...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 McDonalds. McDonalds...
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...McDonalds Case Analysis Chandra Stevens Manda Roth Erica Jones Kaitlin Vincent Carole Hockeborn Ferris State University Table of Contents Abstract 4 Introduction 5 Situational Analysis 7 Demographics 7 Socio-Cultural 7 Political-Legal 8 Technology/Industrial 8 Economic 9 Global 9 S.W.O.T. Analysis 10 Strengths 11 Weaknesses 12 Opportunities 12 Threats 14 T.O.W.S. Analysis 15 External Strengths/Internal Opportunities 16 External Weaknesses/Internal Opportunities 16 External Strengths/Internal Threats 16 External Weaknesses/Internal Threats 16 Porter’s Five Forces 17 Threat of New Entrants 18 Bargaining Power of Suppliers 18 Bargaining Power of Buyers 19 Rivalry Amongst Existing Firms 19 Threat of Substitute Products or Services 19 Financial Ratios 20 Liquidity Ratio: Cash Ratio 21 Debt Management Ratio: Total debt Ratio 22 Profitability Ratio: Profit Margin 22 Balanced Scorecard 23 Balanced Scorecard Diagram 27 Strategy Formulation 28 Plan of Action and Recommendation 31 Highlights From This Year 31 Budget and Time Line Expectations Summary 31 Citations 33 Abstract This report reviews the McDonald’s corporation profile to include; an introduction to corporate history a time menu and current franchise information. The strategic Profile will provide a complete analysis of economic, socio-cultural, technology and global synopsis...
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...SWOT Analysis of McDonalds Restaurants Organization History McDonalds started out as a small restaurant business by two bothers Dick and Mac McDonald in San Bernardino, California in 1948. But if faith did not occur in 1954 with Ray Kroc who is a traveling milk shake mixer salesman the franchise of McDonalds restaurants would possibly never had happen. Kroc noticed how the effectiveness of the two brothers operation worked with a limited menu, concentrating on a few items of just hamburgers, French fries, and beverages which allowed them to focus on quality at every step. This gave Kroc an idea, and so with his keen sense of what American consumers were looking for in eating out, Kroc suggested that the brothers expand their presence and offered his services as their agent. The first restaurant opened in 1955 in Illinois as the organization became the McDonald's Corporation. Six years later Ray bought out the founding brothers (mcdonald, 2012). That is how the little white and red restaurants with the bright yellow arches began. Since then McDonald’s restaurants has been a worldwide fast food franchise preferred by every age group. The McDonalds mission statement is "McDonald's brand mission is to be our customers' favorite place and way to eat"(Farfan, 2012). This is defined by the McDonald's Values, which reflects the experience that customers can expect when walking into a McDonald's fast food restaurant no matter where...
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...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 benefits from cost reduction through economies of scale because of it enormous size and its...
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...SWOT ANALYSIS – MCDONALDS Strengths Strong brand name-McDonalds is a huge multinational company that has built up huge brand name that is recognised throughout the world. McDonalds is the worlds No.1 fast food chain with sales with over 31,000 branches across over 120 different countries. McDonalds is in the top 10 most powerful companies in the world with Apple being the most powerful, McDonalds is the seventh most powerful Employee Training- McDonalds has an extensive training programmes for their staff utilising their skills in order to take the company further Employees – McDonalds in the Sunday times best 100 company’s to work for came 10th place in 2012 and 6 in 2013 showing that they treat the employees well and they are improving each year. - Large market share McDonalds is considered the largest fast food chain compared to Burger Kings’ or Wendy’s have been loosing their market share since 2006 however McDonalds market shares is increasing. McDonalds have a huge market share of approx. 20% when its competitors such as Burger King have just 2%. Weakness - Unhealthy image McDonald's has been under great criticism by negative press due to the increase in awareness of health and many believe the documentary "Supersize Me" by Morgan Spurlock which highlighted the health implications that McDonald's has really kick-started this. Further more now the nutrition facts have to be shown on food stuffs it is easy for people to see how bad their food is for example...
