Using SWOT, PEST, five forces and the Porters Value Chain, I will assess The McDonald Fast food Chain Organisation. The analysis is a way to take the temperature of the business and it’s market place. It will prompt ideas for improvements to a way the challenges are met. With more than 30,000 restaurants in over 100 countries, 80 % of them franchisees. It feeds some 47 millions clients every day but still serves less than one percent of the world’s population. How does it do this?
It lies in it’s strengths: McDonald’s distributors are strategically to be accessible to the each restaurant and carry practically everything, from meat to lightbulbs. From the Classical menu to the new: Newproducts have been introduced as the tastes of the market. Alongside the Big Macs and Chicken McNuggets, there is a New Tastes Menu offering new McTreats. There’s low-fat Chicken Salsa Flatbread, penne salad comes with ‘Italian style chicken For the first time, I can order fresh fruit. The happy Meal Fruit Bag is ‘equivalent to five-a-day recommended daily intake of fruit and vegetables’, Outside the U. S. Examples include the popular Teriyaki Burger in Japan and vegetable Nuggets in India.
Customers come to McDonald’s for signature products they can’t find anywhere else. In addition many families visit the restaurants because of their unique ability to put smiles on their children’s faces. Happy meal combine wholesome food whit a toy; It’s value lies in major sponserships from Olympics to Justin Timerlake the singer. What’s are their weakness you say: It’s confronting a supersized problem. As fat-fearing nations turn to healthier food and consumer choice expands, the burger market is shrinking fast.
The figures tell their own story. Last year McDonald’s recorded its first ever loss – $343m in the last quarter. The results for the first quarter of this year are worse. In Europe, sales plunged 3. 8 per cent in January McDonald’s is shutting 517 underperforming restaurants and pulling out of three countries altogether. The economy is partly blame for this, wars and political disagreements affecting chains(France). But the threat comes from rivals-KFC, Burger king to name a few… It’s war on the prices as demands are increasing.
To name a few Opportunities, McDonald’s is shifting the focus to the product. The new ads are all about saying “here is some healthy food you will enjoy”. The message is that fast food need not be bad food. It is improving though… A ‘Nutrition Facts’ leaflet is proudly displayed at the entrance ‘to help you balance your McDonald’s meal’: ‘They know people think about their health, so now we have healthy food. As customers change, McDonald’s changes by quietly buying up chains that already have a reputation for serving high quality food–. nvesting in quality restaurants, mid range restaurants to combat the threats feature(five forces) that do not bear their name, like Boston Market, Chipotle Griland .
The Threats: Subway, the sandwich maker is the largest fast food chain in the US. Fat people suing burger bars. Lawyers point out that obesity is now America’s number one killer. Eric Schlosser, whose bestselling book tarnished McDonald’s image by criticising on fast food and its effect on diet, health. He made revelations that the beef in fast food burgers can contain meat from up to 100 different animals.
Leaves a foul taste in the mouth doesn’t it. However, surprisingly, Schlosser believes the firm is heading in the right direction On the whole customer loyalty is still very much there. Despite its problems it still serves 46 million people a day in 30,000 restaurants in 125 countries. But one thing is certain. If the burger ‘n’ fries chain has a future, it won’t be burgers ‘n’ fries. For Mcdonalds to develop further it needs to invest (R&D) in the research of low fat foods. Keep out of countries that dislike USA. It needs to focus more on the countries where it makes substantial profit like the USA and Europe.
But most of all it needs to put money in the work force. It needs to go back in advertising and market the good foods they have and will have. It’s been a while since I have seen an advert on TV or a Billboard. It is time to comeback. It needs educators specialising in Nutrition, to spread the news about the health foods they are starting to provide. They need to help the environment to tarnish up their image and to show what measures they are going to, to satisfy more concious and a healthy customer. On top of all this, it still needs to be darn cheap.