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Unit III Case Study
“The Strengths-Weaknesses-Opportunities-Threats (SWOT Matrix is an important matching tool that helps managers develop four types of strategies: SO (strengths-opportunities) Strategies, WO (weakness-opportunities) Strategies, ST (strengths-opportunities) Strategies, and WT (weakness-threats) Strategies” (David, 2011, p.178). McDonalds has a lot of strengths, weaknesses, opportunities, and threats.
“SO Strategies use a firm’s internal strengths to take advantage of external opportunities (David, 2011, p.178). I believe McDonald’s needs to continue to use its popular name to sell different items. It worked very well when they came out with their coffee strategy. “WO Strategies aim at improving internal weaknesses by taking advantage of external opportunities” (David, 2011, p.178). I believe their employees don’t care about their jobs and by offering them more incentives if they work better they can counter a weakness with some opportunities. “ST Strategies use a firm’s strengths to avoid or reduce the impact of external threats” (David, 2011, p.178). McDonald’s has to make sure if keeps up its strengths as well as develop new items. It is important for them to make sure they aren’t losing money while they explore other ways to grow business. “WT Strategies are defensive tactics directed at reducing internal weakness and avoiding external threats” (David, 2011, p.179). I do not believe McDonald’s has to worry about this. They are a strong enough company worldwide to not have to worry about going bankrupt or merging with another company.
SWOT MATRIX
McDonalds | Strengths – S1. The name brand2. The customer base3. Large Market Share4. Introduction of new products | Weaknesses – W1. Perception of stores2. Low grade food3. High staff turnover4. Customer loss to competition |
Opportunities – O1. Cleaner stores2. International Marketing3. Discounts4. Diversification | SO strategies 1. Use name brand to sell more products (S 1, O 2) 2....