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...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". Strengths and Weakness 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 benefits from cost reduction through economies of scale because of it enormous size and its huge global presence allows it to diversify risk involved with the economic performance of specific countries. McDonald belief is...
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...Case #10 McDonalds 2013/12/11 Strategic Planning Professor Mrak E. Bush Background McDonalds started by McDonalds brothers in the year 1941. The brothers thought out a new idea, which customers could drive in the fast food restaurant. This was unique at that time, and this was the first time to drive in. McDonalds was successful. McDonalds was said to be the first of their kind in the fast food industry which gave a great opportunity to entering the market and shortly after that dominating it for years, and according to the 5 forces of porter they almost had no barriers for entry and they were also able to crush the rivalry "old classical eat-in- restaurants" with their unique idea of foods that were of a good quality, quickly assembled and served, and at the same time affordable to customers. Even though McDonalds is often the aim that gets the criticism in fast food industry, but also they made lots glories, such as in the year 2011, they got the most innovative food company and the 11th most admired company in the world, and in the year 2012, they got 4th most valuable global brand. When McDonalds faces problems, they respond very strongly and quickly. They try to do more than their competitors. The skinner’s plan was really helpful to improve the McDonalds image. They focused on the stores which they had rather than thinking about to build more stores. The trend of McDonalds is to be the biggest fast food brand in the world. Also it will be the most recognizable brands...
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...effective marketing strategy. Also to be credited was that the strategy showed that there were areas which could potentially disrupt the current rate of success (in terms of monetary results) If they are not rectified. A recommendation could be to increase the amount of ‘Healthy foods’ McDonald’s currently offer, to do so McDonalds would need to invest more in their product segment of the marketing mix. Introduction In many cases a company does not become successful overnight. There are a number of key ingredients which need to be focused on, in order to achieve its potential. An important part of this is the ‘marketing strategy’. The majority of successful firms invest large sums of capital and time into tailoring their strategy focusing on the potential changes in customer levels, rivals and the environment (Bradley, 2005). McDonald’s currently trades in over 119 countries worldwide and has the potential to develop furthermore. (McDonald’s Canada, 2007) it is through the application and implementation of McDonald’s marketing strategy and marketing mix which has resulted in McDonalds holding such a competitive position in today’s fast food market. McDonalds has a menu which in some form or another sets to make all segments of...
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... McDonald's is been in business since 1940. Dick and Mac McDonald open the first McDonald's as a BBQ restaurant in San Bernardino, California. "It was a typical drive-in with a large menu and car hop service." McDonald's mission statement states: "McDonald's brand mission is to be our customers' favorite place and way to eat. Our worldwide operations are aligned around a global strategy called the Plan to Win, which center on an exceptional customer experience – People, Products, Place, Price and Promotion. We are committed to continuously improving our operations and enhancing our customers' experience." (http://www.aboutmcdonalds.com/mcd/our_company/mission_and_values.html) II. Organizational Strengths and Weaknesses (40 points) A. First Organizational Strength 1. According to the website Ezine Articles, McDonald's has a strong global presence and is considered as a market leader in both the domestic as well as the international markets. 2. "It is a global brand that owns 31,000 restaurants serving in 120 countries. Of these 31,000 restaurants at least14,000 restaurants are situated in the US." (http://ezinearticles.com/?McDonalds-Business-Analysis&id=687438) B. Second Organizational Strength 1. According to the website Wordpress, McDonald's uses economies of scale for reducing the cost, as its huge expansion diversifies "the overall risk involved with the economic performance." 2. McDonalds is an affordable meal for everyone. It adapts to the cultural...
