environmental analysis and SWOT for a firm

Environmental Analysis:

McDonalds is company which is globally expanding on a fast track, but it has faced a lot of problems like legislations and the political stability in which ever country they wanted to choose to open an outlet. In any country they want to enter it is their duty to consider all rules regarding cross contamination and other concerns such as environment, religious limitations. For example, while entering UK, any company cannot sell alcohol as it’s against the law, unlike countries like Greece. “Police chiefs in Birmingham, central England, have issued officers with vouchers to eat at McDonald's, in an effort to increase their visibility and save time in walking or driving back to the staff canteen”, (Johnson, 2002). The company has also released their report of the social responsibilities and the various steps company takes to taking environment and society into consideration. This is a sensitive issue to the company especially in the less developed countries. The company has also started campaigns to support charities such as UNICEF.

Technology wise the company is bound or rather forced to be better or moderately developed depending on its growth or the market share in which they are in competition with. This happens not just due to high production but also due to number of different products which they produce. All of this is just to maintain the competitive advantage and to make sure company has a good name in terms of fast service which is also efficient at the same time, which is in a healthy environment with not much skilled staff and the equipments doing most of the work. (Markatos, 2006)

McDonalds S.W.O.T Analysis

Strengths                              • Brand Equity…world-wide • 42% of US fast-food hamburger business • Consistency of food • Successful items: Fries, Happy Meal, Big Mac, Egg McMuffin, Promotions • Overseas market • Balance sheet position	Weaknesses: • Declining market share • Weak product development • Disgruntled franchisees • Quality and taste of products
Opportunities: • International expansion • Only serving 1% of the world’s population • Growing dining-out market	Threats: • Mature/overstored industry • Strength of competition • More health-conscious consumers • Changing demographics • Fluctuation of foreign exchange rates; Economies