The analysis of various aspects of a business entity is a vital step in evaluating its value and performance potential. With such, an organization will be able to adopt better policies and guidelines that will enable it realize huge returns and thereby increasing its competitive advantage. The SWOT analysis entails an in-depth evaluation of the organization’s strengths, weaknesses, opportunities, and threats. By such an analysis, the potentials of the firm are recognized, and the ways to overcome the existing weaknesses are devised.

The paper will lengthily discuss the SWOT attributes in the McDonalds community. Further on, the paper will examine two internal strengths and weaknesses of the company. Additionally, the paper will examine two external opportunities and threats of the company too. The paper will also identify some mitigation measures that would be initiated to overcome certain weaknesses in the company when a threat materializes. The discussion will be centered on the organization’s resources, business model, performance, customer base, economic forces, competitors and collaborators.

Internal Strengths and Weaknesses

McDonalds is one of the largest fast foodproviders in the world. It has a huge customer base due to its diverse operational stance in about one hundred and nineteen countries of the world. The SWOT analysis of the company will be instrumental in the management decisions and practices that may be adopted. Despite its huge customer base,industry.

The internal strengths of the corporation are essential for its future planning and decision-making. Firstly, the corporation has the largest fast food share in the world. The strength is highly significant to the organization in that it provides a huge customer base for the corporation’s products. The notion is also substantive in bringing about increased levels of loyalty to the organization’s product. With such, the , Burger King and Wendy’s (Fort, 2010). The second aspect of strength by McDonalds is the diversification of its incomes, unlike its close competitors. The strength is supported by the notion that the corporation gets a lot of revenues from a wide range of sources such as franchises that are spread all over the world (McDonald’s Investors, 2013).

The production of unhealthy products is one of the major weaknesses of the corporation. The aspect has triggered stiff competition from the producers of healthy alternative foods. The increased criticism about the production of the unhealthy fast food product is the second weakness. With such the reputation of the organization has reduced greatly.

External Opportunities and Threats

The increased demand for healthy food products provides an excellent growth opportunity to the McDonalds. The production of such foods would revive the reputation of the corporation. Additionally, the provision of home delivery services is a vital opportunity that may help the corporation to outdo its competitors in the field. The notable threats to the McDonalds community are the increased campaigns in demand for healthier food products and the increased numbers of the local restaurants. The demands for healthier food substances lead to low demands for the corporation’s products. The local restaurants are posing stiff competition as they provide local tastes at low costs (United States Securities and Exchange Commission, 2012).The weaknesses of the organization may be mitigatedby adopting diversification and flexibility in the production. For instance, by producing healthy alternative food products, the levels of criticism will drastically reduce hence higher reputation.

Conclusion

Swot analysis is essential in strategic management practices.McDonald’shas a wide stake in the fast food industry and a diversified source of revenue that depicts its strengths. Conversely, its production of unhealthy foods and the related criticisms depict its weaknesses. The production of healthy foods and the provision of delivery services are some of the vital opportunities of the corporation. On the other hand, increased competition and subsequent rise in local fast foods industries represent some of the major threats to the McDonalds.

References

Fort, E. (2010).McDonald’s: Controversies, legal vows, and its competitors in the fast food industry. United States: Six Degrees Books.

McDonald’s Investors. (2013). Company Profile:: AboutMcDonalds.com. Retrieved from http://www.aboutmcdonalds.com/mcd/investors/company_profile.html

United States Securities and Exchange Commission.(2012). Form 10-K. Retrieved from http://sec.gov/Archives/edgar/data/63908/000119312511046701/d10k.htm