W stands for weakness,

Represents opportunities, opportunities for development,

T stands for future challenges, threats,

Situation analysis

Advantages of McDonald's franchise

1. McDonald's uses franchising to implement large-scale low-cost expansion. For franchisee McDonald's, with the help of franchising, we can maintain a small scale while implementing centralized control, which can not only earn reasonable profits, but also involve high capital risks, not to mention taking into account the daily chores of franchisees. Moreover, because franchisees have a deeper understanding of the region, it is often easier to explore the business scope that the enterprise has not yet involved. In addition, because franchisees do not need to participate in the employee management of franchisees, there are relatively few employee problems to deal with. The franchisee does not own the assets of the franchisee, and the responsibility for ensuring the safety of the assets completely falls on the asset owner, and the franchisee does not have to bear the relevant responsibilities. For franchisees, franchising can be used to "enlarge the original". Someone once compared franchising to "printing chassis", that is, repeatedly using the franchisor's trademark, special skills and business model to expand the scale. Franchisees can enjoy ready-made goodwill and brands. Franchisees inherited the goodwill of franchisees, and had a good image in the opening and entrepreneurship stages, which enabled a lot of work to be carried out smoothly. Otherwise, it is not a small expense to establish an image with the help of a powerful advertising campaign. In addition, avoiding market risks is also one of the advantages of its franchise.

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 strong strength, with the help of its brand image, management model 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 parties. Franchisees can get all kinds of support from franchisees, such as training, site selection, financing, market analysis, unified advertising, technology transfer and so on.

In a word, the most important advantage of franchise development success 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 at the forefront of the times.

The weakness of McDonald's franchise

Because franchising connects franchisees with franchisees, it can be said that they share the same blessings and share the same difficulties. Therefore, poor management or poor reputation of franchisees will directly affect the actual interests of franchisees. Just as not all enterprises are suitable to be franchisees, not all people are suitable to be franchisees. Enterprises should conduct appropriate investigation and textual research when choosing franchisees. The author believes 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, domestic garment enterprises have great differences on this point. Many franchisees do not pay attention to their credit status when looking for franchisees. In most cases, the latter can become franchisees as long as they pay a certain margin, and they underestimate the risk in the later period. In a fixed area, the market consumption level is relatively fixed. If there are both franchised stores and self-operated stores in this area, it is easy to have conflicts in site selection. Once this conflict is not properly resolved, it will inevitably have an impact on the sales performance of self-operated stores. This requires franchisees to pay full attention to factors such as business circle development, crowd distribution and store size when choosing 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 insignificant. However, in practice, it is difficult to guarantee the standardization of franchise stores. There are mainly the following aspects:

O McDonald's franchise opportunities 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 perspective, 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 network business in China have added sufficient horsepower to the franchise process of McDonald's China. Recently, McDonald's has increased its network investment. McDonald's recently chose Yahoo! (Enterprise Yahoo) has 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 "unified architecture" and enable users to access its internal systems involving many international operation departments. After the portal is fully completed, employees and suppliers of McDonald's in 120 countries will be able to obtain relevant data by logging in to the webpage. The website also helps bring franchisees who operate 80% of McDonald's chain stores into the information circle. After 30 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 of the project will start from the global marketing department, including external partners, such as advertising companies, such as DDBWorldwide and Leo Boehner.

The threat of McDonald's franchise in China

Affected by the global financial crisis, China is no exception. Therefore, in China, McDonald's also suffered a setback:

1. The number of stores will decrease.

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

2. McDonald's franchise cost will be reduced.

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

3. Committed to single store profit 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 profit management level of single stores and emphasize attracting more customers with quality. Therefore, 2009 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.