FRANk T. ROTHAERMEl JOHN kIM
McDonald’s Corporation
September 1, 2017. Steve Easterbrook walked into his office in the McDonald’s corporate headquar- ters in Oak Brook, Illinois. Now two and a half years into the job of McDonald’s CEO, he is starting to see some of his early turnaround initiatives show results.
His thoughts turned to Don Thompson, his predecessor and friend. Thompson was in the top job for less than three years, overseeing a more than four percent decline in customer traffic in 2014. In spring 2015, Thompson retired. Easterbrook hoped to avoid this fate. They had both started their careers at McDonald’s early in the 1990s and had climbed the corporate ladder together. Easterbrook had not taken personal joy in seeing either his friend and mentor, or the company they both loved, struggle. Rather, he had hoped to take the helm at the company at its peak and then take it to new heights—not inheriting the corporate giant in a turnaround situation.
The company’s troubles had snowballed quickly. In 2011, McDonald’s had outperformed nearly all its competitors while benefitting from the fallout of the great recession (2008–2010) as more custom- ers flocked to its low-cost meal options. In fact, McDonald’s was the number-one performing stock in the Dow 30 with a 34.7 percent total shareholder return.1 But in 2012, McDonald’s dropped to number 30 in the Dow 30 with a –10.75 percent annual return. The company went from first to last in twelve brief months. In 2012, McDonald’s’ sales growth dropped by 1.8 percent, the first monthly decline since 2003.2 Annual system-wide sales growth in 2012 barely met the minimum three percent goal, while operating income growth was just one percent compared to a goal of six to seven percent.3
Things went from bad to worse. Sales continued to decline over the next two years. Net income in 2014 fell almost 15 percent to $4.76 billion, representing the company’s first annual drop in “like-for- like” sales since 2002.4 By early 2015, McDonald’s shares had dropped below their 2012 price point, while the overall market was up by 50 percent.5
Things were not much better overseas. The weak global economy was a further drain on domestic sales.6 When the dollar was relatively weak, it had been an asset for the company to generate almost 70 percent of its revenues from other countries, but the dollar’s current strength made McDonald’s trademark products even more expensive for its international consumers.7 Asian sales were still recov- ering from a 2014 scandal, where a major Chinese meat supplier had been accused of selling expired meat to McDonald’s restaurants. European sales were also soft due to political problems in Russia. Several McDonald’s outlets had “failed” inspection and been shut down in retaliation for U.S. sanctions against Russia.8
Professors Frank T. Rothaermel and John kim prepared this case from public sources. The authors gratefully acknowledge the contributions of Marne Arthaud-Day ...
McDonald’s CorporationBy Frank T. Rothaermel & John KimSeptemb.docxjessiehampson
McDonald’s Corporation
By Frank T. Rothaermel & John Kim
September 1, 2017. Steve Easterbrook walked into his office in the McDonald’s corporate headquar-ters in Oak Brook, Illinois. Now two and a half years into the job of McDonald’s CEO, he is starting to see some of his early turnaround initiatives show results.
His thoughts turned to Don Thompson, his predecessor and friend. Thompson was in the top job for less than three years, overseeing a more than four percent decline in customer traffic in 2014. In spring 2015, Thompson retired. Easterbrook hoped to avoid this fate. They had both started their careers at McDonald’s early in the 1990s and had climbed the corporate ladder together. Easterbrook had not taken personal joy in seeing either his friend and mentor, or the company they both loved, struggle. Rather, he had hoped to take the helm at the company at its peak and then take it to new heights—not inheriting the corporate giant in a turnaround situation.
The company’s troubles had snowballed quickly. In 2011, McDonald’s had outperformed nearly all its competitors while benefitting from the fallout of the great recession (2008–2010) as more custom-ers flocked to its low-cost meal options. In fact, McDonald’s was the number-one performing stock in the Dow 30 with a 34.7 percent total shareholder return.1 But in 2012, McDonald’s dropped to number 30 in the Dow 30 with a –10.75 percent annual return. The company went from first to last in twelve brief months. In 2012, McDonald’s’ sales growth dropped by 1.8 percent, the first monthly decline since 2003.2 Annual system-wide sales growth in 2012 barely met the minimum three percent goal, while operating income growth was just one percent compared to a goal of six to seven percent.3
Things went from bad to worse. Sales continued to decline over the next two years. Net income in 2014 fell almost 15 percent to $4.76 billion, representing the company’s first annual drop in “like-for-like” sales since 2002.4 By early 2015, McDonald’s shares had dropped below their 2012 price point, while the overall market was up by 50 percent.5
Things were not much better overseas. The weak global economy was a further drain on domestic sales.6 When the dollar was relatively weak, it had been an asset for the company to generate almost 70 percent of its revenues from other countries, but the dollar’s current strength made McDonald’s trademark products even more expensive for its international consumers.7 Asian sales were still recovering from a 2014 scandal, where a major Chinese meat supplier had been accused of selling expired meat to McDonald’s restaurants. European sales were also soft due to political problems in Russia. Several McDonald’s outlets had “failed” inspection and been shut down in retaliation for U.S. sanctions against Russia.
