Abstract

Once the undisputed leader in the US fast food industry, McDonald's now faces a number of pressing problems. Its menu and service standards have fallen drastically. The company has been consistently ranked well below its prime competitors Burger King and Wendy's in various customer satisfaction surveys. The chain's sales have not grown significantly since 2000 and McDonald's has reported disappointing earnings in recent times. McDonald's reported a loss for the fourth quarter of 2002, its first ever since going public in 1965. This case study traces the events that have led to McDonald's current position and how the new Chairman and CEO James Cantalupo is planning to revive the company.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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Keywords

McDonald's, Restaurant industry, Fast food industry, Competitions, Competitive advantage, Strategy formulation, Services, Franchising, James Cantalupo, Marketing strategy, Competitive positioning, Pizzas, Pizza Hut