SWOT Analysis of McDonald's

This assignment provides an analysis of the external environment and internal factors affecting McDonald's fast food franchise in a strategic management context. The external environment is analyzed under political, economic, social, technological, legal, and environmental aspects, highlighting potential threats and opportunities for the organization. Additionally, a SWOT analysis is performed to identify strengths, weaknesses, opportunities, and threats impacting McDonald's business.

Running head: BUSINESS MANAGEMENT
Business Management
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1BUSINESS MANAGEMENT
McDonald’s fast food franchise
What is the external environment of the organisation in strategic management context
Political  Political instability
 Changes in the ruling party
 Type of governance: Democratic,
communist or autocratic
 Interference of the political parties
Economic  Economic instability
 Imposition of tax
 Recession
 Inflation
Social  Changes in the lifestyle
 Consciousness regarding fast food
 Increased affordability
Technological  Technical advancements
 Incorporation of advanced technology
in the manufacturing
 The lack of use of advanced
technology will hamper the business
of McDonald’s
Legal  The proper licensing needs to be
obtained
 Legislation of the country where
expansion of McDonalds takes place
has to be followed
Environmental  Environmental sustainability has to be

2BUSINESS MANAGEMENT
ensured
 The packing material of McDonald’s
needs to be environment friendly
 The excessive use of water and
energy needs to be reduced
 CSR activities need to be ensured
McDonald’s fast food franchise – SWOT analysis in strategic management context
Strengths
 Popularity
 Quality
 Price
 Professional
 Location
 Promotion
 Products
 Innovation
 Employees
 Kids zone
Weaknesses
 Fast food
 Over priced

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 Low variety
 Competitors
 Lack of motivation
 High calorie
 Employee turnover
 No seasonal products
 Quality
 Customer service
Opportunities
 Lifestyle
 Expansion
 Variety
 Skimmed price
 Low calorie
 Free home-delivery
 Asian market
 CSR focus
 Young generation
 Taste
Threats
 Competition
 Consciousness
 Changed lifestyle
 High investment

4BUSINESS MANAGEMENT
 Fluctuations
 Awareness
 Employee turnover
 Price
 Low variety
 New entrants