Reference no: EM13104515

This case discusses McDonald's Corporation and the situation it faced in 2001. After many years of double?digit growth in sales and net revenue, the company's sales grew only 1.12 percent and net revenue dropped 17.2 percent from 2000 to 2001. The company is the market leader in the burger segment of the fast food industry and is closely identified with burgers and fries, foods that are no longer considered healthy.
Most of you will be very familiar with McDonald's and many of its competitors. Some may even have employment experience with McDonald's. Specifically, this case will:
1. To help recognize how the changing environment impacts companies, even market leaders like McDonald's.
2. To give the opportunity to develop strategy in a mature market with strong competitors.
3. To help understand how changing customer tastes are reflected in changes in industries.
4. To demonstrate limitations on a company's ability to adapt to changes in customer tastes and preferences.
5. To afford the opportunity to analyze how company strategies impact their tastes and preferences.
Conduct an analysis of the case as written. Apply the general case analysis guidelines and ensure that you address the specific questions in your analysis.
General Case Analysis Guidelines
1. The intent of case analyses is to interject a sense of realism into the process of marketing management education. It is the application of the principles and concepts that is key to mastering the material.
2. It is not so important that a particular format be rigidly followed as it is to apply a sound and logical approach to the analysis. The general approach is to determine the meaning of the information, then to pair that meaning with marketing principles, and to finally conclude with the strategic implications of the information.
3. Specifically, the basic steps are to:
a. Define the problem.
b. Formulate alternative solutions
c. Analyze alternatives solutions in terms of strengths and weaknesses.
d. Accept an alternative course and recommend action.
4. Please note that the case study method requires a considerable commitment of time and effort to conduct and the results of your analysis will reflect that commitment.
o Demogrpahics
o Price
o Health
o Quality
o Hamburger
o Non-hamburger (KFC, Pizza Hut, Taco Bell, etc.)
o Non-fast food (Supermarket Deli, Convenience stores, etc)
o Strengths
o Weaknesses
Specific questions to include in your analysis:
1. How are customer tastes changing in the fast?food industry? What impact do these changes have on McDonald's
sales and net income?
2. How well are these changes in customer tastes and preferences being reflected in competitive strategies in the
industry?
3. What are McDonald's strengths and weaknesses and what conclusions do you draw about its future?