{"id":4435,"date":"2014-05-08T19:35:30","date_gmt":"2014-05-08T19:35:30","guid":{"rendered":"http:\/\/www.marketingteacher.com\/mcdonalds-swot\/"},"modified":"2023-07-10T15:40:07","modified_gmt":"2023-07-10T14:40:07","slug":"mcdonalds-swot","status":"publish","type":"post","link":"https:\/\/marketingteacher.com\/staging\/5483\/mcdonalds-swot\/","title":{"rendered":"McDonalds SWOT"},"content":{"rendered":"<br \/>\n<h1>SWOT Analysis McDonald&#8217;s<\/h1>\n<p>Would you like a lesson on <a href=\"https:\/\/marketingteacher.com\/staging\/5483swot-analysis-marketing-tools-from-marketing-teacher\/\">SWOT<\/a> analysis?<\/p>\n<h2>Strengths<\/h2>\n<ul>\n<li>McDonald&#8217;s has been a thriving business since 1955 and 20 of the top   50 corporate staff employees started as a restaurant level employee. In   addition, 67,000 McDonalds restaurant managers and assistant managers   were promoted from restaurant staff. Fortune Magazine 2005 listed   McDonald&#8217;s as the &quot;Best Place to Work for Minorities.&quot; McDonalds invests   more than $1 billion annually in training its staff, and every year   more than 250,000 employees graduate from McDonald&#8217;s training facility,   Hamburger University.<\/li>\n<\/ul>\n<h2>Weaknesses<\/h2>\n<ul>\n<li>Their test marketing for pizza failed to yield a substantial   product. Leaving them much less able to compete with fast food pizza   chains.<\/li>\n<li>High employee turnover in their restaurants leads to more money   being spent on training.<\/li>\n<li>They have yet to capitalize on the trend towards organic foods.<\/li>\n<li>McDonald&#8217;s have problems with fluctuations in operating and net   profits which ultimately impact investor relations. Operating profit was   $3,984 million (2005) $4,433 million (2006) and $3,879 million (2007).   Net profits were $2,602 million (2005), $3,544 million (2006) and $2,395   million (2007).<\/li>\n<\/ul>\n<h2>Opportunities<\/h2>\n<ul>\n<li>In today&#8217;s health conscious societies the introduction of a healthy   hamburger is a great opportunity. They would be the first QSR (Quick   Service Restaurant) to have FDA approval on marketing a low fat low   calorie hamburger with low calorie combo alternatives. Currently   McDonald&#8217;s and its competition health choice items do not include   hamburgers.<\/li>\n<li>They have industrial, Formica restaurant settings; they could   provide more upscale restaurant settings, like the one they have in New   York City on Broadway, to appeal to a more upscale target market.<\/li>\n<li>Provide optional allergen free food items, such as gluten free and   peanut free.<\/li>\n<li>In 2008 the business directed efforts at the breakfast, chicken,   beverage and convenience categories. For example, hot specialist coffees   not only secure sales, but also mean that restaurants get increasing   numbers of customer visits. In 2009 McDonald&#8217;s saw the full benefits of a   venture into beverages.<\/li>\n<\/ul>\n<h2>Threats<\/h2>\n<ul>\n<li>They are a benchmark for creating &quot;cradle to grave&quot; marketing. They   entice children as young as one year old into their restaurants with   special meals, toys, playgrounds and popular movie character tie-ins.   Children grow up eating and enjoying McDonalds and then continue into   adulthood. They have been criticized by many parent advocate groups for   their marketing practices towards children which are seen as marginally   ethical.<\/li>\n<li>They have been sued multiple times for having &quot;unhealthy&quot; food,   allegedly with addictive additives, contributing to the obesity epidemic   in America. In 2004, Michael Spulock filmed the documentary Super Size   Me, where he went on an all McDonalds diet for 30 days and wound up   getting cirrhosis of the liver. This documentary was a direct attack on   the QSR industry as a whole and blamed them for America&#8217;s obesity   epidemic. Due in part to the documentary, McDonalds no longer pushes the   super size option at the dive thru window.<\/li>\n<li>Any contamination of the food supply, especially e-coli.<\/li>\n<li>Major competitors, like Burger King, Starbucks, Taco Bell, Wendy&#8217;s,   KFC and any mid-range sit-down restaurants.<\/li>\n<\/ul>\n<p>McDonald&#8217;s is the leading global foodservice retailer with more than   31,000 local restaurants serving more than 58 million people in 118   countries each day. More than 75% of McDonald&#8217;s restaurants worldwide   are owned and operated by independent local men and women. Read more&#8230;<\/p>\n<p align=\"right\"><em>Last updated July 2009<\/em><\/p>\n<p class=\"note\"><strong>Disclaimer: <\/strong><br \/>\n\t\t\t\t\tThis case study has been compiled from   information freely available   from public sources. It is merely intended to be used for educational   purposes only.