Strengths
- efficient brand protection
- global presence
- promotion of positive perception through use of attractive products thus encouraging customer trust
- constant reviewing and improvement of products and development of new products
- efficient recruiting and retention of local personnel, thus protection of know-how
- effective training and motivating of franchisees and licensees
Weaknesses
- brand dilution in low quality goods
- brand dilution where an agreement places a large number of restaurants under a single franchisee or licensee
- results and margins dependent on local operating conditions as well as global economic conditions
- volatility in foreign exchange rates will affect financial results and margins
- loss of control in quality of products
- consumer uncertainty in composition of products will affect consumer trust in brand
- variation in food preparation
- High exposure to litigation in a plethora of areas including product safety, product composition, product labelling, advertising with regards to children, unlawful workplace discrimination, class actions
Opportunities
- recruit and retain qualified personnel in developing countries
- expand on products
- disclosure of composition in nutrients
- ensure investment in countries where judiciary is in place and foreign investment is protected through established commercial laws
Threats
- unprofitability of newly-identified sites for (licensees or franchisees)
- lack of judiciary in countries of high risk of political unrest
- increased risk of cost of doing business as increased regulation in markets
- litigation where conflicting regulation affecting elements of the business, product labelling and safety, advertising to children, nutritional content
- litigation regarding conflicting and contradictory implications relating to the impact of nutritional, health and other scientific enquiries and conclusions
- litigation in class actions (labour and employment, landlord and tenant disputes); requirement in a judgment for disclosure in brand and in products
- litigation challenging the composition of products
- litigation relating to unlawful workplace discrimination
- loss of trade resulting from natural disasters
AMEX
Strengths
- global presence
- effective brand protection
- competitively-priced deposits
- specialised cards for niche markets
Weaknesses
- linked primarily to the US
- brand linked only to payments and travel thus difficult to diversify
Opportunities
- co-branding with other travel companies
- co-branding with other financial institutions
- co-branding with associations, charities, businesses and merchants
Threats
- volatile exchange rates may affect margins
Life Education
Marcia B. Moulon, Esq.'s Comments
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McDonalds
Strengths
- efficient brand protection
- global presence
- promotion of positive perception through use of attractive products thus encouraging customer trust
- constant reviewing and improvement of products and development of new products
- efficient recruiting and retention of local personnel, thus protection of know-how
- effective training and motivating of franchisees and licensees
Weaknesses
- brand dilution in low quality goods
- brand dilution where an agreement places a large number of restaurants under a single franchisee or licensee
- results and margins dependent on local operating conditions as well as global economic conditions
- volatility in foreign exchange rates will affect financial results and margins
- loss of control in quality of products
- consumer uncertainty in composition of products will affect consumer trust in brand
- variation in food preparation
- High exposure to litigation in a plethora of areas including product safety, product composition, product labelling, advertising with regards to children, unlawful workplace discrimination, class actions
Opportunities
- recruit and retain qualified personnel in developing countries
- expand on products
- disclosure of composition in nutrients
- ensure investment in countries where judiciary is in place and foreign investment is protected through established commercial laws
Threats
- unprofitability of newly-identified sites for (licensees or franchisees)
- lack of judiciary in countries of high risk of political unrest
- increased risk of cost of doing business as increased regulation in markets
- litigation where conflicting regulation affecting elements of the business, product labelling and safety, advertising to children, nutritional content
- litigation regarding conflicting and contradictory implications relating to the impact of nutritional, health and other scientific enquiries and conclusions
- litigation in class actions (labour and employment, landlord and tenant disputes); requirement in a judgment for disclosure in brand and in products
- litigation challenging the composition of products
- litigation relating to unlawful workplace discrimination
- loss of trade resulting from natural disasters
AMEX
Strengths
- global presence
- effective brand protection
- competitively-priced deposits
- specialised cards for niche markets
Weaknesses
- linked primarily to the US
- brand linked only to payments and travel thus difficult to diversify
Opportunities
- co-branding with other travel companies
- co-branding with other financial institutions
- co-branding with associations, charities, businesses and merchants
Threats
- volatile exchange rates may affect margins
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