SWOT Analysis of McDonald’s 2022 ❤️

SWOT Analysis of McDonald’s 2022

Hey!!! If you want to start a business with McDonald’s Company then you should have to understand the SWOT Analysis of McDonald’s. In this post, I am going to talk about McDonald’s SWOT Analysis 2022.

McDonald’s SWOT analysis segregates all the key points “Strengths, Weaknesses, Opportunities, and Threats”, which are useful for businesses to survive in this competitive era.

This article will help you better understand the McDonald’s brand and how it operates.

SWOT Analysis of McDonald’s
SWOT Analysis of McDonald’s

McDonald’s Overview:

McDonald’s Company is the best American Fast Food Restaurant chain all over the world.

Company Name McDonald’s Corp.
Industry Quick Service Restaurants
Type Public
Genre Fast food restaurant
Logo Mcdonalds Logo
Founded May 15, 1940; 80 years ago in San Bernardino, California
Founders Richard and Maurice McDonald (1st restaurant)
Ray Kroc (Founder of the McDonald’s Corporation)
Headquarters
Chicago, Illinois, U.S.A.
Number of locations 38,695 restaurants (2019)
Area served
Worldwide
Products
  • Hamburgers
  • chicken
  • french fries
  • soft drinks
  • milkshakes
  • salads
  • desserts
  • pancake
  • coffee
  • breakfast
  • wraps
Annual Revenue  US$21.076 billion (2019)
Net income
 US$6.025 billion (2019)
Number of employees Approx. 210,000 (2018 (1.9 million if franchised is included in 2015))
Website www.mcdonalds.com

About McDonald’s

Mcdonald’s is an American fast-food company established in 1940 by Richard as well as Maurice McDonald in 1940. 

It started out as a small restaurant but has increased to over 37,000 franchisees across the globe.

The french fries and hamburgers at Mcdonald’s are famous. They also offer soft drinks, chicken products breakfast items, sandwiches, and desserts, among other things. 

Fruit, salads, seafood smoothies, and other items have been added to the menu due to the changing tastes of consumers. The location where the franchise is located offers a limited variety of food items.

We are now familiar with the name Let’s get right into the SWOT analysis of Mcdonals.

The Milestones/Development Timeline for McDonald’s

1940 Dick Mac Mac McDonald opened McDonald’s Bar-B-Q restaurant.
1948 The restaurant reopens as a self-service drive-in restaurant
1955 Kroc inaugurates his very first McDonald’s located in Des Plaines, Illinois
1961 Hamburger University opened in the basement of a McDonald’s restaurant.
1974 The first Ronald McDonald House opens in Philadelphia
1990 First McDonalds in Moscow
1993 The initial McCafe was opened in Melbourne
2002 McDonald’s released its first-ever Social Responsibility report.
2003 McDonald’s first-ever global ad campaign
2017 Global McDelivery Day will be observed on July 26th to help celebrate McDelivery’s Global Launch of McDelivery by partnering with UberEats.

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SWOT Analysis of McDonald’s 2022

For Mcdonald’s to reach its long-term competitive advantage it must address the various anxieties highlighted in the SWOT analysis of McDonald’s.

Below mentioned the Strengths, Weaknesses, Opportunities, and Threats of McDonald’s.

The Strengths of McDonald’s 2022

McDonalds Strengths

McDonald’s Strengths (Internal Factors) are focused on its strong points which are useful for its growth, revenue, and survival in this competitive era.

❤️ McDonald’s Corporation is one of the largest Fast-Food Restaurant Chains in the world.

❤️ McDonald’s is best known for its hamburgers, cheeseburgers, and french fries, they feature chicken products, breakfast items, soft drinks, milkshakes, wraps, and desserts.

❤️ The King of the Ring- That makes McDonald’s the world’s largest restaurant chain. After Walmart, Mcdonald’s has been ranked as the 2nd Largest Private employer on this planet.

❤️ it had 36,528 restaurants in 119 countries with almost 4,20,000 personnel employed, serving locally-relevant food and drinks at an affordable price.

❤️ McDonald’s works with local and global suppliers to ensure consistent, quality products. Its international network of franchise operator

❤️ McDonald’s is keeping in the lead of technology around the globe. Using the technology creates a more efficient process that will reduce the amount of interval time between a customer’s orders and the pick up of the order.

The Weaknesses of McDonald’s 2022

The company’s weaknesses are internal part are the approach to an idea of things to improve in your restaurant.

❤️ The company massively depends on the franchises which work individually and hence they have no control over their day-to-day performance, but it disturbs the brand directly.

❤️ The hazards of financial deterioration, mismanagement, customer dissatisfaction, and weak revenue generation.

❤️ McDonald’s is being higher depending on the Western markets like the UK, US, France, and Canada. The brand’s market in areas like Malaysia, China, Singapore, and India is low which shows the low entrance of the market. As such, the brand is more dependent on the western markets for its major revenue part.

❤️ McDonald’s is one of the busiest food chains so customers face some difficulties regarding receiving the food. In addition, it reduces product availability which is critical to the progress.

❤️ For nearly a decade, McDonald’s breakfast sales remained unbeatable, especially in the US.  Although Mcdonald’s tries to update its menu by healthy criteria, McDonald’s meals are still unbalanced.

❤️ It faced criticism from its employees. The workers went to protest and there were strikes to increase their wages, thereby hitting the company’s reputation.

❤️ To make polystyrene, McDonald’s uses HCFC – 22, which is contributing to ozone reduction. The company has to repair this weakness if doesn’t want to be criticized.

The Opportunities of McDonald’s 2022

The opportunities for McDonald’s part are external factors where you think about all segments that can increase your sales revenue.

