McDonalds :: essays research papers

I.IntroductionMcDonalds has always been a leader in the fast fodder industry. Through its dynamic market expansion, new products and special promotional strategies, it has succeeded in making a name for itself in the minds of the target customers. However, McDonalds earnings has declined in the late 1990s and 2000s. This is mainly due to a fiercely war-ridden industry and variety in customer tastes and preferences.II.Statement of the ProblemHow can McDonalds increase its sales, market share and profits in a fiercely warring industry?III.ObjectivesMcDonalds objectives are to reverse the decline of sales, to continue staying ahead of the competition in the fast food industry and to find new strategies that would help the restaurant successfully compete in the a fiercely competitive market.IV.Areas of ConsiderationSituationEating habits of Americans are changingYounger consumers are getting commonplace of fast food and are becoming wellness consciousGrowing dissatisfaction with th e quality aspect of fast food restaurants such as McDonaldsFast food is losing its sense of appeal to the large group of customers who frequently eat outEnvironmentanother segment of the fast-food industry is comprised of a non-hamburger restaurants, growing trend is miserable customers to non-burger sandwichesincrease in the fast-casual segment that includes restaurants that offer deli sandwiches and more upscale meals with more comfortable surroundings but fasterBackgroundMcDonalds has added new products on its menuAdvertising message focused on tasty and nutritious food, friendly folks and funInvested heavily in advertising and improving its everyday imageOpened first domestic McCafeCustomersrecognize the importance of drive-through customers (try to increase the speed of drive-through delivery)Importance of heavy users of fast-food restaurantsThreatsMcDonalds cheap and greasy imageMajor Competitors in the Hamburger SegmentBurger King Corp. that offers an array of value-priced offerings and makes kitchen and drive through upgradesHardees that continually introduce new items in the menu and join the price-promotion burger warsWendys supranational who has the strongest same-store-sales gains in recent yearsMajor Competitors in the Non-Hamburger SegmentPizza Hut that dominates the Pizza SegmentKFC that uses programs to attract kids and families to its food offeringsTaco Bell that behave successful high-priced offeringsV.Alternative Causes of Action & AnalysisIn todays market, McDonalds faces numerous challenges such as fierce competition, a more health conscious customer, and the continual need for improved customer satisfaction and menu. McDonalds needs to go through some changes in order to remain ahead in the fast-food industry. Alternative 1McDonalds should focus greatly on building good customer relationship and uphold customer retention. This is done by allocating time and cipher in improving their resources and making changes that actually cater to their customers needs and comfort.