Business Background: Say No to Plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essayMcDonalds started with the two McDonalds brothers; Maurice and Richard. They came up with the idea of ​​designing an assembly line that maximized space and minimized waste. Their idea will soon be recognized by Ray Kroc. A man who saw the genius of the two brothers' incredibly efficient production line and became determined to open stores all across America. He opened his first franchise store on April 15, 1955 in Chicago, Illinois. This store's unique selling point was its production line which, if operated correctly, could produce more food products than any other restaurant and in a fraction of the time. Leading to the birth of what we call the “Fast Food” industry. Soon after opening it would become the most successful fast food franchise of all time, no other would be able to compete on the same level as McDonalds. Today, it is not only the largest food franchise in the world, but now has over 35,000 outlets worldwide, including Italy, China, Vietnam and South Africa. McDonald's is the most popular fast food franchise in history. INTERNAL FACTORS STRENGTHS (+) WEAKNESSES (-) 1. McDonalds is the largest fast food network, present in more than 120 countries.2. The economy of scale means that McDonald's can share fixed costs across thousands of locations, making McDonald's one of the cheapest places to eat anywhere in the world.3. Strong global brand: McDonalds and its “Golden Arches” are instantly recognizable to almost everyone in the world.4. He keeps his food consistent, meaning you get the same taste whether you're eating a Big Mac in Los Angeles or in Croatia.5. McDonalds also adapts to cultural diversities by adjusting its menus according to the ethnicity and cultural context of the country in which it is located.6. The franchise also benefits from diversified revenues. Thanks to its locations in more than 120 countries, if domestic sales collapse, it can compensate for this loss of revenue via Europe or South Africa. The company therefore does not rely on a single source of income unlike most of its competitors which depend on almost 90% of national profits. This allows McDonalds to maintain consistent cash flow and sustained profitability.1. Negative publicity – McDonalds is constantly criticized for its unhealthy menu. This had a major impact on the company's market accessibility and caused a large number of people to not even consider eating a meal at McDonald's due to its fatty, salty, and high-carb ingredients. Films and documentaries have been made that prove his health problems, thus contributing to the destruction of his customer base.2. High employee turnover – since jobs at McDonalds are low-skilled and low-paying, many of its employees do not take their jobs seriously or only accept work for a very short period of time. High turnover means training costs skyrocket, affecting the company's bottom line and overall profitability. 3. EXTERNAL FACTORS OPPORTUNITIES (+) THREATS (-) 1. Upgrade Menu: McDonalds is trying to add premium products to its outlets. Things like artisan chicken breasts and sirloin burgers are already being added to some restaurants in America. She also triesto enter competitive markets, such as those for caffeinated beverages from competitors like StarBucks. By keeping McCafe prices competitive, it has had some impact on the market.2. McDonalds also began producing fruit smoothies which are now available in most stores, expanding their presence in the market, attracting more health-conscious consumers. This will help undo some of the damage he has suffered from his unhealthy menu.1. Competition: Competition from other national, international, regional and local food retailers is the main area of ​​concern for the McDonald's franchise. It competes on the basis of price, service, product quality, convenience and menu variety. Over time, consumers' preference for natural and quality products increases and McDonalds must be able to meet these demands. Its main competitors are Burger King and Wendy's.2. Health-Conscious Customers: Consumers around the world are trying to eat healthier diets. The growing demand for organic produce, fresh fruits and vegetables, and all-natural ingredients is a major area of ​​concern for McDonald's. Although McDonald's has very strict quality requirements, they are concerned that younger, more health-conscious consumers will hurt long-term productivity unless a change in strategy is made. SUMMARY OF ANALYSIS The fact is that even though McDonald's has high profits and is currently the world's leading food retailer, it still faces many growing threats, such as growing health awareness and the competition from similar catering outlets. McDonald's now dominates the fast food industry, but it needs to start changing and adapting its strategies if it wants to maintain its success in the future. SWOT Analysis: Porter's Six ForcesCompetition – the market in which McDonald's operates is already saturated. easily making competitors the biggest threat to their business. The main competition between competitors is price. Since other fast food companies such as Burger King rely largely on the same business model as McDonalds, they also offer food of the same quality and low prices, making it extremely easy for consumers to switch their preferences from one store to another. Non-price competition also exists, such as product features, customer support, delivery times and branding. However, these are not the main threats posed by competitors. Price is the main concern. The high number of companies poses a threat. Great aggressiveness of companies. Low switching costs – meaning that because competitors often charge the same low prices as McDonalds, it is much easier for customers to move to a new restaurant. Adversaries Advertising Capabilities – the availability of advertising means that competitors can gain an audience through the power of capital. Threat of New Entrants – New entrants put pressure on existing organizations within an industry due to their propensity to gain market share. New entrants put pressure on existing industries due to prices, costs and the rate of investment required to support the business. According to Michael Porter, there are various “barriers” that can block the threat of new entrants. These barriers in terms of McDonalds are: Economies of scale of McDonalds: McDonalds spreads the fixed costs of a huge volume of units,.