Cia 1-Swot Analysis: Company - Mcdonald'S

CIA 1- SWOT ANALYSIS
COMPANY- McDonald’s
AADITYA MANOJ 1BCOMIF

INTRODUCTION
McDonald’s is one of the most celebrated fast food chains worldwide. This
American food restaurant was founded seventy-five years ago, in 1940, by two
brothers Richard and Maurice.
The first McDonald’s stall was a BBQ joint, which was opened in San Bernardino,
California.
After eight years, it was turned into a fast-food restaurant, which was later
purchased by Multimixer salesman Ray Kroc. In 1955, he started his first franchise
in Des Plaines, Illinois, transforming it into a proper corporation gradually.
Today, McDonald’s Corp. is one of the top ten international brands running
thousands of franchise in almost all over the world, including Australia, Canada,
France, Germany, the United Kingdom, China, Italy, Korea, Poland, Russia, Spain,
Switzerland, the Netherlands and many other countries in the world.
SWOT ANALYSIS
SWOT ANALYSIS: Mc Donald’s

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STRENGTHS
1. Tenth Most Valuable Brands
McDonald’s is the tenth most valuable brand in the world. With an incredible
brand value worth, the company rules the restaurant industry regardless of
the fierce competition.
2. Tasty Food
McDonald’s French fries are considered the best tasting fries in the fast-food
industry.
3. McDonald’s – A Real Estate Company

Very few people know that apart from selling burgers and fries, McDonald is
having a multi-billion real estate
empire. Imagine having
thousands of premium locations
around the globe.
As of the end of 2018, it

has 37,855 restaurants in 120
countries, out of which 35,085
are franchises and rest are
company-operated restaurants.
WEAKNESS

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1. The Franchise business model
McDonald’s is the best example of international franchising models. However,
having this complicated web of franchised and company-operated restaurants
exposes the brand to certain risks.
2. Supply chain interruptions

McDonald’s being one of the busiest food chains often faces issues due to
disruption in the supply chain. Also, it limits the availability of products, which are
critical to the operations.
3. Lack of Employee Satisfaction

Due to recent employee
rights revolutions
worldwide and increased
wage limits, many
organizations have faced
critical dissatisfaction from
employees.
OPPORTUNITIES
1. Value Meals

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In 2018, McDonald is launched its “$1, $2, $3” menu and “2 for $5 Mix and match
deal” proposed toward its value-conscious consumers. The menu was a successful
addition, resulting in increased sales.
2. Innovative Products
McDonald’s must put efforts to introduce new, innovative items on their menu to
make customers choose them instead of the new fast food outlets.
3. Global Expansion
McDonald’s rules over the US, but it is often that it struggles in the international
market. However, the company has a high potential to continue its global
expansion by focusing
more on international
markets rather than
different states of America.
THREATS
1. Risky Investments in Technology Initiatives

Although the innovative changes done by McDonald’s have a positive outlook, the
investment in technology is still risky.

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2. Fierce Competition from Competitors like Chick-Fil-A
We might think that burger giants like ‘Burger King’ are McDonald’s only
competitors, but the table is beginning to turn.
Recently, Restaurant Business revealed that Chick-fil-A is now McDonald’s

biggest competitor in the wildly competitive Quick Serve Restaurant (QSR) area.
3. Cultural Threat While operating in Various Countries

Being a global fast-food chain, McDonald’s has often faced multiple cultural
threats in different parts of the world, causing harm to the image of the brand.
Also, it gets challenging to adapt and operate differently as per the location of the
franchise. For example, a few years ago, McDonald has faced quite a big scandal
for using ingredients that
were not ‘halaal’ in Muslim
countries.
CONCLUSION
McDonald’s is in the fast-food business. It is a well-known brand. Most people
easily recognize its famous “Golden Arches.” Also, the company is a global
business with an enormous diversified income. Besides, the company’s extremely
efficient systems ensure that it keeps its customers happy and coming back.
There are some great opportunities McDonald’s can grab, too. Many consumers in
foreign countries tend to believe that US-made products are always of superior
quality. Add that to the fact that quite a few countries, especially in Africa, have
relatively high GDP-PPP. There’s potential for growth and expansion in many
underserved locations. Also, it is relatively easy for the company to access low-

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cost debt. Besides, consistently good dividend payouts have kept investors happy
for years. The company can raise additional expansion capital without difficulty.
Finally, there is needed to appreciate the threats of McDonald’s faces. The

company battles stiff competition from rivals such as Starbucks, Subway, Yum
Brands, Inc., Wendy’s, and Chipotle, among others. Aside from that, the company
must deal with the fact that preferences are shifting toward healthier food. The
business must look for ways to replace the revenue it gets from fast-food sales.
Fortunately, McDonald’s is moving fast to incorporate healthy delicacies into its
product offerings.
REFERENCES
 Allan. (2019). SWOT Analysis: Mc Donald’s.

https://expertwritinghelp.com/blog/2019/05/31/mcdonalds-swot-
analysis/
 S. K Gupta. (2019). SWOT Analysis: Mc Donald’s.
https://bstrategyhub.com/mcdonalds-swot-analysis/

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CIA 1- SWOT ANALYSIS

AADITYA MANOJ 1BCOMIF

SWOT ANALYSIS: Mc Donald’s

3. McDonald’s – A Real Estate Company

As of the end of 2018, it

SWOT ANALYSIS: Mc Donald’s

2. Supply chain interruptions

3. Lack of Employee Satisfaction

SWOT ANALYSIS: Mc Donald’s

1. Risky Investments in Technology Initiatives

SWOT ANALYSIS: Mc Donald’s

Recently, Restaurant Business revealed that Chick-fil-A is now McDonald’s

3. Cultural Threat While operating in Various Countries

SWOT ANALYSIS: Mc Donald’s

Finally, there is needed to appreciate the threats of McDonald’s faces. The

 Allan. (2019). SWOT Analysis: Mc Donald’s.

SWOT ANALYSIS: Mc Donald’s

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