IndexIntroductionSWOT Analysis of McDonald'sWeaknessesOpportunitiesThreatsConclusionReferencesIntroductionIntroduction: SWOT analysis is defined as a special and advantageous technique (tool) which is used by individuals and organizations to analyze the strengths, weaknesses and opportunities and threats.it is also known as SWOT matrix (Team, n.d.). The elements (strength, weakness, opportunity, threat) are generally the same as in all SWOT analyses. However, organizations again classify these elements into two categories, internal and external (Shewan, 2020). The internal specifies the strengths and weaknesses, while the external determines the opportunities and threats of a company. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay Background: There are several purposes for performing SWOT analysis. Mainly, it is mainly used as a ream creation tool that is easy to plan and use (Bertelsen, 2012). Teams can provide valuable ideas for organization development and work together to initiate changes within the organization. Furthermore, another purpose of SWOT analysis is considered for its important strategic planning process of a company (Bertelsen, 2012). Many companies use this system to understand current business conditions and predict future environmental and industrial conditions (Bertelsen, 2012). SWOT Analysis of McDonald'sMcDonalds is considered the largest fast food chain in the world. Richard and Maurice, two brothers, founded McDonald's 75 years ago in California (Gupta, 2019). Its SWOT analysis has been highlighted below. Strengths: One of the 10 best international brands. Quality and taste of food. Brand value. Advanced technology. Weaknesses: Limited employee satisfaction. Poor franchise management. Low product diversification. Opportunities: Reasonably priced meals. Innovative products. Online delivery and ordering. Threats: High competition. Covid-19 Health-conscious customers. Strengths McDonalds is among the top 10 largest fast food companies in the world with a turnover of $24.1 billion (TTM) and operates more than 39,000 locations in nearly 100 countries (REIFF, 2020). McDonald's offers safe and quality products to its customers to satisfy them. They provide a wide variety of choices for customers and use real, original ingredients in their products. For example, use 100% pure, farm-raised beef in burgers (McDonald's Corporation, 2017-2019). In 2020, it came in 9th place in the ranking of brands by value with 129 billion US dollars (Guttmann, 2020). WeaknessesEvidence and Quotes: Due to the stressful work environment and poor management, McDonald's faces a high rate of employee turnover in recent years. McDonald's is a company that works as a franchise model, the success and development of the company depends on the daily actions performed in the franchise, and it is not possible to control every single action of the franchise, so it directly affects the performance of the franchise. business (Gupta, 2019). McDonald's mainly focuses on food and beverage, which is a weakness and reduces the growth rate and slowdown of the food and beverage industry because there is no product diversification. OpportunitiesEvidence and Quotes: While discussing the opportunities of reasonably priced meals offered by McDonald's came in first place. McDonald's has introduced several cheap meals in its menu which include $1, $2, $3 dollar menus in 2018 (Elliott, 2018). Comparing other competitors, McDonald's offers relatively reasonable pricesfor their meals. McDonald's is using product innovation strategies to maintain its leadership in the fast food market. McDonald's example of product innovation includes order-taking kiosks and drive-thru ordering at call centers. McDonald's has introduced a special feature called McDelivery which is a service where the customer receives the food at their door. Using the Doorstep app or the UberEATS app anyone can order online from McDonald's (McDonald's Corporation, 2017-2020). ThreatsEvidence and Citations: McDonald's competition is limitless. The company faces competition from several international companies and local outlets doing the same type of business. For example, Domino's pizza, Burger King, Starbucks (Khandelwal, 2019). The Corona virus has closed restaurants around the world, causing McDonald's profits to drop more than expected. To make the franchising operation work, McDonald's needs to spend millions of dollars (Haddon, 2020). Customers are becoming health conscious day by day. Because of this, the world's largest fast-food restaurant business suffers losses, low market share value, and fails to retain customers. Clearly their global sales decreased by 1% (Kazan, 2015). Please note: this is just an example. Get a custom paper from our expert writers now. Get a Custom Essay Conclusion Concluding paragraph: McDonald's is one of the world's largest fast-food restaurant chains that possesses strong market growth, profit margin, and brand value. However, they face different types of threats and problems. Therefore, it is important to check and identify the factors that can cause threats to the company. In this SWOT analysis, the strengths, weaknesses, opportunities and threats of McDonald's are clearly mentioned. References Bertelsen, B. (2012). Everything you need to know about SWOT analysis. In B. Bertelsen, Everything you need to know about SWOT analysis (p. 10). Newmarket: [Newmarket, Ontario]: BrainMass Inc. 2012.Elliott, M. (2018, August 6). These are the cheapest meals you can order from McDonald's. Retrieved from https://www.cheatsheet.com/: https://www.cheatsheet.com/money-career/these-are-the-cheapest-meals-you-can-order-at-mcdonalds.html/FONTINELLE , E. (2020, June 03). McDonald's: a story of innovation. Retrieved from https://www.investopedia.com/: https://www.investopedia.com/financial-edge/0410/mcdonalds-a-look-back.aspxFood Safety and Quality. (2017-2019). Retrieved from https://corporate.mcdonalds.com/: https://corporate.mcdonalds.com/corpmcd/scale-for-good/our-food/foodsafety.htmlGREENSPAN, R. (2017, February 5). SWOT Analysis and Recommendations of McDonald's. Retrieved from http://panmore.com/: http://panmore.com/mcdonalds-swot-analysis-recommendations#:~:text=Low%20product%20diversification%20corresponds%20to,US%20and%20other%20Western% 20economie.Gupta, S. (2019). SWOT Analysis of McDonald's (2019). Retrieved from https://bstrategyhub.com: https://bstrategyhub.com/mcdonalds-swot-analysis/Guttmann, A. (2020, August 14). McDonald's: Brand Value 2006-2020. Retrieved from https://www.statista.com/: https://www.statista.com/statistics/326059/mcdonalds-brand-value/Haddon, H. (2020, July 28). Coronavirus pandemic crushes McDonald's profits. Retrieved from https://www.wsj.com/: https://www.wsj.com/articles/coronavirus-pandemic-squeezes-mcdonalds-profit-11595934000Kazan, R. (2015, January 29). McDonald's losing battle to gain more health-conscious consumers. Retrieved from https://america.cgtn.com/: https://america.cgtn.com/2015/01/29/mcdonalds-losing-battle-for-more-health- aware-consumersKhandelwal, R. (2019) . Good to know: McDonald's has tough competition. Retrieved from https://marketrealist.com/:.