Sunday, January 10, 2010

Weaknesses of McDonald's-SWOT Analysis

• Their test marketing for pizza failed to yield a substantial product. Leaving them much less able to compete with fast food pizza chains.

• High employee turnover in their restaurants leads to more money being spent on training.

• They have yet to capitalize on the trend towards organic foods.

• McDonald's have problems with fluctuations in operating and net profits which ultimately impact investor relations. Operating profit was $3,984 million (2005) $4,433 million (2006) and $3,879 million (2007). Net profits were $2,602 million (2005), $3,544 million (2006) and $2,395 million (2007).

Reference: http://www.marketingteacher.com/

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