McDonald’s Corporation’s, Executive Summary, Mission Statement & SWOT Analysis

McDonald enjoys a deplorable range of success in terms of revenue but media influences in regard to its foods have had a devastating effect on its reputation. According to Marketline (2016) the company has several pending lawsuits that have tinted its image especially in franchises in countries like Australia. The report points out this challenge of diverting intercompany payments from Australia to Singapore place the company at a bad position. Nevertheless the brand of McDonalds is the largest in the world (Marketline 2015).Therefore the current paper aims to look at the company’s mission statement, with a special emphasis on its SWOT examination but first is the executive summary.

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Executive Summary

McDonald is the largest food restaurant in the world with operations in over 119 countries. It employees over 1.8 million people and has a steady revenue growth on a yearly basis. The present situation in this paper looks at the ways the company has developed both internally and externally in regards to SWOT analysis and mission statement.

The mission statement aims to consider the nine areas of developing a competent mission message with regard to customers, philosophy, markets, products, technology, survival, competitive advantage and public image concern as well as concern for employees.

Other than that, the other section will look at the SWOT analysis with special emphasis on: Internal factor evaluation matrix, external factor evaluation matrix and finally the SWOT Bivariate strategy matrix.

Mission Statement

Customers; McDonald’s brand mission is to serve families and young people.

Products: It sells burgers and other fast foods to every customer

Markets: The company is located in every part of the globe I almost 119 countries.

Technology: The firm uses the most sophisticated technology that helps in selling and branding of fast foods.

Concern for survival: It plans to open more franchises in every other nation that is not covered.

Philosophy: The company believes in people, products, place, price and promotion.

Self concept: The firm’s major competitive advantage is its brand name and global presence.

Concern for public image: It plans to introduce more nutritious foods climate change is the company’s concern.

Employees concern: The employees are highly motivated to provide the best customer experience all over the world.

SWOT Analysis, EEE, IFE

        a) SWOT Analysis

Strengths

McDonald is the world’s leading food restaurant with a strong brand name and global presence of over 69 million citizens and in over 119 countries (Jurevicius, 2013). The company also offers specialized training facility to its top management called Hamburger University. Its main focus is on customer needs and has a plan in place called Plan to Win. The plan looks at five main areas; people, products, place price and promotion. All these efforts are aimed at increasing its presence around the globe and also sales. In addition, almost 80 percent of all restaurants are owned by franchisees giving the firm a strong competitive advantage.

Weaknesses

McDonald faces a strong resistance campaign against its food because they are viewed as unhealthy by many critics, media houses and all wellness promoters (Khoa, 2014). The firm has been sued several times because of its unhealthy foods making the business a tough one for that matter(Marketline, 2016). One of the greatest weaknesses it faces is a high rate of staff turnover including top management. Other than that, they are weak in analyzing customer needs and the use of HCFC-22 is making climate campaigners who feel the company is depleting the ozone layer. They also ignore the customer breakfast menu making things even tougher for them.

Opportunities

The tough economy is pushing customers to choose the cheap products sold by McDonald’s making them very profitable. The demand for free Wi-Fi against competitor prices offers an opportunity for them. Competition in costs is making them enjoy more benefits because they can spread the risk in volume sales. There is a high demand increase in healthy products and they can grasp that opportunity. Mergers and acquisitions are also other opportunities for expansion and the demand for greener products are also increasing.

Threats

The demand for healthy foods is reducing sales in the company. Negative publicity by media companies also affects the company. In addition, the steady unemployment rate in the US is affecting sales there and also price competition from King Burger also affects sales to some degree. More importantly, online sales are offering challenges to this firm.

        b) Internal Factor Evaluation Matrix

Strengths Weight Rating Weighted Score
Strong Brand, image and reputation 0.12 4 0.48
Global presence 0.12 3 0.36
Hamburger University (training specialized for managers)(Khoa, 2014) 0.10 3 0.30
Restaurants owned by independent franchises 0.9 3 0.27
Global market strong performance 0.12 3 0.36
Customer orientation 0.07 3 0.21
Subtotal 0.64 1.98

Weaknesses

Sued for selling unhealthy foods severally 0.05 1 0.05
High staff turnover even the top managers 0.08 1 0.08
There is unhealthy food image in public 0.07 2 0.14
They are weak in analyzing customer needs 0.04 2 0.08
Use of HCFC-22 contributes ozone layer depletion 0.03 1 0.03
Ignoring breakfast from menu 0.06 1 0.06

Total 1 2.42

        c) External Factor Evaluation Matrix (EFE)

Opportunities Weight (%) Rating Weighted Score
Economy forces customer to choose less expensive options 0.15(15%) 3 0.45
Demand increase in healthy products 0.7 3 0.21
Competition in cost 0.6 3 0.18
Merger and acquisition 0.6 3 0.18
Demand for greener products 0.5 3 0.15
Expansion of Coffee business 0.08 3 0.24
Demand for free Wi-Fi versus competitor charges 0.9 3 .27

Subtotal (.56) 1.68

Threats

Demand for healthy food driving sales down(Obesity issues) 0.8 2 0.16
Media negative publicity on fast foods 0.8 2 0.16
Price competition (Burger King) .8 2 0.16
Rising cost of production .7 2 0.14
Steady unemployment in the US 0.6 2 0.12
Competition from online sales which are increasing 0.7 2 0.14

Total 1 2.56

d) SWOT Bivariate Strategy Matrix

S-O strategies S-T strategies
-The need to introduce menus that are nutritious is important.

-Taking advantage of brand name

-Maximizing on MacDonald’s Plan to Win

-Taking advantage of global presence by maximizing presence in Asia

-Mergers and acquisition and greener products can be utilized.

-Taking the advantage of brand name -positivity

-Corporate social responsibility

-Introducing menus that are healthy with less calories intake.

W-O strategies W-T strategies
-Negative publicity minimization

-Maximizing the use of differentiation.

-Optimize online sales

-Switch from HCFC-22 to HFC

-Increasing satisfaction of employees (Sharmin 2015)

-Increase Healthy foods

 

References

Jurevicius, O. (2013). Mission statement of McDonald’s. Retrieved from: https://www.strategicmanagementinsight.com/mission-statements/mcdonalds- mission-statement.html

Marketline (2016).McDonald’s Corporation SWOT Analysis. Business Source Premier, 1-8.

Marketline (2015).McDonald’s Corporation SWOT Analysis. Business Source Premier, 1-8.

Sharmin, T.(2015). McDonald Corporation Strategic management analysis. Retrieved from: http://www.slideshare.net/TahminaSharmin/mc-donalds-strategic-management- analysis