McDonalds Strategic Analysis

MCDONALDS STRATEGIC ANALYSIS

SWOT Analysis

Strengths . McDonald 's has a well-established brand that appeals to customers of all age groups and nationalities . More than seventy percent of the company 's restaurants globally are possessed and run by independent local businessmen . McDonald 's is considered as one of the most famous and valuable brands the world over and seizes a chief share in the worldwide branded quick-service restaurant division of the casual eating-out marketplace in practically every nation in which McDonald 's conducts business . The business makes substantial investments in advertising

and promotions to improve its brand image . It maintains its recognition as a leading franchising business globally

The firm has a diversified geographic presence . McDonald 's operations are backed by strong supply chain capabilities . The company and its partners purchase food and related items from an approved group of suppliers . McDonald 's process of assuring quality not only entails continuing product evaluations , but likewise on-site assessments of suppliers ' amenities . Moreover , a board dedicated to assuring consisting of the firm 's safety , technical and supply chain experts offers strategic international headship for all facets of food safety and quality

Weaknesses . McDonald 's , according to an internal document , is facing customer complaints owing to poor service quality . Rude employees in its restaurants are costing it millions of dollars in lost sales each year Some of the more frequent complaints regarding service included wrong item included in , product missing , incorrectly prepared product condiments missing , inadequate portion , shortchanged or overcharged , and missing napkins , straws or utensils . Delay in service was the third-largest cause of customer complaints . Other complaints related to rude or unprofessional employees . Additionally , the company 's researchers found that , nearly 70 of the unsatisfied customers are further dissatisfied with the way the restaurant handled their complaint . Consequently , more than half of these unsatisfied customers reduce their visits to McDonald 's . Poor quality of service can have a harmful effect on the company 's image and lead to a corresponding decline in the number of its patrons

Opportunities . In future , McDonald 's is planning to significantly increase its count of franchisee operated restaurants as well as a major design overhaul (Gogoi , et . al , 2006 . In FY2007 , the company witnessed noteworthy development improving the combination of company-operated and franchised restaurants , counting implementation of a strategy of developmental license , to make the most of long-standing brand returns and performance . Under this strategy , a domestic capitalist owns the venture , plus being in command of the real estate , and utilizes their resources and local information to construct the McDonalds brand and maximize lasting sales and profitability

The firm is also planning on launching new products in to accommodate a larger customer base the world over . This would allow McDonalds to use the current customer base to the best advantage and cross-sell other products . These projects , together with longer open-store hours and daily value , can compel augmented visits from customers and bigger sales . New products could increase customer traffic to older restaurants in developed markets and...