ing separate vegetarian kitchens with separate utensils and cooks. This feature has been particularly taken care off for making sure that the needs and requirements of the vegetarian population are fulfilled ((McDonald's Fact File 2007, 2007).
6.0 Organizational capabilities 组织能力
Organizational capabilities look at a firm's ability to manage resources in order to gain sustainable competitive advantage (Hitt, et.al 2007). The internal analysis of the firm are carried out to understand its strengths and weaknesses either which are existing or are potentially going to exist in the future as compared to its competitors (Deresky, 2006).
6.1 Strengths of McDonalds
1. Adaptability: It is one of the major strengths of McDonalds. Customization of activities and menu to suit local needs is the single most factor contributing to its success. This takes care of blending with the local culture and values of the foreign country. McDonalds is an example of a company which is centralized in its core but still customizes the menu and the operational activities for local needs.
2. Innovation: With wide variety of options available from snack wraps to coffee to burgers to McCafe, McDonalds is very innovative with reference to its products. Also, the processes or the way every country operations are managed are innovative in a way that they are suited to fulfill the local needs.
3.
Corporate Social Responsibility: McDonalds has programmes for having a better society. Some of the programmes they have are the greener than ever programme; recycle, renew programme; animal welfare program to name a few. McDonalds believes in having sustainable
Supply Chain consisting of 3 E'S: Ethical Responsibility, Environmental Responsibility and Economic Responsibility (Sustainable Supply Chain, 2010-2011).
4. Marketing: The McDonalds logo is a popular one amongst children and adults all across the globe. This compliments the marketing efforts which are carried out through market analysis thereby giving positive returns to McDonalds.
6.2 Weaknesses:
1. Customer Service: Long queues, insufficient employees at the counters are frustrating for customers and many times the employees are rude in terms of their behaviour with customers.
2. Currency fluctuations: When companies go global, there is always a risk associated with currencies as they keep fluctuating based on the markets. This can cause difference in planned returns for McDonalds.
3. Franchisees Challenges: There is an increase in the fee that franchisees have to pay to McDonalds thus resulting in selling of the businesses and dissatisfied franchisees.
Additionally, it is important to understand the opportunities and threats that potentially exist for McDonalds to consolidate its global position in the fast food industry.
6.3 Opportunities:
1. Expansion: Even though it serves over 60 Million people on a daily basis that accounts for just about 1% of the world's total population. There are a lot of emerging markets particularly in the BRIC countries such as Brazil, Russia, India and China.
2. Increase in fast food category: Based on
statistics from Euromonitor, there is a growing demand for fast food. For example: In Australia, sales of fast food grew by 7% in terms of value in 2008 to reach A$ 10,921 Million. This demand is increasing due to stressful lifestyles a
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