Mcdonalds Swot Analysis Dec 2012

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SWOT Analysis for McDonalds Corp (MCD)

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Strengths:
* Has very good brand recognition
* Supports subsidized healthcare projects
* Operates globally so has smaller impact of local or regional depressions. * Efficient documented operating procedures in the assembly line fashion. * A large percentage of business is franchisee owned so the risk is spread out. * Shows nutrition and caloric values of the menu items.

* For a large enterprise very nimble exemplified by the kitchen upgrades in 1.5 yrs under skinners leadership. * Have an audit program that helps maintain the quality and service of the existing locations. * Business model works well in recession periods.

* Have taken a sizable portion of customer base from Starbucks by launching McCafe.

Weaknesses:
* Not good at introducing new products that can compete with other traditional fast food chains like pizza hut. * Not good at managing acquisitions profitably like Donatos, Chipotle..etc. * Have a high turnover rate of personnel.

* Not easy to have Quality control on widespread locations as the restaurants are owned by the franchisee. * Since the restaurants are not directly owned the profitability also varies based on the capability and drive of the franchisee. * There is not much focus on sourcing locally and this promotes negative image among environmentalists. * Main focus is still on the fatty foods like burgers as compared to healthy foods like salads. * Similar to other franchise model businesses if one restaurant has quality issue this reflects on other franchise locations.

Opportunities:
* Introduce healthy food options (steamed burgers, salads, mushroom burgers..etc) * Have lot of potential to grow in developing nations.
* Can continue to grow in new markets by doing joint ventures with local firms. * Create a separate sub brand for upscale dining
* Acquire a fast food chain that provides...
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