Companies use SWOT analysis to generate insights from external and internal analysis frameworks

and to generate potential strategic actions. A good first step to understand SWOT is to examine a
strategic situation using the framework.

Let's try this with McDonald's.

Like many people, McDonald's CEO Steve Easterbrook, who took the helm in March 2015, has
enjoyed his share of Big Macs and fries. Unfortunately, right now he's probably experiencing a bit of
indigestion. Some serious internal weaknesses are plaguing McDonald's. In 2014, its total revenues
declined and its operating and net incomes dropped to 2010 levels. Operational problems, especially
in Asia, led to health scares that hurt the company.

For example, a meat vendor in China was exposed for supplying expired and contamined chicken and
beef.

Customer satisfaction in the US dropped significantly in 2012 and has been dropping ever since. At
present, customer satisfaction is below that of traditional competitors like Burger King and Wendys,
and externally, the firm is facing a changing landscape to which it must adapt.

The opportunities for fast food companies are evolving in the USA, younger demographic with
increasing disposable income and health and food consciousness is growing around the world.
Emerging economies are rapidly changing and represent a strong opportunity. Yet threats abound.
Burger King and Wendys have focused to attract the core fast food market with their simple and
basic fast food menus.

Meanwhile, new competitors offering healthier Fresh Mex options have lured away higher end
customers with their claims of slightly higher quality and customizable food options.

McDonald's retains impressive strengths, it's the largest international fast food company. In 2012,
there were 14,157 McDonald's in the US alone. The Golden Arches, a well known global brand, is
valued at more than three times its closest competitor. So despite McDonald's recent operating
performance decline, its financial position remains strong.

Faced with these external opportunities and threats, as well as the Firm's internal strengths and
weaknesses, CEO Easterbrook must decide what strategic actions to take to stay competitive.

Offensive Strategic actions would consider how the firm can use its internal strengths to take
advantage of external opportunities. Defensive strategic actions would consider how the firm can
use its internal strengths to reduce the impact of external threats. Strategic actions that adjust the
firm's current position would consider how the firm can overcome internal weaknesses that prevent
the firm from taking advantage of external opportunities. Strategic actions that turn around the
firm's current position would consider how the firm can overcome internal weaknesses that, if not
addressed, would allow external threats to impact the firm.

CEO Easterbrook implemented All Day Breakfast. This strategic actions adjusted the Firm’s position in
the breakfast segment and turned around the firm’s financial performance. Thus, this strategic
action is both an adjust and a turn around effect. By taking this action, he leveraged 2 key
advantages, a strong US footprint and a well liked breakfast menu. He also defended against the
threat of traditional competitors that don't offer breakfast all day. This move is anticipated to help
slow or cease the firm's revenue decline.

Likely, CEO Easterbrook will take many more strategic actions to recreate McDonald's competitive
advantage. SWOT is an important tool for helping managers create strategic actions. A good strategic
actions can address many issues at once. SWOT help so managers can understand as well as create
the potential actions can develop a sustainable advantage.

 Mc Donals’s SWOT analysis:

Strengths

 Lack of locations
 Brand value
 Financial strength

Weaknesses:

 Determining sales
 Health issues
 Declining customer satisfaction

Opportunities:

 Younger US, “health focus”

 Emerging markets

Threats

 Traditional competition
 New competition
Title: McDonald's Strategic Reorientation: A SWOT Analysis Perspective

In the dynamic world of fast food, McDonald's has long stood as a titan, synonymous with quick,
affordable meals. However, the recent years have seen this fast-food giant grappling with various
challenges. A SWOT analysis - evaluating the company's Strengths, Weaknesses, Opportunities, and
Threats - provides insightful perspectives on McDonald's strategic situation and the actions taken
under the leadership of CEO Steve Easterbrook, particularly the introduction of All Day Breakfast.

