Mcdonald’s Corporation

Topics: McDonald's, Fast food restaurant, Fast food Pages: 8 (2496 words) Published: April 21, 2013
McDonald’s Corporation

McDonald's Corporation
Situation Analysis
McDonald was set up in 1955 which was one of the most famous quick service restaurants all over the world. It has approximately 32,000 fast-food restaurants in more than 100 countries. The head office of McDonald is in Oak Brook, Illinois. “In 1961, McDonald brother make over the all company to Kroc with the price of 2.7 million dollars. In 1966 the McDonald company turn over a billion dollars.” (Dick) In 1970 McDonald’s started to overseas market. In the later 30 years, because of the suitable operations of Kroc, McDonald's company became the fastest growing worldwide enterprise. The financial crisis has brought great losses to many companies,But the McDonald's did well in the crisis it is because McDonald’s was to meet the tastes of foreign consumers with the crazy marketing. Even though McDonald's is the most profitable in the industry, it also faced lots of challenges from their competitors like SUBWAY, KFC and Starbucks and they also have a potential threat to McDonald's. SWOT Analysis

Firstly, McDonald build a strong brand image in customer’s heart, no matter how old customers are, they all know the red background and a large yellow M; this is the main sign of McDonald's. “In 2009, McDonald's figured at the sixth place in the top 100 global brands ranking of Business Week magazine and Inter brand, a branding consultancy. It valued McDonald's brand at $32,275 million in 2009.” (McDonald's Corporation) Secondly, Diversified geographic provide opportunity to make economic flexibility. During the economic crisis, McDonald economy has not been impacted by the ongoing global economic crisis. Thirdly, managers have unique ideas in McDonald. The business concept can stand for four letters, Q, S, C, and V. They are quality, service, clean, and value. And on these years, McDonald's always devote themselves to perform the idea to persuade so many consumers to taste McDonald. Finally, low costs expend to make food. McDonald’s has a privilege to franchise, McDonald’s uses this franchise to carry out massive low-cost expend. McDonald’s do not need take great risk. Weaknesses

On the one hand lawsuit is not good affect brand image McDonald's. The complaints against McDonald's include claims for violation of state consumer fraud acts, “unfair competition or deceptive trade practices acts, strict liability, failure to warn, negligence, breach of express and implied warranties, fraud and fraudulent concealment, negligent misrepresentation and concealment, unjust enrichment, and false advertising.” On the other hand, McDonald launched some new product always failures in recent years, like Arch Deluxe, McLibel, McLean Deluxe, McSoup and McPizza, because the new product wasn’t associated with people. For example, “the failure of Arch Deluxe was a major setback for the company as the product was marketed as the burger for grown up consumer, and the idea was to have a burger which wasn’t associated with children.” Opportunity

Firstly, McDonald’s is planning to substantial increase the number of franchisee operated restaurants. “As a result of its developmental license strategy and franchising initiatives, the percentage of franchised and affiliated restaurants worldwide increased from 79.6% in FY2008 to 80% in FY2009.” Secondly, McDonald’s try to change the food more healthy. They add edible vegetables, grains, and reduce the fried food, high sugar and high quantity of heat food. At the same time, they improve the competitiveness of the products, and get the supports of the consumers. Thirdly, the global hot drinks market grows. “The global hot drinks market grew by 2.4% in 2008 to reach a value of $61,700 million. In 2013, the global hot drinks market is forecast to have a value of $70,300 million, an increase of 13.9% since 2008. Coffee accounts for 53.9% of the global hot drinks market's value.” (Business Monitor International ) McDonald can product...
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