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Case Study 2

838 words - 4 pages

Strategic Analysis
Developing a Competitive Profile Matrix for McDonald’s Corporation
As I compared the data in the Cohesion Case between McDonald’s (MCD), Burger King Holdings, and Yum! Brands Inc. it was obvious that MCD’s out ranked both of their competitors financially and by company volume. MCD serves over sixty million customers on average per day. MCD’s shareholders received five million one hundred thousand dollars in returns; this return on investment is most staggering when compared to the top two competitors. Although MCD’s revenue has always been good their operating costs increased by over two billion in 2007. Due to the increased operating costs MCD’s revenue was ...view middle of the document...

MCD definitely know how to appeal to the consumer through advertising. They not only want to sell you a drink, but how that particular drink will quench your thirst and make you feel refreshed. They have major celebrities and athletes endorsing their products, so if they are enjoying that meal from MCD maybe we will too. I cannot think of a piece of media that I haven’t seen some type of advertisement from MCD. This keeps the consumer constantly bombarded with MCD advertisements, but the costs of advertising to keep MCD on the consumer’s mind is astronomical.
MCD’s has external threats that keep them continuously evaluating and revamping their menu. As the country becomes more health conscious as to what they are consuming, customers are opting for better choices and for many that means another restaurant. While MCD states they are offering more items on their menu does not propose that the calorie count is better or healthier than what was previously offered on their menu. MCD has been the recipient of several lawsuits, in my opinion should have been thrown out, but has resulted in plaintiffs receiving large sums of money. Not only has this hurt MCD, but has laid the way for future lawsuits against MCD. MCD has internal threats such as a 60% industry turnover rate, expanding their operations at an increasingly fast rate which leads to bad investment decisions, and poor...

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