McDonald’s Case Study Essay

StrengthsLargest Food service business in the world, 34,000 local anaesthetic eating houses serving approximately 69 million people in 118 countries, a $40 one million million million dollar brand worldwide, Universally recognized brand name with a large advertising budget allys with other soaring value brands Dannon Yogurt, kraft paper Cheese, Nestle Chocolate, Dasani Water, Newmans Own Salad Dressings, Heinz Ketchup, Minute Maid Juice The absolute majority of the retail locations are owned by independent franchisees, The company is equal to grow while minimizing large capital expenditure Recession substantiation Low price bill of fare items allow McDonalds to survive when the economy is low as there are few economic situations where nearly consumers cannot afford McDonalds. Massive buying power- 34,000 locations allows McDonalds to control pricing on its core placard items Highly trained management supply puff up versed in node service skills (hamburger University) Positive company social-image (Ronald McDonald House) astonishing core competencies in franchising and logisticsTarget market is children and teensWeaknessesFast Food is viewed by many as poor quality and un kempt, 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 200 calories much than half the entrees are high in sodiumLarge size of the business makes growth more difficult to achieveCommodity bells can quickly decay profit marginsLow differentiation with other similar fast nourishment companies such(prenominal) as Burger King, Wendys High Employee turnover at the local levelMarket volumeNegative publicity, such as the word picture Super-Size Me.OpportunitiesAdapting to fit the changing lifestyle of the largest population sector by adding fitter provender for thought woofs Fast food will never be in all viewed as healthy solely efforts in this direction coul d aid in customer perception Parents would appreciate the convenience when selecting a family dining option Remodeling of older restaurantsChanging customer habits and new customer groupsAdding premium menu itemsEntry into new product categories (coffee)Provide optional allergen free food items, such as gluten free and peanut free. Sugar-free products for diabetics, and healthier beverage options. meshwork applications to array in advanceThreatsModern society views Fast food as unhealthyGovernment agencies are enforcing healthier menu regulations such as posting of calories Commodity food price fluctuations droughts and similar cost fluctuations cut into margin as it is hard to raise prices on close to menu items Competition.Regional or Local fast food restaurant chainsBeing a market leader forces McDonalds to bring up more burden regarding research and innovations, copycat competitors can quickly impose any success without incurring the cost of a failure.Competition and satur ation in emerging marketsNeeds to be more environmentally couthie with packagingScandals/ Bad publicity. Ex. Heroin happy mealsMinimum Wage goEmployee health insurance issuesWhat alternative activeness should be considered?The company should transform toward additional healthy offerings. Perception is reality, if a consumer perceives McDonalds as attempting to depart to a healthier option that is sufficient. No one fools themselves into believing anything purchased at a fast food restaurant will be the healthiest item, but it can assist in showing efforts are being made. A company can highlight their ongoing concern for their consumers well-being. McDonalds should rivet on healthier options, such as freshly tossed, made to order salads, featuring quality healthy ingredients. Expanding their healthy food menu by adding a variety of healthier breads and beverages. Other healthier food items can be incorporated into the menu such as paninis, wraps, and healthy soups. Other cha nges would include, cyberspace 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 loss statementsMeet & Greet by managementComment boxesAdvertising & promotion of the new healthy menu.