McDonalds is a fast food restaurant that services million of people around the globe daily. McDonalds are franchises. A franchise is the “license to sell another product or use of another’s name in business or both”((Ferrell, Hint, & Ferrell, 2009). McDonalds in the small business category as each store is owned by the franchise. Starting a small business can be risky, as most small businesses the individual is an entrepreneur. Being part of a franchise such as McDonalds, the entrepreneur can lose their desire to be creative, as they have to follow the guidelines of the franchisee. In the McDonald’s 24/7 turnaround case study, the McDonalds (franchisee) approach to stabilize sales in the early 2000’s can have a negative disadvantage to privately owned stores. The franchiser
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McDonald’s decided to bring in a former McDonald’s decided Jim Cantalupo to implement and resuscitate the McDonalds vision. Cantalupo’s vision was to go to the basic things that bring back customer retention such as clean bathrooms, good service, and quality food. In an interview with Wall Street Journal, Jim Cantalupo stated he removed “initiatives going on within the company that did not focus our restaurants or our customers” (WSJ, 2004). McDonalds also utilized another strategic concept called Value innovation, value innovation is where a business see’s the business “through the customer 's eyes and focuses on significantly differentiating your business strategy from that of your competitors.” McDonald also implemented a 24/7 store hours which targeted late night customers, this cut down the cost of closing a store each night. McDonald also increased their quality of food not just implementing salads but also offering more chicken items to the menu. Quality is an crucial part of profits and stock prices, when a company does not offer quality products, customer will notice and this can harm the
McDonald’s decided to bring in a former McDonald’s decided Jim Cantalupo to implement and resuscitate the McDonalds vision. Cantalupo’s vision was to go to the basic things that bring back customer retention such as clean bathrooms, good service, and quality food. In an interview with Wall Street Journal, Jim Cantalupo stated he removed “initiatives going on within the company that did not focus our restaurants or our customers” (WSJ, 2004). McDonalds also utilized another strategic concept called Value innovation, value innovation is where a business see’s the business “through the customer 's eyes and focuses on significantly differentiating your business strategy from that of your competitors.” McDonald also implemented a 24/7 store hours which targeted late night customers, this cut down the cost of closing a store each night. McDonald also increased their quality of food not just implementing salads but also offering more chicken items to the menu. Quality is an crucial part of profits and stock prices, when a company does not offer quality products, customer will notice and this can harm the