Thompson had already tried revitalizing the menu (e.g., with the McWrap), eliminating poorly selling items, increasing customization, and restructuring U.S. operati.
McDonald’s CorporationBy Frank T. Rothaermel & John KimSeptemb.docxalfredacavx97
McDonald’s Corporation
By Frank T. Rothaermel & John Kim
September 1, 2017. Steve Easterbrook walked into his office in the McDonald’s corporate headquar-ters in Oak Brook, Illinois. Now two and a half years into the job of McDonald’s CEO, he is starting to see some of his early turnaround initiatives show results.
His thoughts turned to Don Thompson, his predecessor and friend. Thompson was in the top job for less than three years, overseeing a more than four percent decline in customer traffic in 2014. In spring 2015, Thompson retired. Easterbrook hoped to avoid this fate. They had both started their careers at McDonald’s early in the 1990s and had climbed the corporate ladder together. Easterbrook had not taken personal joy in seeing either his friend and mentor, or the company they both loved, struggle. Rather, he had hoped to take the helm at the company at its peak and then take it to new heights—not inheriting the corporate giant in a turnaround situation.
The company’s troubles had snowballed quickly. In 2011, McDonald’s had outperformed nearly all its competitors while benefitting from the fallout of the great recession (2008–2010) as more custom-ers flocked to its low-cost meal options. In fact, McDonald’s was the number-one performing stock in the Dow 30 with a 34.7 percent total shareholder return.1 But in 2012, McDonald’s dropped to number 30 in the Dow 30 with a –10.75 percent annual return. The company went from first to last in twelve brief months. In 2012, McDonald’s’ sales growth dropped by 1.8 percent, the first monthly decline since 2003.2 Annual system-wide sales growth in 2012 barely met the minimum three percent goal, while operating income growth was just one percent compared to a goal of six to seven percent.3
Things went from bad to worse. Sales continued to decline over the next two years. Net income in 2014 fell almost 15 percent to $4.76 billion, representing the company’s first annual drop in “like-for-like” sales since 2002.4 By early 2015, McDonald’s shares had dropped below their 2012 price point, while the overall market was up by 50 percent.5
Things were not much better overseas. The weak global economy was a further drain on domestic sales.6 When the dollar was relatively weak, it had been an asset for the company to generate almost 70 percent of its revenues from other countries, but the dollar’s current strength made McDonald’s trademark products even more expensive for its international consumers.7 Asian sales were still recovering from a 2014 scandal, where a major Chinese meat supplier had been accused of selling expired meat to McDonald’s restaurants. European sales were also soft due to political problems in Russia. Several McDonald’s outlets had “failed” inspection and been shut down in retaliation for U.S. sanctions against Russia.
Thompson had already tried revitalizing the menu (e.g., with the McWrap), eliminating poorly selling items, increasing customization, and restructuring U.S. operati.
FEBRUARY 24, 2013. Don Thompson looked over the 2012 Annual .docxtarifarmarie
FEBRUARY 24, 2013. Don Thompson looked over the 2012 Annual Report that was to be released to
McDonald’s shareholders the next day. This year had been a disappointment compared to the company’s past
success. In 2011, McDonald’s had outperformed nearly all of its competitors while riding the economic recovery
from a deep economic recession. In fact, McDonald’s was the number-one performing stock in the Dow 30 with
a 34.7 percent total shareholder return. 1 But in 2012, McDonald’s dropped to number 30 in the Dow 30 with a
–10.75 percent return. The company went from first to last in just 12 brief months (see Exhibit 1 ). As Thompson
read the report, he wondered how McDonald’s could win again.
This was not good news for Don Thompson, who became Chief Executive Officer (CEO) in July of 2012.
