Swot Analysis of Mcdonald

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SWOT analysis of McDonalds
This is a McDonalds Corporation SWOT analysis for 2013. For more information on how to do SWOT analysis please refer to our article.

Company background
Name
Industries served
Geographic areas served
Headquarters
Current CEO
Revenue
Profit
Employees
Main Competitors

McDonald's Corporation
Restaurants, Food
Worldwide
U.S.
Don Thompson
$ 27.56 billion (2012)
$ 5.46 billion (2012)
1,800,000
Burger King Worldwide,Inc., Yum! Brand Inc.,
Subway, Wendy’s Company.

McDonald’s is the world’s leadingfast food restaurant chain with more than 34,000 local restaurants serving approximately 69 million people in 119 countries each day. More than 80% of McDonald’s restaurants worldwide are owned and operated by independent local franchisees.

You can find more information about the company in its official website or Wikipedia’s article.

SWOT analysis of McDonalds

McDonalds SWOT analysis 2013
Strengths
1. Largest fast food market share in the world
2. Brand recognition valued at $40 billion
3. $2 billion advertising budget
4. Locally adapted food menus
5. Partnerships with best brands
6. More than 80% of restaurants are owned
by independent franchisees
7. Children targeting

Opportunities

Weaknesses
1. Negative publicity
2. Unhealthy food menu
3. MacJob and high employee turnover
4. Low differentiation

Threats

1. Increasing demand for healthier food
2. Home meal delivery
3. Full adaptation of its new practices
4. Changing customer habits and new
customer groups

1. Saturated fast food markets in the
developed economies
2. Trend towards healthy eating
3. Local fast food restaurant chains
4. Currency fluctuations
5. Lawsuits against McDonald’s

Strengths
1. Largest fast food market share in the world. McDonald’s is the largest fast food restaurant chain in terms of total world sales (8%). It is the second largest outlet operator with more than 34,000 outlets, serving 69 million consumers every day in 119 countries. 2. Brand recognition valued at $40 million. Company’s brand is the most recognized brand in fast food industry and is valued at $40 billion. McDonald’s is also famous by the Ronald McDonald clown.

3. $2 billion advertising budget. McDonald’s spends on advertising more than the next 4 fast food restaurant chains combined.
4.Locally adapted food menus. The fast food chain is operating in many diverse cultures where tastes in food are extremely different than those of US or European consumers. Thus ability to adapt to local tastes is one of McDonald’s strengths. 5. Partnership with best brands. McDonald’s offers only most popular brands in its restaurants, such as: Coca Cola, Dannon Yogurt, Heinz ketchup and others. 6. More than 80% of restaurants are owned by independent franchisees. Therefore, McDonald’s can focus more on perfecting its serving system and marketing campaigns. 7. Children targeting. The company successfully targets very young children through offering playgrounds, toys with its meals and advertisements.

Weaknesses
1. Negative publicity. McDonald’s is heavily criticized for offering unhealthy food to its customers, stimulating obesity and strong marketing focus on very young children. 2. Unhealthy food menu. Although McDonald’s tries to introduce healthier choices in its menu, the menu is largely formed of unhealthy meals and drinks. Such menu offering promptsprotests by organizations that fight obesity and hence, decreases McDonald’s popularity.

3. Mac Job and high employee turnover. Mac Job is a low paid and a low skilled job, which is often seen negatively by its employees.This results in lower performance and high employee turnover, which increases training costs and add to overall costs of McDonald’s.

4. Low differentiation. McDonald’s is no longer able to substantially differentiate itself from other fast food chains (at least not enough to gain some market share) and opts to compete by price rather than...
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