Mcdo

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Case Analysis Mcdonalds

MCDONALD’S: POLISHING THE GOLDEN ARCHES

VIEWPOINT

Jim Cantalupo, Chief Executive Officer and Chairman

TIME CONTEXT

Year 2004

I. PROBLEM STATEMENT

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

II. STATEMENT OF OBJECTIVES

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

III. AREAS OF CONSIDERATIONS

STRENGTHS

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.

WEAKNESSES

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

OPPORTUNITIES

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.

THREATS

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.

IV. ASSUMPTIONS

No assumptions.

V. ALTERNATIVE COURSES OF ACTION (ACA)

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.

VI. ANALYSIS

ACA 1 – international expansion

Advantages

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

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