SWOT Analysis:

Strengths:
1. Strong brand name, image and reputation
2. Large market share
3. Specialized training for managers
4. McDonalds Plan to Win
5. Introduction of new production
6. Technology Innovative
7. Good marketing strategies
Opportunities
1. Growth of the fast food industry
2. Conservation:
3. Globalization, expansion in other 3. Economic recession
countries
4. Low cost menu is preferred by large
number of customers
5. Appearance of freebies and discounts
6. Diverse tastes and needs of customers
7. Growing health trend among the
customers
Weaknesses:
1. Unhealthy food image
2. Customer loses due to fierce competition
(1)
3. Problem related to health issue
4. Legal action:
5. Unbalance meals:
6. High employee turnover rate
7. Action related to environmental issue
8. Dissatisfied Franchisees
Threats
1. Intensity competitors (2)
2. Public health crisis
4. Serious environmental issue

Recommendation
great expansion capabilities abroad.
name recognition. (2)
introduction to new production. (1)
customer service.

1. Strengths:

Strong brand name, image and reputation

McDonalds has built up huge brand equity. It is the no 1 fast food company by sales, with more
than 31,000 restaurants serving burgers and fries in almost 120 countries. The image of
McDonalds is recognized everywhere. This brand is in top ten of the most powerful brand names
in the world with Coca-Cola, Nokia or GM.

Large market share

McDonalds is considered as the largest player in size and global reach. When Wendys or
Burgers King are losing market share in 2006, McDonalds still increases its market share.
Market share of McDonalds in the recent time is about 19% while Yum!Brands is 9% and both
Wendys and Burger King is 2%.

Specialized training for managers

McDonalds is very serious on training managers. This company has its own program to train
managers the most professionally, which is called Hamburger University. As a result, McDonalds
has many good managers who can help company development well.

McDonalds Plan to Win

McDonalds customer focused Plan to Win provide a common framework for its global
business yet allows for local adaptation. Through the execution of initiatives surrounding the five
elements of its Plan to Win People, Products, Place, Price and Promotion McDonalds has
enhanced the restaurant experience for customers worldwide and grown comparable sales and
customer visits in each of the last eight years. This Plan, combined with financial discipline, has
delivered strong results for companys shareholders.

Introduction of new production

McDonalds is considered the first one enter to fast food industry. It initiates to other brand to
enter this industry. As a result, when think about fast food, customers always remember
McDonalds first. In fact, in some big countries, especially in US, McDonalds is the first choice
of a large number of customers.

Technology Innovative:
McDonalds is keeping at the forefront of technology around the globe. For example, In Brazil
McDonalds is currently studying the installation of Internet access terminals in some outlets as
well as enabling customers to order online. This will create a more efficient process that will
reduce the amount of lag time between a customers orders and pick up of the order.

Good marketing strategies:

No matter the continent, children and adults know the face of Ronald McDonald is synonymous
with the colossus restaurant chain. This results in wonderful marketing strategies among
management which conducts a very thorough market analysis, resulting in much success around
the globe.

2. Weaknesses:

Unhealthy food image

McDonald's has been impacted by negative press like the documentary "Supersize Me" by
Morgan Spurlock in which he contributed our societys obesity to McDonald's and other fast
food chains. In fact, each McDonalds dishes provides large amount of calories but not too much
nutrition.
Customer looses due to fierce competition
McDonalds has to compete with many strong brand name in fast food industry such as Wendys,
Burger King or Yum!Brands. This fierce competition makes McDonalds loose a large number of
customers who prefer favor of other brands.

Problem related to health issue

McDonalds use Trans - fat and beef oil in their food. Although it is not illegal, it affects badly on
customers health because Trans fat is causes of some kind of cancer. Consequently, a number
of customers who care about their health stop eating at McDonalds restaurants. It makes revenue
of company decrease.

Legal action:
McDonalds has been involved in a number of lawsuits and other legal cases in the course. For
example, there are many case which involved with trademark issue. McDonalds force many
others restaurant, company of just a coffee shop to change their brand name because of keeping
Mc letters.

Unbalance meals:
Although McDonalds tries to update its menu by healthy criteria, McDonalds meals are still
unbalance. For example, there are many dishes with chicken (both grilled and fried), bacon, beef,
rib or egg. Besides, just several dishes are salad with vegetable and fruit. Moreover, amount of
fruit or vegetable is not much.

High employee turnover rate

Although McDonalds has many good managers as well as skillful employees, the turnover rate is
still high. Every year many of their employees are fired out of the restaurants. Moreover, many
others quit their jobs, especially part time employees because of low salary as well as too high
working pressure.

