McDonaldsBy: Norwilyne Garcia

Michelle IsaacJason Que

MM 230 - Marketing ManagementUniversity of the Philippines

Prof. Mita Angela M. Dimalanta

McDonald’s is the world’s leading hamburger fast-food chain, with over 32,000 restaurants in 118 countries.

1955 - Ray Kroc franchised the then hamburger restaurant from the McDonald brothers known for its famous 15 cent hamburger.

1980s - expanded overseas throughout Europe, Asia, the Philippines, and Malaysia.- Company lost focus and direction,

expanding by 2,000 new restaurants a year.

- Led to poor customer service and dirtier restaurants.

2003 - McDonald’s implemented a strategic effort called the “Plan to Win” to refocus on offeringa better, higher-quality consumer experience rather than a quick and cheap fast-food option.

What are McDonald’s core brand values?

Have core values changed ?

The company lost focus during expansion in the

80sAfter so many years,

the company sticks to their core values - the center of their

business model.

McDonald’s did very well during the recession in the late 2000s.

McDonald’s did exceptionally well in the recession compared to its peers. The reason: its cheap offerings which attracted customers in times of financial troubles.

Should McDonald’s change its strategy?

Changes can be made to leverage on improved economic conditions of the global market to maintain their edge among their competitors.

Should McDonald’s change its strategy?

Incorporate their core values to shifting trends in food.

Should McDonald’s change its strategy?

Ability to cater to customers’ nutritional needs ofeven at a higher price than their usual products

Should McDonald’s change its strategy?

Focusing on serving more fruits, vegetables, whole grains, and low-fat

dairy Reducing salt content, sugar, and

calories across their menu.

Should McDonald’s change its strategy?

Their aspirational goal 2020 aims to strengthen customer nutritional profile &to improve product sustainability.

Should McDonald’s change its strategy?

Partnering with Alliance for a Healthier Generation led them to identify commitments to

increase consumer access to healthier food choices and to

disseminate nutritional information.

Should McDonald’s change its strategy?

What risks do you feel McDonald’s will face going forward?

Health conscious consumers may switch to brands

offering healthier options

What risks do you feel McDonald’s will face going forward?

Competition from local fast food chains

Need to win back customers hearts among the

sea of new tastes and food options

saturating the market.

What risks do you feel McDonald’s will face going forward?

Training employees rapidly and effectively during expansion

drivesConsider increasing staff wages

as company earned bad reputation from giving minimum

wage

What risks do you feel McDonald’s will face going forward?

Transition of major market composition to millennials

Preferences are fickle and often very particular in their ability to customize products that they

purchase.

Sources:

https://www.mcdonalds.com/us/en-us/about-us/our-history.html

http://corporate.mcdonalds.com/content/mcd/sustainability/food.html

http://www.businessinsider.com/the-7-biggest-challenges-facing-the-new-mcdonalds-ceo-2015-1