Competitive Advantage Case Study

McDonald's in 2005: Sustaining the Growth Momentum

OR

Abstract:
When James R. Cantalupo (Cantalupo) dies unexpectedly, the McDonald’s board acts swiftly to execute a succession plan that Cantalupo himself has put into place. However, within months of assuming office, Charlie Bell (Bell) discovers he is terminally ill and the board offers the job to James A. Skinner (Skinner), the person being groomed by Bell for the job. The strategy launched by Cantalupo to turn around McDonald’s, which has been struggling in the 1990s, is smoothly implemented and even carried forward by his successors. Despite the unexpected departures of its CEOs, four CEOs in as many years, McDonald’s continues to flourish. The case discusses McDonald’s succession strategy. McDonald’s prefers to recruit its CEOs from within the organisation rather than from outside. All the McDonald’s CEOs have been company veterans, working their way to the top. The case also traces McDonald’s growth strategies under its various CEOs.

Pedagogical Objectives:

• The case discusses McDonald’s succession strategy. McDonald’s prefers to recruit its CEOs from within the organisation rather than from outside. All the McDonald’s CEOs have been company veterans, working their way to the top
• The case also traces McDonald’s growth strategies under its various CEOs

Keywords : James Cantalupo; Core Competency & Competitive Advantage Case Study; Charlie Bell; James Skinner; Ray Kroc; Fred Turner; Michael Quinlan; Jack Greenberg; Growth; Competition