Essay on Mcdonald Case

1110 Words 5 Pages
McDonald Case

Summary:
The food industry is a highly competitive market and midsize sit-down restaurant chains have been especially hard-hit as consumers cut back discretionary spending such as eating out due to the recent recession. McDonald’s however, has been very successful in a market that has proven very difficult for other restaurants; while most other restaurant chains are struggling to stay open McDonald’s has actually grown its sales and its profits. They’ve done this in part to their strategy of expanding their menu to healthier items and increasing their beverage, snack, and breakfast offerings. Another part of McDonald’s extraordinary success during the recent recession is the fact that half of its stores are located
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Solution(s):
McDonald’s can do a customer profitability analysis to determine if it’s gourmet coffee customers are profitable for them, or if the coffee line is a losing venture. They can do this through activity-based costing which can take into account both supplies and labor expense in maintaining the coffee offering, and also by analyzing what other types of items customers who purchase gourmet coffee might also purchase at the same time. McDonald’s can also look to grow the core by finding new channels to drive distribution and by offering their products in new formats or versions. This served them well in the snack and beverage area, and has the potential to continue to reap benefits if they can find the right group of products to add to its menu. They can identify potential products to add to their product line by using various marketing research methods. They can utilize secondary data or if there aren’t enough relevant sources already in existence for them to use then they will have to use primary data that they mine on their own.

Alternate/additional solution:
Since one of the time proven methods of growing the core include driving distribution through new channels, McDonald’s can also look to expand sales and possibly gain new customers by making it easier for people to both order and

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