McDonald's SWOT Analysis: Strengths and Weaknesses

The SWOT analysis of McDonald's highlights its internal strategic factors, specifically its strengths and weaknesses. The company's strengths include a strong brand image, moderate market diversification, and standardized processes, which enable effective operations. However, it also has limitations such as limited process flexibility, low product diversification, and vulnerability to Western market decline, making it crucial for the company to expand globally, improve flexibility, and widen its product mix to remain competitive.

Running head- Strategic Management
strategic management

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Strategic Management
SWOT Analysis of McDonald
SWOT Analysis of McDonald only internal factor that is strength and weakness.
Strengths make it a leading player in the fast food restaurant industry. Here SWOT analysis
shows only the internal strategic factors that contribute to organizational strength.
1. It has good and sound brand image
2. Moderate market diversification
3. It follows Standardized processes
The sound Brand image makes the business competitively strong. Another strength is market
diversification as McDonald is covering in most regions around the world. Which, is reducing the
risk. In addition, business efficiency and product consistency are found as a result of standardized
processes (Genoveva et al., 2016).This aspect of McDonald’s SWOT analysis shows that the
company has the capability to maintain effective operations.
Weaknesses (Internal Strategic Factors)
McDonald's weaknesses are linked to the company's market focus, products, and processes. This
aspect of the SWOT analysis indicates the internal strategic factors that limit firm performance.
Main weaknesses are as follows:
1. It has Limited process flexibility
2. Low diversification in terms of product
3. Vulnerability to Western market decline
McDonald’s standardization ensures consistency but at the same time, it is reducing the company
flexibility in a way to respond the market variation. Low product diversification which is also the

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major weakness that makes the business highly vulnerable to slowdowns in the restaurant
industry. In addition, McDonald’s generate maximum revenues from the U.S. and Western
economies. Which is the weakness because it making the firm very easily vulnerable to the
economic decline in the Western world. This aspect of McDonald's SWOT analysis shows that
the company needs to expand globally and should try to improve its flexibility and should try to
widen its product that is product mix in a way to compete in the market.

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Reference
Genoveva, G., & Siam, S. T. (2017). Analysis of Marketing Strategy and Competitive
Advantage. International Journal of Economic Perspectives, 11(1), 1571-1579.
Krull, R. (2018). McDonald's: Strengths, Weaknesses, Opportunities, Threats. The Motley Fool.
Retrieved 14 February 2018, from
https://www.fool.com/investing/general/2010/08/25/mcdonalds-strengths-weaknesses-
opportunities-threa.aspx