Mcdonald's Corporation - Success Strategies in Recessionary Environment


Mcdonald's Corporation - Success Strategies in Recessionary Environment
Case Code: BSTR322
Case Length: 21 Pages
Period: 2007-2009
Pub Date: 2009
Teaching Note: Not Available
 Price: Rs.300
Organization: McDonald's Corporation
Industry: Food and Beverage
Countries: US
Themes: Business Environment
Mcdonald's Corporation - Success Strategies in Recessionary Environment
Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

The case examines the strategies adopted by McDonald's in the light of recession in the US and other developed markets to make it 'recession resistant.' Some of the strategies that McDonald's adopted to revive its business which was experiencing downturn during the early 2000s were refurbishing its restaurants, improving quality standards, longer opening hours, changes in menu etc. In late 2007 and early 2008, when the US had slipped into recession, due to reduced incomes, people grew cost conscious and started cutting down on their visits to expensive restaurants. They opted for fast food restaurants like McDonald's as they offered value for money. To cater to the people hit by recession, McDonald's revamped its 'dollar menu' and also launched several new additions to its existing menus.

McDonald's also expanded its coffee business in the US market and priced its coffee related products competitively. With all these initiatives, McDonald's was successful in reporting higher revenues and profits in a recessionary environment.

Issues

The case is structured to achieve the following teaching objectives

  • Evaluate McDonald's growth strategy over the decades
  • Understand how McDonald's revived its business during the early 2000s
  • Analyze the strategies adopted by McDonald's for tackling recession
  • Examine the challenges McDonald's is likely to face in the near future
  • Study the dynamics of fast food industry in the US

Contents

Keywords

McDonald's Corporation, Recession Resistant, Dollar Menu, Recessionary Environment, US Fast Food Industry, Value Menu, Value for Money Products, Financial Performance, Plan to Win Strategy, Self-service, Economic Slowdown, Anti-obesity Campaign, McCafé, Starbucks, Cannibalization of Sales, Diversification, Stock Price Performance, Unemployment Rate

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