McDonald’s Case Study Essay

Strengths blown-upst Food service crease in the world, 34,000 local restaurants serving nearly 69 million peck in 118 countries, a $40 Billion dollar punctuate worldwide, univers each(prenominal)y recognized brand name with a deep advertisement calculate Partners with other high value brands Dannon Yogurt, Kraft Cheese, Nestle Chocolate, Dasani Water, Newmans cause Salad Dressings, Heinz Ketchup, Minute Maid Juice The majority of the retail locations are have by independent franchisees, The company is able to grow while minimizing large capital expenditure Recession Proof Low price board items allow McDonalds to survive when the economy is low as at that place are few economic situations where most consumers cannot afford McDonalds. Massive acquire power- 34,000 locations allows McDonalds to control pricing on its core menu items super trained management staff well versed in guest service skills (hamburger University) Positive company social-image (Ronald McDonald House )Impressive core competencies in franchising and logistics quarry market is children and teensWeaknessesFast Food is viewed by many as unworthy quality and un well-informed, often associated with cheap and greasy, especially the baby boomers who built the brand in the 50s and 60s less than 6% of the over 100 item entre menu is less than cc calories more than half the entrees are high in sodiumLarge size of the business makes growth more difficult to achievegood costs can quickly erode profit marginsLow distinction with other similar fast nutrition companies much(prenominal) as Burger King, Wendys High Employee turnover at the local levelMarket impregnationNegative publicity, such as the movie Super-Size Me.OpportunitiesAdapting to fit the changing modus vivendi of the largest population sector by adding healthier intellectual nourishment excerptions Fast food will never be completely viewed as healthy save efforts in this direction could aid in client perception Parents wou ld appreciate the convenience when selecting a family dining option Remodeling of older restaurantsChanging customer habits and new customer groupsAdding premium menu itemsEntry into new intersection point categories (coffee)Provide optional allergen bare food items, such as gluten free and peanut free. Sugar-free products for diabetics, and healthier beverage options. Internet applications to order in accessThreatsModern society views Fast food as unhealthy presidential term agencies are enforcing healthier menu regulations such as posting of calories trade good food price fluctuations droughts and similar cost fluctuations cut into margin as it is hard to raise prices on most menu items Competition.Regional or Local fast food restaurant chainsBeing a market leader forces McDonalds to shoulder more burden regarding explore and innovations, copycat competitors can quickly implement any success without subject the cost of a failure.Competition and saturation in emerging marke ts call for to be more environmentally friendly with packagingScandals/ Bad publicity. Ex. heroin happy mealsMinimum Wage risingEmployee health insurance issuesWhat substitute action should be considered?The company should diversify toward additional healthy offerings. knowledge is reality, if a consumer perceives McDonalds as attempting to change to ahealthier option that is sufficient. No one fools themselves into believing anything corruptd at a fast food restaurant will be the healthiest item, but it can assist in showing efforts are being made. A company can set off their ongoing concern for their consumers well-being. McDonalds should focus on healthier options, such as spankingly tossed, made to order salads, featuring quality healthy ingredients. Expanding their healthy food menu by adding a variety of healthier breads and beverages. different healthier food items can be incorporated into the menu such as paninis, wraps, and healthy soups. Other changes would include , internet ordering, and home delivery.List all resources required for the selected action.Find vendors for the additional menu items and required packagingEquipment purchases, ex.Panini press, fresh salad chiller and displayTrain the staff to implement these changesTarget the advertising campaign towards a healthier image.Partner with local produce markets, to purchase vegatables,etc.What controls would be recommended to measure the selective action? Point of Sale reports showing restaurant activity per productCustomer surveyProfit and release statementsMeet & Greet by managementComment boxesAdvertising & furtherance of the new healthy menu.