Mgt 521 Business Analysis Paper

Business Analysis Part I – McDonald’s
Jason Christenson
MGT/521
Instructor: James Anderson
University of Phoenix

Introduction
The purpose of doing this business analysis is to decide whether or not to invest in McDonald’s. It is regarded as one of the leading organizations within the global marketplace. As a result, the preceding discussion will provide a SWOT analysis of some key areas, since the identification of an organization’s strengths etc… acts as a critical core element in identifying its competitive advantage and potential as an investment opportunity. Internal and External stakeholders will be identified to help analyze their wants and needs.
Strengths
McDonalds has established a large and consistent brand. A client can
McDonald’s as a leader in its industry can dedicate itself to changing the way fast food does business. McDonald’s strives to be responsible in how it responds to the social changes happening within communities. The company continually strives to introduce healthier foods, which have helped add revenues.
McDonald’s is recognized as the first in its industry to embrace the initiatives and polices being proposed by the President and upheld by the Supreme Court to help customers make better nutritional choices by requiring restaurants with over 20 locations to list calories on its menu. (Choi, September 12, 2012) McDonald’s move to do this is expected to have its rivals scrambling to do the same.
Threats
Outside competition will always be an external threat as new food service companies enter the marketplace focusing on more balanced menus. Established companies like Burger King, Taco Bell, and Wendy’s are also constantly striving to introduce new methods of stealing market share away from each
Externally, the key stakeholders would be the shareholders and customers, because if there needs are not being met they will pull their money and customers will go to different locations. Based on the stock prices steady climb over the last ten years the indication is both of their needs are being met. Internally, McDonald's Leadership and employees would be the two key stakeholders. These two groups have large interests in the success of the company. Leadership wants to continue and drive quality food at the lowest prices to keep customers loyalties, while employees want the best possible pay and advancement potential. It’s difficult to gauge how well the workforce needs are being met, because the demand for work is so high and their willingness to take the offered pay, instead of being in a position of power to demand higher wages.