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understands that health trend is an increasingly popular trend therefore;
the organization has recently focused extraordinary efforts to promote
their new nutritious choices. Although not specifically built into the
organization¶s vision, McDonald¶s has already introduced many options to
achieve this goal.
In the United States, ³Go-Active´ meals have been offered within the last
few years. These meals include a salad, bottled water, and a ³step-ometer´ to help customers keep track of how many steps they take a day.
Other countries have seen similar healthy options. The United Kingdom
saw fresh fruit bags, containing apples and grapes, as an alternative to
French fries. Not only does McDonald¶s care about its customers, but it is
also considerate of its employees¶ health. In Europe, the organization
worked with external nutritionists to develop an ³Employee Guidebook´
which contains tips and nutrition information for healthy lifestyles.
McDonald¶s has assembled their Global Advisory Council on Balanced
Lifestyles. This council consists of exercise & obesity spets,
environmentalists, and other professionals to ensure that McDonald¶s
takes appropriate steps in helping its customers achieve optimal health. 47 | P a g e The company is also utilizing technology to their advantage. The current
McDonald¶s website lets a user select any combination of menu items,
place the items in the online bag, and conduct a nutritional analysis on
their selections. The user can break down the analysis even further than
a menu item, down individual condiments, including ketchup; pickles etc.
Not only has the company introduced many steps to ensure nutrition, but
it will strive to continue the trend toward nutrition. McDonald¶s plans to
add additional healthy menu options (fruits and vegetables) increase
nutrition awareness among McDonald¶s employees; conceive new ways
to deliver nutrition information to its customers, and other actions. CHANGE IN STRATEGY
Made for You
McDonald¶s organization recently underwent drastic strategy changes to
serve better to their customers. Under their ³old system,´ the company
would make several sandwiches at once, and hold the sandwiches in a
warming bin until purchased by a customer. Under this system,
management had to accurately predict how much food had to be put on
hold. Accurate prediction had to be used because if there were not
enough food placed on hold, this would create the problem of increase
waiting times for customers, and too much food would cause waste of
48 | P a g e expired items. McDonald¶s dramatically changed their strategy in order to
stay competitive with other fast food organizations.
In 1999, McDonald¶s spent $181 million to introduce their ³Made for You´
system. Under this new system, standard food items are not held in a bin
until they are sold. In the ³Made for You´ system, modern technology
greatly assists McDonald¶s operations. When a customer places an
order, the sandwich items are immediately displayed on a computer
monitor in the kitchen and a tone sounds to alert the kitchen staff.
Upon a new order, an employee in the kitchen will toast the bun, and
assemble the sandwich accordingly.
Standard items simply list the name of the sandwich, while customized
orders list the sandwich name and the desired condiments. Once the
sandwich is assembled, it is presented to the food loading area, where a
different staff person retrieves the sandwich and completes the order by
adding French fries, desserts, etc. The system works the same for front
counter orders as well as drive-thru orders.
Unfortunately, the introduction of the ³Made for You´ system did not come
easily. McDonald¶s watched its customer satisfaction drop for the three
consecutive years beginning in 1999.
After further research, they realized that although the new system
provided fresher food, it was not as quick as the previous system. Instead
of reverting back to the old system, McDonald¶s continues to fine tune
³Made for You´ and add new options to help the system work faster.
In order to cope with the first ever quarterly loss that resulted from
inefficient use of the Made-for-you-system McDonald¶s has devised a new
plan to increase profits. Previously, the corporation emphasized adding
49 | P a g e more restaurants to increase sales, but the new plan places emphasis on
increasing sales at existing restaurants.
The new plan will reduce spending, to enable more cash to shareholders
through dividends and share repurchases. Specific goals of the
revitalization plan are to:
y Attract new customers
Encourage existing customers to visit more often
Build brand loyalty
Create enduring profitable growth The main goal is to increase sales by creating an exceptional customer
experience. McDonald¶s plan is to achieve this goal by focusing on its
people, products, places, prices, and promotions.
Along with changes in their process strategies, McDonald¶s has flirted
with menu changes as well. Last year, they offered a ³...
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