McDonalds SWOT Analysis
Dick and Mac McDonald opened the first McDonalds restaurant in 1940, in San Bernandino, California. It began as a Bar-B-Que restaurant with drive-in, car-hop style service. Then, in 1948 the restaurant closed for three months, alterations were made, and McDonalds reopened as a self-service drive in featuring a 15₵ hamburger. In 1954, a salesman named Ray Kroc joined forces with the McDonald brothers after they decided to scope out a nationwide franchising agent. Kroc then opened a McDonalds in Des Plaines, Illinois. At the Illinois location, an architect by the name of Stanley Meston designed the first golden arches, and they have been a McDonalds trademark ever since. By 1965 over 700 McDonalds restaurants were opened throughout the world.
“McDonald's brand mission is to "be our customers' favorite place and way to eat." Our worldwide operations have been aligned around a global strategy called the Plan to Win centering on the five basics of an exceptional customer experience – People, Products, Place, Price and Promotion. We are committed to improving our operations and enhancing our customers' experience.” --http://www.aboutmcdonalds.com/mcd/our_company/mcd_faq/student_research.html#1
Some of McDonalds’ organizational strengths include the fact that it is an international organization, the atmosphere is unique, and they are socially involved in their local communities. McDonalds is an International Organization.
Being global (international) means that the company can advertise its product to a much larger market than companies that are only nationwide. On the other hand, being nationwide means that when someone from the USA, for example, is traveling to a foreign country with unfamiliar languages, they can have a sense of home when they go to the local McDonalds because they will already be familiar with the menu and the products offered. This strength is not considered a distinctive competence, though, because it is something that is accomplishable by other very similar fast food chains such as Burger King.
Uniqueness of the atmosphere at McDonalds is also a strength. McDonalds for a long time has seemed to cater to a very young target market (children). With happy meals and play-places, it is a very desirable place to have dinner if you are a child. However, lately, McDonalds has taken a turn toward catering to the adult market by adding more mature products to the menu such as the McCafe lattes and cappuccinos, and a larger variety of salads for adults who wish to eat healthy foods. I believe that this is a distinctive competence because many fast food restaurants are focused on making their burgers larger and loading them with more calories, whereas McDonalds seems to be taking a turn for a healthier style of eating fast food. The McCafe products are also a distinctive competence because they clearly define a difference between a cup of regular coffee you can get at any breakfast place and something unique to the McDonalds breakfast experience.
Another strength that McDonalds possesses is that it is a community oriented, socially responsible company. They run Ronald McDonald House facilities, which provide very inexpensive room and board, food, and sibling support for families with children needing extensive hospital care. The Ronald McDonald Houses are located in more than 259 communities worldwide. In addition, the Ronald McDonald Care Mobile program offers inexpensive medical, dental and education services to children. They also sponsor Olympic athletes. This is an important distinctive competence because there are no other fast food ventures that are as actively involved in helping the communities they are located in. Because consumers genuinely care about their communities and want to help local charities such as the Ronald McDonald House, they would be more likely to spend their money in a place that serves a good cause than a place that is simply...
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