<\/p>\n<ul>\n<li>The business is ranked number one in Fortune Magazine&#8217;s 2008 list of   most admired food service companies. <\/li>\n<li>One of the world&#8217;s most recognizable logos (the Golden Arches) and   spokes character (Ronald McDonald the clown). According to the Packard   Children&#8217;s Hospital&#8217;s Center for Healthy Weight children age 3 to 5 were   given food in the McDonalds packaging and then given the same food   without the packaging, and they preferred the food in the McDonald&#8217;s   packaging every single time.<\/li>\n<li>McDonalds is a community oriented, socially responsible company.   They run Ronald McDonald House facilities, which provide room and board,   food and sibling support at a cost of only $10 a day for families with   children needing extensive hospital care. Ronald McDonald Houses are   located in more than 259 local communities worldwide, and Ronald   McDonald Care Mobile programs offers cost effective medical, dental and   education services to children. They also sponsor Olympic athletes.<\/li>\n<\/ul>\n<ul>\n<li>They are a global company operating more than 23,500 restaurants in   109 countries. By being spread out in different regions, this gives them   the ability to weather economic fluctuations which are localized by   country. They can also operate effectively in an economic downturn due   to the social need to seek out comfort foods.<\/li>\n<li>They successfully and easily adapt their global restaurants to   appeal to the cultural differences. For example, they serve lamb burgers   in India and in the Middle East, they provide separate entrances for   families and single women.<\/li>\n<li>Approximately 85% of McDonald&#8217;s restaurant businesses world-wide are   owned and operated by franchisees. All franchisees are independent,   full-time operators and McDonald&#8217;s was named Entrepreneur&#8217;s number-one   franchise in 1997. They have global locations in all major airports, and   cities, along the highways, tourist locations, theme parks and inside   Wal-Mart.<\/li>\n<li>They have an efficient, assembly line style of food preparation. In   addition they have a systemization and duplication of all their food   prep processes in every restaurant.<\/li>\n<li>McDonald&#8217;s uses only 100% pure USDA inspected beef, no fillers or   additives. Additionally the produce is farm fresh. McDonald&#8217;s serves   100% farm raised chicken no fillers or additives and only grade-A eggs.   McDonald&#8217;s foods are purchased from only certified and inspected   suppliers. McDonalds works closely with ranchers, growers and suppliers   to ensure food quality and   freshness.<\/li>\n<li>McDonalds only serves name brand processed items such as Dannon   Yogurt, Kraft Cheese, Nestle Chocolate, Dasani Water, Newman&#8217;s Own Salad   Dressings, Heinz Ketchup, Minute Maid Juice.<\/li>\n<li>McDonald&#8217;s takes food safety very seriously. More than 2000   inspections checks are performed at every stage of the food process.   McDonalds are required to run through 72 safety protocols every day to   ensure the food is maintained in a clean contaminate free environment.<\/li>\n<li>.\tMcDonald&#8217;s was the first restaurant of its type to provide   consumers with nutrition information. Nutrition information is printed   on all packaging and more recently added to the McDonald&#8217;s Internet   site. McDonalds offers salads, fruit, roasted chicken, bottled water and   other low fat and calorie conscious alternatives.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>McDonalds SWOT is one of 50+ FREE examples of SWOT analysis on Marketing Teacher.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[13],"tags":[],"class_list":["post-4435","post","type-post","status-publish","format-standard","hentry","category-swot-analysis-examples"],"_links":{"self":[{"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/posts\/4435","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/comments?post=4435"}],"version-history":[{"count":1,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/posts\/4435\/revisions"}],"predecessor-version":[{"id":7495,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/posts\/4435\/revisions\/7495"}],"wp:attachment":[{"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/media?parent=4435"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/categories?post=4435"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/tags?post=4435"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}