Report on SWOT Analysis of McDonald's Business Strategy

This report provides a SWOT analysis of McDonald's, examining its business strategies and competitive position in the fast-food industry. The analysis identifies McDonald's strengths, such as its strong brand image and large market share, as well as its weaknesses, including the unhealthy image of its food and high employee turnover. Opportunities for growth include expanding in the fast-food sector and adapting to health trends. Threats include increased competition and environmental issues. The report concludes by emphasizing the importance of SWOT analysis for identifying areas for improvement and increasing productivity. References to academic sources support the analysis, and the report is designed to help students understand the application of SWOT analysis in a real-world business context. This assignment is available on Desklib, a platform offering AI-powered study tools and resources for students.

SWOT Analysis

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
In each and every business entity, analysis needs to be done by using the different tools
and techniques. If they are adopting SWOT analysis then this will helps in identifying and
analysing the strength, weakness, opportunities and threats (McDonald and Wilson, 2016).
Present report is based on McDonald's which serves the local as well as relevant menu of foods
and drinks at a reasonable rates.
MAIN BODY
McDonald's is a restaurant which serve a relevant menu of food as well as drinks in a
appropriate quality and sells at a reasonable price. The system of business entity is comprise with
the both company owned and franchise owned.
Strength:
 McDonald's having a good brand image, name along with the reputation in the market.
 Company having a largest market share. When Burger king decreases their share in
market in the year 2006 then at that time market share of McDonald's increases. In the
present time, market share of McDonald's is approx 19%.
 McDonald's provide training to the managers which help them in development in various
areas (Comino and Ferretti, 2016).
 Managers of business entity is using updated and innovative technology which helps in
attracting large number of consumers.
 They are using good strategies for marketing which assist in attaining success.
Weakness:
 The company having a unhealthy image of food and this having a negative effect. Dishes
of McDonald's provide large number of calories but not nutrition.
 Loss of consumers due to high competition in the fast food industry and the main
competitors are Burger king, Wendy's etc.
 McDonald's having a high employee turnover rate although business entity having a good
employers or staff members (Baycheva-Merger and Wolfslehner, 2016).
 Managers have to take action which is associated with the environmental issue and this
will contribute to ozone depletion.
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(Source: McDonald's SWOT Analysis, 2017)
Opportunities:
 Company having a opportunity to expand the business in the fast food industry as this
sector is also growing.
 They have to do proper examination and on the basis of that packaging solutions should
be delivered and these are a part of marketing strategies as well as advertisement.
 The menu which is having a low cost is preferred by the different consumers.
 Health trend should grow or expand among the consumers (Odeh, Warwick and Garcia-
Perez, 2015).
 Managers of McDonald's can provide discounts to their consumers and by using this
method they can attract consumers and on the basis of that company can boost their sales
and generate more revenue.
Threats:
 Intensity of the competitors by development or improvement of fast food industry as
there are so many new brands are entered in the market.
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Illustration 1: McDonald's SWOT

 From the fast food which is provided by McDonald's creates a crisis on public health.
 The streams of profits of business entity is diversified and it is based on length of
recession.
 McDonald's facing serious environmental issue which having an adverse influence on
earth as well as human life (McDonald and Wilson, 2016).
CONCLUSION
After summing up the report, it has been articulated that they have to adopt SWOT
analysis for doing the research or investigation which will help in identifying the areas which
needs to be improved. This will helps in increasing productivity and proficiency.
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REFERENCES
Books and journals
Baycheva-Merger, T. and Wolfslehner, B., 2016. Evaluating the implementation of the Pan-
European Criteria and indicators for sustainable forest management–A SWOT analysis.
Ecological Indicators. 60. pp.1192-1199.
Comino, E. and Ferretti, V., 2016. Indicators-based spatial SWOT analysis: Supporting the
strategic planning and management of complex territorial systems. Ecological
Indicators. 60. pp.1104-1117.
McDonald, M. and Wilson, H., 2016. Marketing Plans: How to prepare them, how to profit from
them. John Wiley & Sons.
Odeh, M., Warwick, K. and Garcia-Perez, A., 2015. The impacts of cloud computing adoption at
Higher Education Institutions: a SWOT analysis. International Journal of Computer
Applications. 127(4). pp.15-21.
Online
McDonald's SWOT analysis. 2017. [Online]. Available through:
<https://www.google.co.uk/search?
q=mcdonalds+swot+analysis&source=lnms&tbm=isch&sa=X&ved=0ahUKEwiim7_D
z-
LVAhVERo8KHVHlAqwQ_AUICigB&biw=1470&bih=672#imgrc=N4gC1loUrGnCI
M:>. [Accessed on 19th August 2017].
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