McDonald's Corporation - Swot Analysis
Essay by dmiiller • July 29, 2011 • Study Guide • 504 Words (3 Pages) • 2,833 Views
McDonald's Corporation - SWOT Analysis
Strengths
1. Strong brand value
* McDonalds brand valued at $31,049 million in 2009
* Placed 6th in a ranking of top 100 global brands
o Burger King ranked 79th
2. Diversified geographic presence
* 32,478 restaurants
* In 117 countries
3. Market capitalization
* McDonalds - $59.8 billion
* Yum! Brands, Inc. - $16.3 billion
* Burger King - $2.46 billion
Weaknesses
1. Negative brand association
* Consumer Reports survey revealed that 49% of consumers surveyed considered McDonalds food extremely unhealthy
2. Limited menu options
* Majority of menu centered around burgers and sandwiches
* Yum! Brands, Inc. restaurants offer burgers, pizza, fried chicken, and seafood.
3. Below average income margin for company owned stores
* Income margin at 19% compared to 32% industry average
Opportunities
1. Growth of sales of low cost items
o 2009 sales increased by 3.9% compared to industry wide increase of 0.7%
2. Growth of franchisee operated restaurants
o McDonalds franchised restaurants produce a profit margin of 82% compared to a profit margin of only 19% for their company owned restaurants.
3. Access to merging markets
o Only 11.2 % of revenues earned in APMEA (Asia Pacific/Middle East/Asia)
o 2009 revenues increased by 5.2 % in APMEA compared to an increase of only 2.6% in the U.S.
Threats
1. Health conscious consumers
* In 2010, Obama administration passed a law requiring menu nutrition labeling
2. Foreign currency exchange rates
* 70% of the companies operating income is outside the U.S.
* 45% of its debt is denominated in foreign currencies
3. Economic
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