The Situation Analysis Of Mcdonalds And Mcdonalds

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
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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
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Marketing Strategy
D.1 After negative publicity, McDonalds are investing heavily in advertising its products and improving its public image. McDonalds annual charity and its Ronald McDonalds house charity provided the company with a positive corporate image. Additionally, having the easy access and provide quick service for the customers due to time constraints in today 's environment. To provide healthy and affordable products that will fulfill customers demand as well as maintain long term relationship with them.
D.2 McDonalds systemwide sales for 2001 were over $40billion, but net income shrunk 17 percent to $1.64 billion as shown on the financial exhibit on page 246. Furthermore, McDonalds market share was up 2.2 percent in 2000 compared to 2.7 percent growth to its competitors Burger king Corp. and 2.5 percent for Wendy 's International. Additionally, McDonalds having its first domestic McCafe they estimated that the new concept will boost sales by 15 percent.
D.3 McDonalds has been diversifying its portfolio for continued growth. Having McCafe, Dollar Menu, and offering breakfast 24/7 helped them to boost their sales and have continuous traffic all throughout the

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