...resource capabilities, the company’s culture as well as the effectiveness of its policies and procedures. In contrast, external factors include competition, government legislation, changing trends, and social expectations (Johnson, Scholes and Whittington, 2008). The SWOT analysis framework involves analysing the strengths (S) and weaknesses (W) of the business’s internal factors, and the opportunities (O) and threats (T) of its external factors of performance (Ghazinoory, Abdi and Azadegan-Mehr, 2011). Through this analysis, the weaknesses and strengths within a company can correspond to the opportunities and threats in the business environment so that effective strategies can be developed (Helms and Nixon, 2010). It follows from this, therefore, that an organisation can derive an effective strategy by taking advantage of its opportunities by using its strengths and neutralise its threats by minimising the impact of its weaknesses. Moreover, SWOT analysis can be applied to both a whole company as well as a specific project within a company in order to identify new company strategies and appraise project feasibility. Hollensen (2010) asserts that the strengths and weaknesses of a company relate to its internal elements such as resources, operational programmes and departments such as sales, marketing...
Words: 3497 - Pages: 14
...used by McDonald’s Corporation. The paper begins with a brief overview of the company, its history and operations, and analyzes the internal and external environments that it currently operates in. With a Competitive Profile, External and Internal Factor Matrixes, this paper examines the relative strengths, weaknesses opportunities, and threats in McDonald’s’ mass business operations. The paper also examines Corporate Social Responsibility (CSR) and business ethics, and the steps and initiatives McDonald’s takes in regards to consumer satisfaction. Lastly, the paper concludes that the strategy used by McDonald’s is a cost leadership approach, and provides methods in which the business strategy could be used to capitalize on the strengths and opportunities and eliminate the weaknesses and threats. McDonald’s- The Corporation McDonald's is the globes largest chain of fast-food restaurants, serving more than 58 million customers daily in over 119 countries. It first opened its doors in 1940 by brothers Richard and Maurice McDonald in San Bernardino, California, and their creation of the "Speedee Service System" in 1948 created the blueprint of the present day fast-food restaurant. In 1955, McDonald's Corporation credits its true founding to the opening and operations of a franchised restaurant by Ray Kroc, in Des Plaines, Illinois. Kroc later purchased the McDonald brothers' equity in the company and led its global expansion with the Franchise Model. McDonald’s has...
Words: 2183 - Pages: 9
...supply of manpower, production capacity and capital. Evaluating the company’s strengths, weaknesses, opportunities, and threats helps it determine how to allocate these resources in a manner that will result in the highest possible potential for revenue growth and profitability. The management team examines where the company can compete most effectively. The company more times than not discovers competitive strengths that have not been fully utilized in the past in addition to critical areas that needs to be improved in order for the business to more effectively compete. A realistic assessment also prevents strategic blunders like entering a market with products that are clearly inferior to what well-entrenched competitors are offering. Continuous improvement in all areas of a company’s operations is an important aspect of staying ahead of competitors. Weaknesses and opportunities can--and must--be turned into future strengths. PURPOSE OF A SWOT ANALYSIS 3 Strengths, weaknesses, opportunities, and threats (SWOT) analysis is a necessary, straightforward standard that assists in direction and serves as a foundation for the development of business’s marketing strategy. It brings about this process through assessment of the organization’s strengths (what it can do) and weaknesses (what it cannot do) in addition to...
Words: 1304 - Pages: 6
...Case Study and SWOT Analysis: Ronald McDonald’s Goes to China This study focuses on the multinational fast food giant McDonald’s Corporation, with particular attention paid to the corporation’s situation in China. Given the disparity in cultural foods between Western countries like the United States, and China, and that McDonald’s food very much reflects food preferences in the U.S., it is very interesting to see how McDonald’s works to capture China’s attention and takes hold in the Chinese market. This case study includes: a company profile of McDonald’s; a situational analysis; a SWOT analysis that performs an investigation on internal and external circumstances of the fast food chain in China and Hong Kong; an identification of some of the problems that the chain is facing in China; possible solutions to the identified problems. McDonald’s: Company Profile McDonald’s Corporation was established in 1955 in the state of Illinois. The corporation franchises, operates and develops a global network of restaurants, that each sells a limited menu of value foods. McDonald’s is the most popular ‘fast food’ service retailer in the world, with more than 30,000 restaurants in over 119 countries serving approximately 50 million people every day (McDonald’s, 2005). Popular menu options include the Quarter Pounder, Big Mac, Happy Meal, Egg McMuffin and Chicken McNuggets, as well as a large range of other menu options including fries, chicken sandwiches, salads and sundaes at reasonable prices...
