SWOT analysis of McDonalds Essays - Fast Food, Business Intelligence

SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses/Limitations, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. Strengths McDonalds has a strong global presence and they are the market leader in both the domestic and international markets. As a result, Hong Kong can have this same strength. McDonalds has strong capital, it is because McDonalds not just focus on fast food industry, but also they though fast food?s success to create different financial management to earn more profits, and for example they have a strong real estate portfolio. This strong brand recognition creates significant opportunities for the company. McDonalds is able to generate more sales because of its brand recognition. Through aggressive market planning, McDonalds has been able to capture more investment successful. Weakness Lack of product innovation is the weakness of McDonalds. Since McDonalds always launch their new promotion product for limited time. New product innovation is becoming less and boring. For example, shake shake fries, Mc Pepper etc. These products always repeat to launch. Moreover, the mainly weakness is high turnover. Because most of young student have shortly job for their summer holiday, after summer holiday, they always leave. Most manager job same to have high turnover problem, it is because most manager just want some about manager experience. After they got the job title and experience, they?ll change of the job. Since McDonalds have lower wage level in the fast food industry, so that McDonald very difficult to employ people. In addition, fast food industry is always has lack of employee problem, not just for McDonalds. Opportunities Changing trends in eating habits toward healthier eating, seen as a threat to McDonalds can also be seen as an opportunity. Hong Kong McDonalds can following US McDonalds to introduced new premium salad sand Fruit n? Yogurt Parfaits the same products will probably bring some more growth in foreign markets. Threats Foreign currency fluctuation is also another problem global companies like McDonalds. The Fast food industry is becoming an increasingly competitive sector. McDonald?s keeps up with competitors through expensive promotional campaigns which leads to limited margins to gain market share. McDonald?s is attempting to differentiate itself, with new formats and new menu items, but other fast food industry are doing the same too. McDonald?s, just like other fast food industry, often receives bad press because of its link obesity. Increased concern such as this has led the Food Standards Agency and the Department of Health in the UK to review the advertising of ?junk? foods such as McDonalds to children. These problem is directly influencing their business.