MEMORANDUM
DATE: 9 September 2021
TO: McDonalds
FROM: Bryson Read
SUBJ: McDonalds and Recommended Actions
Executive Summary:
The results of this research indicate that McDonald’s Corporation must emphasize strategic problems relating to
competition, consumers, and substitutes, all of which exhibit a significant influence on the firm and its external
environment. McDonald’s needs to speed up its product development process. Despite the fact that the food service
sector is saturated with aggressive enterprises, new items can attract new clients and keep existing ones.
Analysis:
Ray Kroc, a businessman, purchased the franchise “McDonalds” in 1954 after learning that the McDonald brothers
were utilizing his shake machines. The company grew at an exponential rate, and it now serves over 64 million
people every day. In 2012, the corporation was estimated to have 33,000 locations in 119 countries, making it the
most successful American company to globalize its brand and adapt to cultural variances throughout the world.
McDonald’s has always been associated with speed and low prices, and the company is struggling to find a new
market niche. While it searches for its new niche, the hamburger behemoth must improve its drive-thru business and
sales must begin to rise as the company struggles with declining sales. Increasing drive-through efficiency by 10% is
estimated to increase average fast-food restaurant sales by 10%. Other market trends are influencing McDonald’s
sales, one of which is the desire for a fast-casual dining experience. We, as consumers, want that dining experience,
but we want it now, and companies like Panera Bread, Boston Market, and Atlanta Bread Company have benefited
