2. Agenda
• Background Info and Current Strategy
• What could happen to McDonalds?
• Major Scenario with Recommendations
• Implications of Recommendations
4. Current Strategy
McDonald’s vision is to
be the world’s best
quick service restaurant
experience
Logistics, Operations, Marketing,
Service, R&D, HRM, and Corporate
Governance
7. Workers Walking off the Job
McDonalds is a part-time and low-
wage workforce, keeping our costs
low
Issue a public apology and increase the
minimum wage by 50 cents per hour
8. Tax on Unhealthy
Food
Unhealthily fatty food will
make McDonald’s too
expensive and undesirable for
consumer, and profits will
decrease
Actively involved in
athletic endeavors to
give brand an athletic
image
9. Tax on Unhealthy Food
Add campaign to portray
McDonald’s food as
wholesome supplier of food
Improve materials management
10. MGMT 4000 Scenario
It’s official. McDonald’s food has been considered as cancerous
by multiple new studies. The US government, under extreme
pressure by the public, decides to regulate the company’s
activities. This is a huge hit to the company’s supply and sales,
and of course, their brand, and revenue. What strategic options
are available to McDonald’s? What recommendations do you
make?
11. Alternative 1 – Switching Suppliers
Extremely expensive (short-term)
process but will pay off in revenue
increases and help rebuild brand
perception
Causes loss of expertiseGain better management of
the outsourced activity.
Gain strategic optimization
12. Alternative 2 - Research
Difficult task to
identify the cause
Start to simplify
the menu
Continue re-branding
13. Alternative 3 – Media Campaign
Focus on
improvements
Fixed the
Issue
Marketing
tactics and
social media
