Course: Strategic pricing decision

Good evening, please your support with this question according to the data of the case:

Case: McDONALD'S: THE HAMBURGER PRICE WARS

https://www.filesharesite.com/files/202107/1626792039McDonalds_Price_Wars-UVA.pdf.html

Question:

1. Let's suppose that when the "Dollar Menu" is launched, "Extra Value Meal" sales drop 25% and that each "Extra Value Meal" that is discontinued is replaced with a "BigNTasty, some potatoes and a drink", from "Value Menu". By what percentage (%) do "Value Menu" sales vary? And the margin (what about the margin)? How comfortable are they with your analysis?

Identify the answers to the 3 internal questions (percentage, margin, analysis) of the general question.

 

Answer rating: 100% (QA)

To answer the specific question regarding the variation in Value Menu sales and margin after the launch of the Dollar Menu we need to analyze the case ... View the full answer