The Turnaround Plan of McDonald's: A Long Way to Go
|
Case Code: BSTR487 Case Length: 16 Pages Period: 2010-2016 Pub Date: 2016 Teaching Note: Not Available |
Price: Rs.500 Organization: McDonald's Corporation Industry: Restaurants Countries: USA, Global Themes: Turnaround |
Abstract Case Intro 1 Case Intro 2 Excerpts
Plan to Fix
In April 2015, McDonald's Corporation (McDonald's), one of the world's leading fast food restaurant companies, announced that its revenue had fallen by 11% to US$ 5.96 billion in the first quarter of 2015 and that profits had dropped to US$ 812 million from US$ 1.2 billion in the first quarter of 2014. Worldwide, same-store sales fell by 2%, the figure being 8.3% in the Asia Pacific, the Middle East and Africa and 2.6% in the US. This was a continuation of the company's bad performance in 2014, the year called 'the Lost Year', when for the first time since 2002, it reported a decline in global same store sales.
McDonald's, whose history dates back to the 1930s, had been the undisputed leader in the fast food industry, mainly due to its product offerings, consistent taste, convenience, affordable prices, and franchisee model which helped it spread its operations across the world. Over the years, McDonald's did face several crisis situations, but it managed to emerge successfully from them all. In 2003, for the first time since it went public in 1965, McDonald's reported a quarterly loss. But it revived soon under the guidance of CEO Jim Cantalupo. Even the US recessionleft it unfazed.
But things took a turn for the worse beginning 2013, with a slump in the US sales. For August 2014, McDonald's witnessed its worst decline in monthly sales in more than a year. For the quarter ending September 2014, it reported four straight quarters of declining sales in the US. This, and falling same store sales globally, increasing prices, deteriorating customer service, and changing consumer tastes were cited to be the main reasons for the decline. The trend continued, till early 2015 and the CEO, Donald Thomson (Thomson) retired from the company after handing over the reins to Steve Easterbrook (Easterbrook)....
Buy this case study (Please select any one of the payment options)
| Price: Rs.500 |
Price: Rs.500 | PayPal (11 USD) |