Action related to environmental issue

McDonalds uses HCFC 22 to make polystyrene that is contributing to ozone depletion. The
company has to repair this weakness if doesnt want to be criticized.

Dissatisfied Franchisees:
Franchisees are beginning to become very dissatisfied with the fees that McDonalds are forcing
them to pay. As the company continues to expand, they are also increasing the amount of fees
franchisees have to pay for the use of the notorious fast-food brand. Many people are not very
happy about this and as a result many franchisees are selling their businesses.
3. Opportunities:

Growth of the fast food industry

Fast food industry now is developing significantly. The change of lifestyle leads to the change in
people eating habit. In the past, if just workers, drivers or someone who had to work busily and
didnt have enough time for a home meal choose fast food; nowadays, almost people eat fast
food and a major of them like fast food very much. It is a huge chance for fast food brand to
increase their revenues, especially McDonalds.

Conservation:
McDonald should research green energies and green packaging solutions and incorporate these
finding as a part of their marketing strategies and advertisements.

Globalization, expansion in other countries

McDonalds has more than 31,000 restaurants serving in almost 120 countries. Of the 31,000
restaurants, at least 14,000 are in US. However, now, because the care of McDonalds about
favors and cultures in each countries it enters, McDonalds can open more restaurant in new areas
such as China or India the countries which culture influences on people lifestyle deeply. They
are very potential markets. The expansion of these areas is big opportunities For McDonalds.

Low cost menu is preferred by large number of customers

With low cost menu, McDonalds can attract customers who just have low income. This segment
makes up a fairly remarkable part, especially in the recent time, when global economic is
struggling. It is not difficult for McDonalds to apply low cost menu on all restaurants.

Appearance of freebies and discounts

Discounts given on every food item may help them gain more customers. Moreover, a new trend
is rising among customers that they like freebies and discounts, even when they dont need it or
dont use these freebies after.

Diverse tastes and needs of customers

Customers tastes now become more diverse. As a result, they require new format of service in
order to satisfy them. McDonalds, with new format of business such as McCafe, it can attract
new segment of customer; for instance civil service, who prefer coffee as well as want to use Wi-
Fi to work when drink coffee.

Growing health trend among the customers:

Although people concern about how McDonalds influence badly on their health, it is also a
chance for McDonalds. This company can develop new products, specifically fresh burger or
healthy dessert.
4. Threats:

Intensity competitors
Along with the development of fast food industry, there are many new fast food brand enter to
the market. It is nothing to say if there is no strong brand which can compete with McDonalds.
However, in fact, there are some and they are stronger gradually, for example Yum!Brands,
Wendys or Burger King. Although market share of these brand are lower than McDonalds, they
try to gain more customers from McDonalds. Moreover, more casual dining restaurants increase
their burger offering and decrease the price. If we are not really hurry, we may choose this kind
of restaurant instead of fast food restaurants. They also become the competitors of McDonalds.

Public health crisis

With a growing number of obesity cases among Americans, fast food chains like McDonalds will
continued to be overshadowed by their previous products offerings, for example Supersized
Meal, no fruit or yogurt, slim salad selection. Besides, people nowadays are facing heart problem
more seriously. As a result, they require nutritious and healthy food as well as lifestyle.

Economic recession
The company's revenue streams are diversified, but depending on the length of this "recession",
they will inevitably be negatively impacted by the trickledown effect. Recession or down turn in
economy may affect the retailer sales, as household budgets tighten reducing spend and number
of visitors.

Serious environmental issue:

Environment is one of the hottest topics all over the world. Any action which influence on the
earth and human life is criticized strongly. Consequently, if McDonalds keep using HCFC -22, it
may lose customers, especially who really care about the earth.
Recommendation:
McDonalds is a powerful brand name. Thus, its strategies seem so good. However, in my
opinion, I still have several recommendations for this company. Besides, looking at the grand
matrix and SWOT matrix, there is something McDonalds should do with its strategies:

great expansion capabilities abroad.

