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DePaul University McDonalds Success Case Study
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ESSAY- Essay
How long has it been since you ate at McDonald’s? Was it a good experience when you did? Did you think the food was good? A good number of customers might not answer “yes” to either of those questions and with good reasons.
Since 2015, McDonald’s has undertaken a range of strategic initiatives in an attempted turnaround of the company, which this case study details. Yet while share price had almost doubled by the spring of 2019, growth in the United States was almost nonexistent by the end of 2019.
The case is written from the perspective of Chris Kempczinski, who had joined McDonald’s from Kraft Foods in the fall of 2015. By the spring of 2016, Kempczinski had been promoted to CEO of McDonald’s USA, and along with the then CEO, Steve Easterbrook, they worked tirelessly to turn McDonald’s fortunes around. After Easterbrook’s sudden termination, Kempczinski took over the company and began dealing with innumerable challenges that face not only McDonald’s but the wider quick service restaurant industry.
As with all Case Analyses, there are no right answers to the Case Questions that I have provided. Just be sure to support your point of view by providing evidence from the case and applying concepts from the material we have been covering. This case draws on information from the Innovation and Change, the Planning and especially the Strategy Chapters so as stated in the Case Guidelines and Grading Rubric, please be sure to include ten ideas from these chapters in your paper.
You might find it interesting to read this recent article “Covid-19 Restrictions Dent McDonald’s Global Business” from the January 28th, 2021 Wall Street Journal.
https://www.wsj.com/articles/covid-19-restrictions-dent-mcdonalds-global-business-11611835213 (Links to an external site.)
Case Study Analysis Guidelines
Write your case analysis as if you were a Consultant preparing a written report of the situation for senior management. Write in the third person and past tense.
Do not ever use “I think,” “I believe,” or “In my opinion” because as a management professional you know, rather than think what is correct.
Double space the case analysis and ensure that there are no spelling, grammar, punctuation or syntax flaws.
Begin with a brief introduction and end with a brief conclusion.
Adhere to the 3 page guideline; analyses which are longer than 4 pages tend to repeat too many details from the case.
Answer every question that is asked in each Case Analysis Questions sheet.
Support your answers which require evaluation and critical thinking with specific facts or details from the case and concepts from our course material that support your point of view.
You may support your Analysis with references to outside sources including the text book. A Reference Sheet is required at the end of your Analysis which includes the case itself.
Offering an update on the case from the current business press can improve your final grade but this is not required. Always remember to cite any external sources, including the case and the text.
Answer all questions in a Word
Having reviewed McDonald’s brief history under successive CEO’s, briefly describe the Strategic issues that Chris Kempczinski needs to address, considering the perspectives of: the Customer, the Company and the Competition.
What are McDonald’s Core Competencies? (Remember! Core Competencies are invisible, unique strengths developed by an organization over a long time that lie deep within the firm.) Support your answer by introducing data from the case that supports your point of view.
What is McDonald’s business model? How does McDonald’s make money? What are its four primary revenue streams? Why does McDonald not own their stores like Starbucks or Chipotle, etc.?
Which trends in McDonald’s external environment are likely to have the greatest impact on the company’s ability to sustain a competitive advantage?
What is Mc Donald’s strategy? Has it changed over the last few decades, and if so how?
What are the most important current challenges must McDonald’s overcome to be successful in their target markets? What should they do? In preparing your answer, also consider what they should not do.
Please remember to apply at least ten course concepts in your analysis to support your ideas, and cite your references. Feel free to introduce any current information on how McDonald’s is doing now.
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