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McDonalds: SWOT analysis Essay

McDonalds: SWOT analysis

McDonald’s continued success as a business organization can be attributed to its brand name. Because of international recognition of its brand, the franchisees are continuously attracted to the McDonald’s brand. Presently, it operates in more than one hundred countries and its restaurants have reached more than 31,000 stores worldwide. In view of its continued growth, Jack Greenberg, former chairman of McDonald’s USA has once declared that McDonald’ has set the stage for modern franchising.

Moreover, its mascots – Ronald McDonald, Grimace, and Hamburglar – remain as some of the world’s more recognized mascots. Its second strength is its ability to adjust to the demands of the changing environment. Despite its size, McDonald’s has been able to implement changes in its look and design which has produced positive results for the company (“Mickey D’s Makeover”, 2006). Its weakness however is the public perception that the many of the food it serves are unhealthy and fattening (“McDonald’s Put Fat Facts on Food”, 2005).

In fact, McDonald’s has even been blamed for the increasing number of children worldwide who are unhealthy. (“Suit Blames McDonald’s for Unhealthy Children”, 2002). In response to these concerns, McDonald’s has not only shifted to a healthier cooking oil, cut salt

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on its fries but even introduced new products in its stores by adding salads and fruits. Globalization and the rise of young professionals are considered as opportunities for McDonald’s to continue to grow. As more people become busy with their work, it is expected that more people will look for McDonald’s for power breakfast, lunch and dinner.

Also read Burger King SWOT Analysis

Deliveries and takeouts are also expected to increase with the fast-pace business environment of today (Michael Arndt, 2007). Its threat remains to be the trend towards a healthier food and a greener environment. Nowadays, people are more conscious about the way they eat and the way their food is being prepared. They have tried to stay away from burger and fries. As the trend towards healthier food continues McDonald’s remains under threat from competitors which offer healthier food.

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