Mcdonalds Case Study
McDonald’s Case Analysis: A. Situation Analysis
1. The Company: Strengths: | Weaknesses: | * Very strong Brand Name | * Lack of growth opportunities | * Market Share | * Market is over saturated | * Large Target Market | * Negative public image of food | * Broad Geographic Locations | * Young employees and High Turnover Rate | * Large scale of operation | * Legal actions related to health issues | * Play area for Children | * They have yet to capitalize on the trend towards organic foods | * Specialized training for managers known as the Hamburger University | | * Ronald McDonald Children’s Charity * Business relationships with toy manufactures i.e. Barbie, Disney, Hotwheels | | Opportunities: | Threats: | * Growing health trends among consumers i.e. salads | * Major competitors, like Burger King, Starbucks, Taco Bell, Wendy's, KFC and any mid-range sit-down restaurants | * Globalization, expansion in other countries (China & India) | * During economic recession people spend less on take-out food | | * Any contamination of the food supply, especially e-coli | * Menu expansion | * They have been sued multiple times for having "unhealthy" food, allegedly with addictive additives, contributing to the obesity epidemic in America | | | | | | |
2. The Environment:
Competition:
McDonald’s major competitors are Burger King, the number two hamburger chain, and Wendy’s, number three. McDonald’s also competes with Yum Brands, Inc., which actually is the largest fast-food operator in the world in terms of number of locations, with more than 34,000 outlets in more than 100 countries. Yum Brands restaurants include the number 1 chicken fryer, KFC (with more than 13,500 units), and top pizza joint Pizza Hut (about 12,500), and quick-service Mexican leader Taco Bell (more than 6,000). Yum Brands also operates the Long John Silver’s seafood
1. The Company: Strengths: | Weaknesses: | * Very strong Brand Name | * Lack of growth opportunities | * Market Share | * Market is over saturated | * Large Target Market | * Negative public image of food | * Broad Geographic Locations | * Young employees and High Turnover Rate | * Large scale of operation | * Legal actions related to health issues | * Play area for Children | * They have yet to capitalize on the trend towards organic foods | * Specialized training for managers known as the Hamburger University | | * Ronald McDonald Children’s Charity * Business relationships with toy manufactures i.e. Barbie, Disney, Hotwheels | | Opportunities: | Threats: | * Growing health trends among consumers i.e. salads | * Major competitors, like Burger King, Starbucks, Taco Bell, Wendy's, KFC and any mid-range sit-down restaurants | * Globalization, expansion in other countries (China & India) | * During economic recession people spend less on take-out food | | * Any contamination of the food supply, especially e-coli | * Menu expansion | * They have been sued multiple times for having "unhealthy" food, allegedly with addictive additives, contributing to the obesity epidemic in America | | | | | | |
2. The Environment:
Competition:
McDonald’s major competitors are Burger King, the number two hamburger chain, and Wendy’s, number three. McDonald’s also competes with Yum Brands, Inc., which actually is the largest fast-food operator in the world in terms of number of locations, with more than 34,000 outlets in more than 100 countries. Yum Brands restaurants include the number 1 chicken fryer, KFC (with more than 13,500 units), and top pizza joint Pizza Hut (about 12,500), and quick-service Mexican leader Taco Bell (more than 6,000). Yum Brands also operates the Long John Silver’s seafood