Surviving the $15 Minimum Wage: McDonald’s Struggle to Remain Competitive

Rasel Ahammed
Dario Colon Gonzalez
Gregory A. Delts
Valerie Demas

Keller Graduate School of Management

Professor Vera Daniels

MGMT 530: Managerial Decision Making
November 27, 2015

Table of Contents
Page 3: Executive Summary
Page 4: Introduction-Overview of Decision Problem
Page 4: Problem Statement
Page 5: Objectives
Page 6: Summary of Key Objectives
Page 6: Alternatives
Page : Description of Alternatives
Page : Selection
Page : Consequence Table with Original Values
Page : Ranking Alternatives
Page : Scoring Model: Title
Page : Weighted Scoring Model: Title
Page : Consequences
Page : Risk Profile: Title
Page : Implementation, Monitoring, and Control
Page : Timeline
Page : Summary
Page : Works Cited

Executive Summary McDonald’s restaurant chain, long considered an industry and community leader, has begun to experience a reversal of its corporate fortunes. They have seen a steady decline in total profits, sales, and a weakening of their corporate image. To add to their troubles, New York State Governor Andrew Cuomo, and a growing number countrywide are in the process of approving a bill almost doubling the minimum wage for fast food workers from $8.75 to $15. The problem is, knowing that there will be a dramatic increase in salary expenses in the next few years, how can McDonald’s alter its business practices and remain competitive? The legislation, as written dictates that: “…in New York City, hourly pay would increase to: * $10.50 on Dec. 31; * $12 on Dec. 31, 2016; * $13.50 on Dec. 31, 2017 * $15.00 on Dec. 31, 2018.
For the rest of the state, the minimum wage would
Increase to: * $9.75 on Dec. 31; * $10.75 on Dec. 31, 2016; * $11.75 on Dec. 31, 2017; *