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MCDONALDS
Individual Case Study
McDonalds Individual Case Study
2
Table of Contents
Case ................................................................................................................................................................ 3
Synopsis ......................................................................................................................................................... 3
Themes .......................................................................................................................................................... 3
Case Summary ............................................................................................................................................... 3
SWOT Analysis ............................................................................................................................................... 4
Internal Strengths ...................................................................................................................................... 4
Internals Weaknesses ................................................................................................................................ 4
External Opportunity ................................................................................................................................. 5
External Threats ......................................................................................................................................... 5
Problem/ Decision Statement ...................................................................................................................... 5
Strategy Alternatives/Recommendation ..................................................................................................... 5
Recommendation 1. .................................................................................................................................. 5
Recommendation 2. .................................................................................................................................. 5
Recommendation 3. .................................................................................................................................. 5
Strategy Recommendations ......................................................................................................................... 6
Implementation Issues.................................................................................................................................. 6
Appendix 1..................................................................................................................................................... 7
Appendix 2................................................................................................................................................... 10
Appendix 3................................................................................................................................................... 12
Appendix 4................................................................................................................................................... 14
McDonalds Individual Case Study
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Case
Is McDonalds a dying company?
Synopsis
With the Millennials of the world looking for a cleaner, healthier was to consume their
food, places like McDonalds are trying to stay afloat in this growing trend changing to
healthier options and showing consumers there food is “Healthy”. This case review is
from the articles provided from professor Beemer from various sites. These articles are
referenced in the Appendixes.
Themes
Target marketing, competition, changing the menu, innovation, values, customer
relationship, advertisement, SWOT analysis, millennials, healthy, Chipotle
Case Summaries
For this particular case study I many of the articles as show in Appendix’s are talking about the
major problems McDonalds is having in this new time of fast food.
Appendix 1 talks about how McDonalds is changing its advertising to the promotion of love.
With commercials coming out about democrats loving republicans and batman loving the joker. They
were hope to bring up their numbers which had dropped 30%. However this article mainly focus on the
fact that once again Chipotle has surpassed McDonalds with taking “Carnitas” of the menu, their
producer had not been holding up the standards and values that Chipotle has set. With this Chipotle has
shown its customers that they are not just in it for the profits, they are willing to stand by in what they
believe and value in their product, never settling.
Appendix 2 talks about how McDonalds is trying to fix there struggling business model by selling
Kale, yes Kale. Sean Daly of the Tampa Bay Times basically states that McDonalds needs to go back to
their olds school ways, and stop worrying about places like chipotle, since they are extremely different
food choices. He talks about going back to when they had a less choices on the menu and lose the salads
and wraps. He believes that to be successful McDonald’s needs to go back to when they were simply Big
Mac and fries. Like In and Out Burger who only has three choices to pick from.
Appendix 3 talks about how McDonald’s new Super Bowls advertisement may have been a small
success for the company with the Pay with Lovin promotion. The article then goes to explain how this
promotion works with customers receiving a free meal in exchange of doing something for love like
calling your mother to say you love her. There is the advertisement that appeals to families and that’s
where McDonalds hits home. The article also talks about how they should just keep the menu the same
and stick to their roots, stating that they are also successful when they do.
Appendix 4 talks about the 5 problems McDonald’s new CEO must fix, hitting on the tops of
Playing it both ways, lack of an “it” item, appeasing the franchisees, foreign markets, and beating the
competition. In short terms it’s basically talking about how McDonalds can’t hit both its core audience
and millennials, since the core audience doesn’t want to see a change, they love McDonalds just as it is
McDonalds Individual Case Study
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where millennials thinks McDonald's isn't healthy or tasty enough to eat so they stick to Five Guys,
Panera, and Chipotle Mexican Grill. The article then goes in depth with McDonalds need a “it “ item like
Taco Bells Doritos Locos Taco to make customers want to try the new item and keep coming back for it.
Another import concept to take from this particular article was the foreign markets losing steam, this is
because of the scandals in the past years in Japan, China, and Russia. With the growing problem they
could lose hold of important foreign markets they need to stay afloat.
In all of these articles presented in the Appendixes they all have a common theme. McDonalds is
never going to surpass Chipotle, and that they are a failing business.
SWOT Analysis
Internal Strengths
Existing Brand
Diversity in food
International locations
Existing distribution/Excellent locations
Existing customer base
External Opportunities
Allergy free options
Socially responsible promotions
Alliances/Co-branding
New services
Internal Weakness
Brand Perception/ Greasy and Fat
Minimal organic food
Customer Service/Employee Turnover/Cleanness
Seasonal product
External Threats
Customers choice
Healthier entrants
Channel conflicts
Competitions advertisements
Internal Strengths
The strengths that McDonalds currently possess as a brand is that they are already an existing
brand, being one of the most recognized brands in the world with the golden arches and Ronald
McDonald. They also have locations all over the world so they can reach all different types of the
market, as well as offering diversity at locations around the world with different culture and religions.
Another strength they have is they have distribution centers all around the world so they can also reach
and replenish a location instead of trying to find distributors. Finally they have a very successful way of
finding locations, always on a busy room, and usually located in an airports, malls or Walmart store.
Internals Weaknesses
The weaknesses the McDonalds currently has are their brand perception. Though they are
working to change that many people still perceive McDonalds as not real meat and unhealthy. They are
Fat and Grease food choices. They do not help these perception by not having more organic food.
Another weakness is the employee turnover, they are constantly having to find and train more
employees which is a high cost. They are also rated low in customer service as well as cleanness,
however this is expected of them since most believe the McDonalds experience is that of a homeless
shelter. Lastly, they don’t offer many seasonal products, which is very successful for competition.
McDonalds Individual Case Study
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External Opportunity
The Opportunity’s that McDonalds can implement are that of products with allergy free options
such as peanuts and gluten free. This can help with the Millennials as well since Gluten free options are
usually perceived as healthy. Another Opportunity would be to expand the marketing/promotions for
customers to see they are being more socially responsible. Building alliances and co-branding is also a
great opportunity for changing the brand perception current people have already. Finally, another
opportunity would be to add more services, such as breakfast all day to now compete with the growing
breakfast trend of Taco Bell.
External Threats
The major threat that McDonalds faces is the choice of the customers. Customers now a days
are more adequate to eat healthier and make food instead of buys fast, cheap, and greasy food.
Healthier food options are coming onto the market and have started creating a drive thru for customers
on the go. Another threat is that of channel conflicts, though McDonalds is cheap many are still trying to
save money with the cost of living going up. Eating at home is still the cheaper option, and with it being
the healthier options this is the route many are choosing to go. Final threat is that of the growing
advertisement against McDonalds such as videos from Chipotle and Taco Bell.
Problem/ Decision Statement
Over the years the growing health epidemic has effected many different business in different
ways. Sugar carbonated drinks have greatly been effect with company’s such as coke losing more than
