S.W.O.

T
Analysis
McDonald's SM Cebu
MCDONALD’S
McDonald's serves its global best-sellers like Big Mac, Quarter Pounder,
Apple Pie, and McFlurry alongside local favorites such as Chicken McDo,
Burger McDo, and McSpaghetti
Location: UG/F, SM City Cebu (North Relcamation Area)6000 Cebu City, Cebu ,Philippines
S.W.O.T Analysis

SWOT analysis is a strategic planning tool that evaluates internal Strengths and Weaknesses, along
with external Opportunities and Threats in a business venture. Strengths encompass advantages like
brand reputation and skilled workforce, while Weaknesses include factors like poor management or
outdated technology. Opportunities arise from external changes like market shifts or technological
advancements, while Threats stem from factors such as new competitors or regulatory changes. By
analyzing these aspects, organizations can devise strategies to leverage strengths, mitigate weaknesses,
capitalize on opportunities, and address threats, enhancing overall competitiveness. SWOT analysis
finds application in various fields including business planning, marketing, and project management.
 Strengths
1. Global Brand Appeal: McDonald's strong global brand recognition draws both
locals and tourists.

2. Location Advantage: Its location inside a major shopping center ensures steady
customer traffic.

3. Efficient Service Model: McDonald’s is known for its fast service and
consistent food quality, enhancing customer satisfaction.

4. Adaptability to Local Tastes: Offering menu items that cater to Filipino tastes
(like McSpaghetti) alongside international favorites.

5. Strong Supply Chain: Robust supply chain management ensures the freshness
and availability of ingredients.
Weakness
1. High Dependency on Mall Traffic: Reliance on the mall's foot traffic means any decrease
in mall visitors directly affects sales.

2. Space Limitations: Being inside a mall could restrict the size and layout of the restaurant,
affecting customer experience during peak hours.

3. Price Competition: In a mall setting, competition with other affordable dining options can
be intense.

4. Operational Costs: Higher rental costs in a prime mall location may impact overall
profitability.

5. Menu Standardization: While McDonald's tries to adapt to local tastes, the global
standardization of its menu might not fully satisfy local culinary preferences.
Opportunities:
1. Exclusive Promotions: Running mall-specific promotions can attract more foot
traffic from within the mall.

2. Loyalty Programs: Developing or enhancing loyalty programs can increase

repeat visits.

3. Collaboration with Other Brands: Partnering with adjacent stores or brands

within the mall for cross-promotion.

4. Sustainability Initiatives: Adopting and highlighting sustainable practices could

attract environmentally conscious consumers.

5. Digital Ordering Systems: Implementing or enhancing in-app ordering for in-

mall pickup could streamline operations and improve the customer experience.
Threats
1. Economic Fluctuations: Economic downturns can lead to reduced discretionary spending
on eating out.

2. Shifts in Consumer Preferences: Growing health consciousness could drive consumers

towards healthier dining options.

3. Competitive Pressure: The presence of other fast-food chains and dining options in the
mall increases competition.

4. Pandemic-Related Restrictions: Any future health crises or restrictions could drastically

reduce mall traffic.

5. Operational Disruptions: Supply chain disruptions could impact the availability of key
ingredients, affecting menu offerings and costs.
Summary
McDonald's in SM City Cebu, Mabolo, benefits from its global brand recognition, prime
location within a bustling shopping center, efficient service, adaptability to local tastes,
and a strong supply chain. However, it faces challenges such as high dependency on mall
traffic, space limitations affecting customer experience, price competition, operational
costs, and menu standardization issues. Opportunities lie in exclusive promotions, loyalty
programs, collaborations with other brands, sustainability initiatives, and digital ordering
systems, while threats include economic fluctuations, shifts in consumer preferences,
competitive pressure, pandemic-related restrictions, and operational disruptions. This
comprehensive analysis sheds light on McDonald's strategic position, incorporating both
internal strengths and weaknesses and external opportunities and threats.
Members:
1. Coie Pacoma

2. Cynt Cyrus E. Cumpio

3. Peter Paolo Luna

4. Sy Christianly

5. Jhon YsRael Tibar

6. Zak Khalil Dela Cruz

7. James Sanchez