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SWOT analysis of Mcdonalds

Swot analysis on McDonalds.

McDonalds is an international food outlet preferred by every age group around the world. It is a multinational food outlet, despite this it has to be analyzed to evaluate its strengths, weaknesses, opportunities and the threats. Let’s analyze the outlet using swot analysis.

Weakness

  • The weakness that hits the list is the employee turnover rate. Every year many of their employees are fired out of the restaurant
  • McDonalds mostly advertises products and food items that targets children. You will notice that bill boards always display the advertisements of Happy Meal and any other deal that is ordered for the kids mainly
  • Health conscious people seldom complain that they do not provide us with the organic and healthy food. This becomes their weakness when they get in the complaints
  • They also face quality issue at times. This affects the business as they are running the outlet worldwide, if one franchise gets affected others also get a bad name

Strength

  • McDonalds holds a very strong brand name worldwide
  • They have large partnerships with other companies that provides them with their desired products, this increases the goodwill of the company
  • Socially responsible firms earn a good name in the market due to their projects they do to help people, McDonalds is one the most reputed firms who are socially responsible
  • It is said that McDonalds was the first food outlet to provide its customers with nutritional facts
  • Loyal employees and management and customers is their biggest strength
  • McDonalds makes sure that cultural and regional barriers are kept in mind while providing food to different countries
  • Clean environment and play areas for children where they can enjoy their time

Opportunities

  • It can open up online services for their customers so that they can easily order their desired meals sitting at home
  • Discounts given on every food item may help them gain more customers
  • They can go for a joint venture with the retailers they work with
  • They can introduce healthy hamburgers and healthy drinks for the people who are health conscious
  • In order to be environment friendly, they can use packing material which can be recycled later or material that does not create pollution
  • As McDonalds is a socially responsible firm, they can provide more benefits to the people around
  • It won’t be a bad idea if they introduce food items specially for breakfast

Threats

  • Emerging competition of similar outlets is becoming a problem for McDonalds
  • Health issue also becomes a problem when it comes to food
  • As it is a multinational food outlet, fluctuations in the currency of other countries becomes a problem for such companies
  • Recession in any country would definitely affect the whole outlet world wide
  • These multinational companies take special care of the culture and traditions of the country they plan to start the business
  • People facing heart problems and obesity accuse McDonalds for not providing them with the healthy food
  • They have a threat of local food outlets in different countries
  • McDonalds is operating in a fully fledged economy where competition is increasing day by day therefore they should work effectively to overcome their drawbacks because of the recession.

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