McDonald's has been serving burgers to Americans since the 1940's. It was founded by Richard and Maurice McDonald in San Bernardino, California. They started by selling hamburgers at a road-stand. When Ray Kroc saw their systematic way of making burgers in 1955 he joined them as their franchise seller and after some years he purchased the restaurants from the McDonald brothers.

McDonald's restaurants are found in120 countries and territories around the world and serve 68 million customers each day. McDonald's operates 37,855 restaurants worldwide, employing more than 210,000 people as of the end of 2018.

There are a total of 2,770 company-owned locations and 35,085 franchised locations, which includes 21,685 locations franchised to conventional franchisees, 7,225 locations licensed to developmental licensees, and 6,175 locations to foreign affiliates.

The food menu includes a variety of burgers (vegetarian and non-vegetarian), starters (Chicken Mc- Nuggets, French fries, sandwiches etc.), ice cream and shakes. McDonald's have qualified independent vendors which supply the raw material to the franchises. Vendors have to comply with the policies to qualify for the hygiene and taste.

McDonald's works on the franchise model. In 2014, 81% of the McDonald's outlets were owned and operated under the franchise model, In 2018 this was 73%, It generates cash at multiple levels, First for each and every product sold the McDonald's get a royalty share. They also charge a franchise fee from the owner and in turn they give them equipment and dcor items interior and exterior. The place is owned or rented by McDonald's itself. The owner is just an employer of the restaurant and generally looks after the staffing. The prices of the items are decided at the company level.

QUESTION 1:

As Director of Strategy, outlines a clear SWOT analysis must involve:

1. As explanation for each item in the SWOT analysis
2. An explanation of an appropriate strategic response to each item
3. Consideration of operational, financial and risk factors.