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McDonalds case study

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McDonald’s Case Study
   

McDonald’s Corporation is the largest food-chain in the world, and well known for their fries and burgers(www.McDonalds.ca)McDonald’s has taken advantage of their strengths but because of the maturity of the fast-food industry, more focus will have to be put on the weaknesses, opportunities, and threats.

Strengths/Weaknesses:

McDonald’s
Strengths Weaknesses
Well known fast-food chain Product development
Great tasting food Negative public image (Movie “Super Size Me”)
Fast service & quick meal (Convenient) Contributes to obesity
Good food for cheap Poor quality of food
Gives millions of dollars each year to selective charities Contributes to our fast paste society
Provides entertainment for children Pollution, drive-thru=littering





Opportunities:

Convenient locations (social)
Quick for our fast passed society, those who work late with limited time to cook and people who look for a quick lunch while at work (social)
Food can be produced at a much lower cost than what it is sold for (economic)
Food can be prepared by low wage workers thus driving up profits (economic)
Provides entertainment for children i.e. play places, toys with happy meals (demographic)
The golden arches are one of the most recognized symbols (demographic and geographic)

 
Threats:

Government is intervening to create more strict regulation for food preparation which increases food costs (political)****
Negative Image i.e. when people hear the word “McDonald’s” they automatically awesome greasy, fattening food. “Super Size Me” attributed to this image as well (social and political)
Thousands of franchises world wide to compete with, along with ones with healthier menu choices (competition)
Increase in obesity is being attributed to fast-food restaurants*** (social)
With the increase in gas prices, importing becomes more expensive which then decreases the profit (economic)...

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