Mcdonald Case Study

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Case 5: McDonald’s Case Summary McDonald’s has been defining the fast food business since it was founded, more than 50 years ago. It rose from a single outlet in a nondescript Chicago suburb to one of the largest chain of outlets spread around the globe. The company has gone through quite a few changes with its changing CEO’s over the years, but the company seems to be on track with CEO Jim Skinner, named in 2004. Skinner was named the new CEO just in time to clean up after McDonald’s first ever quarterly loss. He succeeded by showing that McDonald’s revenue had climbed 11% during 2006 and net profits had climbed 36%. In the 1990’s, the decline in McDonald’s once vaunted service and quality can be traced when headquarters stopped grading franchises for cleanliness, speed and service. It began to fail consistently with its new product introduction because of problems with the product development process. Because of first-ever decline in annual earnings, CEO Michael R.Quinlan was forced out and replaced by Jack M.Greenberg. However, Greenberg also failed and McDonald’s stock slide 60% in three years. His strategy of introduction of 40 new menu items also doesn’t succeed to bring the profit to the company. McDonald’s service and quality dropping far behind those of its rivals. To deal with its deteriorating performance, the firm decided to bring back retired vice chairman James R. Cantalupo, who had overseen McDonald’s successful international expansion in the 1980’s and 1990’s. Cantalupo realized the major problems and critical aspects of consistent, fast, friendly and all-around enjoyable experience for the whole family. So, he comes with the strategy which is known as “Plan to Win” strategy, which was to increase sales at existing location by improving the menu, refurbishing the outlets, and extending hours. To begin with, Cantalupo cut back on the opening of

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