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Mcdonald’s Case Study

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What other strategies did McDonald’s formulate to achieve a competitive advantage? What steps did Skinner take to fix the problems that McDonalds faced? * Plan to Win strategy – outlined by James R. Cantalupo after an aggressive expansion went poorly. The core of the plan was to improve individual store sales by improvements to the menu, refurbishing and extending hours. * Pricing strategies to keep the firm competitive but still keep margins healthy, such key menu items as the dollar menu which account for 15% of sales need attention and rebranding from time to time. Ex. The double cheese burger being replaced with the McDouble, as cheaper version of the sandwich. * Introduction of healthy meal options was atop Skinners list. This began with more chicken items and an emphasis on its new salad offerings. * Adding coffee-based drinks was also the largest menu expansion in many decades. * Created a new marketing strategy “I’m loving it” in order to appeal to all target audiences without alienating any one group. Coming out of the first recession in 2002, McDonald’s was struggling with franchise quality and over customer appreciation.

In order to regain the competitive advantage the firm once held, Skinner began a series of programs aimed to help both revamp the menu and improve the quality of all the franchise locations. First order of business was to carry on the successful program originated by former CEO James Cantalupo which targeted failing franchises and improving customer satisfaction. Once the foundation of the firm had been restored, McDonalds could focus on regaining their competitive advantage in the fast food market with improving their menu choices. Skinner launched several new programs aimed at rebranding McDonalds as a healthy food option, among them new salads, apple and vegetable side options, and more chicken sandwich options. With healthier menu items, and a focus on improved coffee-based drink options, McDonalds was well on its way to regaining its dominance in the fast food marketplace. Skinner’s focus on rebranding McDonalds as a happy, healthy, family restaurant was the key strategic focus during his tenure.

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