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Swot Analysis Of Mcdonald's Inc

December 13, 2008
Executive Summary
A business with the size and success of McDonald’s must be keenly aware of their strengths, weaknesses, threats and opportunities in order to continue to grow into the future. This growth is accomplished through the company’s strategic business choices at the business, functional and corporate levels. McDonald’s management is keenly aware of both internal and external factors that will allow it to continue to prosper in contrast with Wal-Mart that seeks to maintain an unwavering corporate strategy based on past successes. McDonald’s is continuing to adapt to its market and its customers with its corporate strategy which is why it will be more successful in the future than Wal-Mart.

Introduction
McDonald’s is one of the most recognized companies in the world. Recently though, they have suffered from slow growth as their image has become outdated in the modern world. The following analysis will focus on the strengths, weaknesses, threats and opportunities facing the company as it attempts to move forward and reverse the trend of slowing growth. The specific strategic choices that McDonald’s has begun to act on will also be compared to other major companies suffering the same fate, specifically Wal-Mart. Ultimately, the multiple business and functional and corporate strategies that McDonald’s is implementing will allow them to not only continue to be a market leader, but enable future growth.

Internal Strengths
McDonald’s has the great strength of brand recognition. They are famous for low priced, high quality, fast and convenient food options in a world where efficiency and speed have become paramount to consumers. McDonald’s commands nearly half of the U.S. hamburger market, which is three times the market share of its nearest competitor.1 The company also dominates the growing fast food breakfast industry owning a quarter of the $25 billion market for the breakfast business. Market dominance and...