Mcdonald Case Study

McDonald Case Study

The case study is about McDonald

The problems that the company faced went beyond fluctuations in sales and revenue. The year 1996 was a turning point, with McDonald’s experiencing four consecutive quarters of declining sales and beginning to lose market share to competitors.

Jack Greenberg, the former CEO, implemented the highly unsuccessful “Made for You” kitchens with disastrous results. The result was slower service in contrast to its aim, which was to add a welcome flexibility with new menu items.

Franchisees became frustrated. Take Paul Saber. For 17 years, he was a McDonald’s franchisee, but in 2000 he recognized the lack of fit between the product offerings at McDonald’s and consumer tastes.

Getting Back to Basics

In 2003 Cantalupo was brought in to rectify the declining state of the organization. He previously held the position of vice chairman and headed McDonald’s international expansion. His return from retirement was controversial and analysts claimed that he lacked “the vision or stomach to make the necessary changes.” Nevertheless, his vision for the organization’s future was in a “back to basics” approach with organizational changes to refocus the organization on core values of quality and service.

Cantalupo began by cutting back new store openings. In 2004, 300 new stores were proposed, in comparison to 1995, when 1,100 new restaurants were opened.

There was also a complete overhaul of the advertising campaign. By introducing the “I’m lovin’ it” slogan and commercials featuring pop singer Justin Timberlake, the hope was to reinvent the company’s image and connect with the younger generation.

Another part of the revitalization of the McDonald’s business was the introduction of the new salads menu. McDonald’s has long expressed...