August 23, 2008
Case Study #1
McDonald’s Corporation: Regilding the Golden Arches
McDonald's Corporation is the world's leading food service organization because customers come to McDonald's for their signature products and service. Today, customers are more health conscious and have an increase in the amount of healthy options that are available. Some of the main issues in this case study were the amount of CEO turnover in the beginning, changing the negative perception from customers, and redirecting the focus toward a new target market by changing their strategy from expansion to customer satisfaction.
Morgan Spurlock changed the public’s image of McDonald’s with this documentary film called “Supersize Me”. Morgan Spurlock filmed himself to demonstrate the health effects of McDonald’s food. Spurlock completed this by eating McDonalds three times a day, for a 30-day period while keeping record of how this affected his health. A critical issue in the case is after Spurlock’s film was released in 2002, McDonald’s had a bad public image and needed to fix the damage that was done after Spurlock’s documentary. Jim Cantalupo was given credit for thinking of the “turnaround strategy” where he wanted to introduce healthier foods to the menu (O'Rourke IV 93). The “turnaround strategy” was Spurlock’s recovery plan to fight back against the “Supersize Me” video. Cantalupo wanted to decrease the amount of new stores and switch to “grassroots marketing efforts” instead of relying on the national and co-op advertising (O'Rourke IV 95). McDonald’s had over saturated the market with a large increase in the amount of stores and was losing business from their existing locations.
Another main issue is the unusual amount of turnovers that took place during the timeline from 2002 through 2006. Jim Cantalupo was the main creator of the “turnaround strategy” and stated the he wanted to “switch from a strategy of expansion to a strategy of...
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