Discussion 1:
Strengths:
1.Branding/Marketing: If it is one thing, they do good is that they have proper branding. If someone says, “Golden Arches” or “Happy Meal” someone knows immediately that it’s McDonalds. They have been so successful on their commercials with Ronald McDonald and every other “Mc” thing that they offer. •They have an efficient, assembly line style of food preparation. In addition, they have a systemization and duplication of all their food prep processes in every restaurant. •McDonald’s uses only 100% pure USDA inspected beef, no fillers or additives. Additionally, the produce is farm fresh. McDonald’s serves 100% farm raised chicken no fillers or additives and only grade-A eggs. McDonald’s foods are purchased from only certified and inspected suppliers. McDonalds works closely with ranchers, growers and suppliers to ensure food quality and freshness.
Weaknesses:
2.Turnover: Everyone is only there for a college or a high school job as most people in NY say. The business not only has a high firing rate but also fails to retain staff for long careers. 3.Market Saturated: With America being the largest country in the world (in terms of obesity), we always take the title for having the most fast-food places in world as well. Therefore, McDonalds has way too many competitors and a huge weakness of there’s is that they are saturated by the market (and the oils that they use no pun intended). •One of the world’s most recognizable logos (the Golden Arches) and spokes character (Ronald McDonald the clown). According to the Packard Children’s Hospital’s Center for Healthy Weight children age 3 to 5 were given food in the McDonalds packaging and then given the same food without the packaging, and they preferred the food in the McDonald’s packaging every single time.
Reply-1
I agree with you that McDonald has gained the success in the competitive fast-food market through proper branding. Proper branding has helped this company to enhance the visibility of competitive positioning. Also, I appreciate your concerns about the food quality. For example, you pointed out that the company is using 100% inspected beef in the different fast foods. Consideration of concentrated suppliers to have high-quality food is also a big strength. I also agree with you that much competition in the competitive American fast-food market has become the big weakness. Comparatively, different competitors have established their businesses due to quality and differentiation, which is a big cause of different customer preferences. Furthermore, you also stated the packaging issue, which is also a big weakness for the company. For making changes and attract customers, the packaging strategy must be changed or reviewed by the company management (Spenner, 2013).
Reference
Spenner, P. (2013, January 21). Brand Growth Lessons From McDonald’s. Retrieved from https://www.forbes.com/sites/patrickspenner/2013/06/21/lessons-from-mcdonalds/#3dda9337d4f8
Discussion 2:
SWOT Analysis from internal factors are related to: human resources, physical resources, financial resources, activities and processes, and past experiences (SWOT analysis, 2016). McDonald’s is a company that was founded in the 1950’s and has become one of the biggest fast-food companies in the world. This discussion post is a SWOT analysis based on the company’s internal factors.
Strengths
1.In regards to human resources, McDonalds is community-oriented. According to their website, “Franchisees often live in the communities they serve and are committed to making a positive impact locally – from providing good food, customer service and job opportunities, to supporting local charities and other ways of giving back” (Business Model, 20178).
2.In regards to activities and processes, the company sources its food from local vendors. According to Steinberger (2009), McDonald’s France was sourcing 75 percent of its ingredients domestically.”
3.In regards to financial resources, the company was ranked #215 top regarded companies by Forbes. The company has more than 375,000 employees with annual sales of roughly $24.62 billion in 2017 (McDonald’s, 2017).
4.The company also uses its financial resources to pay for scholarships. This assists in the mentality that McDonalds gives back to the community it is a part of.
Weaknesses
1.McDonald’s has received negative publicity in the past relating to the nutritional value of its food. This publicity has led consumers to question where the food comes from. While the company has made great strides towards altering this view, they do not market it well. The company needs to do a better job of marketing the fact that they have a new chicken antibiotics policy or their commitment to sustainable beef and cage-free eggs.
2.The company does not have many seasonal or rotational items based on time of year and availability to resources. The company should have seasonal items to support its ability to source from local vendors.
3.Reputation for unhealthy foods, even the salads have a reputation for being high in fat.
4.Limited items available to restricted diets like gluten-free items.
References
Business Model. (2016). McDonalds. Retrieved from http://corporate.mcdonalds.com/mcd/our_company/business-model.html McDonald’s. (2017). Forbes. Retrieved from https://www.forbes.com/companies/mcdonalds/
Steinberger, M. (2009) How McDonald’s conquered France. Slate. Retrieved from http://www.slate.com/articles/life/food/2009/06/how_mcdonalds_conquered_france.html
SWOT analysis: strengths, weaknesses, opportunities, and threats: tools. (2016). Community toolbox. Retrieved from http://ctb.ku.edu/en/table-of-contents/assessment/assessing-community-needs-and-resources/swot-analysis/tools
Reply-2
I agree with you that the McDonald company contains a financial strength. The revenues of the company have been streamlined by the management due to immense customer response and sales in the competitive fast food market. I think concentration on the local vendor is a good decision by the company, and I agree with you that it is a big cause of quality retention and sustainability. Using the financial resources for community development is a depiction of corporate social responsibility, and of course, it is a big strength of the company, as far as the growth and positioning are concerned. I also agree with you that obesity issue has become a big weakness of the company, as most of McDonald foods contain fat. Lacking seasonal food is also a big weakness. By proposing a solution to your stated weakness, relationship with a local vendor can be increased to increase the product portfolio (Steinberger, 2014).
Reference
Steinberger, M. (2014, August 22). How McDonald’s Conquered France. Retrieved from http://www.slate.com/articles/life/food/2009/06/how_mcdonalds_conquered_france.html
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