SWOT Analysis Of Mcdonalds

Great Essays
McDonalds is the largest fast-food chain in the world. The have over 36,000 locations worldwide and are in more than 100 countries. They have situated themselves as leaders in the domestic and international markets. The company is in the process of realigning certain subsidiaries to develop a corporate structure with its geographic segments in order to monitor operations. By realigning its subsidiaries McDonalds can focus on regulatory environments that deal with property ownership, contract negotiations, labor relations, and operational cost. McDonald’s ability to respond to these critical items can have an effect on their strategic plan.
McDonalds must constantly adapt to their ever-changing environment of price, convenience, service, menu variety, and product quality in order to stay competitive in the fast food network. In order, for McDonalds to be competitive, a S.W.O.T. analysis can be used to stay ahead of the market. A S.W.O.T analysis is a simple but useful framework for analyzing an organization’s strengths, weaknesses, and the opportunities and threats McDonalds might face. When considering an S.W.O.T analysis you must be aware of current and future events that might affect the analysis. In addition to being aware of current and future events, the
…show more content…
Their current stock price is $122.36 per share. Their stock has steadily gone up since the beginning of fall in 2015. As of today, the stock has gone up 20% over the last year. The reason behind the rise in the stock price has to be attributed to McDonald’s ability to stay profitable by using their global footprint and substantial marketing power to keep cost down during these turbulent times (Duprey, 2015). Investors have faith in McDonalds ability to conform to market constraints and have invested in them to find the solutions to current issues facing the fast food

Related Documents

  • Great Essays

    BUSINESS UNIT STRATEGIES BJ’s work on the business model of low cost differential strategy. This strategy has been quite successful for them and the chain currently operates 215 club locations and more than 120 gas stations across 15 states. The company says that its mission is “to provide brand named products to their customers at prices that are lower than the prices found at department stores, retail operations”. There are two types of members, small business operators and consumer members. While all the other competing clubs considers small business operator to be their foremost member, BJ’s focuses more on retail customers and this approach can be seen in their merchandising, real estate and club operation strategies.…

    • 1724 Words
    • 7 Pages
    Great Essays
  • Improved Essays

    My chosen organization, Trader Joe’s, has not taken part in diversification. Once again, I have chosen their competitor, Whole Foods, for this assignment. The organic supermarket chain Whole Foods has diversified with a related business strategy by launching a new chain of branded stores in the United States under the branded name “365”, which will be geared to millennial shoppers. The 365 store concept is an internal development approach, as they embark on promoting their new, lower-priced brand to appeal to a larger group of shoppers who are looking for a quality product, at a price they can afford.…

    • 432 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    Swot Analysis Of Kroger

    • 256 Words
    • 2 Pages

    As an organization, Kroger can still try out new methods and tactics that will make business better as a whole. For example, there are a lot of people getting old and they will not go to the grocery store because there is not anyone to take them or they cannot drive. Kroger could implement a delivery service to those who cannot go to the store. Kroger already has the ClickList feature. This feature allows consumers to order their groceries online and pick them up at the store without every getting out of your car.…

    • 256 Words
    • 2 Pages
    Improved Essays
  • Decent Essays

    Whole Foods Case

    • 255 Words
    • 2 Pages

    Introduction While companies endeavor to gain a competitive advantage over their industry and market rivals, the general business environment is becoming more challenging and uncertain. Unlike in the last few decades ago, today’s global business environment is very challenging than ever before. Technology is changing at an alarming speed, competition in the marketplace is steepening, and the general economic environment is becoming tighter. These and other trends make strategies that companies have adopted obsolete. That is, a strategy which performed well yesterday or today is more likely to fail tomorrow or in the near future.…

    • 255 Words
    • 2 Pages
    Decent Essays
  • Decent Essays

    Tjx Competitive Forces

    • 274 Words
    • 2 Pages

    The industry where The TJX Companies operates is very highly competitive. According with the 10-K Form, “We compete on the basis of factors including brand, fashion, price, quality, selection and freshness; in-store service and shopping experience; reputation and store location. We compete with local, regional, national and international department, specialty, off-price, discount, warehouse and outlet stores as well as other retailers that sell apparel, home fashions and other merchandise that we sell, whether in stores, through catalogues, on-line or other media.” (10-K Form, 2015) The TJX Companies is aware of the important of a good knowledge of the competitive forces to identify areas in which competitors are vulnerable and to evaluate the impact strategic actions would have on competitors.…

    • 274 Words
    • 2 Pages
    Decent Essays
  • Great Essays

    By: Lauren A., Jessica P., and Tori L. The following research paper involves what our group has learned about the competition, profit, risk, and evolution of two companies. The companies we researched are Sysco and U.S Foods. Both companies are in the food industry and they are each other’s biggest competitors. We have worked over the past week to gather as much information as possible involving these two companies.…

