The Problem: McDonald’s Corporation’s slow adaptation of customer’s preferences and tastes.
Objectives: To help McDonald adapt customer’s preferences and tastes quickly. To help the McDonald’s Corporation improve their earnings and sales growth in the market. To recommend several actions that may help them in solving the problem that arises.
Situational Analysis
Jack Greenberg was the C.E.O of McDonald’s Corporation. “Big Mac Attack” was the advertising slogan of this corporation referring to a craving for a McDonald’s Big Mac burger. However, “Big Mac Attack” now referred to corporation’s earning declined in the late 1990s and 2000s. But McDonald’s Corporation leads the fast-food industry for its dynamic market expansion, new products, and special promotional strategies. In United States, sales growth became slow to the industry average in recent years. The CEO decided to find appropriate strategies to reverse the declines and stay ahead of competition.
Jack Greenberg recognized the difficult task the company faced in trying for sales to grow as the market shares and profit as well. He also recognized that the strengths of the competitors are by taking advantage quickly in customer preferences and tastes.
SWOT Analysis
Strengths
The advertising slogan “Big Mac Attack” referring to the craving for the corporation’s product McDonald’s Big Mac Burger. Dynamic Market Expansion
Special Promotional Strategies
Weaknesses
Slow adaption of customer’s preferences and tastes.
Opportunities
McDonald’s Corporation could take advantage to the fast-food industry because of the corporation’s positive image for its advertisements and because it leads the fast-food industry for its dynamic market expansion, new products, and special promotional strategies. Corporation’s positive image
Threats
Major competitors such as Burger King Corp, Hardee’s, Wendy’s International, Pizza Hut, KFC, and taco Bell External factors like economic, political or legal, climate, cultural forces etc.
Conclusion
Therefore, I conclude that McDonald’s Corporation is experiencing declination of earnings as well as slow movement of sales growth in the market because of the competitors which are quick in terms of adapting the customer’s preferences and tastes. I think this corporation needs to find a more appropriate and effective strategies in order to solve the corporation’s problem.
Alternative Courses of Action
The McDonald’s Corporation should maintain the corporation’s positive image by those advertisements and other promotional activities. This Corporation should make products that would fit to the needs of those customers like those health conscious customers. This Corporation should think in advance and create new products which will be customers preferred. This Corporation should also create or improve strategies in order to maintain as leading in the fast-food industry and to increase the earnings as well as the sales growth in the market.
Recommendations
As a case analyst, I recommend that McDonald’s Corporation should apply the Alternative Courses of Action which can be a big help for the corporation’s improvement and success. It could make the corporation reverse the declined earnings and to make the slow movement of sales growth to be fast and achieve the sales growth that the McDonald’s Corporation is striving for.
