SWOT McDonald s
Disgruntled franchisees Quality and taste of products Slowed revenue and income growth OPPORTUNITY International expansion Only serving 1% of the world’s population Growing dining-out market Joint ventures with retailers (e. G. Supermarkets). Consolidation of retailers likely, so better locations for franchisees. Respond to social changes – by innovation within healthier lifestyle foods. Its move into hot baguettes and healthier snacks (fruit) has supported its new positioning. Use of CRM, database marketing to more accurately market to its consumer target groups.
It could identify keel customers (based on modeling and profiles of shoppers) and prevent brand switching. Strengthen its value proposition and offering, to encourage customers who visit coffee shops into McDonald’s. The new “formats”, MacAfee, having Wi-If internet links should help in attracting segments. Also installing children’s play-parks and its focus on educating consumers about health, fitness. Continued focus on corporate social responsibility, reducing the impact on the environment and community linkages. International expansion into emerging markets of China and India. THREATS Mature/overstated industry
Strength of competition More health-conscious consumers Changing demographics Fluctuation of foreign exchange rates; Economies SOOT McDonald s By Morris-Lee background. Industries served Restaurants (McDonald’s, Mecca©, Uncompress, Mascot) Geographic areas served Worldwide (36,258 restaurants in 119 countries)[l] Headquarters Oak Brook, Illinois, United States current CEO Steve Easternmost Revenue $27. 441 billion (2014) 2. 4% decrease over $28,106 billion profit $4. 758 billion (2014) 14. 8% decrease over $5,586 billion Employees 420,000 (2015) Main Competitors Burger King Worldwide, Inc.
Darned Restaurants, Inc. , Doctor’s Associates, Inc. , Domino’s, Inc. , Yum! Brands, Inc. , Struck Corporation, Wendy Company and many other companies in the fast food industry. Business description This is McDonald’s Corporation business description taken from the company’s financial report: “General The Company franchises and operates McDonald’s restaurants in the global restaurant industry. These restaurants serve a broad menu at various price points in more than 100 countries around the world. All restaurants are operated either by the Company or by franchisees.
The Company’s operations are designed to assure consistency and high quality at every restaurant. Under the conventional franchise arrangement, franchisees provide a portion of the capital required by initially investing in the equipment, signs, seating and d©core of their restaurant businesses, and by reinvesting in the business over time. The Company owns the land and building or secures long-term leases. Conventional franchisees contribute to the Company’s revenue stream through the payment of rent and royalties based upon a percent of sales.
The conventional franchise arrangement typically lasts 20 years, and ranching practices are generally consistent throughout the world. Over 70% of franchised restaurants operate under conventional franchise arrangements. The Company and its franchisees purchase food, packaging, equipment and other goods from numerous independent suppliers. The Company has established and strictly enforces high quality standards and product specifications. Customers The Company’s business is not dependent upon either a single customer or small group of customers.
