1. What situation did Skinner inherit when he became CEO? What are the current forces in the external environment that affect Skinner’s ongoing strategy?
2. What source of competitive advantage does McDonald’s have, and is that position supported by its value chain and other internal resources?
-Inherit the previous CEO Cantalupo’s turnaround strategy. This strategy referred as the ”Plan to win” tried to target various critical areas that needed to be addressed.
-Rapid market fragmentation, which is describing the changes of consumer taste have made once-exotic foods like sushi and burritos everyday options. Many fast food customers are looking for healthier and better tasting food. Moreover, competitions has been coming from
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Primary:
Inbound logistics: Hard to assess
Operations: Strived for consistency across the chain, withdiffering results. Refurbishing of restaurants,change in hours may help draw customers.
Outbound logistics: Hard to assess
Marketing and sales: Many product innovations failed, $1 menu didn’t go well with franchisees. I’m Loving It campaign was attempt to reach all customers.
Service: Hard to assess
Value ChainActivity
How does McDonald’s create value? Secondary:
Procurement: Info not available in the case
Technology development: Adoption of expensive cooking processesfailed to generate desired results. Premiumsalads take advantage of technology.
Human resource management: Lower standards for hiring, less time fortraining led to deterioration of service
General administration: Top-down decision-making, lack ofinvolvement in changes caused franchisee complaints, especially when profits wentdown. Franchise training program will help.
-Skinner realized that basic changes in McDonalds’ value chain needed to made to get the company back on track.
-Menu changes and franchisee relationshipswere key factors that he addressed.
His moves seem to have paid off in that
-McDonalds’ financial performance improved, but
When Welch became CEO, in 1981, he came in with a strong message “be better than the best.” He faced the challenge that his predecessor was a very credible CEO, so any new strategy presented to the company, by the new and young CEO, was going to be received with certain skepticism.
Nevertheless, the majority of customers are very satisfied with the amount of serving along with the quality of their meal as well as the price paid. The strategy of being a low priced high value added has seen problems due to lack of customers which is affecting the bottom line drastically. This inevitable circumstance has put a hold on operations and started an investigation upon various neighboring competitors and their own strategies.
There also must be ways for the restaurant to bring in larger amounts of customer traffic. This can be achieved through happy hours, lunch and dinner specials, children’s menus, innovative or trendy dishes, dietconscious menu selections, and beverage/appetizer specials during televised sporting events (Thompson C-97). Another way for restaurants to compete with their rivals is through changing their menu and dish selections based on customer tastes and eating preferences. The menus may contain heart healthy foods, vegetarian options, organic, low-calorie, or even low carbohydrate items (Thompson C-97). New and creative items help to keep current customers coming back and new customers to try the restaurant’s signature dishes.
Continue to expand in the U.S. market using the “formula” that had been developed. Sell more products to existing accounts by either increasing the usage of current restaurants or consumers or, for retail, attracting
Profits may increase initially from new customers, but in the long run, maintaining those profits as well as getting new loyal customers, will be hard. The partnerships can be expected to behave similarly, as companies will be able to steal this idea quickly. There is a chance that by making such a large change and rebranding, Arnie’s may lose a few of its existing customers. The casual dining market is dying, however, while Gastropubs have become popular in urban areas and these effects are likely to roll over to the suburban setting. The potential risks of rebranding are surpassed by the notion of solving both of Arnie’s financial and distinguishing problems. The smarter and right choice for Arnie’s to pursue is to rebrand as a Gastropub/fast-casual
McDonalds changed menu with items such as porridge, smoothies and chicken wraps is on reason for the growing business
Due to reduced profitability in the company, a new CEO was brought into the company 12 months ago. While the company has improved its profit growth in the last year, many of the changes have not been met with agreement from some of the senior management team.
What happened along his short road as CEO? How and why could such a long time inducted person flop so badly? In a first step, this essay examines Ivester’s actions, taken into account different theoretical leadership approaches.
What might the team conclude about Bill Wright and his approach to the company’s Strategy Plan and the process to complete the plan? [2-points] (Learning Objective: 3A)
As mentioned earlier, fast food is mostly associated with health risks affecting humanity. It is evident that fast food contains a high content of fat, calories, cholesterol, and sodium concentration. To make it worse, this food is made from harmful and high processed ingredients such as refined grains and fat meat( cambia esto, ya lo dijiste anteriorment. Most of the advocates involving scholars and health experts agree that too much consumption of fast food is harmful to a person’s health. However, it is because of the health issues that the experts recommends providence of warning signs and age limitations to the consumers to prevent and reduce the expensive health diseases caused by fast food.
Questions 1: How would you describe McDonald 's business strategy? What are the foundations of its competitive advantage?
7. What would you recommend to the CEO given your analysis of his approach thus far?
To analyze what can be the operational adjustment for the McDonald’s Next compare to those traditional McDonald’s, I list 6 remarkable changes in McDonald’s Next and will discuss what will be the new operation measures base on these changes one by one.
The fast food industry has been growing dramatically during the last few years. For this reason, we should try to find out what are the several factors why fast food consumption keeps growing among young people and adults. Therefore, as we have seen, the popularity of fast food is spreading rapidly among many people due to the following three main reasons: good taste, convenient time, and price. Personally, working for a fast food restaurant for a brief moment in my life, I can attest to this. Marketing also plays a big part to more people eating fast food. It’s in our culture in America to expect fast food companies to market and strategize their ways to make us, the consumers, to buy more food and consume more food so they can make more profit. Especially now with commercials and social media. The fast food industry has thrived in the modern era. It’s thriving so much, the industry is growing faster than the U.S economy, at a 3 percent rate compared to a 2.6 percent rate for the economy (Fickenscher). Age is also an important factor considering targeting a specific age group, especially the youth in America. Young people have more ability to go out to eat than old people do. If old people want to eat a hamburger, they have to go to a fast
I shut down my speeder and pulled my helmet off, freeing my hair to fall back down to my shoulders. I sauntered into the fast food restaurant that doubled as a pretty popular hangout spot for some local school kids. I waited for the second rate and pretty much broken ordering machine to roll up to me, clunking every inch of the way.