CASE ANALYSIS: MCDONALD'S This resear

This research analyzes the McDonald's Corporation case concerning the company's decision to cease the use of foam packaging in its consumer operations. The purpose of the analysis is to develop an action plan to assist the company to both announce its new policy to the general public, and to manage the consequences of the policy change. The findings of the analysis are presented in discussions related to (1) situation analysis, (2) objectives of the action plan, and (3) strategies which will be used in carrying out the action plan.

In 1990, McDonald's licenses and operates a chain of almost 11,000 fastfood restaurants in the United States, Canada, and several other countries. The company is the industry leader in the fastfood segment of the restaurant industry, as well as in the hamburger subsegment of the industry. Although McDonald's serves foods other than hamburgers, the thrust of the company's operations is in the hamburger subsegment of the fastfood segment of the restaurant industry. Many of the company's products other than hamburgers are also served in a burger format, a factor which further identifies McDonald's with the industry's hamburger subsegment.

Although McDonald's is a generally strong company, the organization has both strengths and weaknesses. Its strengths include (1) dominance in industry, segment, and subsegment, (2) stable management, (3) strong employee and management

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ublic image suffered with respect to both its delay in removing animal fats from its cooking processes, and with respect to th elimination of environmentally harmful foam packaging. The company's goals are concerned with (1) market share, (2) market penetration, (3) developing and retaining an effi cient and committed staff, and (4) expanding its international presence. McDonald's is highly successful in goal attainment; however, the company would be better served, if meeting the health and environmental concerns of its consumers were included among its company goals. Some of McDonald's essential strategies have not changed over the years, and this stability has contributed to the company's ability to maintain its dominant industry position. One of these enduring strategies is a low pricetovalue ratio. McDonald's position in this context remains consistently superior to the positions of its competitors. Another of McDonald's enduring strategies is the establishment, monitoring, and maintenance of performance standards. While competitors in the fastfood segment of the restaurant industry have also adopted this practice, it was developed by McDonald's, and the company continues to lead

Category: Business - C