Negative public opinion
3. Diversify portfolio campaigns
External Factors 4. Breakfast still not available
at 25% of locations.
4. Brand equity at risk.
5. Markets in US and EU are
5. Emergence of Healthier mature and saturated.
lifestyle trends. 6. Global economic recession
6. Potential for joint ventures 7. Competitors expanding into
with retailers. developing markets.
7. International expansion into 8. Intense price pressure from
emerging markets. competitors.
8. Increased beverage options.
9. Focus on corporate social
responsibility, sustainability.
SPACE Matrix:
1. A set of variables is selected to define Financial Strength, Competitive Advantage,
Environment Stability, and Industry Strength.

2. 2. A numerical value is assigned to each variable ranging from +1 (worst) to +5 (best) that make
up the FS and IS dimensions. Similarly, a numerical value ranging from –1 (best) to –6
(worst) is assigned to each of the variables that make up the ES and CA dimensions.
3. Then, average score is computed by summing the values given to the variables of each
dimension and dividing the number of variables included in the respective dimension.
4. Adding the two scores on the x-axis and plotting the resultant point on X-Axis and similarly
for the Y-Axis gives thexy-point.
5. A directional vector from the origin of the SPACE Matrix through the new intersection
point tells the type of strategies recommended for the organization: aggressive,
competitive, defensive, or conservative.
Financial Rating Environment Rating
Strength Stability
Return on Investment 4 Inflation -3
Debt 4 Demand -3
Net Income 6 Competitive Pressure -3
EPS 5 Barriers to entry -3
Cash Flow 5 Business Risk -2
Average 4.8 Average -2.8
Y-Axis: 4.8-2.8= 2.0
Competitive Rating Industry Strength Rating
Advantage
Market Share -1 Growth potential 5
Product Quality -1 Financial Stability 5
Customer Loyalty -1 Ease of Entry 4
Control Over Others -2 Profit Potential 4
Demand Variability 3
Average -1.25 Average 4.2
X-Axis: -1.25+4.2= 2.95
X axis
Industry Strength +4.20 (+1 worst to +5 best)
Competitive Advantage -1.25 (-1 best to -5 worst)
X-Axis: -1.25+4.2= 2.95
Y axis

3. Financial Strength +4.80 (+1 worst to +5 best)
Environment Stability -2.80 (-1 best to -5 worst)
Y-Axis: 4.8-2.8= 2.0
F (2.95, 2.00)
__ __
Conservative __ __ Aggressive
__ __
__ __
__ __
__ __
C I
__ __
__ __
__ __
__ __
Defensive __ __ Competitive
__ __
S
BCG Matrix
Divisions Revenues Profits(OI) Market Share % Industry
Position Growth Rate
United States $8,078,300 $3,059,700 1 weak
Europe 9,922,900 2,608,000 1 weak
APMEA 4,230,800 818,800 1 good
Other Countries & 1,290,400 (43,600) 1 good
Corporate
Total $23,522,400 $6,442,900 1
Looking at Exhibit 8, Mcdonald’s out powers its rivals in revenues, market cap, number of
employees by a large margin. Hence, in relative market share, it certainly is on the higher
side.
As the industry growth also lies in medium to high range for this category, thus we can
conclude that according to the BCG Matrix, McDonald’s fall in the stars category.