MCDONALD'S COMPETITIVE POSITION

AN ANALYSIS OF MCDONALD'S COMPETITIVE POSITION

MCDONALD'S COMPETITIVE POSITION AND PRIORITIES 1

MEETING COMPETITIVE PRIORITIES 6

TECHNIQUES, OPERATIONS TOOLS, AND TACTICS

USED BY THE FAST FOOD INDUSTRY 12

OPERATIONS STRATEGIES AND TACTICS USED BY

MCDONALD'S TO MAINTAIN COMPETITIVE ADVANTAGE 16

A PLAN TO IMPROVE THE TRANSFORMATION (PRODUCTION)

AND THE COMPETITIVE POSITION OF MCDONALD'S 20

MAJOR COMPETITIVE TRENDS IN THE FAST FOOD INDUSTRY 24

HOW CURRENT TRENDS AFFECT MCDONALD'S OPERATION 28

GROUP OPINION OF WHAT THE ECONOMIC AND SOCIAL

ENVIRONMENT WILL BE TEN YEARS FROM NOW 31

HOW FUTURE ENVIRONMENT AFFECT MCDONALD'S 36

ANTICIPATED OPERATIONS MANAGEMENT AND

SHOULD MAKE TO SURVIVE IN THIS NEW ENVIRONMENT 40

McDonald's, the world's largest fast food operation was also, until recently, the most profitable. Now it is undergoing a complete restructuring of its business and its philosophy.

Founded by Ray Kroc, the company has experienced many vicissitudes, and is now in the hands of a new CEO, Jack Greenberg, who faces many problems that are detailed in this analysis. They include: diminishing share, franchisee problems, menu problems, and weak ROE.

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as accused of deliberately hoodwinking customers and competitors by pretending it was first to declare voluntarily the ingredients of its foods (Erlichman, 1994, A1). These allegations resulted in a trial known as the McLibel trial based on the actions of two environmentalists who handed out a leaflet 'What's Wrong with McDonald's' that said that "diets heavy in so-called junk foods like McDonald's had been scientifically linked with breast cancer and bowel and heart disease" (Erlichman, 1994, 4). On March 15, 1997, a person dressed as a cow presented Ronald McDonald with a pie. That happened when Ronald was trying to get a group of kids to sing the 'Two All-Beef Patties' jingle (McSpotlight Online). Tactics to Optimize Service The McDonald's training manual devotes more than 100 pages to customer service topics, ranging from dealing with angry customers to handling complaints. The theories are all predicated on the basic assumption that the "sale" has already been made by the customer coming through the door. Put another way, the decision to "buy" was a progressive one, involving a) a decision to go to McDonald's, b) a preconceived notion of the desired product, and c) a reasonably thorough knowledge of price alter

Category: Business - M