This McDonald's (in 2013): How to Win (Again)? case study considers the plight of the fast-food restaurant and food-service company considering difficult economic conditions, consumer health problems, and conventional along with new rivals. The company's CEO must decide its next strategic steps, like focus on developing a better menu, customer experience, and overall McDonald's brand, in order for McDonald's to win again.
Marne L. Arthaud-Day, Frank T. Rothaermel, Justin Collins
Harvard Business Review (MH0021-PDF-ENG)
January 03, 2014
Case questions answered:
- Prepare a SWOT, PESTEL, and Porter’s 5 Forces Analysis of McDonald’s.
- Which trends in McDonald’s external environment are likely to have the greatest impact on the company’s ability to sustain a competitive advantage?
- How is McDonald’s positioned vis-à-vis its major competitors?
- What are the challenges that McDonald’s is facing? What were the reasons behind them?
- What strategies should McDonald’s adopt?
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McDonald's (in 2013): How to Win (Again)? Case Answers
Executive summary – McDonald’s (in 2013): How to Win (Again)?
McDonald’s was founded in 1940 and is an American fast-food restaurant. The restaurant served different fast foods on its menu, but it has since led to serving healthy foods to appeal to people of all ages. It is claimed to be the largest food chain in the world and serves a daily average of 68 million customers.
Young and single professionals whose pay is above average are the majority of fast-service restaurant customers. Because of the low unemployment rates, which stand at around 8%, with an additional 7% being underemployed, fast-service restaurants face low consumer shopping habits.
As they try to look for better quality and value for their cash, this decreases their eating habits. Consumers are becoming more concerned with nutritious food alternatives, as opposed to beef, with many turning to poultry and other lean meat.
The main concerns, challenges, best practices, or dilemmas that emerge in the event. A fair share of the problems facing fast-service restaurants tends to account for the increasing cost of supplies. This means that the healthier and more varied menus also come at an extra cost, making it harder to operate these restaurants. Moreover, rising fuel prices are leading to rising operating costs because they make shipping agricultural goods more costly.
Stock prices were relatively high, leading to the inability of McDonald’s to induce clients to buy more food. As a result, cash flow was cut.
McDonald’s CEO must decide on the next strategic steps in order for the company to win again, facing difficult economic conditions, consumer health problems, and conventional along with new rivals.
1. Prepare a SWOT, PESTEL, and Porter’s 5 Forces Analysis of McDonald’s.
Porter’s 5 Forces Analysis
2. Which trends in McDonald’s external environment are likely to have the greatest impact on the company’s ability to sustain a competitive advantage?
McDonald’s innovations in the external world that are projected to have the greatest effect on the company’s ability to maintain a competitive edge are the millennials eating out in fresh and balanced casual fast restaurants.
Millennials are a key group in the food service industry, as they are frequent customers who go to one chain twice a week or more. Even so, McDonald’s failed to…
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