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Mcdonald's Case Write-Up

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MGMT 3800 Business Policy and Strategy
Lowell Miller
April 14, 2016
Kiara Gitlin

MGMT 3800 Business Policy and Strategy
Lowell Miller
April 14, 2016
Kiara Gitlin

Strategic Case

Strategic Case

I. Core Problem/Issue
McDonald’s current challenges consist of many things including their menu, product quality, appealing to millennials, and labor concerns. The new president and CEO, Steve Easterbrook, came at a time when the corporate giant was on its knees in desperate need of way to get back up. One of bigger issues is product quality because it relates to getting the younger customer as well as how the company is perceived worldwide. McDonald’s is one the top 10 biggest brands according to Forbes and Easterbrook desperately wanted to improve public perceptions of the McDonald’s brand. McDonald’s wants to position themselves as a modern, progressive “healthy” burger company in a highly competitive market.
Their size made them a convenient target, and more than a decade of negative press including the 2001 book “Fast Food Nation,” the 2004 documentary “Supersize Me,” and Jamie Kennedy’s 2012 “pink slime” exposé had taken its toll. In July 2014, the Big Mac earned the dubious distinction of being America’s worst hamburger, placing last out of 21 in a study by Consumer Reports. McDonald’s also ranked lowest among peers in the 2015 American Customer Satisfaction Index. Fast food restaurants overall dropped 3.8 percent, but McDonald’s fell by 6 percent from 2014, holding firm in the last spot.
As the baby boomers get older, the millennials are becoming a larger part of the population. The generation is more aware of what they are eating and with all the media claiming “McDonalds” as unhealthy; they have chosen to eat restaurants that are “fresh and healthy”. With all the propaganda against McDonalds it is hard for people to see them as a good,

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