McDonald’s is one of the most powerful food brands of all time, deriving incredible globalization and customer loyalty.

But despite the company’s continuous legacy, it needs to keep in check the aspects which can cause trouble. In this
SWOT analysis for the company, we highlighted each of the strength, weakness, opportunity and threat which
McDonald’s faces in the market

Based on what we've learned, STRENGTHS are the qualities that enable us to accomplish the organization’s
mission. In our presentation we can see how McDonalds show their competitiveness on their strong competitors.
First, their Market Leadership, Mcdonald has a strong reputation brand name logo and image and most valuable
brand in the word. This value helped the company consistently dominate the industry, despite of strong competition.
Second, is their Financial Performance and Annual Growth, Mcdonald franchises own more than 90% of its
locations rather than operating themselves. Financial performance and annual growth increases because they have a
stable income through franchising and operating. Next is the General Customers, Mcdonald restaurants serves a
locally relevant menu of quality food so that they have loyal customers. Lastly, is Technology Innovative, Mcdonald
takes innovative steps to realize its Experience of the Future through digital initiatives, this concept relies on
innovations like mobile orders, payment systems and self service.

In McDonald’s WEAKNESSES, here are some of the shortcomings of McDonald’s’ strategy and structured
composition, which affects its overall growth. First, High employee turnover rate, Although McDonalds has many
good managers as well as skillful employees, the turnover rate is still high and as a result, it increases the training
costs. Every year many of their employees are fired out of the restaurants. Moreover, many others quit their jobs,
especially part time employees because of low salary as well as too high working pressure. Then, The Franchise
business model, McDonald’s is the best example of international franchising models. However, having this
complicated web of franchised and company operated restaurants expose the brand to certain risk. The risk of
financial deterioration, mismanagement, customer dissatisfaction, and low revenue generation. The company heavily
depends on the franchise which works independently and hence they have no control over their day-to-day
performance, but it affects the brand directly. Lastly, they should Less focus on nitrous food, The fast-food giant
has been negatively impacted because of society's obesity. McDonald’s food contains substantial amounts of calories
but are nutritionally devoid.

In the OPPORTUNITIES for McDonald’s emphasizes the emerging chances of growth. It can help the company to
improve its business performance, management structure, and strategic growth and other aspects. First is the
Expanding new geographic area, McDonald’s expand new geographic areas by introducing of a product which is
already established in market into a new geographic which the products or the brand is completely new. Next is
Introducing new menu items, how to introduce new menu items of McDonald’s? they ask a group of franchises to
put the item on their menu for a short time. The Company tests products in regions where the type of food is most
popular. And, lastly is the Conservation. How the McDonald’s conserving? They use double scale and reach to help
implement and accelerate solutions to keep waste out of nature and valuable materials in news. They also design out
waste and advance recovery and reuse materials through out our value chain, prioritizing areas where we can have
the greatest impact such as packaging.

The THREATS factor is connected with the phenomenon which stops the company from taking full advantages of the
benefits that can be derived from the available strengths. Therefore, these are the few threat that McDonald’s faces.
First, Competitors rising quickly, along with the development of fast-food industry, there are many new fast-food
brands enter to the market. It is nothing to say if there is no strong brand which can compete with McDonalds.
However, in fact, there are some and they are stronger gradually, for example Yum Brands, Wendy’s or Burger King.
Although market share of these brand are lower than McDonalds, they try to gain more customers from McDonalds.
Second, Health Issue (Obesity), With a growing number of obesity cases, fast food chains like McDonalds will
continued to be overshadowed by their previous products offerings, for example Supersized Meal, no fruit or yogurt,
slim salad selection. Besides, people nowadays are facing heart problem more seriously. As a result, they require
nutritious and healthy food as well as lifestyle. Lastly, New Age Fast Food Trends, McDonald’s often for millennial is
considered an old school with its traditional menu and taste. In this situation, food chains like shake shack and
Wendy’s take full advantage with their often-experimented menu and recipes to include variety.