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McDonald’s operates globally. Visit the company’s websites and also search for other resources and perform a SWOT analysis on the company’s internal factors (so, just the strengths and weaknesses for now). Important: Do not search for or use an already-performed SWOT analysis. The point of the assignment is for you to think about and analyze the company.
Websites:
https://www.mcdonalds.com
http://corporate.mcdonalds.com/mcd.html http://www.slate.com/articles/life/food/2009/06/how_mcdonalds_conquered_france.html
Expert Answer
Brief description of the company
McDonald’s Corporation operates and franchises restaurants, which serve fast food in more than 100 countries. The company has both owned restaurants and franchised restaurants. The company has more than 36525 restaurants in approx 119 countries. It has revenue of more than $25 bn p.a with a profitability of $ 4.5 bn approx. There are more than 420000 employees working for McDonald’s across the globe. Popular products of the company are hamburgers and cheeseburgers.
SWOT analysis of the company
Strengths:
1. Strong brand image.
2. Use of superior quality ingredients in cooking
3. Largest market share in fast food segment.
4. Vast global presence with over 36525 restaurants in 119 countries.
5. Positive brand image with customer loyalty. 6. Innovative ways of publicizing and advertising the brand 7.Online order and delivery
Weakness:
1. Comparatively high priced menu items in comparison to local food suppliers.
2. Limited products range
3. Higher operating cost in comparison to local restaurants.
Opportunity:
1. Expansion in untapped regions and countries
2.Addition of new items to the menu
3. Diversification in the healthy food business.
4. Acquisition of strong local brands.
Threats:
1. Intense competition from other players
2.Volatility in price of raw materials.
3. Regulatory restrictions of overseas countries.
4. Higher logistics cost in managing the supply chain of various restaurants.
5. Indirect competition from small food vendors.
Organizational capabilities
Utilization of tangible and intangible resources to run the business smoothly and efficiently is the key organizational capability of McDonalds. The company efficiently utilizes its various resources like capital, time and human resources to achieve the operational excellence. With the strengths built because of the organizational capabilities the company is able to build and manage a successful business.