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...sses opportunities the business can pursue and threats that could negatively impact it. This type of analysis concludes with a plan on how the business can take advantage of opportunities and either overcome or minimize its threats. In the past 10 years, Chinese government was loosen restriction foreign companies invested in China Market. The general environmental forces that could influence or have influenced McDonald’s development in China Demographic force: * Due to uneven wealth distribution in China, they applied the use of a tier pricing model to sell products at a range of prices for consumers with different purchasing power. Political and government force: * Due to underpaying their part-time employees, the government implicated that the salary needed to be increased, so that they raised their cost at the same time. Technological force: * With its technological know-how, it has developed its own internal supply network, including farms in China to sell to both the domestic and export market, helping it maintain stable and secure supply. Social cultural force: * For teens’ and young adults’ growing appetite for Western food and nightlife, it had begun extending its business hours to 24 per day since the beginning of 2006. * For Changing Chinese lifestyle in the growing popularity of internet shopping among China’s younger generation, it partnered with Chinese online shopping site to attract internet users. * For fast-paced lifestyle...
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...What opportunities and threats did McDonald’s face? How did it handle them? What alternatives could it have chosen? Opportunities 1) "Going green" - energy management, improving packaging efficiency, environmentally friendly refrigerants, and partnering with Greenpeace for rainforest protection 2) New store (looks/styles - McCafe coffee shop, and "forever young" redesign Charity - The Ronald McDonald House provides a cheap or free place to stay for parents of sick children. Over 250 worldwide in 48 countries. 3) McDonald's has f maintained an extensive advertising campaign for decades. For popularity they use media (television, radio, and newspaper), the company makes significant use of billboards and signage, sponsors sporting events from ranging from Little League to the Olympic Games, and makes coolers of orange drink with their logo available for local events of all kinds. Television has always played a central role in the company's advertising strategy. They always advertise McDonalds much different way to their customers. Until now, McDonald's has used 23 different slogans in United States for advertising, and few others slogans for select countries and regions. 4) Recently McDonald's is actively trying to reduce their negative impact on the environment by altering their company policies. Their policy now an outline is not only the individual restaurants' behaviors, but also the ways in which they go about using their resources and acquiring them-. Since the 1990's...
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...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. S 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. W McDonalds is heavily criticized for...
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...http://talkfinanceonline.com/swot-analysis-of-mcdonalds/ SWOT analysis of Mcdonalds April 18th, 2012 | Author: admin Share Swot analysis on McDonalds. McDonalds is an international food outlet preferred by every age group around the world. It is a multinational food outlet, despite this it has to be analyzed to evaluate its strengths, weaknesses, opportunities and the threats. Let’s analyze the outlet using swot analysis. Weakness * The weakness that hits the list is the employee turnover rate. Every year many of their employees are fired out of the restaurant * McDonalds mostly advertises products and food items that targets children. You will notice that bill boards always display the advertisements of Happy Meal and any other deal that is ordered for the kids mainly * Health conscious people seldom complain that they do not provide us with the organic and healthy food. This becomes their weakness when they get in the complaints * They also face quality issue at times. This affects the business as they are running the outlet worldwide, if one franchise gets affected others also get a bad name Strength * McDonalds holds a very strong brand name worldwide * They have large partnerships with other companies that provides them with their desired products, this increases the goodwill of the company * Socially responsible firms earn a good name in the market due to their projects they do to help people, McDonalds is one the most reputed firms who are...
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...are run on this basis. In the UK, the first franchised restaurant opened in 1986 - there are now over 1,200 restaurants, employing more than 70,000 people, of which 34 percent are operated by franchisees. McDonald’s Expands Globally While Adjusting Its Local Recipes. McDonald’s is the biggest chain of restaurants in the world serving nearly fifty million customers per day (McDonalds, 2011). . Situation Analysis: Political Factors the policies of government affect mc Donald’s in various ways Economic factors he economy goes through a series of fluctuations associated with general booms and slumps in economic activity. Businesses will be more encouraged to expand and take risks when economic conditions are right, e.g. low interest rates and rising Social factors currently affecting the food chain has been the rising agitation for green restaurants with hotels and restaurants being blamed for being among the biggest consumers of energy and hence their contribution to global warming. The food chain can take this as an opportunity to develop greener methods of consumer protection. Technology Factors McDonalds is faced by the daily challenge of changing technologies in terms of ordering...
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...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 expanded its operations to become a worldwide chain of over 35,000 restaurants, employing 1.7 million people...
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