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Restructuring / Turnaround Strategies Case Study

Case Title:

Obesity: Fading McDonalds' Image

Publication Year : 2006

Authors: Aruna.N

Industry: Retailing


Case Code: RTS0037B

Teaching Note: Not Available

Structured Assignment: Not Available

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Since 2002, McDonalds was targeted for the soaring obesity and other health related issues. Negative propaganda highlighting the deterioration in its food quality of McDonalds ruined its image as the most lovable brand in the US. In 2006, in order to get away from negative publicity and to regain its lost reputation and sales, McDonalds included nutritional information in all its fast-food packaging and also started the McDonalds’ Global Moms Panel. It had plans to advertise aggressively about its high-quality food and also to revamp 100 of its restaurants according to the changing needs of its customers. Though McDonalds was confident of regaining its image, analysts argued that midst its challenges, it would take a long time for the company to reclaim its lost aura.

Pedagogical Objectives:

  • To discuss how the fast food industry in the US was affected by health related issues
  • To understand how McDonalds managed to achieve growth through its strategies

Keywords : McDonalds; Obesity; Fast Food Industry; Managing in Troubled Times Case Study; Wendys; Burger King; Market Leadership; Lack of Quality; Eroding Image; Plan to Win

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