SWOT ANALYSIS

SWOT analysis is an analytical tool used to assess the strategic capabilities of an organization. This tool is bi-focal as it focuses on both the internal and external business environment, though it can be criticized for doing so from the perspective of the organization.
In this analysis, we are looking at the core competencies, or the strengths of McDonalds, the areas of weakness or where competitors have an advantage over the organization, opportunities presented by the business environment to McDonalds, and threats or any aspect in the business environment that can hinder their plans.
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McDonalds is an iconic brand, which can be seen as one of its strengths. It was founded in 1940, and from then to now, McDonalds has already achieved global dominance, by becoming the world’s leading ‘fast food’ retailer. In achieving global dominance, McDonalds operations are designed to assure consistency and high quality through its restaurants design, layouts and products offered, assuring the customers of its quality. These factors have led to customer loyalty and customer trust.
Another Strength is that McDonalds has a large market share. It has the largest “slice” of the pie in relations to it’s competitors, allowing McDonalds to become a market leader. Another major strength is that McDonalds has diversified income streams. Unlike some of it’s rivals, McDonalds doesn’t rely on one key source of income, as revenue flows in from company owned restaurants & franchises, where the company owned restaurants provides most of its revenues. McDonalds has a locally adapted food menu. Because the fast food chain is operating in many diverse cultures, where taste in food are extremely different amongst is customers, McDonalds has the ability to adapt to local tastes.
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McDonalds is heavily criticized for offering unhealthy foods to it’s customers