Mcdonald's Corporation - Success Strategies in Recessionary Environment


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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.

Case Details:

Price:

Case Code : BSTR322 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges

Themes

Business Environment
Case Length : 21 Pages
Period : 2007-2009
Pub Date : 2009
Teaching Note : Not Available
Organization : McDonald's Corporation
Industry : Food and Beverage
Countries : US

Abstract:

The case examines the strategies adopted by McDonald's in the light of recession in the US and other developed markets to make it 'recession resistant.' Some of the strategies that McDonald's adopted to revive its business which was experiencing downturn during the early 2000s were refurbishing its restaurants, improving quality standards, longer opening hours, changes in menu etc. In late 2007 and early 2008, when the US had slipped into recession, due to reduced incomes, people grew cost conscious and started cutting down on their visits to expensive restaurants. They opted for fast food restaurants like McDonald's as they offered value for money. To cater to the people hit by recession, McDonald's revamped its 'dollar menu' and also launched several new additions to its existing menus.

McDonald's also expanded its coffee business in the US market and priced its coffee related products competitively. With all these initiatives, McDonald's was successful in reporting higher revenues and profits in a recessionary environment.

Issues:


» Evaluate McDonald's growth strategy over the decades.

» Understand how McDonald's revived its business during the early 2000s.

» Analyze the strategies adopted by McDonald's for tackling recession.
 
» Examine the challenges McDonald's is likely to face in the near future.

» Study the dynamics of fast food industry in the US.

Contents:

  Page No.
A 'Recession-Resistant' Company 1
Background Note 2
Mcdonald's - Reviving its Business 3
Mcdonald's - Tackling Recession 5
Mcdonald's - Tasting Success 8
Few Challenges Remain 9
Exhibits 11

Keywords:

McDonald's Corporation, Recession Resistant, Dollar Menu, Recessionary Environment, US Fast Food Industry, Value Menu, Value for Money Products, Financial Performance, Plan to Win Strategy, Self-service, Economic Slowdown, Anti-obesity Campaign, McCafé, Starbucks, Cannibalization of Sales, Diversification, Stock Price Performance, Unemployment Rate

A 'Recession-Resistant' Company - Next Page>>

 

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