Mcdonald Case Study

McDonalds On a Customer-Focused Mission More than half(a) a century ago, Ray Kroc, a 52-year-old salesman of milk-shake- fluffing machines, set surface on a boot to transform the counseling Americans eat. Kroc bought a chain of seven stores already alive for $2. 7 million. From the start, Kroc preached a motto of QSCVquality, service, cleanliness, and value. These name and addresss became mainstays in McDonalds client-focused mission statement.Applying these values, the high society meliorate the prodigal-food conceptdelivering convenient, good-quality food at low-priced prices. McDonalds grew quickly to become the globes largest fast-feeder. The fast-food giants more than 32,000 eaterys creationwide now serve 60 million customers each day, racking up system-wide sales of more than $79 angiotensin converting enzyme thousand million annually. In the mid-1990s, however, McDonalds fortunes began to turn. The company appe ard to square up out of touch with both its missio n and its customers.Americans were looking for fresher, better-tasting food and more present-day(a) atmospheres. They were also seeking healthier have options. In a rude(a) get along with of health-conscious consumers and $3 muffin and coffee at Starbucks, McDonalds seemed a bit out of step with the times. McDonalds was struggling to adjust its identity among its competitors and changing consumer tastes. The company careened from one failed idea to another. It tried to keep pace. no(prenominal) of these things worked.However, McDonalds continued opening tonic restaurants at a ferocious pace, as many as 2,000per year. The new stores helped sales, only if customer service and cleanliness declined because the company couldnt hire and train good workers fast enough. Meanwhile, McDonalds increasingly became a gull for animal-rights activists, environmentalists, and nutritionists, who accused the chain of contributing to the commonwealths obesity epidemic with exceedingly size French fries and sodas as well as Happy Meals that inveigle kids with the reward of free toys.Although McDonalds remained the worlds most visited fast-food chain, sales ripening slumped, and its market share fell by more than 3 percent in the midst of 1997 and 2003. In 2002, the company posted its first-ever quarterly wrong. In early 2003, a turbulent McDonalds announced a transposition planwhat it now calls its Plan to Win. At the heart of this plan was a new mission statement that refocused the company on its customers. The companys mission was changed from organism the worlds best quick-service restaurant to being our customers favorite place and way to eat.The new plan centered on five basics of an exceptional customer experience people, products, place, price, and promotion. Under the Plan to Win, the goal was to get better, not just bigger. The company invested in improving the food, the service, the atmosphere, and merchandising at existing outlets. McDonalds redeco rated its restaurants with clean, simple, more-modern interiors and amenities such as live plants, wireless net income access, and flat-screen TVs showing cable news.Play areas in whatever new restaurants now feature video recording games and even stationary bicycles with video screens. To light up the customer experience more convenient, McDonalds stores now open earlier to convey breakfast hours and stay open hourlong to serve late-night dinersmore than one-third of McDonalds restaurants are now open 24 hours a day. Moreover, MacDonald added healthier options, such as Chicken McNuggets made with white meat, a line of Snack Wraps, low-fat milk jugs, apple slices, Premium Salads.In 2008, when the phone line market mazed one-third of its valuethe worst loss since the Great Depression McDonalds stock gained nearly 6 percent. Through 2010, as the economy and the restaurant industry as a whole continued to struggle, McDonalds outperformed its competitors by a notable margin. Q UESTIONS 1. What are the main environmental factors that affected MacDonald marketing strategy and way of doing business? 2. How MacDonald responded to the changing environment? (How these changes affected its marketing mix? )