QUESTION
SWOT
- Conduct a SWOT analysis for McDonald's Only need to work on the Opportunities part (internal, negative) for this analysis. Below is the points I already have, just need to expand into paragraph. Outside source may need. Weaknesses • Staffing issues — understaffed, lack of training, poor customer service • Unhealthy food/ingredients • Quality concerns — low quality • High employee turnover rate • Lack of Sustainability — not eco friendly • Marketing department — can’t deal or create better brand reputation — they don’t care about employees, and unsafe working environment at some locations 2. After completing the SWOT analysis, combine the factors in different ways to help generate new business ideas for McDonald's to pursue. Here only work on Weaknesses and Opportunities Strategies Opportunities Do NOT need to conduct the opportunity part, these points are just as references for the combination strategy • Being socially responsible • Delivery service partnerships • Rebuilding the brand-change practices, become more sustainable, etc • Going toward more sustainable practices • Technological advances - AI, robots, apps Caption
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| Subject | Article Analysis | Pages | 3 | Style | APA |
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Answer
SWOT Analysis for McDonald
- Weaknesses
McDonald's has, over the years, experienced staffing issues. This is a result of understaffing and lack of training, which, in turn, contribute to poor customer service. Rosenbaum notes that the fast-food restaurant sector in which McDonald's operates has a 130% turnover which makes it very expensive to train employees since most are contractual and seasonal (Para 3).
Second, McDonald's lacks commitment to sustainability. Despite announcing environmental goals for 2030 in 2018, the company has constantly been called out for its unsustainable business model and value chain (Siegel, para 3; Purdy, para 5). For instance, Greenpeace alleged that McDonald’s soy farms in Brazil were threatening the Amazon rainforest (Moss, para 2). The company was further accused of plastic pollution along its supply chain (Dao, para 5).
Unhealthy foods and ingredients. Stender, Dyerberg, and Astrup explain that Americans have constantly associated McDonald's and other fast-food restaurants with the increasing prevalence of lifestyle diseases (888). They often blame Mcdonald's for using low-quality ingredients and an unhealthy food menu that encourages junk eating and less practice.
- Weakness-Opportunity strategies
McDonald's needs to adopt new technological advances such as artificial intelligence, robotics, applications, machine learning, and virtual reality to ease its operations. For instance, these technologies provide avenues for the automation of services. The robots can be used to prepare and serve meals while virtual reality can improve the current marketing activities (Jurevicius, para 23). Embracing technology will mitigate the challenge of high turnover and understaffing.
Second, McDonald's needs to introduce sustainable practices and act in a socially responsible manner (Rajawat, Abhishek, et al, 12). The company needs to review its Corporate Social Responsibility (CSR) and sustainability policies to ensure it revamps its value chain and supply chain to make it sustainable.
The company can capitalize on delivery service partnerships such as entering into contractual agreements with Uber and other taxi-hailing service providers to ease last-mile delivery (McDonald's). This opportunity could be exploited to create awareness on healthy lifestyles and the need for the customers to exercise more to keep fit.
REFERENCES
Dao, Emily. McDonald’s gets called out for plastic pollution. Will it actually change? 2019. Retrieved from: https://therising.co/2019/07/15/mcdonalds-gets-called-out-for-plastic-pollution-will-it-actually-change/
Jurevicius, Ovidijus. SWOT analysis of McDonald's, 2020. Retrieved from: https://strategicmanagementinsight.com/swot-analyses/mcdonalds-swot-analysis.html
McDonalds. McDelivery, 2021. Retrieved from: https://www.mcdonalds.com/us/en-us/mcdelivery.html
Moss, Doug. The Greening of…McDonald’s? 2020. https://www.blueridgeoutdoors.com/go-outside/the-greening-of-mcdonalds/
Purdy, Chase. In the race to modernize, McDonald’s is its own worst enemy, 2019. Retrieved from: https://qz.com/1538192/mcdonalds-biggest-obstacle-to-being-sustainable-is-its-own-business-model/
Rajawat, Abhishek, et al. "Factors: Responsible for McDonald's Performance." Journal of the Community Development in Asia 3.2 (2020): 11-17.
Rosenbaum, E. Panera is losing nearly 100% of its workers every year as fast-food turnover crisis worsens, 2019. Retrieved from: https://www.cnbc.com/2019/08/29/fast-food-restaurants-in-america-are-losing-100percent-of-workers-every-year.html
Siegel, Rachael. McDonald’s announces major environmental goals for 2030, sending a signal to the restaurant industry, 2018. Retrieved from: https://www.washingtonpost.com/news/business/wp/2018/03/21/mcdonalds-announces-green-initiatives-for-2030-and-sends-a-signal-to-the-restaurant-industry/
Stender, S., J. Dyerberg, and A. Astrup. "Fast food: unfriendly and unhealthy." International Journal of Obesity 31.6 (2007): 887-890.