Mc Donalds

I. Statement of the Problem:

How will McDonalds Corporation stay on top of the industry amid threats from competitors both in the hamburger and non-hamburger segment?

II. Statement Objectives

Reverse the declining earnings of the company.

Improve the sales of the company.

Stay on top of the market.

III. Areas of Consideration

Drive through customers – comprises a huge portion of company sales. More efficient drive through service increases the average restaurant sales.

Competition from non-hamburger fast-food restaurants –sales from these competitors are increasing as there is a trend of moving to non-hamburger sandwiches

Heavy users of fast-food restaurants – these users are just 20% of the customers but accounts for 60% of all visits.

Increase of fast-casual segment – these chains attract customers who are willing to pay a little more for better dining experience but not sacrifice convenience of quick service

Change in eating habits – increasing number of customers are more health conscious and watch what they eat.

IV. Alternative Courses of Action

Offer a new menu items.

Offer healthier menu options.

Put in place a more efficient system of service drive through-customers.

Expand the services to coffee and treats.

V. Analysis of Alternatives

New menu items and alternative healthier option will help give customer a new fast-food experience. It also addresses the problem of increasing trend of customers wanting to eat more healthy foods. This however might contribute to the decline of popularity of the original products of the company.

More efficient system of drive-through service attracts more customers though this will entail additional costs in equipments and personnel training.

Expanding to offer coffees and treats taps on other potential customer base. This however will cost a lot to put in place a whole new line of products which will cater to the target market.

VI. Decision Statement

McDonalds launched Mc Café. They...