I.
Members
GROUP #2
Ma. Trecia S. Rocero (Leader)
Adrian Luoise Biaño
Lee Yanah Caño
Sherwin Khen Corcelles
Jazel Lopez
Kimberly Maregmen
Pamela Pelligas
Cristopher James Tadeo
Kent Obenza
II. Title of the Case: McDonald's 2017
III. Facts of the Case:
1. McDonald's faced declining sales and struggled with adapting to changing consumer
preferences.
2. Increased competition from fast-casual chains and health-conscious trends posed significant
challenges.
3. The company's stock price had been underperforming compared to its competitors.
4. McDonald's, a global fast-food giant, faced numerous challenges in 2017.
5. These challenges included declining sales in certain markets, increased competition from both
traditional fast-food chains and emerging healthier options, changing consumer preferences,
and operational inefficiencies.
6. Additionally, there were concerns about the company's ability to adapt to digitalization and
technological advancements in the industry.
III. Problem: McDonald's needed to revitalize its strategy to regain market share and appeal to
modern consumers while addressing internal operational issues. The primary problem
McDonald's faced was sustaining its market position and profitability in the face of these
challenges while simultaneously adapting to changing consumer trends and technological
advancements. The company needed to develop a strategy that would address these issues and
position itself for future success.
Strengths:
● Global brand recognition, extensive franchise network, operational efficiency.
● Strong brand recognition and global presence
● Established supply chain and operational infrastructure
● Wide range of menu offerings
● Existing loyal customer base
Weaknesses:
Declining sales in certain markets
Perception of unhealthy food options
Slow adaptation to digitalization and technological advancements
Operational inefficiencies
Opportunities:
Expanding into new markets
Introducing healthier menu options
Enhancing digital presence and technology integration
Streamlining operations for efficiency gains
Threats:
Intense competition from both traditional fast-food chains and emerging healthier options
Changing consumer preferences towards healthier and more sustainable food choices
Regulatory pressures on the fast-food industry
Economic uncertainties impacting consumer spending
VI. Courses of Action:
1. Menu Innovation: Introduce healthier menu options to cater to changing consumer preferences.
This could include adding more salads, wraps, and plant-based alternatives to the menu.
2. Digital Transformation: Invest in digitalization and technology to enhance customer experience
and streamline operations. This could involve implementing mobile ordering, self-service kiosks,
and delivery services.
3. Operational Efficiency: Identify and address operational inefficiencies to improve speed and
quality of service. This could include optimizing the supply chain, redesigning restaurant layouts
for better workflow, and implementing employee training programs.
4. Marketing and Branding: Launch marketing campaigns to reinforce McDonald's commitment to
innovation, quality, and sustainability. This could involve partnerships with local farmers,
transparent sourcing practices, and community engagement initiatives.
5. International Expansion: Explore opportunities for expansion into new markets with growth
potential. This could include emerging markets in Asia, Africa, and Latin America, as well as
urban areas with dense populations and high consumer demand.
VII. Description of the Future State: In the future state, McDonald's is positioned as a leader in the fast-
food industry, known for its commitment to innovation, quality, and sustainability. The company has
successfully adapted to changing consumer trends and technological advancements, offering a diverse
menu that includes healthier options alongside traditional favorites. McDonald's digital presence is
robust, with a seamless omni channel experience for customers, including mobile ordering, delivery, and
loyalty programs. Operationally, the company has streamlined processes and optimized efficiency
throughout its supply chain and restaurant operations. With a strong brand reputation and global
presence, McDonald's continues to expand into new markets while maintaining profitability and
shareholder value.
VIII. Documentation: References:
Figure 1
