The History of McDonald’s
Case 15: McDonald’s
Executive Summary
McDonald’s, the largest fast food restaurant in the world, is continuing to face challenges due to both their internal and external environment. McDonald’s currently serves more than 70 million people daily at their 35,000 restaurant locations. With consumers’ tastes changing, McDonald’s must determine how they will evolve in the fast food market. McDonald’s continues to expand in locations, their menu, and their operating hours. However, during 2012 McDonald’s saw the first monthly same-store sales decline in nine years. Is James R. Cantalupo’s, former McDonald’s CEO, “Plan to Win,” still winning?
McDonald’s rose from a single location to become one of the largest chains to spread across the world. McDonald’s has been setting the bar from fast food chains from the very beginning. The key for their competitive success was their commitment to their customers. However, McDonald’s continues to fall behind their competitors in terms of service and they are failing to provide the all around experience for their customers.
The major issue posed by the case is whether or not McDonald’s has lost sight of their consumer’s wants and needs. By trying to serve a wide variety of customer segments, McDonald’s might be stretching themselves too thin. Does McDonald’s know their consumer? Do they have a strategy that will help them achieve a sustainable competitive advantage? If not, what strategy should they adopt?
Statement of the Problem
By using Porter’s five forces framework, one will be able to break down McDonald’s challenges currently facing them. First, the threat of new entrants will be examined. This threat is low since McDonald’s is such a large corporation with a strong brand identity. Also, the fast food market is saturated with other large corporations such as Burger King, Wendy’s, and restaurants under the Yum! Brands umbrella. Start up costs may be low in the industry but new entrants will be faced with stiff price
Executive Summary
McDonald’s, the largest fast food restaurant in the world, is continuing to face challenges due to both their internal and external environment. McDonald’s currently serves more than 70 million people daily at their 35,000 restaurant locations. With consumers’ tastes changing, McDonald’s must determine how they will evolve in the fast food market. McDonald’s continues to expand in locations, their menu, and their operating hours. However, during 2012 McDonald’s saw the first monthly same-store sales decline in nine years. Is James R. Cantalupo’s, former McDonald’s CEO, “Plan to Win,” still winning?
McDonald’s rose from a single location to become one of the largest chains to spread across the world. McDonald’s has been setting the bar from fast food chains from the very beginning. The key for their competitive success was their commitment to their customers. However, McDonald’s continues to fall behind their competitors in terms of service and they are failing to provide the all around experience for their customers.
The major issue posed by the case is whether or not McDonald’s has lost sight of their consumer’s wants and needs. By trying to serve a wide variety of customer segments, McDonald’s might be stretching themselves too thin. Does McDonald’s know their consumer? Do they have a strategy that will help them achieve a sustainable competitive advantage? If not, what strategy should they adopt?
Statement of the Problem
By using Porter’s five forces framework, one will be able to break down McDonald’s challenges currently facing them. First, the threat of new entrants will be examined. This threat is low since McDonald’s is such a large corporation with a strong brand identity. Also, the fast food market is saturated with other large corporations such as Burger King, Wendy’s, and restaurants under the Yum! Brands umbrella. Start up costs may be low in the industry but new entrants will be faced with stiff price