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SWOT Analysis McDonald's

   

Added on  2020-06-04

4 Pages750 Words108 Views
SWOT analysis

McDonald's is out-performing the market and setting new highs in this competitivemarket, By performing a SWOT analysis on the McDonald it will provide information about thecompany's Strengths, Weaknesses, opportunities and threats in the current market (CGA, H.C.B.,2010). On the basis of Strength, McDonald's has successfully developed their new items such asSmoothies, coffees and other burgers, which is expanding the range of the products and choicesin the company's menu, this high range and variety of choices in the menu are attracting lots ofcustomers. In addition to this with strong product offering the company is able to grow theirincome during the time of recession unlike other stores in the market who are unable to makechange in their products rates. Also, because of the operations which are spreading by thecompany in all around the world allows it to expose not just in one currency and economy(Tsitsipati and Athanasios, 2014). Along with all this the organisation is trading near its highs,the annual dividend payment of the company has gone from 55% share in 2005 to $2.20 in 2010.On the basis of Weaknesses of the McDonald, it is continuously becoming harder andharder in finding the prime location for setting up a Golden Arches by the company (Hongjunand Yajia, 2012). In US the main structure of the organisation is restaurants which is hinderingthe international posing of the potential culture and challenges in the growth of the company.The dividend growth of McDonald is being slowing and continuously slowing to the level ofnegative ratios, because the annual dividend hike are continuing. The company is still notcompletely capitalised their trend towards the organic foods. Also, because of the organisationhigh employee turnover the company is spending lot of expenses for the training activities. Opportunities such as International expansion, McDonald's can expand its business intointernational market. By this way company will be able to grow well and will be able to earnmore profit. Increasing requirements of healthy food items, Now-a-days people are more awarewith the healthy food thus, company has chance to offer them testy and healthy food. By thisway it will be able to increase satisfaction level of its potential buyers. Increasing size of middleclass in emerging market: It is another opportunity for the McDonald's because income level ofthe middle class people are increasing (Ryals and McDonald, 2010). By this way all class ofcustomer will be able to purchase products of cited firm. That may help in increasing business ofthe entity.

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