Mcdonald's Corporation - Success Strategies in Recessionary Environment
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Case Details:
Case Code : BSTR322
Case Length : 21 Pages
Period : 2007-2009
Pub Date : 2009
Teaching Note :Not Available
Organization : McDonald's Corporation
Industry : Food and Beverage
Countries : US
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts Contd...
Mcdonald's - Tasting Success
Analysts attributed the success of McDonald's to its ability to attract different socio-economic groups in society. McDonald's was the preferred destination for eating among families with children, for people who were looking for a filling meal at a low price, and those who needed to grab a quick bite.
According to Skinner, "We provide value across the entire menu. This remains a significant predictable and attractive brand differentiation that's critical when consumers are feeling the pinch almost everywhere else in their daily lives."...
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Few Challenges Remain
According to financial experts, McDonald's revenues from Europe and the Asian countries were likely to remain under pressure due to the fluctuating US dollar. McDonald's earnings from foreign countries were converted into dollars, and a strong dollar would have an adverse impact on McDonald's global revenues. Moreover, in places like Russia, it had become more expensive to import ingredients, due to which McDonald's might not find it possible to maintain low prices...
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Exhibits
Exhibit I: McDonald's Stock Price Chart vs. Dow Jones (April 2006 to March 2009)
Exhibit II: Recession in the US - Origin and Impact
Exhibit III: Important Milestones in McDonald's History
Exhibit IV: McDonald's and its Franchisees - Financial Details (1986 - 1996)
Exhibit V: McDonald's and its Franchisees - Financial Details (1997 - 2007)
Exhibit VI: McDonald's Income Statement (2006-08)
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