McDonalds also places strong emphasis on marketing to children, including the use of playgrounds in its restaurants. As a result, McDonalds is able to maintain some pricing power over its customers and to attract customers to its restaurants despite strong competition from a wide number of sources.
Issues and Challenges: McDonald's operates in a number of mature markets, where growth is slow. Growth is now focused not only on overseas markets but for the most part on less desirable overseas markets, the China and India excepted. This has slowed the pace of growth for the company in recent years. Another challenge has been the economic downturn that saw many customers reduce their meals away from home. The result of these two challenges has been that McDonald's saw a reduction in its revenue in fiscal 2009 (MSN Moneycentral, 2010).
The childhood obesity issue is the latest in a string of challenges faced by McDonalds from a variety of health and environmental activists. This particular challenge has come with class action lawsuits (Holguin, 2003) and has forced McDonalds to face bans on toys in Happy Meals, which had previously served as an inducement for children to eat at their restaurants (Allen, 2010). There are also negative public relations consequences for these legal actions as well, that could convince some parents to keep their children away from McDonalds.
Course of Action Recommended: McDonald's cannot please all the people all of the time. They are a natural target for activists and the obesity challenges are just another in a string of similar risks faced by the company. A legal fund should be set aside to fight the claims, but the company should also be prepared to make subtle changes to its menus to ward off such future claims. Dramatic action, however, is not needed.
The company should also continue to focus on growth opportunities where they exist in the developing world. The best opportunities may be gone, but whatever today's best opportunities are should be pursued. Shareholder expectations should be managed accordingly, however, so that past growth and profitability levels are not expected.
The company should approach the economic downturn as an opportunity to reduce costs and to reign in its debt levels. McDonald's is still making substantial profits, but the debt level is...
McDonalds is the number one quick service restaurant brand in the world, and by far and away the market leader in the U.S. While it would be reasonable to assume that a company so large and powerful could simply do whatever it wanted in terms of strategy, that is not necessarily the case. David took the basic SWOT analysis concept, an old diagnostic tool that is used frequently in strategic
McDonald's Integrated Marketing Campaign This paper is divided into two distinct sections. The first chapter is based on literature reviews of various scholarly works that are related to the topic of integrated marketing campaign that are also relevant to the McDonald marketing campaign that was created to celebrate the inherent democracy of the McDonald's brand. The first chapter is further divided into three parts; the first section mainly focus on advertising
" This particular demographic is looking towards the future and they want to make sure that the products that they purchase are not harmful to the environment. The process of redesigning the packaging will be the responsibility of a special committee on packaging. The committee will be responsible researching and developing packaging that is biodegradable. In changing the manner in which packaging is designed, the company will realize many benefits. Firstly
Mcdonalds Customers Customer Relations at McDonald's McDonald's is a company that has increasingly come to face a dilemma regarding its relationship with its primary customer base. The fast-food giant is incomparably successful, having achieved a singular dominance in its sector and having likewise established an enviable brand recognition on a global basis. And yet, in terms of customer relations, the company is struggling today to achieve a positive resolution to its public
According to Kerin, et al., (2003) all employees posses some form of power to interrupt the smooth running of operations by deciding to be uncooperative in the production processes, or just by terminating their services. Workers may abide to the power of the company, though they usually maintain a strong interest in their employment. Thus, employees and employers, to certain degree, are interdependent. As such, the company cannot depend only
McDonald's in Hong Kong: Consumerism, Dietary Change, and the Rise of a Children's Culture, by James L. Watson James Watson starts his article recollection of a conversation he had in 1969 with a Hong Kong resident whose ancestors had settled in New Territories of Hong Kong six centuries ago. Mr. Man vividly described a feast he had eaten fifty years back, so around the second decade of the twentieth century. Mr.
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