Mcdonald's Corporation - Success Strategies in Recessionary Environment
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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 |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Mcdonald's - Reviving its Business
In 2001, McDonald's was witnessing a decline in sales. Analysts were of the view that these problems had cropped up due to the aggressive expansion that the company had undertaken......
Mcdonald's - Tackling Recession
By December 2007, the US was officially declared to be under recession though its effects had been visible right from the beginning of the year 2007, due to declining house prices and the sub-prime crisis...
Revamping the Dollar Menu
McDonald's chose to modify its dollar menu , which became its cornerstone offering, in line with the demand of the customers for low-priced, high value products. The products forming a part of the menu included double cheeseburger, cappuccino, and lattes...
More of McCafé
McDonald's introduced coffee-houses named McCafé that were located in its own restaurants in 1993 in Australia. Within a decade, it grew to become the largest coffee shop brand in Australia and New Zealand. In 2001, the first McCafé in the US was opened in Chicago...
Mcdonald's - Tasting Success
Analysts attributed the success of McDonald's to its ability to attract different socio-economic groups in society. McDonald's was the preferred destination for eating among families with children, for people who were looking for a filling meal at a low price, and those who needed to grab a quick bite.
According to Skinner, "We provide value across the entire menu. This remains a significant predictable and attractive brand differentiation that's critical when consumers are feeling the pinch almost everywhere else in their daily lives."...
Few Challenges Remain
According to financial experts, McDonald's revenues from Europe and the Asian countries were likely to remain under pressure due to the fluctuating US dollar. McDonald's earnings from foreign countries were converted into dollars, and a strong dollar would have an adverse impact on McDonald's global revenues. Moreover, in places like Russia, it had become more expensive to import ingredients, due to which McDonald's might not find it possible to maintain low prices...
Exhibits
Exhibit I: McDonald's Stock Price Chart vs. Dow Jones (April 2006 to March 2009)
Exhibit II: Recession in the US - Origin and Impact
Exhibit III: Important Milestones in McDonald's History
Exhibit IV: McDonald's and its Franchisees - Financial Details (1986 - 1996)
Exhibit V: McDonald's and its Franchisees - Financial Details (1997 - 2007)
Exhibit VI: McDonald's Income Statement (2006-08)
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