Words: 1996 - Pages: 8
...SWOT is a tool that identifies the strengths, weaknesses, opportunities and threats of an organization. SWOT analysis also refers to the process through which decision makers develop their awareness of organizational environments so as to influence performance now and in the future (Naryanan & Nath, 1993: 197). Specifically, SWOT is a basic, straightforward model that assesses what an organization can and cannot do as well as its potential opportunities and threats. The method of SWOT analysis is to take the information from an environmental analysis and separate it into internal (strengths and weaknesses) and external issues (opportunities and threats). Once this is completed, SWOT analysis determines what may assist the firm in accomplishing its objectives, and what obstacles must be overcome or minimized to achieve desired results. According to Investopedia, when using SWOT analysis, be realistic about the strengths and weaknesses of your organization. Distinguish between where your organization is today, and where it could be in the future. Also remember to be specific by avoiding gray areas and always analyze whether the company is better or worse than competition. Finally, keep your SWOT analysis short and simple, and avoid complexity and over-analysis since much of the information is subjective. Thus, use it as a guide and not a prescription. This paper seeks to evaluate the strategic implications of the SWOT analysis model of the Driver and Vehicle Licensing Authority...
Words: 1203 - Pages: 5
...McDonald’s Value Chain Analysis Jeovani Zamarripa, Alicia Wylie, y Jason Flores, Conor Mullarkey Mission Statement “McDonald's brand mission is to "be McDonald s be our customers' favorite place and way p to eat." Our worldwide operations have been aligned around a global strategy called the Plan to Win centering on the five basics of an t i th fi b i f exceptional customer experience – People, Products Place, People Products, Place Price and Promotion. We are committed to improving our operations and enhancing our customers' experience.” Company History McDonald s McDonald’s Bar-B-Que (1940) • World’s 1st McDonald’s • Founded by Dick and Mac McDonald • San Bernadino, CA • D i i & car hop service Drive-in h i McDonald’s (1948) •N Name F Formulates l • Menu develops • 15 Cent hamburger Company Info • Corporate Headquarters: p q – McDonald’s Corporation 2111 McDonald's Dr Oak Brook, IL 60523 • Employees: – Approximately 400,000 McDonald s employees globally McDonald’s – 1.6 million people globally are employed through McDonald’s restaurants and their franchises • Restaurants: – 32,000 world-wide, 118 countries 2009 Revenue & U.S. Stocks k (US only) • NYSE: MCD – Current Price: $64.74 – Change: $0.26 + g (As of 2/16/2010) • • • • 2009 Revenue (mil.)$22,744.701 Year Revenue Growth -3.3% 3 3% 2009 Net Income (mil.)$4,551.001 Year Net Income Growth 5.5% Y N tI G th 5 5% Leadership James Skinner Vice Chairman, CEO Left to Right: Jose...
Words: 1691 - Pages: 7
...McDonald’s Corporation Analysis & Prognosis July 18, 2012 Table of Contents Overview 2 Analysis 2 The History of McDonald’s 2 Mission and Values 3 Company Structure and Organization 3 Sales, Profit, & Cash 4 Key Metrics 5 Position in the Industry 5 Stock Market Performance 6 Strengths and Weaknesses 7 Opportunities and Threats 8 Corporate-Level and Business-Level Strategies 10 Significant Product Failures 10 Prognosis 10 Sales 10 Profits 11 Key Metrics 11 Position in the Industry 11 Conclusion 11 Works Cited 12 Appendix 13 Appendix A 13 Appendix B 13 Appendix C 14 Appendix D 14 Appendix E 15 Overview McDonald’s Corporation is the world’s largest fast food restaurant chain. I have done hours of extensive research on McDonald’s and the limited-service restaurant industry and have been eating McDonald’s for over 20 years. I will discuss McDonald’s past performance versus the industry and provide a prognosis for the future. There is a rich history behind McDonald’s, starting in 1948 with the McDonald brothers. Ray Kroc started franchising McDonald’s in 1955 and from there built a corporation. Most missions and values still used today are those Kroc implemented. McDonald’s is structured as a multifunctional form. It is mainly organized by geographical area. There are four main geographical areas and those are then it is broken up even further. McDonald’s has had steady revenues over the last ten years and...
