Mcdonald's Strategic Analysis

Topics: Fast food, McDonald's, Fast food restaurant Pages: 37 (12679 words) Published: October 20, 2010
3.1Franchising Industry Analysis6
3.2The Industry Future Perspective7
3.3Industry PESTEL Framework Analysis9
3.3.1Political Aspects9
3.3.2Economic Aspects9
3.3.3Social Aspects9
3.3.4Technological Aspects10
3.3.5Environmental Aspects11
3.3.6Legal Aspects11
4Mcdonald’s Company Overview11
4.1Company History12
4.2Company Vision Statement13
4.3Company Mission Statement13
4.4Products and Services13
5Business Analysis14
5.1Financial Metrics15
5.2Business Segments16
5.3Company SWOT Framework Analysis16
5.3.1Strengths to Build Upon16
5.3.2Weaknesses to Overcome18
5.3.3Opportunities to Exploit19
5.3.4Threats to Overcome19
5.4Porter’s Five forces21
5.5Value Chain Analysis22
6Profiling the Competition24
6.1Burger King Corporation25
6.2Yum! Brands Inc.26
7Key Trends Affecting McDonald’s28
7.1.1Constant Changes in Consumer Preferences28
7.1.2Commodity Costs can Impact Margins29
7.1.3Sensitive to the Dollar29
7.1.4Strong International Growth is Driving Sales30
8Corporate Social Responsibility Issues30
8.1.1Sustainable Supply Chain Strategy32
8.1.2Engaging the Community through Community-based Projects33
8.1.3Corporate Philanthropy33
9Criticisms of the Company34
9.1Law suits35
9.2Latest criticisms and cases36
9.3The Company’s Reaction To Criticisms38



McDonald’s is one of the world’s leading fast food restaurants. In the current globalized world where consumer tastes and preferences keep on changing, dealing with such changes from a manager’s point of view can be quite challenging. This paper therefore aims to carry out a strategic analysis of McDonald’s in order to have a better understanding of how to deal with possibly common management challenges. McDonald’s was started by two brothers, Dick and Maurice McDonalds. The operations proved to be successful and the first franchise was sold to Neil Fox who opened a restaurant in Phoenix, Arizona. He came up with the commonly-known golden arches of McDonalds. Fox was successful with the store and the brothers were reluctant at first to begin a national franchise system. However, they soon realized that too many copycats were creeping up. They needed an advantage to fight off competition. Ray Croc joined the team as the exclusive franchise agent in the United States. Since then, over the past couple of decades, the major chains have expanded into the global marketplace and have opened franchises around the world. The restaurants have come to be associated with globalization. This paper seeks to analyze McDonald’s corporation, with more focus being directed at the company’s Corporate Social Responsibility (CSR). Due to the company being a market leader, customers usually have high expectations regarding its CSR initiatives. The paper will therefore begin by introducing the fast food industry and conducting a PESTEL analysis in order to get a better understanding of the industry McDonald’s is playing in. It will then give an overview of McDonald’s as a company, making use of strategic management analysis tools. Next, it will highlight the company’s CSR initiatives, before raising the various criticisms associated with McDonalds. Finally, the paper will try to answer relevant critical questions, give a summary, and make recommendations. COMPANY INTRODUCTION

According to a report on, McDonald's is one of the leading global food service retailers. It has more than 32,000 local restaurants, serving more than 60 million people in 117 countries each day. A McDonald's restaurant is usually operated by...
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