The SWOT Analysis Of Mcdonalds

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By using the SWOT analysis a firm is able to analyze data or information retrieved internally and externally about their company in order to rectify any issues or take advantages of any prospects that could be revealed. Wheelen, Hunger, Hoffman, & Bamford (2012) define SWOT to describe the particular Strengths, Weaknesses, Opportunities, and Threats that are strategic factors for a specific company (p. 14-15). When the strengths, opportunities, weaknesses, and threats are discovered the firm can use this information in determining if the data could be used competitively within their market industry.
STRENGTHS
The McDonalds Corporation’s strengths have made them the top fast food retailer in their market. In 2014, McDonalds served
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Shareholders have received eight million fiver hundred thousand dollars in returns in 2014 (McDonalds, 2015). Ranked number seven among Blue Chip companies due to reducing their environmental footprint and their community involvement. Their sustainability, divisiveness, and competitiveness have positive results with their stakeholders. The McDonalds brand name is known globally as a good value and food. They successfully advertise and market their product to targeted audiences, in which they have adapted new menus to appeal to health conscious individuals. McDonalds have developed a company alignment with their franchises and suppliers in referring as “the system” in delivering the McDonalds brand and products. McDonalds implemented an employee education initiative to promote employees internally and strengthen their workforce. Customers are requesting healthier choices on McDonald’s menu and McDonalds is listening, therefore the chicken being served is to be raised without antibiotics. The company has reputation of being child friendly by offering play areas and child size portions that include a toy. McDonalds offers training for every employee through their “Hamburger University”. McDonalds has grown globally to 36,000 restaurants in over 100 …show more content…
With the competition expanding this has caused for the European sales to drop 1% in the market. Due to an increase in operating costs globally by 9%, McDonalds is looking to establish sustainable supply chain which would regulate and create stability in product deliverability. Due to the influx in global market sales were down 2% from 2013. The increase in operating cost and decrease in the global markets had a negative effect on the share earnings by 13% for the stockholders. An increase in customers demanding healthier choices on the menu will result in a larger menu and smaller profits to keep pricing in line with other food retailers. Employee turnover is a common threat amongst all fast food retailers and the McDonalds Corporation is offering a wage increase and paid time off to offset their turnover, but this benefit is not applicable to the independent franchises. Davis and Carpenter (2009) conducted a study in relation to the presence of a fast food locations within 500 feet of schools and the study found children were 5.2% more likely to become obese in that school. This study revealed that children are susceptible to make poor choices at fast food retailers and McDonalds has a responsibility to offer healthier choices to their

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