Mcdonalds Swot Analysis Dec 2012 Essay

Published: 2020-04-22 08:24:05
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Category: Fast food

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* Has very good brand recognition * Supports subsidized healthcare projects * Operates globally so has smaller impact of local or regional depressions. * Efficient documented operating procedures in the assembly line fashion. * A large percentage of business is franchisee owned so the risk is spread out. * Shows nutrition and caloric values of the menu items. * For a large enterprise very nimble exemplified by the kitchen upgrades in 1. 5 yrs under skinners leadership. * Have an audit program that helps maintain the quality and service of the existing locations.

* Business model works well in recession periods. * Have taken a sizable portion of customer base from Starbucks by launching McCafe. Weaknesses: * Not good at introducing new products that can compete with other traditional fast food chains like pizza hut. * Not good at managing acquisitions profitably like Donatos, Chipotle.. etc. * Have a high turnover rate of personnel. * Not easy to have Quality control on widespread locations as the restaurants are owned by the franchisee.

* Since the restaurants are not directly owned the profitability also varies based on the capability and drive of the franchisee. * There is not much focus on sourcing locally and this promotes negative image among environmentalists. * Main focus is still on the fatty foods like burgers as compared to healthy foods like salads. * Similar to other franchise model businesses if one restaurant has quality issue this reflects on other franchise locations. Opportunities:

* Introduce healthy food options (steamed burgers, salads, mushroom burgers..etc) * Have lot of potential to grow in developing nations. * Can continue to grow in new markets by doing joint ventures with local firms. * Create a separate sub brand for upscale dining * Acquire a fast food chain that provides different type of food but in the same price range like taco bell and provide both offerings in the same restaurant premises. * Increase the beverage choices to include new natural drinks like coconut water, sugarcane juices.. etc * Make use of more sophisticated user preference tracking and product usage like seven eleven Japan.

* Currently serves only 1% of the world population. * Refurbish and remodel older stores. Threats: * Change in consumer behavior to eat more healthy foods * There are pending lawsuits for providing food items that are addictive but unhealthy for young kids. * There is lot of competition from regional and national chains like Wendys and Burger King. * Over saturated and mature US market. * U. S Government regulations and push towards healthy plate options. * U. S First lady, Michelle Obama endorsing healthy food choices for kids.

* Seen as a symbol of America, and if people in any country protest against US and its policies they go and damage a McDonalds restaurant. As of this writing, McDonalds Corp, with a ticker symbol of MCD is trading at $88. 72 per share. Its 52-week high was $102. 22 and its low was $85. 92. It has a P. E. ratio of 16. 71 compared to 16. 19 of the S&P 500 and 28. 11 for the sector. Its dividend yield is __3. 08____% compared to __1. 97_____% of the S&P 500 and _2. 02___% for the sector. It has a Beta measurement of 0. 31. Based upon my post-script analysis, I would currently purchase this stock.

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