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Case Analysis Mcdonalds



Jim Cantalupo, Chief Executive Officer and Chairman


Year 2004


How can McDonald’s adapt to changing market conditions to sustain the growth it had experienced?


To have an annual system wide sales growth of between 3 and 5 percent by 2005 and beyond



1. McDonald’s has the strongest international presence and greatest amount of worldwide sales since the beginning of overseas expansion.

2. It has vast real estate holdings.


1. Lack of employee trainings, reflected on its poor service ranking.


1. With expected growth of the global food-service industry McDonald’s has more opportunity of expansion.

2. With the changing customer preference McDonald’s has the opportunity to come up with more unique and innovative ideas.


1. Increased domestic expansion led to cannibalization in existing franchises, but this was resolved by focusing more on international expansion.

2. New entrants and existing competitors.

3. Government regulations.


No assumptions.


1. Focus on its international expansion. This alternative will focus on its strength of expansion. There will be a continuous growth for McDonald’s if they will continue to expand, that is, acquiring new locations, getting more franchisee, and spreading more stores worldwide.

2. Products and services innovation. Because of the continuous changes in customer needs and wants, new and existing products will be developed to continue satisfying clients.


ACA 1 – international expansion


1. More stores, more income, especially, its real estate which they…...

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