BADM 533 - McDonalds Case - Case Write Up # 1: McDonalds...

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Problem Definition: Key Issues McDonald’s is known worldwide as an industry leader in the fast food industry. Declining sales over the past few years, prompted McDonald’s marketing team to begin research and implementation into new marketing strategies. Key issues to be considered include healthier menu offerings, more deli-style menu items, more “non-hamburger” menu items, quick drive-thru services, and an increase in sales overseas in the global market. Probably the largest contributing market disadvantage for McDonalds’s is their image of a fast food, burger-and-fries restaurant. The fast-food industry as a whole has received much criticism for their many high-calorie menu items. As the industry leader, this puts McDonald’s in a position to be the primary target of criticism. While some non-burger fast-food restaurants may have healthy choices already established and well known within their menu options, McDonald’s and other burger chains have had to reconsider their offerings in order to provide healthier choices for consumers. In addition, restaurants such as Taco Bell, KFC, and Pizza Hut continue to be very competitive with their “non-burger” items such as chicken, tacos, pizza, pasta, and salads. Many consumers, who want a better quality food, have turned to such restaurants as Boston Market and Panera Bread Company, now categorized as “fast-casual”. These restaurants offer deli-style menu items, more upscale than fast food chains such as McDonalds, and much faster service than other upscale restaurants with similar quality food items. Overseas, McDonald’s has ventured to such countries as China, however competition still abounds. Prior to McDonald’s first restaurant opening in China, the majority of Chinese consumers had never been to a fast food hamburger chain. This was a disadvantage at first, due to the mainstream culture that existed, where most consumers ate at home or dined inside. Many
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This note was uploaded on 02/01/2011 for the course B ADM 512 taught by Professor Thomsmargaretan during the Fall '08 term at Pennsylvania State University, University Park.

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BADM 533 - McDonalds Case - Case Write Up # 1: McDonalds...

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