Mcdonald’s SWOT and Mission, Research Paper Example

SWOT Analysis:

One of McDonald’s strengths is its brand name which enjoys high brand recognition around the world which should not be surprising since the company operates in 119 countries. McDonald’s also has an attractive business model since about 80 percent of the more than 33,500 restaurants are managed by franchisees or affiliates (Hoovers). This business model allows McDonald’s to expand quickly and inexpensively since the franchisee model doesn’t require as much capital investment as would be the case if the company owned all the restaurants.

McDonald’s weaknesses include lack of comprehensive strategy to deal with the negative publicity. The company has often been attacked for contributing towards obesity yet McDonald’s has not developed a proper marketing strategy to change public perceptions. Another weakness is high employee turnover rate (Schmeltzer, 2007) which adds to recruitment expenditure as well as lower employees’ morale.

McDonald’s has huge growth opportunities in emerging countries such as China, India, and Brazil etc. where there are not only huge populations but also growing fascination with western brands. As more and more people enter the middle class, they will increase their consumption of fast food. In addition, the company also has huge opportunity to make inroads in the lucrative coffee market both in developed and developing countries. McDonald’s has an advantage in terms of locations over its competitors such as Burger King, Starbucks, and Dunkin’ Donuts and the company’s huge scale means it can achieve lower production costs and achieve higher market share through lower prices.

McDonald’s operate in 119 countries which means it is exposed to different political and legal risks. Unpopularity of U.S. foreign policies could have serious negative implications for McDonald’s. Another threat facing the company is disruption in McDonald’s global supply chain network.

McDonald’s Vision and Mission Statement

McDonald’s vision is to become the number one fast food destination of choice in each market it operates. McDonald’s mission is to become every customer’s favorite place and way to eat and provide simple easy enjoyment to every customer at every visit. The company also aspires to be a place where every employee provides customer with unmatched quality, service, cleanliness, and value every time (McDonald’s ). The company’s focus on service and quality has been inspired by its founder Ray Kroc who claimed, “If I had a brick for every time I’ve repeated the phrase Quality, Service, Cleanliness and Value, I think I’d probably be able to bridge the Atlantic Ocean with them.” (McDonald’s).

In order to achieve its mission, McDonald’s has developed a system of core values to guide its everyday operations. These core values include placing customer experience at the core of everything, developing leaders and skilled employees, following McDonald’s System (balancing interests of owners/operators, employees, and suppliers), engaging in ethical business practices, giving back to the community, achieving profitable growth, and seek continuous improvement (McDonald’s ). McDonald’s realizes that the success of the business can only be ensured by focusing on all of the stakeholders especially customers and never forget the emphasis on quality and customer service. The company also gives back to the communities in which it operates because customers care about corporate social responsibility. Doing so also helps McDonald’s build goodwill for itself. But the company also realizes that it operates in highly competitive industry, thus, only a flexible organizational culture will enable it to adapt to evolving market needs.

References

Hoovers. (n.d.). McDonald’s Corporation. Retrieved March 30, 2012, from http://www.hoovers.com/company/McDonalds_Corporation/rfskci-1.html

McDonald’s . (n.d.). Mission & Vision. Retrieved March 30, 2012, from http://www.mcdonalds.com.my/abtus/corpinfo/mission.asp

McDonald’s. (n.d.). The Ray Kroc Story. Retrieved March 30, 2012, from http://www.mcdonalds.com.my/abtus/corpinfo/mission.asp

Schmeltzer, J. (2007, May 15). McDonald’s tries to keep workers from flipping jobs. Retrieved March 30, 2012, from http://articles.chicagotribune.com/2007-05-15/business/0705140540_1_restaurants-turnover-rate-karen-king