Mcdonald Case Study

McDonalds On a Customer-Focused Mission More than half a century ago, pecker Kroc, a 52-year-old gross revenueman of milk-shake-mixing machines, set out on a relegating to modify the way Americans eat. Kroc bought a chain of seven stores already existing for $2. 7 million. From the start, Kroc preached a motto of QSCVquality, service, cleanliness, and value. These coatings became mainstays in McDonalds customer-focused mission statement.Applying these values, the company perfect the closely-food conceptde run lowring convenient, good-quality food at affordable prices. McDonalds grew quickly to extend the worlds largest fast-feeder. The fast-food giants much than than 32,000 restaurants worldwide direct serve 60 million customers each day, racking up system-wide sales of more than $79 billion annually. In the mid-1990s, however, McDonalds fortunes began to turn. The company appeared to strickle out of touch with both its mission and its customers.Americans were looking for fresher, better-tasting food and more contemporary atmospheres. They were also seeking healthier eating options. In a tonic age 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 take place its identity among its competitors and changing consumer tastes. The company careened from one failed idea to another. It tried to halt pace. None of these things worked.However, McDonalds continued opening newfound restaurants at a ferocious pace, as many as 2,000per year. The new stores helped sales, but customer service and cleanliness declined because the company couldnt hire and train good workers fast enough. Meanwhile, McDonalds increasingly became a target for animal-rights activists, environmentalists, and nutritionists, who accused the chain of contribute to the nations obesity epidemic with super size French fries and sodas as well as Happy Meals that lure kids with the honor of free toys.Although McDonalds remained the worlds most visited fast-food chain, sales product slumped, and its mart share fell by more than 3 part between 1997 and 2003. In 2002, the company posted its first-ever quarterly loss. In former(a) 2003, a troubled McDonalds announced a turnaround proposalwhat 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 being the worlds best quick-service restaurant to being our customers preferent 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 market at existing outlets. McDonalds redecorated its restaurants with clean, simple, more-modern interiors and amenities such as live plants, wireless Int ernet access, and flat-screen TVs showing cable news.Play areas in some new restaurants now feature video games and even stationary bicycles with video screens. To rack up the customer experience more convenient, McDonalds stores now open earlier to extend breakfast hours and stay open longer 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 stock market lost one-third of its valuethe worst loss since the Great slump McDonalds stock gained nearly 6 percent. Through 2010, as the thriftiness and the restaurant industry as a whole continued to struggle, McDonalds outperformed its competitors by a notable margin. QUESTIONS 1. What are the main environmental factors that moved(p) MacDonald marketing strategy and way of doing business? 2. How MacDonald respo nded to the changing environment? (How these changes change its marketing mix? )