According to the grand matrix, market development is one strategy that McDonalds should
implement. Company should prepare an international strategy which focus on big cities along
with high populated areas, especially in Asia. There are not many McDonald restaurants in this
potential market. Japan is the only Asian country which has a lot of McDonalds fast food
restaurants. In contrast, China is considered as one of the biggest market in the world because of
this countrys population. Nevertheless, according to the recent figures, China is just in ninth
position among the countries which have McDonalds restaurants with about 1000 restaurant
while this number in US is about 14000. If McDonalds can develop more and more in Asia, it is
a huge advantage for company to gain market share.

name recognition.
Everywhere, millions of people are familiar with the Golden Arches that are on top of every
McDonalds restaurants. McDonalds should use this advantage to gain more attraction from
customers. It does not mean that this company should become involved into many areas of the
food industry. In fact, soft drink and fast food bring large profit for McDonalds. However, if keep
involving in other areas, it would increase the potential for liability to the company because of
many intensity competitors. McDonalds has built the McDonald Hotel in Zurich, Switzerland.
Needless to say it is a very unique hotel. A lot of customers in other countries want McDonald
open the same hotel in their countries. As a result, McDonalds should care about this chance
more than developing new kind of food business which the company is not sure about this
success. In addition, aside from exploiting brand name, company can exploit its sources of food
and drink in McDonalds fast-food restaurants for the hotel, as well as service skills of
employees.

introduction to new production.

Company should focus on this strength to develop stronger. However, the company seems not
diversify its products regularly while competitors are stronger and have new products gradually.
Because of this reason, McDonalds should spend more money on Research and Development to
create new products and services as well as increase the efficiency of operations. First, one thing
McDonald should focus on is that the play place for kids. McDonalds has play place but not in
every restaurants. If you eat in McDonalds restaurant, you can be free to party while your
children play at the place for kids. Customers love this service. Thus, if it is popularized in all
restaurant of company, customers will be more satisfy and of course they want to comeback
regularly. Moreover, toys have to be cared much more with many new interesting toys as well as
safety. Jolly Bee is one brand which applies this strategy very successful. McDonalds can learn
from Jolly Bee developing this service to improve its market position. Next, even if the
companys menu is still relatively inexpensive compare to that of its competitors, it is not totally
enough. Because apart from price, customers also make decision rely on menu. After bring a
fresh menu with tuna sandwich and salad in some restaurants, especially in Britain and get
support from a lot of customers, there is no new one like that. McDonalds focus too much on
cheese,beef or chicken menu, more than vegetable. For instance, McDonalds has fruit slice in
menu. However, it is served once a week. In the recent time, with the change in eating habit of a
large part of customers, McDonalds also should change. Company should bring new vegetarian
products to restaurants menu. An organic menu is very necessary. This would give customers an
alternative while allowing McDonalds to maintain its market share globally.

customer service.
Managers of McDonalds are trained professionally. As a result, they can train employees well.
McDonalds employees are evaluated high by customers because of their behaviors as well as
attitude. However, customers are not pleased at the idea of waiting in long lines and insufficient
employees to handle the volume of customers. Just the minority, but sometimes the employees
are rude forcing the customers to go to a competitors restaurant next time. At the market which
has high market share and very huge number of customers such as USA, Canada or United
Kingdom, this issue occurs more frequently. McDonalds should find a way to solve it. For
example, the company has to rent more employees and increase their salary in order to keep
them working for a long time. This time is just enough for them to get skills to service customers
well. Besides, it is necessary to increase the number of employees at the weekend or in the lunch
time. More employees means that pressures are shared and avoid the bad attitudes.

Conclusion:
McDonalds has undergone several changes since its inception in San Bernardino, California. The
fast food chain has conquered the US and it now focusing on the rest of the world. McDonalds,
along with this trend, continues to strive toward customer satisfaction while still enhancing its
international market position. The company is doing very well and keeps trying in Africa, China,
and the Middle East, which will be continued source of revenue for many coming years. If
McDonalds can overcome all of its challenges, makes use of advantages and has right strategies,
it will win the market again and hold fast to first position in fast food industry.
Strengths:
Brand Undoubtedly, McDonalds greatest strength is its highly recognisable brand
name. Travel the world and youll struggle NOT to stumble across one of their
restaurants. Most people associate McDonalds with fast food and a few specific items
such as hamburgers and their signature red and yellow French fries. Some even credit
McDonalds with changing the globes eating habits by introducing fast food at
affordable prices. Forbes suggests that McDonalds is the 9th most valuable brand in the
world.
Market Share McDonalds consistently takes the lion share across the various segments
that it operates within. One look at any trusted market share reports and you will see
dominance across segments such as franchise restaurants and company operate
restaurants. McDonalds is considered as the largest business in terms of size and global
reach. Even when the likes of Wendys and Burgers King notably lost market share in
2006, McDonalds continued to increase its market share. General market share of
 McDonalds in 2017 is approximately 17% while Yum!Brands is 9% and both Wendys
and Burger King is 2%.
Training The art of training is serious business for McDonalds. In fact, the business has
its own bespoke training program to train managers known as Hamburger University.
McDonalds is serious when it training managers. This company has its own program to
train managers the most professionally, which is called Hamburger University. The
business places emphasis on consistent operational procedures, service, quality and
cleanliness. Hamburger University has become the business global center of excellence
for McDonalds operations training and leadership development. As a result, McDonalds
has become efficient at producing highly effective managers that deliver excellence.
Marketing Regardless of continent, both children and adults know the infamous face of
Ronald McDonald and he is synonymous with the gargantuan restaurant chain. The
results of wonderful and effective marketing strategies. It is no coincidence, the
McDonalds management knows the market inside out through extensive market analysis
and this results in much success around the globe. The marketing talent at McDonalds is
no secret and they pay top dollar to their marketing execs for good reason.