McDonalds Opportunities

❤️ Nowadays people are conscious of their health and prefer healthy food and a low-calorie diet. Obviously, the company has an opportunity to extend the menu with healthy food. It will help the company to increase its customer base and revenue.

❤️ An account of changing the lifestyle of the people they are loving the fast food. That’s why McDonald’s is opening more restaurants in new areas such as China or India.

❤️ McDonald’s has started a partnership with UberEats and Door dash for US food delivery. These mobile ordering apps and home delivery initiatives support McDonald’s to reach and satisfy customers’ ever-changing needs.

❤️ McDonald’s should have started connecting directly into the business rather than trading the franchises to third-party owners and winning royalty.

❤️ Also, Mcdonald’s can attract customers who just have low incomes by serving a low-cost menu. This feature makes up a fairly remarkable part, particularly in the current time when the global economy is fighting.

The Threats of McDonald’s 2022

McDonalds Threats

Threats refer to the external factors that are beyond the control of your competitor and could place their profitability and turnover at risk.

❤️ There are many latest fast-food brands enter to the market. In fact, not all brands are stronger than McDonald’s but a few companies are competitors for example, Yum! Brands, Wendy’s, Chipotle, Subway, and Burger King.

❤️ McDonald’s has been the highest customer of meat items like pork, lamb, and chicken around the globe. But as we all know that some cultures don’t support all kinds of ingredients that Mcdonald’s use. 

❤️ McDonald’s is using wrappers, plastic straws, boxes, and cups which is unsustainable in an environment so it would be the cause of the pollution. That’s the reason it should replace its continuous package’s material with environmental-friendly ones to avoid posing a negative image to consumers.  

❤️ Government Regulations Policy on banning ingredients such as MSG (Monosodium Glutamate) which is used in cooking as a flavor enhancer in the food.

❤️ Customers nowadays are health-conscious they are leaner towards the products which are healthy. The Government Regulations on fat and sugar content will cost McDonald’s to reformulate its food and request them from suppliers.

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Competitors

Subway, as well as Chipotle, are rivals that entered the game by offering customers healthier options for their food.

Burger King reported having revenue in excess of $20 million. Yum Brands’ revenue exceeded $5.6 billion by the close of 2020. 

At the time of writing, Chipotle has a revenue of $6.0 billion. Other companies are progressing and winning customers’ hearts.

McDonald’s will need to be competitive and improve to remain on top.

Important Takeaways

McDonald’s SWOT assessment indicates that even though the company is among of the top brands, it has to improve its operations in a way that will result in its development and growth. 

Changes in the market can influence their sales in the event that they don’t look at opportunities to grow. McDonald’s SWOT analysis suggests that there are certain strategies they can utilize:

  1. Making sure that employees are satisfied is the first step that the food chain could make. It can create brand recognition and boost the image of the brand. Furthermore, it will indirectly assist the company to get better-performing and knowledgeable employees that can offer the highest quality service.
  2. McDonald’s must improve their menus. They must introduce innovative and new foods while keeping their classics to the side. This can draw in more patrons. For various nations, they could make menus that reflect the flavor of the region.
  3. The business must adopt specific measures to reduce the amount of waste it produces. The need to reduce its waste has already put enormous stress on the company. Making improvements to the process can boost their image in customers’ minds.

Make use of EdrawMax to design a SWOT analysis diagram or to create any other diagram in a matter of minutes! There are a lot of SWOT templates and symbologies available making a sketch of a SWOT can be a breeze.

References & more information

  1. Lock, S. (2020, April 27). McDonald’s: Statistics & Facts. Statista
  2. Guttmann, A. (2020, May 5). McDonald’s: brand value 2006-2019. Statista
  3. Lock, S. (2020, May 6). Leading quick-service restaurant chains in the U.S. in 2019. Statista
  4. Hals, T. (2020, May 19). U.S. workers hit McDonald’s with class action over COVID-19 safety. Reuters
  5. Pierson, B. (2020, April 13). McDonald’s faces new class action over ‘pervasive sexual harassment. Reuters
  6. Eidelson, J. (2020, June 19). McDonald’s Accused f Firing Worker Who Sued Over Covid-19 Claims. Bloomberg
  7. Malacoff, J. (2020, January 17). The Healthiest Things You Can Order from the McDonald’s Menu, According to Nutritionists. Shape
  8. Lucas, A. (2020, April 30). McDonald’s earnings fall 17% as coronavirus leads to restaurant closures, plunging sales. CNBC
  9. Balu, N. (2020, April 30). McDonald’s profit misses estimates, shares drop 4%. Reuters
  10. Lucas, A. (2020, June 16). McDonald’s to bring back some menu items cut during the pandemic. CNBC
  11. Jones, M. (2020, Jan. 03). 9 Countries That Have Banned McDonald’s. Readers’ Digest

Frequently asked questions

❤️ Which are McDonald’s customers?

The main focus is on families, particularly parents of younger children. The program is also available to teens, friends as well as business customers, and other people.

❤️ Which is the greatest competitor or threat for Mcdonald’s?

The most serious threat would be the competition, as it could turn consumers away from the most efficient. To date, Burger King is its closest rival.

❤️ Which countries do not include McDonald’s?

The countries which don’t have Mcdonald’s include Bermuda, Iran, North Korea, Zimbabwe, and Yemen.

Conclusion

I hope, you like my post. Above, I have presented a SWOT Analysis of McDonald’s where you can find the McDonald’s Strengths, Weaknesses, Opportunities, and Threats.

So this article will help McDonald’s to improve its services and products by improving its weaknesses and competing against the threats.

Thanks for reading my post…

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