Founded in 1940 in the USA, McDonald’s is currently the largest fast food vendor globally (I.F.A 2105). Its global expansion has led to the creation of many similar restaurants. Despite its notable success, McDonald’s recently encountered a series of difficulties that resulted in the removal of its CEO due to declining revenue. McDonald’s offers an extensive menu with a variety of options such as cheeseburgers, hamburgers, French fries, chicken dishes, and desserts.
In this paper, I will assess both the advantages and disadvantages, as well as the potential opportunities and challenges, associated with this business.
ADVANTAGES
A strong global brand
McDonald's has a highly recognizable brand that is dominant in the fast food industry in the USA and other countries. Despite facing competition from similar establishments, it remains extremely popular. The benefit of its extensive recognition is a high likelihood that customers will choose its products.
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By opening restaurants internationally, the company ensures customers are familiar with their offerings. Furthermore, they have branches in 120 countries, enabling them to generate revenue from diverse sources. In case sales decline in one country, sales in other countries might still prosper.
Thus, the company's sales are boosted, making it difficult to incur losses.
WEAKNESSES
Bad publicity
A significant weakness of McDonald's is the unhealthy nature of their food items. Despite efforts to introduce low-fat products, many offerings still contain high levels of fat, sugar, and salt which are detrimental to health. Consequently, few customers prefer to purchase these products due to their negative impact on well-being.
High employment turnover
In addition, McDonald's faces a notable issue with a high turnover of employees despite offering numerous job opportunities through its shop outlets. Many individuals only remain in their positions fo
a few years before seeking other opportunities. This turnover may be attributed to inadequate compensation or insufficient levels of skill among employees.
The company's high employment turnover is a result of unappealing job conditions and a lack of opportunities for personal development.
OPPORTUNITIES
Expansion plans and untapped markets
Despite being present in 120 countries worldwide, the company has yet to explore untapped markets like Africa that offer significant growth opportunities.
Introduction of new menu items
In order to attract more customers, the company intends to introduce new products to its menu.
THREATS
Competition from various food outlets
Various food outlets pose competition to the company, with factors such as price, quality, service, and convenience coming into play.
The company needs to increase the frequency of its service delivery reviews in order to meet customer demand. Customers are avoiding the food outlet due to its unhealthy food offerings, which poses a threat to the company's customer base and profitability.
A majority of customers have become health conscious and are now avoiding the food outlet. This presents a risk for the company as it could lose a significant number of customers and experience financial losses.
STRATEGIC MARKETING RECOMMENDATIONS
The company should plan ruthlessly, ensuring that all stakeholders are aware of and committed to executing the plan, despite any challenges faced and whether or not profitability is achieved.
An additional recommendation is to outsource marketing by hiring marketers who can handle the marketing work. This has the potential benefit of helping the company reach a wider network of people (Wilson, Gilligan 2012).
REFERENCES
- Wilson, R. M., & Gilligan, C. (2012). Strategic marketing management. Routledge.
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