McDonald is the leading fast-food provider in the world. It has more than 30,000 local restaurants offering its services to approximately 52 million people in different countries in the world each day. The company has developed and implemented appropriate business strategies that make it successful. Some of the strategies employed by McDonald in response to the dynamic external environment are business structure and the external environment hence able to achieve its strategic goals (David & David, 2003).
McDonald Corporation maintains a top position restaurant that provides fast food services globally through SWOT analysis that addresses internal and external factors. SWOT Analysis identifies the most relevant internal and external business factors that determine the success if the firm. McDonald has strong brand making the business more competitive in the market. In addition, the firm is based in most of the regions around the world; therefore, it has moderate market diversification which reduces market-based risks.
The opportunities that McDonald industry faces are connected to its products and its global growth. It should grow and expand in developing countries such as Asian countries and Middle Eastern countries. Besides, the company should develop new products and enter new industries to meet market-based risks.
McDonald Corporation faces threats that are mostly based on competition rivalry and social-cultural factors. In most cases restaurant is highly competitive where McDonald is threatened by aggressive competitors due to its status as a market leader. Healthy lifestyles trends posses as a threat to the firm since it’s criticized to provide unhealthy products that the consumers are discouraged from eating. The increased societal focus on health could be the demand for the fast food provided by McDonald Corporation. McDonald Company is also affected by macro-environment factors that consist of social, cultural, legal, economic, technological and political factors. These factors influence the growth and effectiveness of the company.
A list of external opportunities and threats facing McDonald
According to the recent survey, McDonald faces struggles in the market due to fierce competition from various European markets. However, the company needs new assessment of its strength, weaknesses, opportunities and threats despite it being a well-established company.
Strengths- McDonald Company is well-established brand globally. It ensures consistency in providing fast-food with similar taste throughout the world. The products are defined by the cultures of different locations hence considering cultural diversity. McDonald diversification allows it to generate consistent profits due to its increased sales.
Weaknesses- the Company faces negative publicity due to the perception that they provide unhealthy food. The criticism has lead to lowering of the sales since the consumers are discouraged from eating unhealthy food.
Opportunities-McDonald Company has an excellent opportunity to expand its market share especially in most of the underdeveloped countries. The recent report shows that the company is increasing globally from 81% to 90% franchise. The company also can provide more different products by upgrading its menu. An example provided is that they recently introduced an artisan chicken and sirloin burger to its menu in the United States.
Threats- the Company faces stiff competition from fast-food providers either locally or internationally. However, it competes in regards to prices; service provided, product quality and convenience. They ensure that consumer gets the best by meeting their expectations and preferences. An example shown is where McDonald hamburger fast-food competes with Burger King and Wendy’s.
References
David, F., & David, F. (2003). Case instructor's manual [for] Strategic management, ninth edition [by] Fred David. Upper Saddler River, N.J.: Prentice Hall.
George & Panagiotou (2003) Bringing SWOT into Focus, Business Strategy, 14:2;2 China Big Mac Attack, America
