6AG502 Financial Statement Analysis University of Derby

Introduction

SWOT Analysis can be defined as an essential process which is required to be conducted by every company who wants to know their strengths, weaknesses, opportunities and threats. This can be said as a framework through which company can know that what they csan do and what they can’t (Saw. and et. al., 2013). The organization which is referred here is McDonald’s; which is a famous fast food chain running successfully all over the world. So, in this assignment, a SWOT Analysis will be conducted on McDonald’s.

Main Body

There are various elements which needs to be discussed while conducting SWOT analysis of company. so, the SWOT Analysis of McDonald’s company is done as under:-

1. Strenths –

The Strengths of McD are as follows:

They are having strong brand equity in market and they are also regarded as No. 1 Company in terms of sale as they are having more than 31000 restaurants operating in more than 120 countries (Baycheva-Merger. and Wolfslehner, 2016)

  • They are also regarded as the biggest player in market because of its availability in global market. It was researched that when the competitors of McDonald’s (Wendy’s and Burger King) were losing their market share; McD was still on a growth line.
  • They are considered as very disciplined when it comes on training their managers and thus they are having their own training programs which is also known as Hamburger University.

2. Weakness-

Its weaknesses can be classified as follows:-

They are having an image of presenting unhealthy food to their customers. In all their dishes, large amount of fat and calories are present which is very harmful for their lives.

There are many strong brands which is present in market as a competitor of McDonalds so they have to give a tough competition to their competitors so that they can grab more no. of customers.

They are also having high employee turnover rate as it was known that every year many employees are being fired from their jobs and others quit because of some other reasons as wel (Game and et. al., 2013

Baycheva-Merger. and Wolfslehnerl.

3. Opportunities

Because of the development of fast food market, company is having an opportunity to develop their brand in the market and revenue as well (Game and et. al., 2013).

  • They are not into green vegetable foods and people have become diet conscious so it is like an opportunity for McDonalds to innovate some dishes with green vegetables inside it.
  • It has also been found out that more people are attracted at such place where food is available at low cost so McDonalds should also make sure that they keep the prices of their product low.

4. Threats

  • With the development of fast food industry, there are several brand new fast food brands that are entering the market so McDonalds should have an eye on them so that they could not overpower them.
  • As the cases of obesity in increasing all over world, people are preferring to eat healthy meal more than the junk food so, it is like a threat on them since it might reduce their sales as well as revenue.

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Conclusion

From the above report, it can be concluded that McDonald’s is a very strong brand in market but still they are having very strong competitors present at the market place with whom McDonald’s have to deal with. Here, all of their weaknesses and threats are also being discussed which they have to overcome in order to become best in the market and achieve competitive advantage.

References

  • Baycheva-Merger, T. and Wolfslehner, B., 2016. Evaluating the implementation of the Pan-European Criteria and indicators for sustainable forest management–A SWOT analysis.Ecological indicators.60, pp.1192-1199.
  • Game, E.T., Fitzsimons, J.A., Lipsett-Moore, G. and McDonald-Madden, E., 2013. Subjective risk assessment for planning conservation projects.Environmental Research Letters.8(4). p.045027.
  • Saw, G. and et. al., 2013. Social media for international students–it's not all about Facebook.Library Managemen..34(3). pp.156-174.
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