Case Study: Mcdonald's And The Mccafe Coffee Initiative

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2. Read the following case in the same textbook: “McDonald's and the McCafe Coffee Initiative,” case #17. 3. Since the textbook case was written, McDonald's has introduced McCafe into the US national market. Visit the McDonald's website for any relevant information. Bring to the residency a one to two page analysis of the McCafe case in which you: Consider whether the McCafe initiative is consistent with McDonald’s vision and mission; Describe the McCafe strategy using the business diamond model in the Carpenter textbook; and Evaluate the strategy using SWOT analysis (See the Alan Belasen article on SWOT analysis in "Supplemental Readings" in this module). STRENGTH Largest fast food chain and number 1 in industry in terms of…show more content…
Mccafe equipment is small, inexpensive and easy to setup Drive-through option for fast food delivery for the busy customers Mccafe positioned for working adults who enjoy coffee Mccafe had a positive initial customer response allowing a 30% increase in coffee sales in the 1st 6 months of operation from the previous year WEAKNESS: Fast food industry is more often perceived as unhealthy due to its high in calories. There is growing competition in the coffee business with Tim Horton’s restaurant having the greatest market share followed by Mccafe (e.g., Wendy’s merger with Canadian coffee and doughnuts, via Tim Horton’s, is expanding into the coffee business. Mcdonald’s was also recovering from a loss of market share in breakfast sales There is still much to be learned about Mccafe’s products in terms of which items are successful and which items are not. Opportunities: 29% of the industry’s coffee consumed is purchased from drive-thru’s and has grown fourfold since 1995 Annual retail coffee consumption had increased by 15 percent in Canada There is a decrease trend in the fine dining segment and an increase trend in the quick service

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