Words: 3401 - Pages: 14
...McDonald’s By Philip Wolfe and Carrie Lettiere Contents Introduction 2 Strategic Focus and Plan 3 Mission Statement 3 Core Competencies 3 Competition/SWOT Analysis 4 Competitors 4 SWOT ANALYSIS 5 Strengths 5 Weaknesses 5 Opportunities 6 Threats 8 Franchise Costs 9 Conclusion 10 Works Cited 12 Introduction McDonald’s was started as a drive-in restaurant in 1940 by Dick and Mac McDonald as McDonald’s Bar-B-Q in San Bernardino, California. After shutting down for three months to make renovations, in the December of 1948, they reopened as McDonald’s. In only a decade after that, they were able to open 100 McDonald’s restaurants and sell over 100 million hamburgers. As the years went on, they opened even more restaurants not only nationwide, but also around the world. They introduced memorable mascots such as Ronald McDonald, provided new options such as the famous Big Mac, and began giving to those needy with the construction of McDonald Houses. Later on they went to acquire other businesses such as The Boston Market, Chipotle Mexican Grill, and Donatos Pizzeria, “in an attempt to diversify its operation” (“McDonald’s Corporation”). Around the world there are currently over 36,000 McDonald’s restaurants in 119 countries. In 2011, McDonald’s was approved of the trademark Mc. From 2012 through 2020, McDonald’s shall be, “the official restaurant on-site at the Olympic Games” (McDonald’s Corporation”). BrandZ ranked McDonald’s as the #5 Most Valuable...
Words: 2768 - Pages: 12
...Assurance of Learning Exercise 3D McDonald's Burger King Holdings Yum! Brands., Inc. Critical Success Factors Weight Rating Score Rating Score Rating Score Advertising 0.20 3 0.60 2 0.40 2 0.40 Product Quality 0.10 2 0.20 2 0.20 3 0.30 Price Competitiveness 0.10 3 0.30 3 0.30 2 0.20 Management 0.10 3 0.30 2 0.20 2 0.20 Financial Position 0.15 3 0.45 1 0.15 2 0.30 Customer Loyalty 0.10 1 0.10 3 0.30 3 0.30 Global Expansion 0.20 3 0.60 2 0.40 2 0.40 Market share 0.05 3 0.15 1 0.05 2 0.10 Total 1.00 - 2.8 - 2 - 2.2 Rating * weight = score 1 = major weakness, 2= minor weakness, 3= minor strength McDonald’s strategic prospects Strengths: “McDonald’s towers over its direct competitors in the industry with a market cap of $59.8 billion in May 2009” (David, 2011, p. 33) This as compared to is competition in which Yum! Brands and Burger King. Their market shares were $16.3 billion and $2.46 billion respectively. In 2009 they open 6,650 new stores in Europe and 8,327 new stores in APMEA (Asia/Pacific/Middle East/Asia). McDonald’s corporate responsibility campaign in becoming socially and environmentally friendly is one strength. According to David, they “have been recognized for its efforts in inclusive excellence with respect to employing and creating opportunities for minorities (2011, p. 33). They have actively sought to reduce their “carbon footprint by using recycling packaging” (David, 2011, p. 33). In 2014, they were ranked 43rd on the...
Words: 721 - Pages: 3
...Executive Summary This report contains the strategic audit of McDonald’s. The instruments use the external and internal aspects to analysis the opportunities, threats, strengths and weaknesses (SWOT analysis and SWOT matrix). Analysis of the company's position has been undertaken different technology models have also been applied in to undertake the analysis of the technology practices in the company. In the end suggestions and recommendations are presented in to improve the competitive position of the company. The analysis of external environment includes three threats and three opportunities. The opportunities included global expansion, the trend of healthier eating, and the growing market for coffee drinks. The three threats came from social activists, the large amount of competition, and the unhealthy food image in the eyes of the public. The analysis of internal environment includes three strengths, which are which are global expansion, specializing training and efficiency of the top management; two weaknesses which are exploited workers and damaging the environment. McDonald’s corporation had four strategies include expand the coffee market domestically, as well as internationally; develop more eco-friendly methods of operating; develop a method to choose where to locate new stores; expand the healthier food options on their menu. Introduction McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers...
Words: 3454 - Pages: 14
...the background of McDonalds Malaysia briefly. Apart from this, we would also present the SWOT analysis which is Strengths, Weaknesses, Opportunity, and Threats of the McDonalds. Strengths and weaknesses is internal environment, while opportunity and threats is external environment. Lastly, we suggested some recommendations to improve the situation of the McDonalds. 1.0. COMPANY’S BACKGROUND According to McDonalds (2014), McDonald’s is the global leading fast food retailer with more than 35,000 restaurants serving approximately 70 million people each day in more than 100 countries. There are more than 80% of restaurants worldwide are franchised by independent local franchisees. McDonald’s arrived in Malaysia in December 1980 and McDonald Corp. gave their license to Golden Arches Restaurants Sdn Bhd (GARSB) to open McDonald's Restaurant in Malaysia by Tan Sri Vincent Tan. Since then, McDonald’s Malaysia has about 196 franchise outlets nationwide and is currently expanding annually. It has created over 7000 job opportunity since they arrive in Malaysia over the years. (ifranchisemalaysia, 2014) 2.0. SWOT ANALYSIS 2.1 STRENGTHS According to Strategic Management Insight (2014), McDonalds has strong brand name, reputation and considered the first one who entered to fast food industry compare to other companies in Malaysia. According to McDonalds (2014), McDonald’s success is base on a foundation of integrity. There are hundreds of millions of people around the world trust...
