McDonald’s Corporation: Firing on all cylinders
while preparing for the future
McDonald’s Corporation is the largest fast food restaurant chain in the world, operating more than 32,000 restaurants in 118 countries. In 2008, McDonalds and Wal-Mart were the only stocks in the Dow Jones to end the year with a gain. From 2007 to 2008 they raised revenues in billion dollars earning above average returns. Its ability to create value for its stakeholders is impressive, but this trend hasn’t always been the same. This mini case study takes place in the year 2003 when for the first time they had a quarterly loss and its stock price devalued almost $35. This case study talks about the factors that took McDonald’s to this downgrade and what strategic decisions they made to regain their position as the largest and most successful fast food chain in the world. The case study mentions several facts about McDonald’s situation in 2003 which can lead us to make a brief SWOT analysis for a better understanding of the characteristics of McDonald’s at that exact moment. Some of the facts mentioned can be rearranged as the following SWOT analysis: Strengths: dominates the quick service restaurant industry, possess the largest number of restaurants + 32,000, most recognized brand in its industry, largest expansion on its industry, largest variety of products. Weakness: low quality service, poorly trained workers, over excess of variety creates low quality in food, lack of innovation, low variety on healthy food and out dated style restaurants. Opportunities: Enter new markets such as Europe, exploit new market niches such as the Chipotle Mexican Grill restaurant concept, and keep expanding at higher rates than the competition. Threats: Overexposure and rapid growth of other fast food chains, new healthy lifestyles, economic crisis.
In 2003, when McDonald’s experienced its first ever crisis, their strategic leaders did these type of analysis on a greater...