McDonald Corporation Harvard Case Solution & Analysis

McDonald Corporation Case Solution

Introduction

This case sheds light on McDonald's Corporation, which is a well-recognized fast food restaurant chain. Providing quality fast food to around 68 million customers daily in 119 countries. The company was established in 1940 in the United States. Although what started as a barbecue restaurant operated by the McDonald family,hasnowbecome one of the biggest names in the industry. The flare that the company had since its inception, has somewhat dampened. As a result of the quality issues faced by the business, adversely affected its brand image and the emerging awareness of the people regarding health and the adverse effects of consuming fast food on the well being of an individual.

Problem Statement

The main issue faced by the company is the quality of the food, and the perception people had regarding the quality of the food provided by McDonalds that quick and fast food is not fresh and healthier. Another problem is its understaffed restaurants and lack of adequately trained and motivated staff. Furthermore, another issue is the company's inability to diversify its menu to appeal to the different tastes of the customers in the market.

Analysis

Analyzing the case and shedding light on the external and internal environments faced by the company.

SWOT Analysis

By examining the case and conducting the SWOT Analysis, the company's key strength, weaknesses, opportunities, and threats given below

Strengths:The Company had built a huge brand name, recognized globally with a strong image and reputation in the industry. The company was one of the top brand names along with other corporate giants like Coca-Cola, General Motors, and Nokia. Furthermore, the company had high equity capital with 36,538 outlets globally. Moreover, the company also had secured a significant market share in the industry. The company provides specialized training to its managers and massive spending on marketing and advertising activities.

Weaknesses:One of the shortcomings of the company is that it uses Trans-fat in its product, which had adverse effects on the customers’ health lead towards the customer retention rate of the company to decrease. Another weakness of the enterprise is that the client had the perception of the food provided by the business that it is unhealthy, resulting the company to lose its revenues. Furthermore, the company has the slogan to provide quick and inexpensive food to its customers. This reputation has damaged the company's ability to charge a premium for its products. Moreover, because of the understaffed franchises or outlets, the company has a high employee turnover rate resulting in the dissatisfied customer as well as disgruntled franchise owners.

Opportunities: Theopportunitypresent to the enterprise is that the US economy is slowly but steadily growing, however there is an overall growth in the fast food industry because of the change in the customers eating habit and lifestyle. The company could increase its sales by engaging in online ordering system widely used by the youth.

Threats: The threat faced by the company is that the Chinese economy growth has decreased and although the European economy is stable but is risky to invest. Furthermore, the obesity rate is increasing in the USas well as there is growth in the healthcare concern among the people,causing additional problems for the company, resulting in decreased revenues. Moreover, the competition in the market had increased exponentially and for this reason, it had become difficult to gain and retain the customers in the market.

PEST Analysis

By analyzing the case and conducting PEST analysis, the company’s external political, economic, social and technological environmental factor could be determined.....................

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