any, as well as the opportunities available to it are found in the external environment. The extent to which a company can suc cessfully defend itself against external threats, or to which it can effectively exploit opportunities depends, in large part, on the interrelationships between its strengths and weak nesses, on the one hand, and its threats and opportunities, on the other hand.
The company's internal strengths and weaknesses are enumerated in this section. They are as follows:
a. Dominant industry, segment, and sub segment positions.
c. Strong employee and management training programs. d. Powerful company image.
f. Strong financial position:
(a) Gross profit margin: 29.0 percent (Barr, 1989a).
(b) Net profit margin: 11.7 percent (Barr, 1989a).
(c) Return on total capital: 12.0 percent (Barr, 1989a).
(d) Return on equity: 19.0 percent (Barr, 1989a).
(a) Current ratio: 0.67 (calculated from data obtained from Barr, 1989a).
(b) Acid test: 0.62 (calculated from data obtained from Varr, 1989a).
(a) Long term debt to equity ratio: 0.88 (calculated from data obtained from Barr, 1989a). (b) Total assets to equity ratio: 1.85 (calculated from data obtained from Barr, 1989a). 4
(a) Total asset turnover: 0.87 times (calculated from data obtained from Barr, 1989a). (b) Equity turnover: 1.61 times (calcu lated from data obtained from Barr, 1989a). .
(a) Revenues at McDonald's are expected to increase by 12.3 percent over 1989 (Barr, 1990a), which is more than twice the projection for the resta...