He replaced the popular Jim Skinner, who had been with the company for over 40 years. Skinner had guided
McDonald’s through the last decade with his “Plan to Win,” which was fundamental to McDonald’s continued
growth in a challenging economic environment. Breaking from McDonald’s historical emphasis on new store
growth, Skinner emphasized the importance of improving the food, service, and atmosphere at existing stores. 2
Instead of accumulating real estate, he modernized McDonald’s restaurants to create a more café-like ambience
and introduced new menu items that appealed to a more diverse customer base. 3
Thompson, who served as Chief Operating Officer (COO) and President of McDonald’s USA under Skinner,
had successfully implemented the first stages of “Plan to Win.” Now as CEO, his job was to build upon Skinner’s
success and continue to foster McDonald’s growth by focusing on three strategic goals: (1) optimizing and evolv-
ing the menu; (2) modernizing the customer experience; and (3) broadening accessibility to the brand. 4
Thompson knew that early results were well below expectations. In October 2012, McDonald’s sales growth
dropped by 1.8 percent, the first monthly decline since 2003. 5 Annual system-wide sales growth in 2012 barely
met the minimum 3 percent goal, while operating income growth was just 1 percent (compared to a goal of 6
to 7 percent). 6 Sales declined yet again in January and February of 2013. 7 Despite stock prices at relative highs,
McDonald’s was struggling to convince its cash-strapped customers to purchase more food, which was hamper-
ing the company’s free cash flows. Meanwhile, the weak global economy was dragging down its meager gains
in domestic sales. 8 When the dollar was relatively weak, it had been an asset for the company to generate almost
70 percent of its revenues from overseas, 9 but the dollar’s current strength made McDonald’s trademark products
even more expensive for its international consumers.
In addition, the company faced tough competition on multiple fronts. Traditional quick-service competitors
such as Burger King, Wendy’s, and Taco Bell h.
FEBRUARY 24, 2013. Don Thompson looked over the 2012 Annual .docxadkinspaige22
FEBRUARY 24, 2013. Don Thompson looked over the 2012 Annual Report that was to be released to
McDonald’s shareholders the next day. This year had been a disappointment compared to the company’s past
success. In 2011, McDonald’s had outperformed nearly all of its competitors while riding the economic recovery
from a deep economic recession. In fact, McDonald’s was the number-one performing stock in the Dow 30 with
a 34.7 percent total shareholder return. 1 But in 2012, McDonald’s dropped to number 30 in the Dow 30 with a
–10.75 percent return. The company went from first to last in just 12 brief months (see Exhibit 1 ). As Thompson
read the report, he wondered how McDonald’s could win again.
This was not good news for Don Thompson, who became Chief Executive Officer (CEO) in July of 2012.
He replaced the popular Jim Skinner, who had been with the company for over 40 years. Skinner had guided
McDonald’s through the last decade with his “Plan to Win,” which was fundamental to McDonald’s continued
growth in a challenging economic environment. Breaking from McDonald’s historical emphasis on new store
growth, Skinner emphasized the importance of improving the food, service, and atmosphere at existing stores. 2
Instead of accumulating real estate, he modernized McDonald’s restaurants to create a more café-like ambience
and introduced new menu items that appealed to a more diverse customer base. 3
Thompson, who served as Chief Operating Officer (COO) and President of McDonald’s USA under Skinner,
had successfully implemented the first stages of “Plan to Win.” Now as CEO, his job was to build upon Skinner’s
success and continue to foster McDonald’s growth by focusing on three strategic goals: (1) optimizing and evolv-
ing the menu; (2) modernizing the customer experience; and (3) broadening accessibility to the brand. 4
Thompson knew that early results were well below expectations. In October 2012, McDonald’s sales growth
dropped by 1.8 percent, the first monthly decline since 2003. 5 Annual system-wide sales growth in 2012 barely
met the minimum 3 percent goal, while operating income growth was just 1 percent (compared to a goal of 6
to 7 percent). 6 Sales declined yet again in January and February of 2013. 7 Despite stock prices at relative highs,
McDonald’s was struggling to convince its cash-strapped customers to purchase more food, which was hamper-
ing the company’s free cash flows. Meanwhile, the weak global economy was dragging down its meager gains
in domestic sales. 8 When the dollar was relatively weak, it had been an asset for the company to generate almost
70 percent of its revenues from overseas, 9 but the dollar’s current strength made McDonald’s trademark products
even more expensive for its international consumers.
In addition, the company faced tough competition on multiple fronts. Traditional quick-service competitors
such as Burger King, Wendy’s, and Taco Bell h.
FEBRUARY 24, 2013. Don Thompson looked over the 2012 Annual .docxShiraPrater50
FEBRUARY 24, 2013. Don Thompson looked over the 2012 Annual Report that was to be released to
McDonald’s shareholders the next day. This year had been a disappointment compared to the company’s past
success. In 2011, McDonald’s had outperformed nearly all of its competitors while riding the economic recovery
from a deep economic recession. In fact, McDonald’s was the number-one performing stock in the Dow 30 with
a 34.7 percent total shareholder return. 1 But in 2012, McDonald’s dropped to number 30 in the Dow 30 with a
–10.75 percent return. The company went from first to last in just 12 brief months (see Exhibit 1 ). As Thompson
read the report, he wondered how McDonald’s could win again.
