Question: Read the case, analyze it and answer the questions: Do you think McDonald's was successful in 2008 and 2009? Why? What was this success due
Read the case, analyze it and answer the questions: Do you think McDonald's was successful in 2008 and 2009? Why? What was this success due to? Which companies did McDonald's overtake and how did it overtake them? At what level of strategy did McDonald's decide to change and why? Justify and explain each of the levels of strategy that changed and what each of them consisted of. Answer the questions completely and concisely. Provide clear examples, if necessary.
Case: McDonald's Please read the following case and answer the questions. Currently in "bad times," McDonald's ability to create value for its stakeholders (for example, customers, shareholders and employees) during the difficult times of the global recession that began more or less at the beginning of 2008 and continued through 2009 is really impressive. As an indicator of quality of its performance, consider the fact that during 2008 McDonald's and Walmart were the only two companies listed on the Dow. Jones Industrial Average which ended the year with a gain. With one of the most recognized brands in the world, in mid-2009 he found McDonald's operating approximately 32,000 restaurants in 118 countries. The largest fast food restaurant chain in the world, revenue per McDonald's sales were $70.7 billion in 2008, up from $64.1 billion million the previous year. The chain serves more than 58 million customers daily. McDonald's dominates the quick service restaurant industry in the United States United States, where its revenue is several times larger than Burger King and Wendy's,its closest competitors. This impressive performance of McDonald's as the first decade of the twenty-first century at this time came to an end and this suggests that the company you are not effectively implementing your strategy. (Strategy is defined as a integrated and coordinated system of a set of commitments and actions designed to exploit core competencies and gain a competitive advantage.) However, the image of McDonald's was much less positive in 2003. In that year, some analysts concluded that McDonald's "seemed obsolete "by not having realized the changes in the interests of its customers and needs.
The fact that the company reported its first ever quarterly loss in 2003 and the decline in its stock price of approximately $48 per share at $13 per share, suggested that McDonald's was becoming less competitive. However, by mid-2009 things had changed dramatically for McDonald's. Its shares were trading at around $60. How was this radical change achieved? After examining the deteriorating situation of their firm in 2003, the leaders McDonald's strategic decision-makers decided to change their strategy at the corporate level and perform different actions to implement your strategy at the business level. From a business-level strategy perspective, McDonald's has decided focus on product innovations and upgrades from your properties instead of continuing to rapidly expand the number of units, while relying almost exclusively on the basic products that had sold for many years as the source of their sales revenue. Since corporate-level perspective (corporate-level strategies), McDonald's has decided to be less diversified. To achieve this goal, the firm sold its interests in the Chipotle Mexican Grill restaurant concept and the chain and the Boston market where it sold its minority stake in Preta Manger also. Operationally, McDonald's begins to listen carefully to its customers, who demanded value for money and convenience, as well as healthy products. A analyst describes McDonald's response to what he was hearing from his customers this way: "McDonald's has eliminated the supersize option, which offers more premium salads and chicken sandwiches and has offered higher value options. Better training for employees was also started, extending hours of service and redesigned stores to attract customers younger consumers. However, as McDonald's experiences in the 2000s indicate, business success is never guaranteed. The probability that a company long-term success is indeterminate when strategic leaders assess constantly adapting the strategies of your firm, as well as the actions that are taken to put them into practice. With this in mind, McDonald's set out to continually offer products innovative food products to customers and created the Mc Caf in almost all places in the United States in 2009. McDonalds coffee beverages create value for customers by giving them high-quality beverages at prices that are often lower to those of competitors such as Starbucks. A southern-style chicken sandwich was also added to the signature chicken-based offerings. The company continues upgrading its existing stores and in anticipation of a global economy of Recovery. Strategic leaders appear to be committed to making strategic decisions. today to increase the probability that the firm will be more successful in the future as it was in the last years of the first decade of the 21st century
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