1496 Words 6 Pages
Situation Analysis
A. Environment
A.1 Considering McDonald’s global nature, it industry environment is affected by the economic changes. United States is McDonald’s biggest firm markets. However, McDonald’s trying to expand to China and Europe could be a threat to its growth. Additionally, more fast-food industry is growing especially with nonhamburger businesses. Consumers are becoming conscious with their health and having company like Panera Bread, Boston Market, and Subway is a threat to McDonalds expansion. McDonald’s external factors mainly threaten the business.
A.2 Most significant sociocultural factor that affects McDonald’s company is the change of people’s lifestyle. McDonald’s shows that there is an opportunity to grow when it
…show more content…
There is a threat when it comes to nonhamburger companies because their sales have grown faster compare to hamburger chains. Another example that dominates the market will be Subway, Panera Bread, Boston Market and Atlanta Bread Company where they offer sandwiches and more upscale than traditional fast food, served in nicer restaurant with more comfortable surroundings, but faster than traditional restaurants.
B.3 Potential of threat for new entrants may face challenging when it comes to economies of sales, brand loyalty, capital required and government regulations. Needless to say new entrants does not pose any threats to Mcdonalds When it comes to large` business like Mcdonalds they have gained large based loyal customers while the new entrant will have to spend more time on building brand effort and customer base.
B.4 Analysis in substitute of menu in fast food is a huge threat due to having different fastfood that can easily beat them. In fast food industry, customers have a wide range of options for their meals. Additionally, they may face threat to ready made food that are available to different supermarket that has more lifestyle healthy options than

Related Documents