Internal And External Analysis

McDonald's

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McDonald's

SWOT Analysis

There is no doubt that McDonald's have one of the most famous burgers worldwide. The matter of fact is that McDonald's will hardly be missed by anyone. When it comes to the SWOT analysis of McDonald's, it tends to explore the reasons behind the success of the firm. The SWOT tells the reason why a large number of the population around the globe prefer McDonald's.

Strengths

McDonald's being one of the most popular brands worldwide possess a number of strengths that help the firm make the brand more popular globally (Shabbir, 2018). There are certain strengths that McDonald's possess such as:

Brand Equity in the global market

Balance sheet position

Overseas marketplace

Consistency of Food

Weaknesses

As there ultimate strengths that McDonald's possess, similarly there are some weaknesses too that McDonald's face. These weaknesses tend to act as an opposing force to the increase in the revenue for the brand. Some of the weaknesses that McDonald's face include:

Slowed revenue and income growth

Disgruntled franchisees

Weak development of products

Declining market share

Opportunities

There is no doubt that strengths and weaknesses are the part of every organization that tends to play an important in the overall performance of the company. However, there are certain opportunities that lie in the future of McDonald's and can help the firm to grow itself. The opportunities may include:

International expansion

Join ventures with retailers

Growing dining-out market

Use of CRM

Threats

The future not only just provides a path to the opportunities, but there too may have threats that can leave a negative impact on one of the biggest brands of the world, McDonald's. The threats for McDonald's in the upcoming time may include:

Changing demographics

Increase in health-conscious consumers

Strength of competition

Overstored/mature industry

External Environment

Political Factors

There are certain political factors that may affect McDonald's in either a positive or a negative way. In the current scenario, the evolving public health policies are in between which can be considered both as a threat and opportunity. Just like that, the governmental guidelines for health and diet are also considered a threat and opportunity simultaneously for McDonald's. However, the increase in international trade agreements is undoubtedly an opportunity for McDonald's (No, 2015).

Economic Factors

The rapid growth of developed nations is undoubtedly an opportunity for McDonald's. On the other hand, the slowdown of the economy of China can be seen as a threat to McDonald's. One opportunity for McDonald's will be the stable growth of developed countries.

Sociocultural Factors

There are certain sociocultural factors that tend to play an active role in McDonald's. The trend of a healthy lifestyle along with the increase in cultural diversity is at the same threat and opportunity for McDonald's (Shabbir, 2018). On the other hand, busy lifestyles in urban environments and the rise in disposable incomes are good opportunities for McDonald's.

Technological Factors

As the 21st century is considered as the century of technological innovation, it seems to be like there will a deep impact of technology over McDonald's. In a nutshell, it can be said that there will be an increase in the number of opportunities for McDonald's in this modern era of technology. The increase in sales through handheld devices along with the increase in business automation are undoubtedly golden opportunities for McDonald's.

Legal Factors

The rise in the legal minimum wages and the increase in the health regulations in schools and workplaces can be considered as a threat to McDonald's. On the other hand, the increase in animal welfare regulations can be considered both as the threat and opportunity at the same time.

References

Camilleri, M. A. (2018). The marketing environment. In Travel Marketing, Tourism Economics and the Airline Product (pp. 51-68). Springer, Cham.

No, S. A. (2015). McDONALD’S CORPORATION.

Shabbir, M. S. (2018). Innovation Strategy of McDonald Business from Historical perspectives. Innovative Journal of Business and Management, 7(12), 30-41.