Mcdonald’s Case Analysis
McDonald’s Case Analysis
Lera Ford
BUSN412 Business Policy
October 19, 2011
CASE ANALYSIS
McDonald’s
COMPANY NAME: McDonald’s
INDUSTRY: Fast Food
COMPANY WEBSITE: (www.mcdonalds.com)
COMPANY BACKGROUND: Richard and Maurice McDonald started the first restaurant to sell hamburgers, fries, and milk shakes. Then Ray A. Kroc opens his first McDonalds and decides that he could make more money by selling them milk-shake mixers. (Dess, 2010). Overtime they were able to continue to profit till Jim Skinner takes over as CEO and launches specialty beverages, including coffee-based drinks.
SWOT ANALYSIS: Strengths: McDonalds seems to be recession proof. They seem to be able to predict what is going to be successful over the long term. Helping the U.S. to eat healthier from what they have been eating and changing the way some look at the food they intake. (Dess, 2010).
Weaknesses: Unfortunately, sometimes taking chances on new items on the menu and buying other fast food places seem to only weaken the overall status of the company.
Opportunities: McDonalds chance to take individual areas and make the foods that are popular to the regions and explore them in other areas that have not had the chance to try them.
Threats: The biggest threat to McDonalds is the other fast foods chains that are introducing themselves to new regions to the world.
PORTER’S FIVE FORCES MODEL: Threat of new entrants: New fast food chains and other restaurants that introducing them to new regions and continue to introduce them to new experiences in food. (Dess, 2010). Barriers to entry are low. Bargaining Power of Buyers: Buyer power is high when there is a high concentration of buyers relative to suppliers. This has the ability to change the profit of McDonalds buy lowering the price of some products to compete with other fast food restaurants. Bargaining Power of Suppliers: Since McDonalds not only supply their own restaurants and franchises across the world
Lera Ford
BUSN412 Business Policy
October 19, 2011
CASE ANALYSIS
McDonald’s
COMPANY NAME: McDonald’s
INDUSTRY: Fast Food
COMPANY WEBSITE: (www.mcdonalds.com)
COMPANY BACKGROUND: Richard and Maurice McDonald started the first restaurant to sell hamburgers, fries, and milk shakes. Then Ray A. Kroc opens his first McDonalds and decides that he could make more money by selling them milk-shake mixers. (Dess, 2010). Overtime they were able to continue to profit till Jim Skinner takes over as CEO and launches specialty beverages, including coffee-based drinks.
SWOT ANALYSIS: Strengths: McDonalds seems to be recession proof. They seem to be able to predict what is going to be successful over the long term. Helping the U.S. to eat healthier from what they have been eating and changing the way some look at the food they intake. (Dess, 2010).
Weaknesses: Unfortunately, sometimes taking chances on new items on the menu and buying other fast food places seem to only weaken the overall status of the company.
Opportunities: McDonalds chance to take individual areas and make the foods that are popular to the regions and explore them in other areas that have not had the chance to try them.
Threats: The biggest threat to McDonalds is the other fast foods chains that are introducing themselves to new regions to the world.
PORTER’S FIVE FORCES MODEL: Threat of new entrants: New fast food chains and other restaurants that introducing them to new regions and continue to introduce them to new experiences in food. (Dess, 2010). Barriers to entry are low. Bargaining Power of Buyers: Buyer power is high when there is a high concentration of buyers relative to suppliers. This has the ability to change the profit of McDonalds buy lowering the price of some products to compete with other fast food restaurants. Bargaining Power of Suppliers: Since McDonalds not only supply their own restaurants and franchises across the world
References: Davoudi, S. (2011, March 11). Case Study Reader 's Digest. Retrieved October 10, 2011, from Financial Times: http://www.ft.com/intl/cms/s/0/084981aa-4b87-11e0-89d8-00144feab49a.html#axzz1aQpCUrmT