McDonald’s Corporation

The written SWOT analysis is about the McDonald’s Corporation. All the information required for the SWOT analysis is in this document.The report should be not more than 3 pages, single spaced 12 point.

Please construct a SWOT Matrix for McDonald’s Corporation, and the assignment deliverables are explained in TWO Steps:

STEP 1:
1. List the McDonald’s key external opportunities.
2. List the McDonald’s key external threats.
3. List the McDonald’s key internal strengths.
4. List the McDonald’s key internal weaknesses.

You are required to complete the first FOUR steps listed above €“ from the following list of McDonald Corporation’s Strengths, Weaknesses, Opportunities& Threats:

1.    Highly successful and recognized advertising. (I’m loving it)
2.    Intense price pressure from competitors like Burger King, Taco Bell, Wendy’s, KFC and any mid-range sit-down restaurants.
3.    International expansion into emerging markets of China, India, Brazil.
4.    Core product line out of sync with trends toward healthier lifestyles for adults and children.
5.    High employee turnover.
6.    Strong Global Presence and an ability to weather local economic fluctuations.
7.    Litigation
8.    Many restaurants (60% in U.S.) have outdated appearance. Remodeling can yield cozier, upscale setting, and upgrade the image.
9.    Consistently solid financial performance: Gross margins (36.7%) and net profit margins (18.2%) above industry averages; Sales revenue up 3.3% in 2008, global comparable sales up 6.9%: Net income up 80% in 2008.
10.    Contamination of the food supply, especially e-coli, or Mad cow disease, could damage sales, reputation, etc.
11.    80% of restaurants are franchise owned, placing image and reputation in other’s hands.
12.    Respond to social changes by innovation within healthier lifestyle foods.
13.    Particularly vulnerable in older, established markets (US, EU) to upstarts offering healthier food offerings and more modern, high tech surroundings.
14.    Uses pure ingredients and take food safety very seriously.
15.    Over-saturation of real estate in the US.
16.    Low fat, low calorie, healthy hamburger €“ Could be first on market.
17.    Sales demonstrates seasonal effects.
18.    Strong innovation and product development.
19.    Brand equity at risk: 80% of restaurants owned by franchisees.
20.    Diversify portfolio (like it did before divesting Chipotle, Boston Market).
21.    Assembly line approach makes it difficult and costly to adapt to changing trends.
22.    Strongest Brand Image as the number-1 fast-food company by sales, with more than 32,000 restaurants in 118 countries.
23.    More health conscious customers.
24.    Breakfast not available at 25% of locations .
25.    Struggles with fluctuations in operating and net profits: Operating profits $4,433M (2006), $3,879M (2007), $6443M (2008); Net profits $3,544M (2006), $2,395M (2007), $4,313M (2008).
26.    Recognized as a community oriented, socially responsible company.
27.    Subway and YUM! Brands expanding into developing markets at a higher rate.
28.    Joint ventures with retailers (Walmart, etc.) can place new locations in high traffic areas at lower capital cost.
29.    Large real estate portfolio.
30.    Lowest Customer satisfaction rating in the industry.
31.    Global economic recession causing consumers to spend less .
32.    Increased beverage options (Gourmet coffees) have been shown to increase customer visits in Europe (+7.2%).
33.    Strong Investor Reputation.
34.    70% of operating revenues are in foreign currency.
35.    Markets in US and EU are mature and saturated.
36.    Continued focus on corporate social responsibility, reducing the impact on the environment and community linkages.
37.    Economies of Scale €“ Nearest competitor in U.S. is half McDonald’s size.
38.    Negative public opinion campaigns:
39.    Anticipated 4% growth rate in Quick Service Restaurant industry.
40.    Strong employee training and promotion mostly from within.

STEP 2:Match these Strengths, Weaknesses, Opportunities & Threats and propose AT LEAST THREE €“ SO, WO, ST, WT Strategies for McDonald’s Corporation. In particular:
5. Match internal strengths with external opportunities and record the resultant SO Strategies.
6. Match internal weaknesses with external opportunities and record the resultant WO Strategies.
7. Match internal strengths with external threats and record the resultant ST Strategies.
8. Match internal weaknesses with external threats and record the resultant WT Strategies.