Introduction

The McDonalds Corporation is one of the most successful global restaurant chains around the
world. They have used effective management and global expansion strategies to enter new
markets and gain a share of the foreign fast food market. This case presents how McDonalds
has achieved this enormous success, its best practices in the global food industry, international
growth trends and challenges, and various lessons that have been learned from their
expansion in foreign countries. Overall, the case provides a discussion of how McDonalds
creates both customer and brand loyalty for their products and services. This case focuses on
McDonalds international success, challenges and strategies.

This study was conducted for some of the most successful restaurant one
amoung was Mcdonald’ds whose effective management and global expansion
strategies has led this corporation to achieve big success. This research was
done for Mcdonald’s where they have achieved big success in the food
industry by offering best quality product.
The research revealed that the customer actually can trust Mcdonald’s who
provie them with the food of high quality ingredients. Where the supplier
who supplies the ingredients are the most trusted vensors. This very thing led
Mcdonald’s corporation to become in Indian market, where people today are
very much health conscious and want best food quality. This thing was well
understood by Mcdonald’s and thus provided customers with the best quality
product.

SWOT of McDonalds

This SWOT analysis of McDonald’s Corporation illustrates the benefits of having a leading
industry position and a dominant presence in the global market. However, the fast-food company
needs to account for the combined effect of its strengths, weaknesses, opportunities, and threats
(SWOT) on its strategies, to optimize success in the face of cutthroat competition. McDonald’s
generic strategy for competitive advantage, and intensive growth strategies align with the SWOT
factors. Considering the restaurant company’s leading market position, these strategies are suited
to the issues raised in the internal analysis (strengths and weaknesses) and external analysis
(opportunities and threats) components of this SWOT analysis. Also, these strategies are major
contributors to the fulfillment of McDonald’s corporate mission statement and corporate vision
statement. Thus, the company serves as an example of how a food service business can succeed
by developing operations while resolving the issues brought to light through a SWOT analysis.

Insights from this SWOT analysis explain McDonald’s current strategic decisions. The internal
factors examined in this case influence the company’s capabilities and growth in its target
markets for food and beverage products and for food service. On the other hand, the external
factors determine limits and challenges that McDonald’s must overcome in order to succeed in
these markets. Thus, this SWOT analysis describes the business condition and external
environment of the restaurant company.

McDonald’s Strengths (Internal Strategic Factors)

McDonald’s strengths make it a leading contender in the fast-food restaurant market. This aspect
of the SWOT analysis shows the internal factors that contribute to the fast-food company’s
organizational viability. McDonald’s strengths are as follows:

1. Internationally recognized brand and name

2. High consistency of goods and services based on standardized processes
3. Large network of business locations

McDonald’s brand and name are easily recognized internationally. This internal strategic factor
is a strength in this SWOT analysis, indicating the benefits of the brand and name in supporting
the company’s success, such as in introducing new burger products. McDonald’s also has the
strength of high consistency in its products. For example, the ordering process and most of the
company’s food and beverage products are the same or highly similar across different
regions. McDonald’s organizational culture or corporate culture contributes to such consistency,
especially in terms of quality. Another strength noted in this SWOT analysis is the company’s
large network of locations for its restaurants and kiosks. This internal factor strengthens the food
service business in terms of revenues, as well as visibility and brand recall among target
consumers. In relation to the network of locations pertinent to this SWOT analysis, McDonald’s
applies marketing strategies that maximize the utility of available technologies and third-party
services. For example, the company’s mobile apps are available through the app stores
of Apple and Google, making its fast-food products easily accessible to consumers who use
mobile devices, such as Samsung smartphones. Moreover, McDonald’s presence on platforms
like Facebook facilitates communication with target consumers. These technological efforts are
part of the fast-food chain’s strategy for the strength of its network of business locations included
in this SWOT analysis.
Weaknesses (Internal Strategic Factors)
McDonald’s weaknesses are linked to market focus, products, and processes. This aspect of the
SWOT analysis indicates the internal factors that limit the restaurant company’s performance
and success. McDonald’s weaknesses are as follows:

1. Insignificant degree of vertical integration

2. Imitable characteristics of processes, and food and beverage products
3. Limited product design flexibility that comes with standardization

McDonald’s Corporation focuses on the preparation and serving of food and drinks. In this
SWOT analysis, such focus comes with the weakness of the insignificant degree of vertical
integration. For instance, the company does not produce its own raw ingredients. The SWOT
analysis model considers this internal strategic factor as a weakness because it enables suppliers
to significantly influence McDonald’s. On the other hand, competitors can imitate the company’s
products and business processes, such as burgers and drinks, employee training programs, and
the food preparation processes at restaurants. This internal factor contributes to competitive
pressure on the fast-food chain business. In addition, McDonald’s has the weakness of limited
product design flexibility that comes with standardization, which is one of the strengths noted in
this SWOT analysis. For example, the standardized recipes of many of the company’s food
products weaken the ability to satisfy regional food preferences. This weakness stands, even
though the company has customized its menu for some countries, like India. Addressing this
weakness requires corresponding adjustments to McDonald’s operations management programs
and approaches for standardization.

