EFE Matrix for McDonalds

Key External Factors

Opportunities
Weighted Score

Weight

1. Economy forcing people to trade down;

.45
i.e., choose less expensive options.

.15

2. Demand for healthier options for children &

.15
Happy Meal fruit/vegetable based themes

.05

3. Competitors (BK & Wendys) lack McCafe like options

.60
4. More than 57% McDonalds outside U.S.
absorb U.S. losses

Rating

.07

5. More US and Global markets welcome McDonalds

.27
6. Economics and competitors inspire
brand loyalty and return customers
.10

.15

.14

.09

.05

7. Demand for free wifi versus competitor charges

.27
8. Demand for more natural choices on menu
.27

.09
.09

3
3
Subtotal

2.25
Threats
9. Healthy eating demands eroding some sales
.18
10.Media attention to fast food & negative
effects.
.08
11.Price wars

.03

.06

.04

2
2

.16

12.Steady U.S. Unemployment

.06
13.Rising costs

.03
.03

14.Calorie counts & nutritional value posted

.18

2
.09

1.00

2
.06
2
2.97 total

Competitive Profile Matrix

McDonalds
Critical Success Factors
Weight
Score
Weight Rating Score
1. Advertising
.45

Wendys
Rating Score

BK
Weight Rating

.15

.45

.10

.40

.15

.10

.20

.15

.60

.10

.20

3. Price Competitiveness .10

.20

.15

.45

.15

.45

4. Menu Options

.10

.40

.10

.20

.10

.20

5. Value-added Services .05

(Wifi)

.15

.05

.05

.05

.05

6. Management

.30

.10

.10

.10

.20

7. Customer Loyalty
.30

.10

.30

.15

.30

.10

8. Global Expansion
.05

.15

.60

.10

.10

.05

.15

.10

.10

.10

.20

.10

.20

.10

.10

.10

2. Product Quality

9. Market Share

.10

.05

10.Financial Position
.20
1.00

2.90 1.00

2.40

2.30

Based upon the previous exploration, Mc Donalds exceeds its competitors for numerous
reasons, especially correlative of its enhanced menu selections, its value-added services, market
share, and global expansion. More importantly, perhaps, its newer menu offerings including the
McCafe and other healthy items cater to those downgrading their restaurant choices due to
economic circumstances and those who are concerned about healthy options from fast food
restaurants. McDonalds like all its competitors in the U.S. are contending with the steady rate
of unemployment. Therefore inspiring more people to become loyal consumers and maintaining

the customer base previously established is increasingly important. Yet, McDonalds global
market share, its number of outlets both abroad and in the U.S. also allows it to absorb more
losses in the U.S. and maintain lower costs overall. With the recent shift in management,
however, McDonalds will need to maintain a strong and cohesive organization and its
adaptability to a changing marketplace. If it fails to do this, the balance could shift and give its
competitors an edge.

References
Burger King. (2010). Home Page. Retrieved from http://www.bk.com/en/us/companyinfo/press/index.html
McDonalds. (2010). Home Page, retrieved from http://www.mcdonalds.com/us/
en/our_story/Corporate_Info.html
Steverman, B. (2010 Mar. 8). McDonalds : Winning a hard-times, fast food fight. Bloomberg
Businessweek. Retrieved from http://www.businessweek.com/bwdaily/dnflash/
content/mar2010/db2010038_123647.htm
Wendys (2010). Home Page. Retrieved from http://wendys.com/