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McDonald's SWOT Analysis

McDonald's has taken a good, hard look at them self and is making some dramatic choices in the name of change. Personally, I believe they are going about change in a much more organized way than Wal-Mart has been trying to keep up with the times. In McDonald's near 55 years in business, they know a thing or two about growing in physical numbers, and I believe they have found the answer to reaching maximum saturation in the way of numbers of stores. It seems that Wal-Mart is very concerned that their stores are starting to compete with one another, but they don't seem to know what to do about continual growth without increasing their numbers. In the next few pages I will take a closer look at McDonald's and discuss their strategic choices, and whether or not I think they will work.

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INTRODUCTION
McDonald's has taken a good, hard look at them self and is making some dramatic choices in the name of change. Personally, I believe they are going about change in a much more organized way than Wal-Mart has been trying to keep up with the times. In McDonald's near 55 years in business, they know a thing or two about growing in physical numbers, and I believe they have found the answer to reaching maximum saturation in the way of numbers of stores. It seems that Wal-Mart is very concerned that their stores are starting to compete with one another, but they don't seem to know what to do about continual growth without increasing their numbers. In the next few pages I will take a closer look at McDonald's and discuss their strategic choices, and whether or not I think they will work.

MCDONALD'S SWOT
STRENGTHS
Globalization:
31,000 restaurants serving 120 countries - 14,000 in U.S.
Active Children's Charity:
The Ronald McDonald House
Adjusted Ingredients and product offerings:
Complies with upgraded USDA health standards
Multiple Revenue Sources:
Fast food sales and property investment through franchising of restaurants
Globally Recognized Brand:
Big Mac, Chicken McNuggets, etc.

WEAKNESSES
Advertisement Techniques:
Target children
Economical Effects:
Consumers use disposable income - consumers redirect these funds during hard times
Public Perception:
Negative press from documentary "Supersize Me", contributing our societies obesity to fast food ...

Solution Summary

I truly believe that McDonald's will succeed in growing due to their strategic choices. There will be some bumps in the road, but they seem to handle these quite well in the past. Wal-Mart needs to look past the land grabbing, and work on maximizing the revenue within their existing storefronts. McDonald's has gotten past that phase, and is working on learning from their competition. Wal-Mart is noticing their competition getting closer ... maybe they need to look inside the other guys stores.

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