Weaknesses:
Poor Public Image McDonalds has been the subject of negative press for many years.
For example, the documentary Supersize Me by Morgan Spurlock tells the story of
how the business contributes to societys obesity as well as other fast food chains. In fact,
the documentary goes into the detail of how each McDonalds meal provides large
amount of calories but not too much nutrition. The business faces a real challenge in
changing public perception.
Staff Turnover Despite Hamburger University and the many good managers that
continue to develop with staff training, the turnover rate of McDonalds remains high.
The business not only has a high firing rate but also fails to retain staff for long careers.
Many members of staff will quit due to a combination of minimum salary and extremely
hard working conditions during busy times of the year. More resignations means more
training costs for the business.
Crowded Market The fast food market continues to grow every year with new entrants
offering a range of different tasty products to rival McDonalds. Take Wahaca for
example, a new Mexican chain offering delicious quick and easy street food that prides
itself on healthy eating and a balanced diet. The value for money lunch options provides
an genuine alternative for consumers. Other challenges in this particular industry include
the rapid change in consumer tastes. McDonalds is now competing with a huge range of
different options including the likes of Burger King, Wagamama, Yo! Sushi, Subway,
Nandos, Five Guys and many more. There has never been more choice for hungry
consumers.

Opportunities:
Technology Given McDonalds spending power, the business can afford to invest in
new technology that keeps them at the forefront of innovation. For example, McDonalds
is currently analysing the installation of internet access terminals in some outlets in
Brazil. This would enable customers to order online. This will create a far more efficient
 process that will reduce the amount of time between consumer orders. The business has
the capital to trial and test new technology and attempt to gain advantage over
competitors.
Growth of Industry The fast food industry continues to show signs of growth. The
change of lifestyle has led to a change in consumer eating habits. Historically, a typical
consumer would be a worker or drivers who may have had a busy day and didnt have
enough time to cook at home. Very often the choice would be fast food on their way back
from work. Nowadays there is much more choice and convenience of 24:7 drive-thrus
and the launch of new food delivery services such as Uber Eats. Its never been easier for
the consumer to obtain fast food whether on their on the move or at home. Fast food can
be purchased almost any time and anywhere.
Globalisation McDonalds has over 31,000 restaurants serving in almost 120 countries.
Of those restaurants, as many as 14,000 are located in the US. However, given the
research and care that the business has taken regarding flavours and cultures in each
country it enters, McDonalds has the opportunity to continue global expansion. They
have the required knowledge and experience to open more restaurants in new countries
such as China or India. There is potential to open restaurants in countries where culture
has a major influence on peoples lifestyle and eating habits.
Conservation McDonalds has discussed the opportunity of new green energies and
green packaging solutions in recent years. Conservation is a hot topic for the fast food
industry but no major businesses have taken the lead in this area. McDonalds has the
opportunity to incorporate some of these new innovations into their operations and tell
their story through smart marketing strategies and advertisements.

Threats:
Economic Recession The business revenue streams are strategically diversified, but
there continues to be uncertainly following the financial collapse in 2008. Its an issue
that impacts all fast food businesses. Recession or down turn in economy will affect
McDonalds revenue, as household budgets tighten and spending is reduced.
Environmental Issues Environment continues to thrive as one of the hot topics all over
the world. Any actions or operations that influence the earth e.g. contribution to global
warming, are continuously criticised. The business cannot seem to escape the stories
from the press that its beef rearing process has taken the place of many rain-forests and
prevents any opportunity for regeneration. The business risks losing customers if it does
not invest time and resource into tacking environmental issues that are important to
consumers.
Public Health Crisis Obesity cases in the UK and US continue to rise and often
businesses such as McDonalds will feature in the press. The business will forever be
overshadowed by previous consumer offerings such as the Supersized Meal, a long
duration of no fruit or yogurt and a slim salad selection, of which many contain high
calorie dressings. Obesity research continues to grow and this is having an impact on
consumer decisions. Many consumers demand require nutritious and healthy food as well
as lifestyle.