Business Policy Case Analysis
Case Analysis: McDonald’s Corporation
1. How are customer’s tastes changing in the fast-food industry? What impact do these changes have on McDonald’s sales and net income? Consumer tastes are changing in the fast food industry in a way that could hurt or is hurting them, profits wise. People tastes and preferences changes every now and then and these fast food companies must adapt to these changes in order to gain market share and profits. The reasons behind this could be of healthy living, and other things. Many younger consumers are getting tired of fast food and are thinking about their health. Some might be dissatisfied with the quality aspect of the fast food world. Consumers are also looking for better alternatives and fast food is not as appealing as it was before. In fact, quick cheap meal and a healthy diet with healthy habits are what most consumers are going for nowadays. The changing in consumer tastes and preferences are hurting McDonald’s profits. In fact, McDonald’s sales were over $40 billion in 2001, but net income shrunk 17 percent to 1.64, which is a huge amount in declines. Market share grew more slowly than its competitors, such as Wendy International and Burger King Corp.
2. How well are these changes in customer’s tastes and preferences being reflected in competitive strategies in the industry? The changes in customer tastes and preferences have impacted the competitive strategies in the industry by having the fast food, such as McDonald, to change their way of doing business by providing customers with healthier food choices. They must adapt to these changes and provide better quality product and service and satisfied their customers. They must also develop a new product that will appeal to their customers.
3. What are McDonald’s strengths and weaknesses and what conclusion do you draw about its future? Some of the strengths that McDonald has include its leader, whom has been in the industry for so
1. How are customer’s tastes changing in the fast-food industry? What impact do these changes have on McDonald’s sales and net income? Consumer tastes are changing in the fast food industry in a way that could hurt or is hurting them, profits wise. People tastes and preferences changes every now and then and these fast food companies must adapt to these changes in order to gain market share and profits. The reasons behind this could be of healthy living, and other things. Many younger consumers are getting tired of fast food and are thinking about their health. Some might be dissatisfied with the quality aspect of the fast food world. Consumers are also looking for better alternatives and fast food is not as appealing as it was before. In fact, quick cheap meal and a healthy diet with healthy habits are what most consumers are going for nowadays. The changing in consumer tastes and preferences are hurting McDonald’s profits. In fact, McDonald’s sales were over $40 billion in 2001, but net income shrunk 17 percent to 1.64, which is a huge amount in declines. Market share grew more slowly than its competitors, such as Wendy International and Burger King Corp.
2. How well are these changes in customer’s tastes and preferences being reflected in competitive strategies in the industry? The changes in customer tastes and preferences have impacted the competitive strategies in the industry by having the fast food, such as McDonald, to change their way of doing business by providing customers with healthier food choices. They must adapt to these changes and provide better quality product and service and satisfied their customers. They must also develop a new product that will appeal to their customers.
3. What are McDonald’s strengths and weaknesses and what conclusion do you draw about its future? Some of the strengths that McDonald has include its leader, whom has been in the industry for so