6926242 - McDonalds Background to change: It was in the...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
McDonalds Background to change: It was in the year 1996, when McDonalds experienced declining sales consecutively for four quarters, which continued till the year 2004. The company was losing its image and was not bale to focus on providing ‘Great American Meal’. McDonalds did not remain one of the favourite destinations for food lovers across the globe. The company was being targeted for its low quality, and decreasing customer satisfaction and high obesity food. Different lawsuits were filed against McDonald’s Big Macs and Happy Meal and he consumers filed a suit against McDonalds as of the major reasons which is running the health of Americans and people around the world. The company started losing its market share. The company experienced the high time low volume in its shares in the year 2003. The company reported its first loss of $343.8 million in the year 2003 in the first quarter since its inception in 1965. The continuous decrease in sales, loosing market share and drifting of consumers to other brands such as burger king and Wendy, made McDonalds to rethink its strategy and worked on a turnaround plan in the year 2003 under the leadership of Jim Cantalupo. The company made a new strategy and focused on that and the company was successful in turning McDonalds around by mid 2004. The company was able to increase its profits by 25% by the quarter ending in July’ 2004. This was one of the fastest turnarounds of the world. Various Organizational Development Interventions: After the continuous losing market share and decreasing profits, the company focused on new strategy i.e. ‘ Plan to Win’. It focused on increasing the sales from the existing stores and did not focus on expansion. The company also changed its advertising campaign and introduced the
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
slogan ‘I’m loving it’, the advertisement was made featuring Jastin Timberlake, with a motive to attract more and more youngsters towards the store, the company focused on building a connection with the younger generation. The company also introduced a new product line in its menus which were healthy, the company introduced salad menus. With this the company was able to attract female customers who were health conscious. The company focused on providing healthier menus to its consumers, the company focused on quality and taste of the products. “McDonald’s newer goals is “loved by kids, approved by moms,” focusing their nutritional efforts on these two key customer groups”.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/01/2012 for the course ECON 101 taught by Professor Doc during the Spring '11 term at Yale.

Page1 / 6

6926242 - McDonalds Background to change: It was in the...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online