Company background

Name Current CEO Revenue Profit Employees Competitors McDonald's Corporation Don Thompson $ 27.56 billion (2012) $ 5.46 billion (2012) 1,800,000 (2013) Burger King, Yum! Brand, Subway, Wendys.

Strengths
1. Largest fast food market share in the world

2. Brand recognition valued at $40 billion

3. $2 billion advertising budget 5. Locally adapted food menus

6. Partnerships with best brands

7. More than 80% of restaurants are owned by independent franchisees 8. Children targeting

Weaknesses
1. Negative publicity 2. Unhealthy food menu 3. Mac Job and high employee turnover

4. Low differentiation

Opportunities
1. Increasing demand for healthier food 2. Home meal delivery 3. Full adaptation of its new practices

4. Changing customer habits and new customer groups

Threats
1. Saturated fast food markets in the developed economies 2. Trend towards healthy eating

3. Local fast food restaurant chains

4. Currency fluctuations 5. Lawsuits against McDonalds

 Threat of competition HIGH Very competitive Fast Food industry Competitors Advertising Capabilities Location of outlets Major competitors- Burger King and YumBrand INC. Threat of New Entrance HIGH Regulation of Limit Easy Access Market and Low start up cost Example of SubWays market penetration Threat of Substitutes Low-Moderate Availability of the MCD products Choose MCD for Easting and Entertainment Narrows Threat of Substitutes due to introduction of local taste products.

Porters 5 Forces
Power of Suppliers LOW Worlds largest restaurant chain in sales High bargaining power over its suppliers Most of them owe MCD for their own existence LOW the power of suppliers- LOWer the cost of raw materials and HIGH competitive price. Power of Buyers LOW Industry limitations Low quantity purchases Less chances of switching, high brand image thru differentiation and uniqueness Buyers dont have bargaining power