Words: 1635 - Pages: 7
...Case Analysis on McDonald’s Vinil K Pillai City University of Seattle MBA 500 Essentials of Business Management June 22, 2014 Abstract This paper discuss about the case analysis of McDonald’s, one of the leading food chains around the world. This report starts off with a brief overview of the company, its presence and operations, and moves on to analyses of both external and internal environments. This paper tries to find out the relative strengths, weaknesses, opportunities and threats in different aspects of business operations of McDonald’s. The paper then looks at the issue faced by McDonald’s in today’s competitive world. The study finally concludes by suggesting some actions and recommendations to overcome those issues. Keywords: overview, external & internal analysis, issues and alternatives, recommendations and actions Company Overview McDonald’s corporation headquartered in Chicago, United States was founded in 1940 is the world’s leading global food chain service retailer with customers over 110 countries. The company restaurant offers a variety of food items, coffee, soft drinks and other beverages as well as newly added breakfast menus. McDonald’s is one of the most successful global restaurant chains around the world. Since coming in the market in the early 50’s McDonald’s has done very well in common stock and performing very consistently compared to its competitors. They have used the most effective management and global expansion strategies to...
Words: 1591 - Pages: 7
...decision: Summary: Reference List: I. About the MC Donald: 1. History: ( From : wikipedia.org/wiki/McDonald's) The McDonald's Corporation (NYSE: MCD) is the world's largest chain of hamburger fast food restaurants, serving around 69 million customers daily in 119 countries. Headquartered in the United States. The company began in 1940s. In 1955, Ray Kroc joined the company as a franchise agent. He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth. In 2012, McDonald's Corporation had annual revenues of $27.5 billion, and profits of $5.5 billion. McDonald's primarily sells hamburgers, cheeseburgers, chicken, french fries, breakfast items, soft drinks, milkshakes, and desserts. In response to changing consumer tastes, the company has expanded its menu to include salads, fish, wraps, smoothies, and fruit. More than 80% of McDonald’s restaurants worldwide are owned and operated by independent local franchisees. Name Industries served Geographic areas served Headquarters Current CEO Revenue Profit Employees Main Competitors McDonald's Corporation Restaurants, Food Worldwide U.S. Don Thompson $ 27.56 billion (2012) $ 5.46 billion (2012) 1,800,000 (2013) Burger King Worldwide,Inc., Yum! Brand Inc., Subway, Wendy’s Company. Đoàn Thành Nhân…Individual Assignment Page 2 2. Mission and Vission : - Mission : McDonald's brand mission is become our customers' favorite place and way to eat and drink. Mc Donald operated in the worldwide...
Words: 1970 - Pages: 8
...McDonald’s SWOT analysis MGMT303 Professor Dean Scott May 22, 2011 Management 303 SWOT Analysis of McDonald’s Corporation Section I – Corporate History In 1940, Dick and Mac McDonald first opened McDonald's Bar-B-Que Restaurant on Fourteenth and E Street in San Bernardino, California. The type of the restaurant was more of a typical drive-in featuring a large menu and car hop service. Then the restaurant was closed for three months and was re open with only nine menu items, and the most staple item for McDonald was the 15 cents burger. Then in 1958, McDonald's sold its 100 millionth hamburger. By 1959, the 100th restaurant was open in Fond Du Lac, Wisconsin. With the rate of McDonald growing, today McDonald's restaurants are in 117 countries around the world. The McDonald's brand mission is to "be our customers' favorite place and way to eat”. McDonald's today's slogan is "I'm lovin' it". Section II – Strengths and Weaknesses Two major strengths of McDonald’s are its strongest International presence and the training and skill development. Two of the McDonalds weaknesses are its saturation and its food quality. Strength #1 – Strongest International Presence McDonald's is the market leader in both domestic and international markets. On March 14, 2010, McDonald was rank number 14 from the top 50 on Fortune's Most Admired List. It is also the best brand recognition in the world, the golden arches and Ronald McDonald. McDonald's...
Words: 1366 - Pages: 6
...copycats were creeping up and they needed an advantage and a head start. Ray Croc joined the team as the exclusive franchise agent in the United States. Some of the problems and challenges facing the company is the increase in competition, poor management, bad marketing, and lack of response to the changes in the needs of franchises and customers. This resulted in the strategic issues that needed to be implemented to continue growing success for the company. Going global is critical in the expansion of McDonalds. Over the past couple of decades, the major chains have also begun to expand into the global marketplace and have opened franchises up around the world. McDonald’s currently operates in over 120 countries around the world with over 30,000 stores. In analyzing this company, the strengths, weaknesses, opportunities, and threats...
Words: 552 - Pages: 3
