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You are here: Resources » Free Essays » Business »Strategic Analysis (SWOT, PESTEL, Five Forces) of McDonalds
Strategic Analysis (SWOT, PESTEL, Five Forces) of McDonalds
rodrigo | December 21, 2012
Table of Contents [show]
IntroductionThe term restaurant is an establishment where food is prepared and served to the people and always/almost refers to any sort of dine-in. Restaurants range from simple dining places where food is catered to people nearby or tourists for a reasonable price to expensive eat-outs serving food and wine in formal outfits depending on the local culture and tradition. Restaurants are classified based upon the range of menu, pricing and the mode of preparation. The changing trends in economy and income changed the purchasing power. The change in purchasing power also reflected in the market preferences and consumer behaviour. The industry has started becoming customer centric. This lead to the change of historic serving method (food served to the table by a waiter) to evolve into of fast-food and take away restaurants. There is quite a lot of difference between different types of restaurant. A coffee shop serving breakfast and lunch is completely different from the fast food industry (Rainsford, 2001, P.208)  Fast food restaurants ranges from small road side vendors to American giants like McDonald’s and KFC (Caterersearch, 2011). But they have one thing in common. They deliver their service to the customers very quickly when compared to typical restaurants.
The case study is to develop an organisation as the restaurant of the future (2025) and to predict the possible challenges and opportunities in achieving it. The study has also tried to suggest methods to overcome the odds and capitalise on the possible strengths. What began with a handful of hot dog and hamburger has spread its influence into every aspect of the society as an industry (Schlosser, 2001, p.3). This case study has considered possibility of becoming a restaurant of the future.  Patrick McDonald in 1937 opened a restaurant “The Airdrome” selling hamburgers and juices. Later in 1940 Maurice and Richard, sons of Patrick McDonald opened a speed Service system and named the restaurant as “McDonald’s”. There are now more than 31000 restaurants in over 119 countries and revenue of US$ 24 billion (McDonalds, 2011 & Securities and Exchange Commission, 2011). McDonald’s is the biggest chain of restaurants in the world serving nearly fifty million customers per day (McDonalds, 2011).
Different organisations are influenced by different factors, but in common they are influenced by political, economic, social, technological, environmental and legal factors. The response to these factors is determined by the organisation`s strengths, weakness, and managerial efficiency. McDonald’s, being a food industry, dominates the market till today with its diversification. McDonald’s market leadership