Change of Guard at McDonald's - Is Turnaround Possible?


Code : COS0113

Year :

Case Length : 11pages

Industry :Fast Food Industry

Organization:McDonald’s Corporation

Period : 2004-2015

Region :

Teaching Note: Available

Structured Assignment : Not Available

Countries : United States

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Abstract: Steve Easterbrook (Easterbrook) took over as CEO of McDonald’s Corporation (MCD) from Don Thompson (Thompson) at the beginning of 2015. This change came at a time when MCD was going through a challenging time. The company was facing challenges on multiple fronts including menu management, quality issues, and new products not delivering sales as anticipated. On the international front, MCD was facing hurdles from regulators in Russia and China. Easterbrook was known for achieving a turnaround of MCD in the United Kingdom and investors and markets were hoping for a major turnaround in MCD in US markets. The case tracks the performance of MCD in the previous couple of years, giving scope for discussion on the challenges facing MCD both internally and from external competitors and the reasons for the failure of its new products. The case also attempts to bring in the leadership roles of both Thompson and Easterbrook.

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Pedagogical Objectives:
This case is designed to enable students:

  • Understand the challenges and opportunities of operating in the Fast Food Industry.
  • Carry out a SWOT analysis of McDonald Corporation
  • Evaluate competitive strategies of McDonald Corporation
  • Appreciate the role of leadership in successful implementation of strategy.

    Keywords :Thompson, Easterbrook, Hamburgers, Burger King, Chick-fil-A

    Contents :
    » Introduction
    » Background Note
    » McDonald’s under Thompson
    » McDonald’s under Easterbrook
    » Challenges Ahead
    » Exhibit

    Case Introduction >>

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