MCDONALD’S SWOT ANALYSIS CHART
STRENGTHS
WEAKNESSES
1. McDonald’s is a booming and stable business since 1955. It has invested over $ 1 billion every year for the training of its staff in Hamburger University training center.
1. McDonald's have problems with fluctuations in operating and net profits which ultimately impact investor relations. Operating profit was ,984 million (2005) ,433 million (2006) and ,879 million (2007). Net profits were ,602 million (2005), ,544 million (2006) and ,395 million (2007).
2. The business has been ranked as the most admired food service companies in the world.
2.Many numbers of employees turnover in their fast foods and restaurants which caused the company to spend huge amount of money for the employees’ trainings.
3. The brand name and its packaging has been already recognized and accepted by many children ages 3 to 5 in all parts of the world.
3. They have yet to capitalize on the trend towards organic foods.
3. McDonald’s is a community oriented company, as well as it is socially responsible business. (Ronald McDonald House Facilities provides free extensive financial, education, dental and medical assistance to billions of children all from all parts of the globe).
4. McDonald’s test marketing for pizza food line has failed to come up with a substantial product; which failed the company to compete with fast food pizza chains.
4. The company operates more than 23,500 restaurants in 109 countries in worldwide.
5. The fast-food chain has easily adapted its globally-situated restaurants to meet the unique demands of each people in every country, as well as to adjust to their food cultural differences.
6. Around 85 percent of McDonald’s restaurant businesses world-wide are franchised. The food-brand has been known as leading fast food and restaurant since 1997. Its global locations such as airports, cities, highways, theme parks and malls attract many busy people such as students, professionals and employees.
7. McDonald’s has efficient line assembly of food preparation which is orderly and clean.
8. The company always ensures the quality and freshness of food they serve to the customers. It uses only 100% pure USDA inspected beef and chicken, without any fillers or additives; as well as only fresh eggs. All the foods are coming from only certified food suppliers.
9. McDonald's has its own brand processed items such as Dannon Yogurt, Kraft Cheese, Nestle Chocolate, Dasani Water, Newman's Own Salad Dressings, Heinz Ketchup, and Minute Maid Juice.
10. McDonald’s has more than 2000 inspections checks performed at a regular interval of 72 safety protocols during food process everyday; in order to ensure the food is free from any contamination.
OPPORTUNITIES
THREATS
1. Nowadays, people are most likely health conscious; and the launching of a healthy hamburger is a great opportunity for McDonald’s. If it happens, the company would be the first QSR (Quick Service Restaurant) to acquire the FDA approval on marketing with its low fat hamburger with low calorie combo alternatives. Apparently, hamburgers are not included in the company’s health choice items.
1. McDonald’s has been criticized by many parents from all parts of the world for using "cradle to grave" marketing. It promotes its products through children as young as one year old into their restaurants with special meals, toys, playgrounds and popular movie character tie-ins. There are various advocate groups seeing this as unethical business practice.
2. They have great potential to penetrate in a more upscale target market and upscale restaurant settings; like what they have in Broadway, New York
2. They have been sued numerous times for serving "unhealthy" food, allegedly with addictive additives, which caused obesity epidemic in USA. This was documented in 2004 through the documentary film entitled “Super Size Me”, by Michael Spulock. As a result, McDonald’s no longer pushes the super size option at the drive thru section.
3. McDonald’s has the opportunity to serve allergen free food items, such as gluten free and peanut free.
3. Possible contamination of e-coli on the food supply.
4. It started in 2008 its breakfast menu on chicken and beverage choices. The hot blend of coffees has introduced the benefits of beverages as the added sales of the McDonald’s fast-food chains and restaurants.
4. It has very tight competition with main sit-down restaurants in the market such as Burger King, Starbucks, Taco Bell, Wendy's, and KFC.
References:
http://marketingteacher.com/swot/mcdonalds-swot.html
http://www.scribd.com/doc/3972375/MC-DONALDS-SWOT
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