Swot Analysis Of Mcdonald's

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McDonald’s Australia Holding
Executive Summary:

The purpose of this report is to present a SWOT analysis of McDonald's Australia Holdings and to make a recommendation on future products that could be introduced by the company to further enhance its operations. This report has found that McDonald's has a large range of strengths, but also has weaknesses and threats to the company that should be addressed. The major weakness of McDonald's is the lack of health food options on its menu and the threat of an increasing trend of demand for healthier food could see the sales drop as customers looks for alternative healthier food options. However this weakness can also be an opportunity for McDonald's as through the introduction of a new healthier burger a new target market can be accessed and McDonald's can remain competitive in the industry.

Company background:
McDonald’s opened its first store in America in 1955 and now has more than 34,000 restaurants operating in more than 100 countries. McDonald's has an iconic brand that is recognised in nearly every country in the world and is the largest fast food chain in terms of total global sales. McDonald’s opened its first Australian store in the Sydney suburb of Yagoona in 1971 and there are currently more than 900 stores operating across Australia who have all adopted the company’s motto of 'Quality, Service, Cleanliness and Value' (QSC&V) (McDonald’s 1957) The Management offices and restaurants of McDonald’s currently employ more than 90,000 people. More than 70% of the McDonald’s restaurants in Australia are owned by franchisees.

Strengths Weaknesses
Brand recognition
Largest Market share for fast food
Advertising
Partnerships
Economic contributions

Unhealthy food ...

... middle of paper ...

...ealthy options on its menu, however this weakness could also be an opportunity as there is an increasing trend for healthy food options and McDonald's could turn this opportunity into a strength if it introduces a healthy burger. As previously analysed McDonald's isn’t competing with its competitors in healthy fast food and hasn’t tapped into the health food market which is a major opportunity for the company. Currently 28% of customers deciding on which fast food chain to visit consider whether a healthy option is available to be a major factor when deciding (EMMA Report, 2014) and if McDonald's can cater to this decision factor then they can appeal to the customers values and increase its market. McDonald's can use its strength in its advertising to introduce this new healthy product and reach a large audience in promoting the healthier choice that is on offer.

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