Summary of Situation (very brief) From the early 90s to 2003, McDonald’s had a declining decade with ineffective leadership. Since 2003, McDonald’s has made huge strides in improving customer service, quality of food, revitalizing the look of the restaurant, and have created many new popular menu items, from healthy choices, like salads and fruit, to the many new choices of coffee-based drinks and fruit smoothies all in the attempt to stay in front of the competition to attract new customers while retaining its current customer base. Key Issues—Identification and Analysis The Downward Spiral Service became a big problem for McDonald’s after the huge expansion of the 80s and 90s. As a result, it tarnished McDonald’s image and reputation for providing quality food fast. With the attention on expansion, training was no longer a major priority. This affected the quality of the food production and also had an effect on the speed of delivery to the customer creating longer wait times and disgruntled diners. During this time, 40 products were introduced. None were really successful due to poor execution resulting from improper training. Effective leadership would have recognized the necessity of maintaining a high level of training to ensure a high level of quality of both food and service, as well as expanding the chain globally. Leadership CEOs Quinlan and Greenburg did more to try diversify the product line by purchasing other chains and introducing new items instead of placing the emphasis on making sure the fundamental elements of service, speed, and quality of its primary product line. Quinlan made matters worse by stopping the practice of inspecting the stores to ensure they met the required standards of speed, quality, and cleanl... ... middle of paper ... ...in the real world, time is a precious commodity that we do not want to waste loitering in a “fast” food restaurant. These major modifications do nothing for the older customer base who are only concerned about getting a quality burger and fries quickly. Will it draw in a younger customer base? Maybe, but I suggest that McDonald’s continue with what they do best, cheap food, real quick. Pro: By minimizing unnecessary outlay to achieve this modernized look, McDonald’s can utilize the capital elsewhere. I would recommend R&D or to raise wages for the employees. Con: McDonald’s could end up wasting this money not getting the additional sales as anticipated. Works Cited Horovitz, B. (2011, May 9). McDonald's revamps stores to look more upscale. Retrieved from www.usatoday.com: http://usatoday30.usatoday.com/money/industries/food/2011-05-06-mcdonalds-revamp_n.htm
"McDonaldization.com - What Is It?" McDonaldization.com - What Is It? Rogue Valley Group, 2009. Web. 15 Mar. 2014. .
PR Newswire (n.d.). Press Articles - FASCINATING MCFACTS ABOUT MCDONALD'S INTERNATIONAL. Retrieved January 21, 2014, from http://www.mcspotlight.org/media/press/prnews_9dec96.html
OPPORTUNITIES: McDonalds has many opportunities to change its look, menu, and customer service. McDonald’s started building newer building incorporating the arch, along with more modern furnishings. The menu has changed by adding more breakfast items and introducing the McCafe in certain areas.
With strength ultimately comes weakness and McDonald's has its fair share, especially in the last few years. Many weaknesses are due to the external environment which includes market saturation, increased price competition, and food and labor costs. These weaknesses affect many firms in the fast food industry so McDonald's is trying to effectively combat these forces using a differentiation strategy. Developing new products such
This citation proves why McDonalds is doing this. Since the expert said that their decision is a smarter health and marketing tactic, McDonalds uses this as an advantage to help better their Public image. Finally, “In 2003, McDonald’s added a salad entree to its menu. More recently, the chain introduced smoothies and yogurt parfaits”(McDonald 2) and “Last year, the restaurant chain’s U.S. revenue rose 4.4%”(McDonald 2). Since the introduction of healthier options in McDonald’s menu, the company gained more revenue than the companies who didn’t have these options at all.
Their constant changes are more directed at customer satisfaction than keeping in line with their competitors. New market entrants, although small and initially insignificant, are exerting the most force over McDonalds Canada. They are able to cater to individuals a lot easier than a multinational company is and it should be these that McDonalds model any future changes on. As mentioned above, the introduction of organic products and the presentation of ‘greener’ images are essential for McDonalds to compete in a changing consumer environment.
The menu at McDonald's typically consists of hamburgers, chicken sandwiches, salads, drinks, shakes, and a recent influx of healthier alternatives. McDonald's also is widely known for their breakfast menu, which consists of sandwiches, pancakes, French toast, hash browns, and breakfast drinks. Since McDonald's appeals to such a wide audience, it must constantly re-evaluate its menu depending on feedback and market research. McDonald's expends considerable resources to update its menu and introduce new products in order to be more in tune with its target audience (The Times 100).
Have you ever wondered how the business empire of McDonalds was started? With over ninety nine billion served, it was started in 1940 in San Bernardino, California. It was started off as just a Bar-B-Q that served just twenty items. Its first mascot was named “Speedee” They eventually realized that by setting up their kitchen like an assembly line that they could be much more productive and get their food done faster, with every employee doing a specified job; the restaurants production rate became much higher. A milkshake machine vendor came into their small restaurant one day, his name was Ray Kroc. He saw how much potential the restaurant has, so he bought it out and opened one of the first franchises. Within the first year of Ray Kroc buying it, there were one hundred and two locations all around the world. McDonalds currently is one of the largest fast food restaurants in the world and currently has served over sixty four million customers through one of their thirty two thousand sites. It has almost become a way of life for America. Though, McDonalds started off as a small business between two brothers, it grew into one of the largest restaurant franchises in the world and greatly affects our society and how we eat our food.
The broad issue facing McDonald’s U.K is the current attitude toward rising obesity, The Company seems to have tried many different approaches to deal with the problem, but the problem persists. List all the problems facing McDonald’s and critique its various approaches to solve the
McDonald’s has proven over time that the business practices they utilize work well and have led them to obtaining the title of the largest food retailer in the world. The founder of the company made a tactical decision in franchising the idea of providing fast food at a cheap price. Today, fast food has become a staple of not only American life but a viable food option all over the world. For McDonald’s a critical factor in them reaching the level of growth they currently experience has been franchising. It can be assured that McDonald’s will continue to grow through the usage of the franchising techniques as new food markets continue to develop all over the world.
McDonald's current customer environment is people on the go or people who don't want to spend a lot while going out and need something quick and good to eat. It is best stated in McDonald's mission statement that they want to be the world's best quick service restaurant experience. As stated before, McDonald's has restaurants in 121 countries and has extensive global experience in customer service and satisfaction. McDonald's is excellent at researching an international area before building restaurant there. For example, in India McDonald's realized that the majority of the population was Hindu and vegetarian, they therefore, did not even bother to put beef or any other red meat on the menu.
McDonalds provide high quality products, such as burgers, fries, drinks, muffins, etc, which are safe and reliable that it does what it is supposed to do, but not only does the quality of the products matter, the good value for money affects the business. E.g. buy one extra value meal and get one free with a food voucher that represents the offer only. They ensure that a high standard of the product is carried out at all times and they try to compete very competitively with other fast food businesses with their good value for money. Also a customer would know if the product is good value for money by checking in another food outlet like KFC for their services and products.
In today’s market, McDonalds faces numerous challenges such as fierce competition, a more health conscious customer, and the continual need for improved customer satisfaction and menu. McDonalds needs to go through some changes in order to remain ahead in the fast-food industry.
These are opportunities because they are all options McDonalds can take advantage of in order to expand their company. By doing these, McDonalds will bring in more customers as these changes will attract consumers that are looking for a fast food restaurant that possess these
Likewise, McDonald 's has been driving up their growth through a means of renovation of its facilities, by expanding it menu offerings and options, and extending the restaurant operating hours of business to accommodate its consumers. Furthermore, McDonalds are thoroughly expanding its value menu