Case 3-3

McDonald Co.
Gale, Mary Louise E.
Marcos, Louis Nicole P.
Marquez, Rex
Tayag, Via Erika
Tolentino, Mylene S.
Ventura, Kimberly Jane

OUTLINE
I. Background of the Study
II. Situational Analysis
III. Identifying the problem
IV. Objective of the study
V. Alternative Course of Action
VI. Recommendation
VII. Conclusion

BACKGROUND
OF THE STUDY

 McDonalds Corp. started as a trendsetter in the

field of fast-food restaurants which gave millions

of Americans their first job.

In 2003, is the year they slide from 60% on their

stock.

James R. Cantalupo replaced him and he

advocates on setting new strategies for the

company.

New CEO Cantalupo undertake to give himself 18

months to regain McDonalds once again.
Improve the Basics. Taking back the

unnanounced inspections on all branches and

using mystery shoppers.

Rekindle the Flame with franchisees.

Whip up something new. Being creative in

presenting the product to the consumer.

Stop eating your own lunch. Closing sites that

do not generate sales.

 Rising of new competitors- Cosi, Quiznoz etc.

The company generates lesser sales each year in

different continents and many franchisees were

closing because of the poor performance.

Many franchisees were selling back their

restaurants to the company and shift to fresher

and better-tasting food. (e.g. Panera Bread Co.)

 Franchisees were beefing about the companys

addiction to franchising.

The decline of the McDonalds sales can be trace

to its expansion in 1990s and stopped grading

their franchised restaurants.

Failure to give attention to their new products like

the McDonalds pizza which was not fit in the

window at the Drive-thru , and also, their salad,
which is packed tightly in the cases.

 Introduction of the coffeehouse concept,

McCafe by Bell (former President of

McDonalds Europe) and the Croque McDo in
France.

Situational
analysis

S.W.O.T. Analysis
Strengths
Reputable brand name
Top global franchise
Strong financial performance and
position
Introduce new menu items
Strong global presence
Training program for managers

Weaknesses

Opportunities

Globalization
Trend of a fast-food industry
Refurbished technology
Reinstated program
Offers cheap burgers

Execute new things poorly

Unhealthy image of products
Existing franchisees feel alienated
Mcdonalds addiction to discounting
Poor kitchen and counter skills
Tough competition

Threats

Long-term trends
Poor planning
Cutting incentives to the best franchise
Franchisees ships to other fastergrowing rivals
System loses traction
Rivals go even further

P.E.S.T.E.L.C.
POLITICAL

ENVIRONMENTAL

SOCIO-CULTURAL* - working within the group of chain stores

TECHNOLOGICAL* - Revamp technologies with a fast and very affordable new menu items.

ECONOMICAL* - Intermittent of strong dollar or mad cow disease and the economic doldrums in

the economy.

LEGAL

COMPETITION*- The burger competition category go even further because of the popularity of

burgers with better quality and taste.

Identifying the
Problem

Identifying the Problem

An owner of the business, is all about scrape the sales and

making a budget that keeps the expenses rising.

McDonald's is a huge franchise that deals with one problem to

another.

Mcdonalds and other restaurant creates a huge comparison in

terms of their fresh burger and more tastier food.

Objectives of
the Study

Objectives of the Study

meeting the needs of key audiences
coping up with the changing eating habits of customers
maximizing sales, and minimize costs

Alternative
Courses of
Action

Alternative Courses of
Action
McDonalds Corporation
Hamburger
Improve Quality
Healthy Ingredients
Affordable

Store
Renovation
Clean Surroundings
Good Ambiance

Play Place for kids

Entertainment

Recommendatio
n

Recommendation
For McDonalds, we recommend

that the food they are serving is

alike to what they are showing in
their advertisements (avoiding false
advertisements).

Conclusion

Conclusion
Our group have identified the major

issues that MacDonald's encountered.

These issues include continuous increase
of costs and decreased numbers of
franchisees. We recommend that the
company should see to it that what
people see in their advertisements is the
exact food that they will see in actual.