SWOT and Value Chain Analysis of McDonalds

Topics: Marketing, Strategic management, Food Pages: 8 (1407 words) Published: September 27, 2015


Case analysis
On
McDonalds

Sadikchya Acharya
Kings College
International American University
Babarmahal, Kathmandu
MBA Capstone

Prof. Dr. Raj Kumar Sharma
International American University
Kings College
Babarmahal, Kathmandu

Introduction and Background
McDonalds as establishes in 1955 corporation and the multinational was first started by form Roy, it has its global operation for more than 119 countries selling its food items globally specially Korc. Currently as we see the data there are more than 50 million people per day enjoying foods from McDonalds, burgers, nuggets, French fries are their popular foods that they sell at the daily basis. even though we don’t have a branch in our country Nepal but the marketing and the brand awareness is so high that we most of the people know the tagline and the most essence of the product that is burger and I’m loving it. This is how McDonalds is achieving success and awareness getting through the heart of the customers. With the affordable price and the well-known brand and services for the fast food it has always been a integral part of the customers heart and the mind. It has also one of the highest employing place or organizations. There are some of the interesting facts about the McDonalds which I have enlisted them below with the points and which are: It was first introduced in 1940 with two brothers in California 1965 was the first time it has gone public with the stock market 80000 and more are graduated every year from Hamburger University with the name of hamburger logy. More than 85% of MacDonald’s are operated with franchisee

One in 8 Americans is employed by MacDonald’s
In every 14.5 hours they open up with a new restaurant
They serve more than 68 million people worldwide which is more than a population of U.K. They are also the largest distributor of toys
It is not the one of the largest chain but Subway is.
Their revenue is more than 75 million dollars per day.
To earn enough to buy a Mac one person in India has to work for 6 hours. The queen of England also owns store of MacDonald’s near Buckingham Palace As I have already given details of MacDonald and their history on my two previous cases I hereby would like to go straight to the SWOT analysis of MacDonald’s. Strengths

Just in time delivery, as MacDonald’s is the fast food industry they serve as the order comes in. Good brand value
Huge advertising budget
Target audience(children)
Collaboration with the coca - cola company
Competitive price for the fast food services
Professional training for employees
Clean environment and spacious environments and play space for kids Weaknesses
Product development is weaker
Unhealthy food menu
High numbers of employee which could be the weakness
Disrupts locality
Quality and standardization issues
Opportunities
Growing market for the family dining
Increasing population with increasing demands
Taste according to the market for example MahaRaja Burger for the Indian markets Changing culture and taste habits of the people
Home delivery of foods
Threats
Health conscious people who is tremendously increasing are creating threats to the MacDonald’s Also competition among the local restaurants and local food chain markets Recession in economy
Currency fluctuations make changes in the price and other factors Value chain analysis of McDonalds
Primary activities
In bound logistics: this is done in order to minimize the cost and to ensure that the product quality is superior and well. MacDonald’s has been adopting backward vertical integration, it has always purchased its material from fixed vendors and there are always some agreements and contracts for the fixed period of time so that the price and the material won’t be fluctuate. Production in bigger and huge plants for extensive distribution Third party logistics operators are used to operate well

Operations: the operation is really fast they got a very speedy kitchen and them got...

Bibliography: fagansusanto. (2012, 11 22). Value Chain and Competitive Advantage of McDonald’s. Retrieved from Fagansusanto: http://fagansusanto.wordpress.com/2012/11/22/value-chain-and-competitive-advantage-of-mcdonalds/
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