S stands for advantages,

W stands for disadvantages,

O stands for opportunities and development opportunities,

T stands for future challenges and threats,

SWOT analysis

S McDonald's franchise advantages

1. McDonald's uses franchise to implement large-scale low-cost expansion. For the franchisee McDonald's, with the help of franchising, it can maintain a small scale while implementing centralized control, which can not only earn reasonable profits, but also involve no high capital risk, not to mention taking into account the daily chores of franchisees. Moreover, because franchisees have a deeper understanding of their regions, it is often easier to explore the business scope that enterprises have not yet involved. In addition, because franchisees do not need to participate in the employee management of franchisees, they have to deal with relatively few employee problems. Franchisees do not own franchisees' assets, and the responsibility for ensuring the safety of assets falls entirely on the owners of assets, and franchisees do not have to bear relevant responsibilities. For franchisees, they can use franchising to "enlarge the original edition". Someone once likened franchise to "printing the chassis", that is, using the franchisor's trademark, special skills and business model repeatedly to expand the scale. Franchisees can enjoy ready-made goodwill and brands. Franchisees have inherited the goodwill of franchisees, and they have a good image at the stage of opening and starting businesses, so that many work can be carried out smoothly. Otherwise, it is a big expense to establish an image with the help of a strong advertising campaign. In addition, avoiding market risks is also one of its advantages in franchising.

2. For investors who lack market operation, they are often at a disadvantage in the face of fierce market competition. Investing in a franchisor with good performance and strength, with the help of its brand image, management mode and other support systems, its risk is greatly reduced. The advantages of sharing economies of scale cannot be ignored. These scale benefits include: procurement scale benefits, advertising scale benefits, operation scale benefits, technology development scale benefits and so on. Finally, it is always important to get support from many sides. Franchisees can get various support from franchisees, such as training, address selection, financing, market analysis, unified advertising, technology transfer and so on.

in a word, the most important advantage of the successful development of franchising lies in its accurate positioning. Because of accurate positioning, accurate target market selection, marketing strategy combination around the target market, and timely understanding of the changes in the target market, the products and services of enterprises are in the forefront of the times.

W The weakness of McDonald's franchising

Because franchising ties the franchisees and franchisees together, it can be said that we share weal and woe. Therefore, the franchisee's poor management or poor reputation will directly affect the actual interests of the franchisee. Just as not all enterprises are suitable to be franchisees, not everyone is suitable to be franchisees. When choosing franchisees, enterprises should conduct appropriate investigation and textual research. The author thinks that franchisees in the clothing industry should at least have the following conditions: certain financial strength, good business reputation, basic management quality, and keen insight into the dynamics of the clothing market. At present, there are great differences in this point among garment enterprises in China. Many franchisees do not pay attention to their credit status when seeking franchisees. In most cases, the latter can become franchisees as long as they pay a certain margin, and they underestimate the risks in the later period. In a fixed area, the market consumption level is relatively fixed. If there are franchise stores and self-operated stores in this area at the same time, it is easy to have conflicts in site selection. Once this conflict is not resolved properly, it will inevitably have an impact on the sales performance of self-operated stores. This requires franchisees to pay full attention to the development of business circle, the distribution of people, the size of stores and other factors when choosing the store location. In order to avoid excessive competition among peers as much as possible.

so standardization is the first principle of franchising. If franchising does not have a complete set of internal management norms and unified standards for the management of franchise stores, it will definitely make franchising irrelevant. However, in practice, it is difficult to guarantee the standardization of franchise stores. There are mainly the following aspects:

O franchise opportunities for McDonald's in China

1) McDonald's will pay more attention to second-and third-tier cities

During the crisis, many second-and third-tier cities suffered relatively little economic crisis, so McDonald's will take these areas as the focus of market development. From this point of view, the economic crisis has promoted the circulation of many second-and third-tier cities or the development of the tertiary industry. From the perspective of national or regional economy as a whole, this is the so-called blessing in disguise. In fact, McDonald's can also take this opportunity to fully enter Greater China.

2) The active network economy and the continuous development of China's network business have added sufficient horsepower to the franchise process of McDonald's in China. Recently, McDonald's has increased its network investment. McDonald's recently chose Corporate Yahoo! (Enterprise Yahoo) established a portal website for it to solve its huge logistics management problem, that is, to provide its employees, chain store owners and suppliers all over the world with access to information systems. "The company's goal is to make this portal a place for employees to carry out their daily work." DaveWeick, chief information officer and senior vice president, said that the establishment of the company's website can meet the company's demand for a "unified architecture" and enable users to access its internal systems involving many international operations departments. After the portal is fully completed, McDonald's employees and suppliers in more than 121 countries will be able to obtain relevant data by logging in to the Web page. The website also helps to bring franchisees who operate 81% of McDonald's chain stores into the information circle. After 31 employees from different business departments successfully tried out the company portal, McDonald's is now ready to put it into full use. The phased implementation project will start from the global marketing department, including external partners such as advertising companies, such as DDBWorldwide and Leo Burnett.

T The threat of McDonald's franchise in China

is affected by the global financial crisis, and China is no exception. Therefore, in China, McDonald's is inevitably frustrated:

1. The number of stores will be reduced

In the economic crisis, because a considerable number of investors will have a pessimistic investment psychology of waiting and holding cash, so their investment confidence will inevitably be affected; At the same time, many franchisees will also encounter direct market difficulties caused by sluggish consumption, so it is possible to reduce or even greatly reduce the number of direct stores or franchise stores.

2. The franchise expenses of McDonald's will be reduced

In the face of the economic crisis, McDonald's enterprises will definitely take preferential investment measures to give concessions to franchisees in order to tide over the difficulties with franchisees. One of the most prominent manifestations of the franchisor's preferential investment policies is that its franchise expenses will be reduced, and the main categories of reduction will include one-time payment of franchise fees and regular payment of equity fees. There are many ways to reduce, such as directly reducing the value, allowing franchisees to pay by installments, and introducing second-hand equipment to franchisees.

3. Committed to single-store profitability and quality management

Because of the decrease in the number of stores and the sluggish consumption, McDonald's China headquarters will have more energy and pressure to improve the profitability management level of single stores, emphasizing quality to attract more customers. Therefore, 2119 will be a year in which the overall profitability, level and quality management of McDonald's single store will rise. This is also a good opportunity for McDonald's to improve itself as a whole

4. Threats from homogeneous industries, such as KFC and Pizza Hut. There are also threats from the local fast food industry in China, such as Wallace, Dicos, Guilin people, the Wizard of Oz and so on.

I hope the information collected above can help you.