Opportunities for McDonald’s (External Strategic Factors)

McDonald’s opportunities are linked to its product mix, multinational operations, and
connections with other businesses. This aspect of the SWOT analysis points to the external
factors that support the food service company’s business growth. McDonald’s opportunities are
as follows:

1. New programs to strengthen suppliers and stabilize supply chains

2. Acquisition of firms for vertical integration to include production of raw materials
3. Growth in consumer goods operations

McDonald’s Corporation has the opportunity to implement new programs to strengthen suppliers
and ensure the stability of the company’s supply chains. This external strategic factor addresses
supply disruption, which is included as a threat in this SWOT analysis of the fast-food business.
In relation, McDonald’s can gradually achieve vertical integration by acquiring firms related to
its current business. For example, the company can acquire firms that process flour. In this way,
the company can increase its control of the supply chain, while also reducing risks involving
unpredictability in the supply of such raw ingredients. This opportunity addresses the weakness
of insignificant vertical integration and the threat of supply chain disruption, which are issues
identified in this SWOT analysis of McDonald’s Corporation.

Consumer goods represent only a small portion of McDonald’s business, considering that the
company focuses mainly on food service. However, growth in consumer goods operations is
considered an opportunity in this SWOT analysis. The company’s McCafé goods are doing well,
indicating that the company can further grow its consumer goods business. McDonald’s
marketing mix or 4Ps can support consumer goods operations along with product design and
development. This external factor also points to the benefit of strategic partnerships to boost the
sales of consumer goods through retailers and related platforms, such as Walmart, Home
Depot, Costco, Target, and Amazon. These sellers and platforms currently offer McCafé
products and can facilitate the sales of new consumer goods from McDonald’s. The resulting
growth in the consumer goods business can increase the company’s revenues while capitalizing
on the brand strength identified in this SWOT analysis. The design of McDonald’s
organizational structure or corporate structure affects the direction of new consumer goods
operations.

Threats in the Fast-Food Industry (External Strategic

Factors)
The threats to McDonald’s are based on competitive rivalry, sociocultural trends, and economic
conditions. This aspect of the SWOT analysis deals with the external strategic factors that limit
the fast-food company’s business development. The main threats to McDonald’s business are as
follows:

1. Aggressive competition with other fast-food firms

2. Healthy lifestyle trends
3. Food supply disruptions

Aggressive food service competitors threaten McDonald’s and impose a major strategic
challenge in this SWOT analysis. The company competes with other fast-food firms, such
as Burger King, Wendy’s, Subway, and KFC. McDonald’s food and coffee business also
competes with Starbucks, Dunkin’, and Tim Hortons. These food service companies maintain a
strong external force of competition. Furthermore, PepsiCo’s beverages and Unilever’s Bru
coffee intensify the competition with McCafé merchandise. The Porter’s Five Forces analysis of
McDonald’s Corporation determines that this competitive force strongly affects the company.

Healthy lifestyle trends are also a threat in this SWOT analysis. This external strategic factor
refers to sociocultural movements that discourage consumers from eating fast food, such as
McDonald’s. This trend emphasizes the importance of product development to satisfy evolving
food preferences. The PESTEL/PESTLE analysis of McDonald’s Corporation reflects such a
social trend affecting the food service industry. The company already has some programs testing
the business potential of vegetarian burgers, but this SWOT analysis views the external factor a
threat because such programs have a limited rollout scope. Additional efforts for addressing this
threat can contribute to the success of McDonald’s corporate social responsibility strategies in
satisfying stakeholders, including consumers.

This SWOT analysis also includes food supply disruptions as a threat to the fast-food restaurant
chain. McDonald’s stability depends on the stability of food supply, which relates to the stability
of the agricultural sector. Pandemics and other crises can weaken food supply and, as a result,
threaten the food service business. Thus, this SWOT analysis highlights the importance of
strategies for ensuring the reliability of the company’s supply chain and its access to input
materials for the restaurant business.

Insights and Recommendations – SWOT Analysis of

McDonald’s Corporation
A number of threats and opportunities are shown in this SWOT analysis, pointing to potential
improvements to McDonald’s business. The company suffers from the weakness of low or
insignificant vertical integration, and faces threats, such as healthy lifestyle trends and supply
chain disruptions. However, these issues come with opportunities for improving McDonald’s.
For example, this SWOT analysis shows the business opportunity for vertical integration, which
can support the stability of the supply of food and raw ingredients. Also, the company can offer
improved products, such as better burgers, to satisfy consumers’ concerns about the health
effects of fast food. Moreover, this SWOT analysis indicates the recommendation for increasing
McDonald’s consumer goods operations through the support of the strength of brand popularity
to encourage customers to buy new consumer goods from the company.

https://panmore.com/mcdonalds-swot-analysis-recommendations

PESTEL Analysis of McDonalds

Chicago based McDonalds is arguably the most
recognizable fast food chain in the entire world. Operating across
120 markets in over37000 locations this familiar fast-food joint is a
particular favorite of kids worldwide. The red and yellow motif,
together with characteristic arched M, has become a banner of
happiness and quick meals and the world over.