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Streanths Weakness
• It has a strong global presence and is • It uses advertising that mostly targets
considered as a market leader in both the children.
domestic as well as the international markets.
• High employee turn-over.
• It is a global brand that owns 31,000
restaurants serving in 120 countries. Of these • It has yet to accomplish going on the trend
31,000 restaurants at least14,000 restaurants of organic food.
are situated in the US.
• Price competition with the competitors
• It uses economies of scale for reducing the resulting in low revenue.
cost, as its huge expansion diversifies the
overall risk involved with the economic • Lack of innovative products.
performance.
• They own an active children’s charity by the

name‘The Ronald McDonald House’.
• It takes steps in adjusting the Ingredients

and product offerings in order to comply with
the upgraded health standards deemed
necessary by the USDA.
• It earns revenue by fast food sales as well as

a property investor and a franchiser of
restaurants.
• It has a firm real estate portfolio.
• It has branded menu items i-e Big Mac,

Chicken McNuggets, which further promote
McDonalds.
• It is recognized as one of the world’s most

recognized logos.
• It is recognized as a socially responsible and

community oriented firm.
• It adapts to the cultural differences

regarding the region where the restaurant is
set up.
• It has located itself in major airports, cities,

highways, tourist locations, theme parks.
• It has an efficient food preparation style that

follows the process in a systematic way.
• It takes food safety extremely cautiously.
• It was the first to provide the customers

about nutrition facts.
Opportunities Threats
• It can adapt to the needs of the societies and • The recession negatively impacts the
undergo an innovative product line. holding position of the firm regarding its
revenue streams, even though they are quite
• It can research ways to use ‘green’ energy diversified.
and packaging which will work as a part of
their promotional effort as well as fulfill their • Foreign currency fluctuations are regarded
social responsibility. to be a major problem as it uses standard
pricing for its food items.
• It can create new product offerings, use
mobile text messaging to offer services that • More restaurants that are increasing their
appeal to consumers. food offering and declining the price.
• It can upscale some of its restaurant settings • Health issues regarding the fast food chain.
at luxurious locations to attract more
customers. • Heavy investments on promotional
campaigns which decrease the gaining of
• It can provide optional items that are market share.
regarded to be the basis of allergy for some.
• Some parents criticize the firm’s ‘cradle to
• It can slow down the level of expansion in grave’ marketing strategy that focuses on
order to increase the profitability of the kids, who later on take it as a trend to their
organization. adulthood.
• Sued various times for unhealthy food,

usually with addictive additives.
• Emergence of major fast food competitors:

Burger King, Starbucks, Wendy’s, Taco Bell,
KFC.
• The expansion has made the firm vulnerable

to the slow economies of the other countries.
Strengths:
1) Globalization: 31,000 restaurants serving 120 countries. Of the 31,000 restaurants at least14,000 restaurants in
the US
2) Active Children's Charity: The Ronald McDonald House
3) Adjusted Ingredients and product offerings to comply with upgraded health standards deemed necessary by the
USDA
4) Earns revenue not merely by fast food sales, but also as a property investor, a franchiser of restaurants.
5) Branded (name recognized) menu items such as Big Mac, Quarter Pounder and Chicken McNuggets
Weaknesses:
1) Advertisement techniques that target children
2) Consumers use disposable income to purchase fast food meals so when the budget it threatened, consumers
redirect these funds
3) Public perception: McDonald's has been impacted by negative press like the documentary "Supersize Me" by
Morgan Spurlock in which he contributed our societies obesity to McDonald's and other fast food chains.
Opportunity:
1) IInnovation: Continued adaptation to societies needs such as USDA and Supersize Me upgrade.
2) Conservation: Researching green energies and green packaging solutions and incorporating these findings as a
part of their marketing strategy and advertisements.
3) Exploration: Create new product offerings. Continue to use technology to influence revenue strategy: possibly use
text messages to deliver specials offers to individuals who sign up for such services.
Threats:
1) Current world economic standing: the company's revenue streams are diversified, but depending on the the
length of this "recession", they will inevitably be negatively impacted by the trickle down effect.
2) More Casual Dining Restaurants increasing their "burger" offering and decreasing the price: Restaurants
like Ruby Tuesdays have $6 burger meals that they strongly advertise…If you're not in a hurry, which one would you
choose?
3) Public Health Crisis: with a growing number of obesity cases among Americans, fastfood chains like McDonalds
will continued to be overshadowed by their previous product offerings (Supersized Meal, no fruits or yogurt, slim
salad selection).

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Streanths Weakness

• They own an active children’s charity by the

• It takes steps in adjusting the Ingredients

• It earns revenue by fast food sales as well as

• It has a firm real estate portfolio.

• It has branded menu items i-e Big Mac,

• It is recognized as one of the world’s most

• It is recognized as a socially responsible and

• It adapts to the cultural differences

• It has located itself in major airports, cities,

• It has an efficient food preparation style that

• It takes food safety extremely cautiously.

• It was the first to provide the customers

• Sued various times for unhealthy food,

• Emergence of major fast food competitors:

• The expansion has made the firm vulnerable

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