Will McDonalds succeed to grow as a consequence of their strategic choices? How would you compare McDonalds and Wal-Marts growth strategies?

Running head : MCDONALDS

McDonalds Case Study

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McDonalds Case Study

Strengths

One of the strength that McDonalds should be proud of is their world wide brand equity . This only means that McDonalds successfully gain the trust of their target customer locally and internationally

McDonalds also start providing 24 /7 services to their customers especially to those busy cities (Arndt , 2007 . With this strategy McDonalds could increase their target customers and so with their profit and sales volume

In terms of size , in US alone , 42 percent

of the fast-food hamburger business belongs to McDonalds . This only shows that McDonalds has the position to dominate the market and impose threat to its competitors

Moreover , managers of McDonalds are very competent and attained their position through internal promotion . The internal promotion policy of McDonalds enables them to have well-rounded employees since they already know every detail of the operation of the company

Currently , McDonalds is making an effort to provide their customers with new store features like comfortable armchair and artistic lights and other things that improves the atmosphere every time customers enter into the stores of McDonalds (Gogoi , Arndt Moiduddin , 2006

Weaknesses

One of the major weaknesses of McDonalds is its slowed income and revenue growth for the past years . Maybe this is the result of the increasing competition in the market and economic instability of the country from the previous period

McDonalds is also suffering from weak product development just like its competitors in the market . One of the possible reasons for this issue is the fast-paced growth of McDonalds during the early 1990 's up to the extent that the management could no longer handle the expansion and caused managerial inefficiencies internally and externally

Another weakness of McDonalds would be the deterioration of the taste and quality of their product . Recently , McDonalds Company concentrated much on the external improvement of the company like massive franchising transaction in the market to stabilize the profit and sales of the company and paid less attention on securing the quality and conformance of their product to standards set by the company

Declining market share due to tight competition in the market also become the problem and weakness of McDonalds . This issue is somehow related to the declining profitability and sales of the company for the past years

Opportunities

One of the major opportunities that McDonalds has would be their international expansion . With this said strategy of the company , they could now serve and cater for more customers than before . This is also a great opportunity for them to increase their profit and sales volume due to increasing demand for their brand

Another opportunity would be that , currently , McDonalds is only serving 1 percent of the a huge number of customers that the company could target in the near future to increase the company 's market dominance and influence

Aside from the given two opportunities above , another would be the improvement of the US economy from the previous period . it has been identified...