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McDonald's Corporation (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

McDonald's Corporation

McDonald's Corporation (McDonald's) is one of the world's largest foodservice retailing chain. The company is known for its burgers and fries which it sells through more than 31,900 fast-food restaurants in over 100 countries. The company operates mainly in the US and the UK. It is headquartered in Oak Brook, Illinois and employs about 400,000 people.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Increasing brand value
  • Diversified geographic presence
  • Large scale of operation

Weaknesses

  • Legal proceedings

External

Opportunities

  • Growth of franchisee operated restaurants
  • New restaurant openings
  • Growing beverages market

Threats

  • Consumer spending adversely impacted by global economic downturn
  • Health concerns arising from outbreaks of Avian Flu
  • Intense competition
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