Brinker International, Inc. SWOT Analysis
SWOT refers to the Strengths and Weaknesses of an internal factor of a firm and the Opportunities and Threats of an external environment facing the firm. SWOT analysis is a technique widely used by managers to provide strategic overview of the company. The best approach and most effective technique to SWOT is maximizing the company strengths and opportunities and minimizing weaknesses and threats. When this assumption is applied accurately, the outcome of the company can be a very powerful and successful.
1.Strengths
1.1 One of Brinker’s strengths has to do with using effective strategies in advertising and marketing and targeting its customer base.
Brinker uses effective advertising and
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The company has also been focusing on expanding its presence in international markets. In 2016, Brinker 's international franchisees and joint venture partners opened 36 Chili 's restaurants. During the reporting period, Brinker entered into new development agreements with new and existing franchisees for development in Bangladesh, Bolivia, Chile, India, Indonesia, Mexico, Panama, Saudi Arabia, Sri Lanka and the UAE.
Presence in diverse markets helps Brinker offset risk of depending upon any particular geographic market. It also protects the company from risks associated with adverse economic and political developments in a geographic market.
1.3 Franchise development driving top-line growth
Brinker has been transforming itself to franchise more of its company-owned units as well as to move toward international expansion away from the saturated domestic market. As of June 29, 2016, Brinker had 25% of its domestic and 96% of its international restaurants were operated through franchisees. During 2016, the company had 659 restaurants through franchisees. Brinker has sold company-owned restaurants to its franchisees and may continue to do so.
2. Weakness
2.1 Increasing indebtedness could limit the company 's financial flexibility
Brinker has recorded a significant increase in its debt levels. In 2015 the company’s long-term debt was $950,156, as of 2016 their long- term debt increased to $1,113,900, an increase of 14.7%. As a result of increased
3. The acronym SWOT stands for an organizations strengths, weaknesses, opportunities and threats. A SWOT analysis is strategic planning method that evaluates the internal and external performance of an organization to see if it’s favorable or unfavorable to achieve whatever objective you are set out to accomplish. Strengths and weaknesses usually arise from the internal aspect of an organization, whereas opportunities and threats evolve from external components. By performing a SWOT analysis it provides information to managers to help formulate a successful strategy to achieve goals.
The global segment of the general environment is that McDonald’s has Internationally and successfully expanded into foreign markets around the world. The first country that McDonald’s expanded to was Canada. Today, McDonald’s successfully operates in more than 100 countries and has over 34,400 locations. According to the McSpotlight.org, “on average, McDonald’s opens a new restaurant every three hours”. The world recognizes McDonald’s as a truly successful American company with tasty and affordable food items.
To date all restaurants are company-owned and not franchised. Restaurants cover forty-three states in the U.S., Canada, England, and France. The only variation to the original model has been an increased environmental awareness and a “Test Restaurant” in Washington D.C. that serves Asian-Style fast casual food.
McDonald’s was first established in 1940 by Dick and Mac McDonald in San Bernardino, California. Their headquarters is now located in Oak Brook, Illinois. Globalization and technological changes have impacted the way McDonalds conduct business. “Globalization is the increasing economic interdependence among countries and their organizations as reflected in the flow of goods and services. (Hitt, Ireland, and Hoskisson, 2013, p.9). McDonalds has grown from one restaurant to a multi-international franchise, servicing millions of customers in over 119 countries. A minimum of five hundred dollars is needed to open a franchise. The first international franchise opened, 1967 in British Columbia followed by Costa Rica. What is unique about the international franchise is every
are major competitors. Chuck E Cheese opened 545 stores in the USA and six foreign countries.
There are over 6,600 Wendy's restaurants in use today, still there are still many items being added to the menu over the years. ("The Wendy's Story"). The oldest of the three restaurants is held by Burger
The competitors of the company are Applebee's, Joe Crabs Shack and Brinker International. In cognation to Joe Crabs Shack, the company is the most immensely colossal and most remuneratively lucrative, operating over 600 branches, as compared to that of Joe Crabs Shack which stands at about 110 restaurants. Where, Applebee's has more than 2000 branches, in over twenty countries of the
had 5,194 U.S. locations, of which 4,255 were company owned, with the balance franchised. Locations
SWOT stands for the internal strengths, weakness and the external opportunities and threats. A swot analysis summarises the key issues from the industry and the strategic capability of an organisation that are most likely to impact on strategy development.
It operates and franchises McDonald's restaurants, which offer various food items, and soft drinks and other beverages. As of July 14, 2006, it operated approximately 31,000 restaurants in 100 countries (Yahoo Finance).
As at 31 December 2009, there were 195 franchised complexes throughout Australia. They have also rapidly expanded their offshore markets over the past few years, there are 70 company-owned stores located in New Zealand (31
Burger King has external stakeholders and internal stakeholders that are part of its success. The company sells its products in its 13,000 outlets in 79 countries worldwide. Its global sales in the year 2014 were $23 billion. High sales have enabled the company to be sustainable. The company also partners with financiers to help fund acquisitions such as $9.4 billion debt financing agreements with JP Morgan and Wells
Now there are more than 30,000 Subway restaurants in 88 countries ecumenical and it is the world’s most expeditious growing franchise chain. Incipient Subway restaurants are opening all the time. The franchise chain has employed more than 150,000 people.
McDonald’s Corp operates and franchises McDonald’s restaurants in the global restaurant industry. The restaurants are either operated by the company or by franchises that includes conventional franchises and foreign affiliates and development licensees (Bloomberg). “McDonald’s is the world’s leading global food service retailer with over 36,000 locations serving approximately 69 million customers in over 100 countries each day” (McDonalds). One of McDonald’s biggest competitors is Yum Brands that has about 41,000 restaurants in 125 countries.
McDonalds are hoping to open 400 new Drive-thru stores in the next 10 years. As McDonalds is an emergent success, the goal is to rise the pace of attainments with a target of 40 new restaurant openings annually as of 2014.