Strengths And Weaknesses Of Mcdonalds

Overview

McDonald’s has over 30,000 restaurants in 119 countries and territories. Over the years, McDonald’s remains competitive and trusted in the marketplace. As with any other company, McDonald’s must capitalize on its strengths and work to minimize its weaknesses to continue to be at the top of its industry.

Strengths:

Strong brand recognition and advertising: Few people could mistake McDonald’s golden arches. A marketing firm’s survey concluded than out of 7,000 people worldwide, 88% could identify the iconic logo, while only 54% of people could identify the Christian cross (Schlosser). In another survey, 96% of school children could identify McDonald’s mascot, Ronald McDonald (Schlosser). This can be largely attributed to the over $788 million annual advertising budget (Forbes). McDonald’s ads are everywhere, from billboards to TV commercials. The company has celebrity spokespeople, and sponsors major sporting leagues, including the NFL (Janoff), NBA (Young), and NASCAR (Boarman). They also sponsor global sporting events including the Olympics and the FIFA World Cup (Sponsorships).

Huge franchise: McDonald’s has roughly 35,000 local restaurants and serves more than 100 countries each day (Chalabi). McDonald’s serves 62 million customers daily, which is greater than the population of Great Britain (Khan). This leads them to sell more than 75 hamburgers each second of every day (Feridun). From 2010 until 2013, McDonald’s opened roughly one new restaurant every day in China (Yan).

Strong community relations: McDonald’s gives back to the communities they serve. Some programs include: The McDonald’s All American High School Basketball Games; Camp Mickey D’s, which introduces high school students to the demands of the workplace,...

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...g a good marketing strategy, the company could win back those customers.

Difficulty increasing the company’s already massive growth. McDonald’s has over 30,000 restaurants in 119 countries and territories leaving very little room for growth (“AboutMcDonalds.com”). To resolve this weakness, McDonald’s needs to focus more on their existing locations and ways to improve them instead of looking at opening more locations.

Conclusion

In order to improve their business portfolio analysis, McDonald’s needs to play off their strengths and resolve their weaknesses in order to remain one of the top performers in the industry. The reasons why they remain in the cash cow stage include strong branding, customer loyalty, and good community relations. McDonald’s is not without its downfalls, as we see with their variable levels of quality, lack of healthy options and high turnover.