Social responsibility
CHAPTER 1
MA
TE
RI
AL
STRATEGIC
MANAGEMENT
TE
D
YOU SHOULD BE ABLE TO DO THE FOLLOWING
AFTER READING THIS CHAPTER:
GH
1. Describe the key elements in the strategic management process.
RI
2. Discuss the three different perspectives or approaches used in understanding strategy, including the traditional perspective, the resource-based view, and the stakeholder view.
PY
3. Understand strategy formulation at the corporate, business, and functional levels.
4. Explain the difference between strategic thinking and strategic planning.
CO
5. Characterize and explain the key players in the lodging and foodservice industries.
2
CHAPTER 1 ■ STRATEGIC MANAGEMENT
FEATURED STORY
MCDONALD’S PLAN TO WIN
After 50 years of operation, McDonald’s is revitalizing its products, and pushing innovation through a variety of initiatives. This foodservice giant with more than 30,000 restaurants in 100 countries provides food to nearly 50 million customers each day, but decades of expansion, sales growth, and profits made the burger giant complacent. By focusing on getting bigger, not better, the company stumbled in 2002, recording its first losing quarter. By 2003, U.S. sales had flattened, as many consumers were turning to healthier options and restaurants with more upscale menu items, a segment sometimes referred to as “fast-casual”. Morgan Spurlock’s film Super Size Me, released in 2004, also seriously diminished the public image of the quick-service chain, as moviegoers watched Spurlock become ill and gain 25 pounds after eating only McDonald’s food for one month.
With pressure to get back on track, it was time for McDonald’s to rethink the business.
The chain devised a recovery strategy that included new menu items, redesigned restaurants, and a focus on the consumer experience. Through a program titled “Plan to Win,”
McDonald’s focused on making a deeper connection with customers through the five business drivers of
MA
TE
RI
AL
STRATEGIC
MANAGEMENT
TE
D
YOU SHOULD BE ABLE TO DO THE FOLLOWING
AFTER READING THIS CHAPTER:
GH
1. Describe the key elements in the strategic management process.
RI
2. Discuss the three different perspectives or approaches used in understanding strategy, including the traditional perspective, the resource-based view, and the stakeholder view.
PY
3. Understand strategy formulation at the corporate, business, and functional levels.
4. Explain the difference between strategic thinking and strategic planning.
CO
5. Characterize and explain the key players in the lodging and foodservice industries.
2
CHAPTER 1 ■ STRATEGIC MANAGEMENT
FEATURED STORY
MCDONALD’S PLAN TO WIN
After 50 years of operation, McDonald’s is revitalizing its products, and pushing innovation through a variety of initiatives. This foodservice giant with more than 30,000 restaurants in 100 countries provides food to nearly 50 million customers each day, but decades of expansion, sales growth, and profits made the burger giant complacent. By focusing on getting bigger, not better, the company stumbled in 2002, recording its first losing quarter. By 2003, U.S. sales had flattened, as many consumers were turning to healthier options and restaurants with more upscale menu items, a segment sometimes referred to as “fast-casual”. Morgan Spurlock’s film Super Size Me, released in 2004, also seriously diminished the public image of the quick-service chain, as moviegoers watched Spurlock become ill and gain 25 pounds after eating only McDonald’s food for one month.
With pressure to get back on track, it was time for McDonald’s to rethink the business.
The chain devised a recovery strategy that included new menu items, redesigned restaurants, and a focus on the consumer experience. Through a program titled “Plan to Win,”
McDonald’s focused on making a deeper connection with customers through the five business drivers of