Mcdonald Case Study

McDonalds On a Customer-Focused Mission More than half a ascorbic acid ago, Ray Kroc, a 52-year-old gross revenueman of milk-shake-mixing machines, set out on a billing to transform the way Americans eat. Kroc bought a cosmic string of seven stores already actual for $2. 7 million. From the start, Kroc preached a motto of QSCVquality, service, cleanliness, and value. These goals became mainstays in McDonalds customer-focused mission statement.Applying these values, the federation perfected the fast- fare conceptdelivering convenient, tidy-quality food at affordable prices. McDonalds grew chop-chop to become the worlds largest fast-feeder. The fast-food giants more than 32,000 restaurants universal now make 60 million customers each day, racking up system-wide sales of more than $79 billion annually. In the mid-1990s, however, McDonalds fortunes began to turn. The society appeared to fall out of touch with both its mission and its customers.Americans were looking for fresher, better-tasting food and more contemporary atmospheres. They were also seeking healthier eating options. In a new age of health-conscious consumers and $3 muffin and coffee at Starbucks, McDonalds seemed a bit out of step with the times. McDonalds was try to find its identity among its competitors and changing consumer tastes. The company careened from one failed idea to another. It tried and true to keep pace. None of these things worked.However, McDonalds keep turn outing new restaurants at a ferocious pace, as many as 2,000per year. The new stores helped sales, just customer service and cleanliness declined because the company couldnt hire and train good workers fast enough. Meanwhile, McDonalds increasingly became a target for animal-rights activists, surroundalists, and nutritionists, who accused the chain of contributing to the nations obesity epidemic with super size of it French fries and sodas as well as Happy Meals that allure kids with the reward of free toys.Altho ugh McDonalds remained the worlds most visited fast-food chain, sales growth slumped, and its market share fell by more than 3 percent between 1997 and 2003. In 2002, the company posted its first-ever quarterly loss. In early 2003, a troubled McDonalds announced a about-face planwhat it now calls its program to Win. At the heart of this plan was a new mission statement that refocused the company on its customers. The companys mission was changed from existence the worlds best quick-service restaurant to being our customers favorite place and way to eat.The new plan centered on five basics of an exceptional customer experience people, products, place, price, and promotion. Under the Plan to Win, the goal was to get better, not just bigger. The company invested in alter the food, the service, the atmosphere, and marketing at existing outlets. McDonalds redecorated its restaurants with clean, simple, more-modern interiors and amenities such as live plants, wireless Internet acces s, and flat-screen TVs showing cable news.Play areas in some(prenominal) new restaurants now feature word picture games and even stationary bicycles with video screens. To make the customer experience more convenient, McDonalds stores now open earlier to extend breakfast hours and stay open longer to serve late-night dinersmore than one-third of McDonalds restaurants are now open 24 hours a day. Moreover, MacDonald added healthier options, such as Chicken McNuggets made with sporty meat, a line of Snack Wraps, low-fat milk jugs, apple slices, Premium Salads.In 2008, when the personal line of credit market lost one-third of its valuethe worst loss since the smashing Depression McDonalds stock gained nearly 6 percent. Through 2010, as the economy and the restaurant industry as a whole continued to struggle, McDonalds outperformed its competitors by a notable margin. QUESTIONS 1. What are the main environmental factors that affected MacDonald marketing strategy and way of doing bu siness? 2. How MacDonald responded to the changing environment? (How these changes affected its marketing mix? )