Situation Analysis Of Mcdonalds

Decent Essays
Situation Analysis
A. History
Since its founding by Ray Kroc in 1955, McDonalds has been the leader of the fast food industry. Ray Kroc saw a successful operation by the McDonald Brothers and expanded its worldwide presence. Having served over one hundred billion burgers McDonalds has had the time to develop its processes and product to be most profitable for the company. Ray Kroc wanted the company to maintain consistency as well as quality throughout its restaurants and to do this he needed to convince franchisees to do the same. Today McDonalds has 375,000 employees and 36,899 restaurants worldwide.
B. Competitors
McDonalds competes with many industries and on their corporate website they state, in their 2016 annual report, “The Company
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The company itself would like to be perceived as having high quality as well but, recent data shows that customers do not necessarily agree with this claim (Moskowitz, 2016). Now more than ever people are focused on health benefit information and McDonalds made a change when they became aware of this new trend in American society to provide more health conscience options for customers. This move by McDonalds, shows how being pragmatic and analyzing consumer trends and feedback can become a competitive advantage for a company.
SWOT Analysis
1. Strengths
• Previous success and experience- McDonalds has been operating successfully for more than 60 years.
• Self-Reliance – Ownership of the value chain has allowed them to be less dependent on suppliers to provide resources.
• Knowledge of the Industry- McDonalds has been competing in the international fast-food industry for many years and has the larger market share of its competitors.
• Available Capital – According to the 2016 Annual report McDonalds had over 4.5 Billion in net income. There was retained earnings and a nice dividend was paid to shareholders.
• Ability to expand- Due to McDonalds franchising most of their restaurants to other owners, they are able to expand into countries where they previously might not have.
2. Weaknesses
• Compliance with regulatory committees- McDonalds must deal with regulatory committees in every country that it

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