Mcdonald

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JAGAN INSTITUTE OF MANAGEMENT STUDIES, ROHINI

Q.1 what opportunities and threats did McDonald¶s face? How did it

handle them?What alternatives could it have chosen?

Soln.:-

OPPORTUNITIES

1)Lack of organized food retail chain or branded food items-

As McDonald¶s was the first food retail chain which started in 1955. At thattime there was no other food retail chain. McDonalds established the brandatthat time to get recognition in the market and started the organized food retailchain.

2) Vast market availability-

The opportunities for expansion are great.For example, in China, with apopulation of 1.2 billion people, there are only62 McDonald¶s restaurants. It hasbeen realised that 99 per cent of the world population is not yet McDonald¶s customers.

3)New food items-

As McDonald¶s has already made a good impression on the minds of the peoplethere is a good scope for introducing new food items in order to have somevariation in the food item.They have the ability to add healthier lines of food.They have already gotten rid of super sizing and I think they have madetheirfries healthier.

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JAGAN INSTITUTE OF MANAGEMENT STUDIES, ROHINI

4) Low competition-

When McDonalds was entered in the market there was very low competition.

There were few players in the marketlike Burger king,Wendy¶s Kentucky friedchicken etc. This didn¶t have the better quality as compared to McDonalds.Ithelped the McDonalds to attract the customersand established brand loyalty.

THREATS

1)Franchisee- It is a very big threat for selection of franchisee holders in

various area because it has mainresponsibility to maintain the image ofMcDonald¶s. There is one example whereMcDonald¶s revoked theFrench franchisees because the franchisee failed to meet McDonald¶sstandards for fast service and cleanliness, even though their restaurantswere highly profitable. This may have delayed its expansion in France.

2) Consciousness among people about their health- McDonald¶s aimed at

providing

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