SWOT ANALYSIS STRENGTHS 1.

It has a strong global presence and is considered as a market leader in both the domestic as well as the international markets. 2. It is a global brand that owns 31,000 restaurants serving in 120 countries. Of these 31,000 restaurants at least14,000 restaurants are situated in the US. 3. It uses economies of scale for reducing the cost, as its huge expansion diversifies the overall risk involved with the economic performance. 4. They own an active childrens charity by the name The Ronald McDonald House. 5. It takes steps in adjusting the Ingredients and product offerings in order to comply with the upgraded health standards deemed necessary by the USDA. 6. It earns revenue by fast food sales as well as a property investor and a franchiser of restaurants. 7. It has branded menu items i-e Big Mac, Chicken McNuggets, which further promote McDonalds. 8. Its recognized as one of the worlds most recognized logos. 9. It is recognized as a socially responsible and community oriented firm. 10. It adapts to the cultural differences regarding the region where the restaurant is set up. 11. It has located itself in major airports, cities, highways, tourist locations, theme parks. 12. It takes food safety extremely cautiously. 13. It was the first to provide the customers about nutrition facts. 14. Ranks very high on the Fortune Magazine's food service companies that are most admired list. 15. Cultural diversity in the foods that are provided based on location of the restaurant.

16. Use of brand name processed items like Kraft cheese, Dannon Yogurt, and Dasani Water.

WEAKNESSES 1. They have yet to cpaitalise the trend of organic food in fast food chains 2. It has high employee turnover 3. High employee turnover leads to more being spent on employee training 4. Price competition with major competitors 5. Quality concerns due to a vast franchised network 6. It uses marketing strategy that predominantly target the younger generation 7. There is not much variation in the seasonal products that are offered 8. They conducted a test marketing for pizza which failed leaving them much less able to compete with pizza chains 9. Lack of product innovation. They mainly concentrate on burgers and fries THREATS

1. The recession negatively impacts the holding position of the firm regarding its revenue even though they are quite diversified 2. Foregin currency fluctuations are a major problem as it uses standard pricing for food items 3. Sued various times for unhealthy foods usually with food additives 4. Emergence of major fast food competitors 5. Their expansion has made the company vulnerable to slow economies of other countries

6. There is a downturn in customer lifestyle due to recession. They do not eat out as much 7. Customer habits are changing. There is a focus on healthier food items 8. Brand equity is at risk as selling to franchisees means that quality cant be monitored 9. Various pressure groups are a threat such as health activists and environmental groups 10. Smaller fast food joints are providing the same offering with declining price eg Burger Hub, GunSmoke. Not everyone can afford an expensive meal in Pakistan