Swot - Mcdonald's Coproration

1365 Words6 Pages
THREATS: 1. Strong U.S. Dollar 2. Negative publicity WEAKNESSES: 1. Employment practices and low wages 2. Competition based on price rather than differentiation OPPORTUNITIES: 1. Expand McDelivery Service 2. Expand “make your own burger’ service STRENGTHS: 1. Diversified income 2. Efficient restaurant management Business description This business description is extracted from McDonalds Corporations 2013 Financial reports: “General The Company franchises and operates McDonald’s restaurants in the global restaurant industry. These restaurants serve a broad menu at various price points in more than 100 countries around the world. All restaurants are operated either by the Company or by franchisees. The Company’s operations are designed to assure consistency and high quality at every restaurant. Under the conventional franchise arrangement, franchisees provide a portion of the capital required by initially investing in the equipment, signs, seating and décor of their restaurant businesses, and by reinvesting in the business over time. The Company owns the land and building or secures long-term leases. Conventional franchisees contribute to the Company’s revenue stream through the payment of rent and royalties based upon a percent of sales. The conventional franchise arrangement typically lasts 20 years, and franchising practices are generally consistent throughout the world. Over 70% of franchised restaurants operate under conventional franchise arrangements. The Company and its franchisees purchase food, packaging, equipment and other goods from numerous independent suppliers. The Company has established and strictly enforces high quality standards and product specifications. Customers The company’s business is not dependent upon a single customer or small group of customer. Number of employees The Company’s

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