Case Study Report McDonald's
Brothers Richard and Maurice McDonald founders of McDonald's Corporation grew from a single drive-in restaurant in San Bernardino, California in 1948 to the largest food service organization in the world. In 1955 Ray Kroc opened firs McDonald's in Des Plaines, Illinois and became exclusive franchising agent for the company. By 1991 McDonald's owned $13 billion of fast-food industry, operating 12,400 restaurants in 59 countries (Ezine). The company recorded revenues of $21,586 million during the fiscal year ended December 2006 and increase of 8.8% over 2005 (Yahoo Finance, 2007). SWOT ANALYSIS:
Strengths: The greatest strengths of McDonald was introducing people to the fast food and creating an image in people minds of fast food culture. McDonalds has over 30,000 branches in 120 countries and 80% of its revenues is derives from eight countries like Canada, Brazil, Germany, France, Japan, UK, Australia and US (Ezine). The biggest strength that the case study focused on was strategy market leadership and buyer supplier relations. Shamsie stated that "the bigger success came in the form of McGriddles breakfast sandwich which was lunched nationwide in June 2003" (Dess, Lumpkin & Eisner, 2007, p. 692).New breakfast addition gave the firm comparative advantage in the market place and brought about 1 million new customers each day.
Weaknesses: The same factors which are consider strengths are also weakness for the company. After a while people are tired of the same brand, seeing McDonalds every where cause the immigration to a new healthier brands. "This fast-growing segment including several newcomers such as Cosi, a sandwich shop, or Quizno's, where customer find the food healthier and better tasting" (Dess, Lumpkin & Eisner, 2007, p. 692).. Another weakness is target audience, which in the case of McDonalds are kids. Kids grow very fast and quick become health conscious adults.
References: Dess, G., Lumpkin, G., & Eisner, A. (2007) Strategic Management (3rd ed.). Boston: McGraw-Hill Irwin.
Clayton, Christensen & Innosight. Forbes Online. Innovation: a happy meal for McDonald 's. Retrieved November 15, 2007 from http://www.forbes.com/claytonchristensen/2007/08/31/christensen-innovation-mcdonalds-pf-guru_in_cc_0904christensen_inl.html
Ezine Articles Online. Mc Donald 's Business Analysis. Retrieved November 15, 2007 from
Yahoo Finance, Edgar Online, McDonald. (MCD). Retrieved December 30, 2006, from http://finance.yahoo.com
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