mcdonald case study

Summary The case outlines the steps that McDonalds has taken to improve its recent poor performance. Since its founding in the 1950s McDonalds has grown into a global brand that has defined the fast food industry. Over the last decade, however, the company has not responded effectively to changes in the environment. This has resulted in declining sales and profits, failed menu options, and dissatisfied franchisees. James Cantalupo and Charles Bell have implemented a turn-around strategy, but it is uncertain whether this will be sufficient to deal with the problems. This is best approached as a descriptive case. Put yourself in the role of an industry analyst with the assignment of evaluating McDonalds strategy. To do this, you first have to identify why their old strategy failed and then determine whether they have the resources and capabilities to implement a new strategy that addresses changes in the external environment. Analysis Your analysis should focus primarily on McDonalds resources as sources of competitive advantage. It is clear the McDonalds had a successful strategy that led to nearly forty years of profitable operations and growth. However, this strategy is no longer creating value for the market or competitive advantage. You need to identify the causes of the failure by looking at changes in the environment, McDonalds responses to those changes, and whether they can re-establish their competitive advantage. External analysis The case doesnt focus on the external environment and it isnt necessary to do a full analysis. A description of significant changes in the macro environment and the industry environment that impacted McDonalds is sufficient. You should locate these changes in a strategic framework to show their significance (i.e., economic environment, cultural environment, etc.). Internal Analysis There are several approaches that could be taken, but generally you need to examine McDonalds strategy and why it has failed. Your objective is