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McDonalds Case Study

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McDonalds Case Study
Strategic Profile The internationally known golden arches of McDonald’s were born in 1948 when the McDonald brothers of San Bernardino, California opened the first McDonald’s restaurant . The original restaurant provided the theme of hamburgers, fries and milkshakes that has become a staple of Americana fare. Later in 1961, Ray A. Kroc bought out the McDonald brothers and started to sell the restaurant franchises. Currently, McDonald’s has grown to over 34,000 locations in over 118 countries across the globe . McDonald’s went public in 1965 with a beginning stock price of $22.50 a share . Since then the stock has split twelve times and as of September 6th of 2013 closed at $95.76; The MCD stock symbolizes a significant amount of growth. From changing frozen french fries in 1972 to allow mass produced quality to implementing the first drive through window in 1972 and then on to creating the ever popular Happy Meals in 1985 to target families; McDonald’s has continued to try to evolve to meet consumer needs . Some endeavors have been more fruitful than others. Notably in the early 90’s McDonald’s continuous expansion had diverted focus from the monitoring and grading of its franchises . This led to a palpable downturn in the quality and service customers experienced. In efforts to offset the downturn and turn the restaurant chain around, new management was put into place in 1998 after McDonald’s first ever decline in annual earnings. Jack M. Greenburg took over as CEO and began a large campaign to change McDonald’s. During Greenburg’s tenure he introduced over 40 items to the menu and diversified McDonald’s holding by purchasing Chipotle Mexican Grille and Boston Market. Sadly, the multiple attempts to revamp the menu proved to be overall unsuccessful and did not provide the realignment that McDonald’s was looking for. In 2003 Greenburg was replaced by James R. Cantalupo who concentrated on refocusing McDonald’s . Cantalupo addressed the


Bibliography: Allen, J. (2013, July 31). Mlive. Retrieved from Mlive: http://www.mlive.com/business/mid-michigan/index.ssf/2013/07/fast-food_workers_at_two_flint.html Case 10 (n.d) Dess, G., Lumpkin, G., & Eiser, A. (2010). Strategic Management Text and Cases 5e. McGraw-Hill/Irwin. McDonald 's (n.d.). In Wikipedia. Retrieved September 4, 2013, from http://en.wikipedia.org/wiki/McDonald McDonald 's Celebrates Its Sustainable Supply Chain." QSR Magazine, 28 Dec McDonald 's USA Crowns 2012 U.S. Supplier of the Year." QSR Magazine, 28 Dec. 2012. Web. 09 Sept. 2013. http://www.qsrmagazine.com/news/mcdonalds-usa-crowns-2012-us-supplier-year. Meet Our Suppliers. McDonalds, n.d. Web. 09 Sept. 2013. http://www.mcdonalds.com/us/en/food/food_quality/see_what_we_are_made_of.html. Oches, Sam. "The QSR 50." Top Fast Food Restaurant Brands In United States. Journalistic Inc., Aug. 2013. Web. 06 Sept. 2013. http://www.qsrmagazine.com/reports/qsr50-2013-top-50-chart. Reuters. (2013, July 30). Retrieved from Huff Post New York: http://www.huffingtonpost.com/2013/07/30/nyc-soda-ban-ruling-upheld_n_3676658.html Rosenbaum, M The Wall Street Journal. (2013, September 6). Retrieved from The Wall Street Journal U.S. Edition: http://quotes.wsj.com/MCD/interactive-chart#P5D U.S
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