Essay about Value and Fast Food Customers

751 Words4 Pages
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
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