Categories: Strategy

McDonald’s EFE Matrix

5.Sum the weighted scores.

EFE Matrix of McDonalds’s

Opportunities Weight Rating Weighted Score
Operates in fast growing industry 0.05 (5%) 4 0.20
Increase in demand of healthy products 0.07 (7%) 3 0.21
Cost competition 0.06 (6%) 3 0.18
Merger and acquisition 0.03(3%) 3 0.09
Going green 0.04 (4%) 3 0.12
Incorporate healthy food in its menu 0.10 (10%) 2 0.20
Globalization 0.08 (8%) 3 0.24
Expand coffee business 0.09 (9%) 3 0.27
Threats
Strong competition especially from burger king. 0.10 (10%) 3 0.30
New entrants in fast food industry 0.05 (5%) 3 0.15
Online sales increasing which will results in increasing competition 0.10 (10%) 3 0.30
Economics recession 0.05 (5%) 1 0.05
Political issues 0.05 (5%) 2 0.05
Increase in obesity rate 0.07 (7%) 2 0.14
Relationship with franchisee and suppliers 0.05 (5%) 3 0.15
Total Weighted Score 1.0(100%) 2.65

The score of 2.65 is above average which means that the company is performing well but there is still enough of improvement.

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