Mcdonald’s Case Analysis Essay

606 Words Jul 29th, 2013 3 Pages
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
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Substitute Products/Services: There are products that are not sold in all regions and have the possibility to make things different across the globe. Intense Rivalry: As the charts showed there are many competitors and rivalry is intense when the number of competitors is high or industry growth is slow. McDonalds is in a fast growing area and the others are not able to maintain the loyalty to the brands.
STRATEGY USED: With all the issues that McDonalds has successfully been able to be strong in all the recessions that have occurred. McDonalds seems to understand the customer more than their competitors. Even with revamping and selling off chains that are not making money for the bigger good of the chain.
COURSE OF ACTION RECOMMENDED: The problem is that they are needing to continue to make the needed changes to toward a healthier and fresher McDonalds. Ofer more vegetables and fresh foods in the setting of a fast food change may be surprising to the other chains possibly looking at doing organic foods too.
OPINION:
I found this case study very interesting. McDonalds has other options besides buying other chains. They are one of the few chains that seem to not be harmed by recessions and in fact it seems that the customers return to them when they have little money to spend on luxuries.

References

Davoudi, S. (2011, March 11). Case Study

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