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McDonalds Fast-Food Restaurants Analysis

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McDonalds Fast-Food Restaurants Analysis

The following is a SWOT analysis of McDonalds Fast-Food Restaurant.

Strengths

  • All fast-food chains based globally are profitable
  • There is a decentralized system of operating which is connected
  • Rigorous food safety standards and procedures
  • Information with regards to nutrition is available on the food packaging
  • Food products are of high quality and affordable
  • Incorporates selective supply chain strategies
  • Has an open-door policy to the press
 Weaknesses

  • It is difficult to find and retain employees in most of its outlets
  • It is unable to adapt to changes in market and consumer trends
  • The fast-food menu of fries, burgers, and chicken promotes an unhealthy eating diet among its customers
  • The company erroneously promoted meat imported from Latin America claiming it to be from social and environmental sources.
  • In the event the profits fall, the stock prices will also fall
Opportunities

  • The Company has attractive and flexible terms of employment
  • It is committed to environmental conservation activities
  • It has an inbuilt corporate responsibility committee
  • It has an honest and real brand image
 Threats

  • It has been known to have unhealthy food menus for young children
  • Health concerns have been raised about its beef, fish, and poultry products.
  • The corporate social responsibility activities are under threat from the risk of profit loss by the company
  • There have been cases of labor exploitation in China, with the manufacturers exploiting employees to produce Happy Meal toys.

The management at McDonalds would view the SWOT analysis as being partly exhaustive of the internal strengths and weaknesses of the company as well as the external opportunities and threats. The fast-food company is globally positioned is more than likely to be faced by a myriad of threats such as the concerns raised by most of its consumers about the quality of its food when compared to that of KFC.

The threat of KFC has become increasing as the fast-food company also expands its operations to cover more countries globally. To position itself in the global market, KFC has had to produce food that is of more superior quality than that of McDonalds. It has seen its chicken menu undergo numerous modifications, a strategy that has made its chicken the best in the fast-food industry.

In terms of opportunities, the manager would say the list is not exhaustive as new opportunities present themselves every day in the form of opening new outlets in countries that are fully industrialized or have met their development goals. Having flexible terms of employment is not enough to retain its workers. Allowing its workers to unionize will ensure that its employee turnover numbers are reduced and more workers can be retained. An opportunity presents itself in the hiring of college or school students as part-time workers. This will be seen as providing flexible after school work and income to the many college and high school going children who need extra money.

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