OR: The business world is replete with challenges and opportunities, demanding astute strategic
planning and decision-making. McDonald's, a global fast-food giant, is no exception. Utilizing the
SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis framework provides invaluable
insights into the company's strategic position and potential actions. This essay delves into
McDonald's SWOT analysis, examining the strategic actions under CEO Steve Easterbrook's
leadership, particularly the introduction of the All Day Breakfast, and how it exemplifies the
application of SWOT in guiding corporate strategy.

Strengths and Leveraging Them:

McDonald's boasts formidable strengths: a global presence with an expansive chain of locations and
a brand value steeped in customer trust and recognition. Moreover, its financial robustness allows it
to invest in innovative strategies. These strengths are not just assets but platforms for growth. The
introduction of All Day Breakfast is a strategic move that leverages these strengths, particularly the
strong U.S. presence and the popularity of its breakfast menu. By offering breakfast all day,
McDonald's not only revitalizes interest in its traditional offerings but also reinforces its brand appeal
and accessibility.

Addressing Weaknesses:

The SWOT analysis highlights concerning weaknesses, such as declining sales, health-related image
issues, and falling customer satisfaction. These weaknesses reflect changing consumer preferences
and heightened health consciousness. McDonald's response, especially through menu diversification
and service enhancement, is critical. The All Day Breakfast initiative is part of this response, aiming to
boost sales and customer interest. However, addressing health perceptions requires more profound
menu transformations and marketing strategies.

Capitalizing on Opportunities:

The evolving demographic trends, particularly in the U.S. with a growing young and health-conscious
population, and the untapped potential in emerging markets, present significant opportunities.
McDonald's needs to innovate its offerings to align with these trends. Healthier menu options,
localized dishes in emerging markets, and digital marketing strategies targeting the younger
demographic could be effective ways to capitalize on these opportunities.

Mitigating Threats:

The competitive landscape for McDonald's is increasingly challenging. Traditional rivals like Burger
King and Wendy’s continue to pose threats with their core fast-food offerings. Simultaneously, new
competitors offering healthier and customizable options are attracting the high-end market segment.
McDonald's strategy, as seen with All Day Breakfast, aims to defend its market share by offering
unique propositions that competitors do not provide, such as extended breakfast hours. Yet, this
alone isn’t sufficient. Continuous innovation and adaptation are essential to stay relevant and
competitive.
The tenure of CEO Steve Easterbrook is marked by strategic initiatives responding to these SWOT
elements. The introduction of All-Day Breakfast is a notable example, serving multiple strategic
purposes. Addressing Weaknesses: This move aimed to improve customer satisfaction by leveraging
the company's strong breakfast menu, countering declining sales trends. Responding to Threats: It
also positioned McDonald's against competitors, offering something unique in the fast-food industry,
thereby defending its market share. This strategy showcases McDonald's ability to use its strengths
to address internal weaknesses and external threats, a key aspect of effective SWOT analysis
application.

Conclusion:

In conclusion, McDonald's, under CEO Easterbrook's leadership, has shown a proactive approach in
addressing its strategic challenges. The SWOT analysis reveals that while the company navigates
through a complex web of internal and external factors, its strengths and market position provide a
solid foundation for recovery and growth. Strategic actions, exemplified by the All Day Breakfast
initiative, reflect an adaptive and innovative approach. However, ongoing efforts to evolve in
response to health trends, customer preferences, and competitive dynamics are crucial for
McDonald's to maintain its industry leadership and secure long-term success.

Hoặc:

The SWOT analysis of McDonald's underlines the importance of this tool in strategic management. It
demonstrates how a business can navigate challenges, leveraging strengths to exploit opportunities
and counter threats. The strategic actions taken by Easterbrook, such as the All-Day Breakfast,
highlight a deep understanding of the interplay between internal capabilities and external market
dynamics. Overall, McDonald's experience illustrates the dynamic nature of strategy and the need for
continual adaptation in a competitive business environment.