McDonald's strategic issue is a fundamental policy question or challenge affecting an organization's mandates, mission, and values; product or service level and mix; clients, users, or payers; or costs, financing, structure, or management (Bryson, 1995). This paper describes a strategic issue faced by fast food giant McDonald's, which is fighting to maintain its position as a market leader.
McDonald's has built one of the most successful fast food franchises in the world, with incredible growth for over three decades. The company's long-term strategy has focused on uniformity in its product, service, and the consistency of its information systems. However, with a slew of recent challenges, McDonald's learning that times are changing. The company's main new concern is portraying their sense of healthy eating habits and staying ahead of the competition.
McDonald's reached a low point in 2001, when customer-satisfaction surveys revealed that the company was falling well behind its competitors, Wendy's and Burger King (Green, 2004). Customers stated that they preferred healthier offerings, such as Subway's fresh and healthy sandwiches. McDonald's was spending a great deal of money opening new stores but its profit margins were dropping, as was customer satisfaction.
The firm's philosophy of QSC&V -- quality, service, cleanliness and value -- simply wasn't working any more (Green, 2004). In 2002, McDonald's experienced its first quarterly loss since 1954, the year when Ray Kroc convinced the McDonald brothers to let him franchise their new "Speedee" self-service restaurant system.
McDonald's had lost more than strategic direction. A wave of anti-American feeling overseas had turned its famous "golden arches" from an asset into a liability (Green, 2004). In addition, as concerns about obesity and junk food escalated, the company lost more and more business. McDonald's was even sued for making people...
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I would recommend, however, to cut bait. Aside from the culture differences, the external environment for that market is the most challenging in the FedEx family. With low barriers to entry, low margins, high ease of switching or substitution, office services is a tough place to make money. Factor in the lack of synergy with the rest of FedEx's operations, and they should do their best to cut costs
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