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This report intends to evaluate the external and internal environment of McDonald’s Australia Holdings, in which new product is to be realized and defining strategies appropriate to its realization. In this report, it will analyze the external and internal environments (SWOT) of the McDonald’s Australia Holdings, which includes the strengths, weakness, opportunities and the threats. This is used to identify the critical factors that may affect McDonald’s Australia Holdings’ new product and then build on its strengths to reduce the weaknesses , exploit opportunities and avoid potential threats. Besides, based on the SWOT analysis, this report will talk identify a relevant strategy, that is the W-O strategy meaning that improve the weakness and gain the opportunity rounding them. Further more , this report may also identify and describe a target market of the McDonald’s Australia Holdings, and would like to helps to develop a suitable new product for the company to introduce for this target market. Based on that, this report will firstly make an introduction of the company, McDonald’s Australia Holdings, where includes its relevant history, the current market and the product lines et al. Subsequently, it will make a further analysis of the SWOT analysis, in which it may present the SWOT analysis in a table format and rank the dimensions. After that, this report will talk about the findings and explanation of the SWOT table, according to other McDonald’s Australia Holdings’ choice of ranking and the corresponding approaches. Finally, this report will provide the practical recommendations for their development in order to make up for the weakness and and investigate more opportunities to develope.

2. Introduction

McDonald has an long history in the world, and is the largest chain of fast foods (Yahoo Finance, 2012), such as the hamburgers and hot dogs

et al in the world. Its head restaurants, in the current are setted in the United States, and it was introduced in the California by Richard and Maurice McDonald and then was arranged and expanded by Ray Kroc et al, of Oak Park, Illinois and finally constructed the current McDonald's Corporation (Burger Business , 2012). After several decades’ development, McDonald's Corporation has gained a large market all of the world. Until the year of 2012, McDonald's Corporation had annual revenues of $27.5 billion, and profits of $5.5 billion (Yahoo Finance, 2012), while for the McDonald’s Australia Holdings, they are already become one of the most important part for it (2013). Because McDonald becomes one of the most famous restaurants in the world, most of their products are the fast food, including the hamburgers, cheeseburgers, chicken, french fries, breakfast items, soft drinks, milkshakes, and desserts and so on (McDonald's Corporation , 2014). In order to meet the needs of varying consumer tastes, the company also developes their menu into more foods, such as the salads, coffee, fish,wraps, smoothies, and fruit and so on (McDonald's Corporation , 2014).

3. Introduction of the SWOT analysis

The SWOT analysis includes four sections, including the strengths, weakness, opportunities and the treats, which is used to make an analysis of the situation of the marketing or a company in order to have a comprehensive understanding of their features and try to make up for the weakness and improve the advantages (Hill, T., & West brook, R. , 1997).

Elements of SWOT analysis

(rank according to the importance)    Explanation

Strengths    The characteristics of the business or project that give it an advantage over others.

weakness    The characteristics that place the business or project at a disadvantage relative to others

Opportunity    The elements that the project could exploit to its advantage

Treat    The elements in the environment that could cause trouble for the business or project

SWOT table

4. Findings and explanation of the SWOT table

Among the four elements of the SWOT analysis, the Strengths of McDonald’s Australia Holdings are including the following parts. The first one is largest fast food market share in the world, which is developed from the past efforts for many generations and is also the most important for other companies, because of most customers will like the good brand products. The second is locally adapted food menus, that is to say, the products in Australia are always updated and at the same time they could be adjusted and changed according to the local people’s taste, which is the key point that attracts lots of customers.

The second important one for them is unhealthy food menu, where hamburgers could be the top ten junk food (Stender, S., Dyerberg, J., & Astrup, A., 2007). With more and more people pay much attention to their health, the selling of the hamburgers that is the main products for McDonald’s Australia Holdings could be affected.
In addition, the third important one is opportunity. For c, the opportunity could be the increasing of the need of the Home meal delivery (McDonald, M., 1996). Besides, the varying customer’ habits as well as the new customer groups could be the other opportunity for them to explore the market. Further more , the other opportunity is to change customer habits and new customer groups, such as the habit of afternoon tea in Australia, the  Macdonald’s coffee, Macdonald’s  express and Macdonald’s  stop et al. Restaurants. All of them are designed and developed in order to meet the opportunity of changing habits of customers.

The last one is the treat, only when they know about their treat and deal with them properly could the McDonald’s Australia Holdings achieve their goals. the saturated fast food markets in the developed economies could be the top treat for them. Because there is a long history of the fast food, and the situation is severer in the developed countries such as America, France and Australia. Further more, the trend that more people would like to have the health eating could bring much more obstacles for their development.

5. Recommendations

Based on the SWOT analysis, there are several recommendations provided for the McDonald’s Australia Holdings, including their strengths on the one hand, and on the other hand, they could find more opportunities and also make full use of them . The first one is to change or adjust their target market, that is to say, they could pay more attention to the newly population, such as the students and young child. In order to attract them, some special strategies need to be used including the students’ coupon, the gifts for children and so on. Besides, there is a need to develope the new product in order to meet the need of health eating, for example, the rice with delicious fruits and fresh could be a good choice. The milk with special flavor is also a alternative for people in the Australia where there is enough and good qualified milk. In addition, in order to gain the opportunity of the increasing need for the home delivery, McDonald could develope the new way in this field, and at the same time, try their best to promote their advanced service and provide a more convenient service for the customers. And McDonald could also take the opportunity, changing customer habits and new customer groups. That is to say, with the development of the economics and the culture, there is some things that are changing with the economics, such as the will for the health food, the need for the new products and the better life habits and so on. As a result, Macdonald could also develope more theme restaurants in order to meed people’s needs and changing habits. For example, they has developed the cakes, coffee, the ice creams, and other snakes that is provided in the afternoon. Many customers who would like to have a talk or the business in their restaurants.

6. Conclusion

In conclusion, McDonald’s Australia Holdings has developed for several decades, and also gained a large marketing in the Australia. There are lots of advantages in their restaurants that could develope in the future and the weakness that they need to improve. Based on the fast development of society, they need to take the opportunities and change themselves to meet the customers’ needs. In a word, McDonald's Corporation always keep going forward and improving themselves not only in the field of food, but also in the field of management and financial business et al, so that they could gain such a huge market and keeps growing.