    • 2264 Words
    • 10 Pages
    Great Essays
  • Improved Essays

    Martha Stewart Living Omnimedia(MSO) has been facing new competition and changing markets on all fronts. Rivals have been taking market share causing them to revaluate their business-level strategy. The purpose of a business- level strategy is to outperform your competitors. Strategy is about how you are going to acquire resources and develop capabilities in order to develop a competitive advantage. MSO is facing many trade-offs due to changes in the market.…

    • 713 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Swot Analysis Of Target

    • 1337 Words
    • 5 Pages

    External Environment and Competitive Position Industry Analysis and Competitiveness Any business and its corresponding market position are affected by a change in the external macro environment factors such as the economy, government policies, the community it serves, market segment, and the corresponding industry. Target Corporation as part of its strategic planning, monitors the changes in the business segment, forecast the trend, understand the current environment, its competitor and their strengths and weaknesses, and any of their planned moves to establish long-term market needs and come up with the major trend on how fast retail industry grows or slows down compare to sustaining with an average performance (CEA, n, d). It needs to take…

    • 1337 Words
    • 5 Pages
    Improved Essays
  • Great Essays

    McDonalds is getting more growth Situational analysis shows that McDonalds in Malaysia is having a rapid growth in fast pace comparing to KFC. McDonalds market share is will be growing faster and bigger, if KFC isn’t going to overcome this Lack of manpower The same situational analysis shows that huge variance between quantity of workers and outlets for KFC are not…

    • 1719 Words
    • 7 Pages
    Great Essays
  • Improved Essays

    McDonald's still cares about their employees and want them to work as best as they can, Despite its global growth over the years. The key plan includes adopting coast effective, equal employment opportunity includes long-term business goals and many more.…

    • 1164 Words
    • 5 Pages
    Improved Essays
  • Decent Essays

    Question 2 SWOT Analysis SWOT analysis aims to identify the internal strengths and weaknesses involved an organization and the firm’s capability and resources to deal with changes. Besides, it is useful in assisting risk management by analyzing the opportunities and threats arising from external business environment. It is useful to assist the firm in providing specific insights that can be used to develop the appropriate marketing strategy by summarizing the key favorable and unfavorable issues from the business environment (Wheelen & Hunger 2002, p. 109). 2.1 Strengths In term of the beverages and diaries business, F&N has gained itself a strong and reputable brand name over the years with various brand awards (Awards 2014).…

    • 749 Words
    • 3 Pages
    Decent Essays
  • Great Essays

    Furthermore, this company has covered a massive geographical region where about 120 countries are having McDonald fast food restaurants. Centralization is where the decision making power is made solely by the top management in a hierarchical level, while decentralization is where the decision making power spreads from the top management to the middle or lower level management in a hierarchical level. McDonald’s structure shows that it is a centralised organisation which shows a clear chain of command, from the top management to lower…

    • 1902 Words
    • 8 Pages
    Great Essays
  • Superior Essays

    McDonalds has successfully used performance objectives throughout their operations process to become a leading fast food chain. Tesla has also effectively used the strategy of new product design and development as well as technology to innovate their products and put out something in the market that no one has seen before. Both these global businesses have shown that these strategies have been very effective in the performance of the business as McDonalds sales in Australia have increased from $1billion within a year and Tesla has a $7billion revenue…

    • 1833 Words
    • 8 Pages
    Superior Essays
  • Improved Essays

    INTRODUCTION Business Environment includes Micro and Macro Environment. The External factors includes the economic factors; demographics; legal, political, and social conditions; technological changes; and natural forces (Businessdictionary.com, 2017). Micro environment of business includes competitors, customers, suppliers, Public, marketing intermediaries, workers and their union. The micro environment of the organisation consists of those elements which are controllable by the management (Yourarticlelibrary.com, 2016). P4: Identify the positive and negative impacts the macro environment has upon business operations, supported by specific examples.…

    • 1067 Words
    • 5 Pages
    Improved Essays
  • Great Essays

    Introduction: McDonald’s is one of the largest and most popular, franchise based fast food restaurant companies in the United States and the world. Their core menu items include Beef Hamburgers, Cheeseburgers, McNuggets, and French fries. They are also known for one of their popular desserts: the apple pie and their recently introduced breakfast sandwich: the Egg McMuffin. Over the years, McDonald's has spanned its operations to more than 32,000 branches, serving in 117 countries.…

    • 1105 Words
    • 5 Pages
    Great Essays