This was not good news for Don Thompson, who became Chief Executive Officer (CEO) in July of 2012.
He replaced the popular Jim Skinner, who had been with the company for over 40 years. Skinner had guided
McDonald’s through the last decade with his “Plan to Win,” which was fundamental to McDonald’s continued
growth in a challenging economic environment. Breaking from McDonald’s historical emphasis on new store
growth, Skinner emphasized the importance of improving the food, service, and atmosphere at existing stores. 2
Instead of accumulating real estate, he modernized McDonald’s restaurants to create a more café-like ambience
and introduced new menu items that appealed to a more diverse customer base. 3
Thompson, who served as Chief Operating Officer (COO) and President of McDonald’s USA under Skinner,
had successfully implemented the first stages of “Plan to Win.” Now as CEO, his job was to build upon Skinner’s
success and continue to foster McDonald’s growth by focusing on three strategic goals: (1) optimizing and evolv-
ing the menu; (2) modernizing the customer experience; and (3) broadening accessibility to the brand. 4
Thompson knew that early results were well below expectations. In October 2012, McDonald’s sales growth
dropped by 1.8 percent, the first monthly decline since 2003. 5 Annual system-wide sales growth in 2012 barely
met the minimum 3 percent goal, while operating income growth was just 1 percent (compared to a goal of 6
to 7 percent). 6 Sales declined yet again in January and February of 2013. 7 Despite stock prices at relative highs,
McDonald’s was struggling to convince its cash-strapped customers to purchase more food, which was hamper-
ing the company’s free cash flows. Meanwhile, the weak global economy was dragging down its meager gains
in domestic sales. 8 When the dollar was relatively weak, it had been an asset for the company to generate almost
70 percent of its revenues from overseas, 9 but the dollar’s current strength made McDonald’s trademark products
even more expensive for its international consumers.
In addition, the company faced tough competition on multiple fronts. Traditional quick-service competitors
such as Burger King, Wendy’s, and Taco Bell h ...
FEBRUARY 24, 2013. Don Thompson looked over the 2012 Annual .docxaryan532920
FEBRUARY 24, 2013. Don Thompson looked over the 2012 Annual Report that was to be released to
McDonald’s shareholders the next day. This year had been a disappointment compared to the company’s past
success. In 2011, McDonald’s had outperformed nearly all of its competitors while riding the economic recovery
from a deep economic recession. In fact, McDonald’s was the number-one performing stock in the Dow 30 with
a 34.7 percent total shareholder return. 1 But in 2012, McDonald’s dropped to number 30 in the Dow 30 with a
–10.75 percent return. The company went from first to last in just 12 brief months (see Exhibit 1 ). As Thompson
read the report, he wondered how McDonald’s could win again.
This was not good news for Don Thompson, who became Chief Executive Officer (CEO) in July of 2012.
He replaced the popular Jim Skinner, who had been with the company for over 40 years. Skinner had guided
McDonald’s through the last decade with his “Plan to Win,” which was fundamental to McDonald’s continued
growth in a challenging economic environment. Breaking from McDonald’s historical emphasis on new store
growth, Skinner emphasized the importance of improving the food, service, and atmosphere at existing stores. 2
Instead of accumulating real estate, he modernized McDonald’s restaurants to create a more café-like ambience
and introduced new menu items that appealed to a more diverse customer base. 3
Thompson, who served as Chief Operating Officer (COO) and President of McDonald’s USA under Skinner,
had successfully implemented the first stages of “Plan to Win.” Now as CEO, his job was to build upon Skinner’s
success and continue to foster McDonald’s growth by focusing on three strategic goals: (1) optimizing and evolv-
ing the menu; (2) modernizing the customer experience; and (3) broadening accessibility to the brand. 4
Thompson knew that early results were well below expectations. In October 2012, McDonald’s sales growth
dropped by 1.8 percent, the first monthly decline since 2003. 5 Annual system-wide sales growth in 2012 barely
met the minimum 3 percent goal, while operating income growth was just 1 percent (compared to a goal of 6
to 7 percent). 6 Sales declined yet again in January and February of 2013. 7 Despite stock prices at relative highs,
McDonald’s was struggling to convince its cash-strapped customers to purchase more food, which was hamper-
ing the company’s free cash flows. Meanwhile, the weak global economy was dragging down its meager gains
in domestic sales. 8 When the dollar was relatively weak, it had been an asset for the company to generate almost
70 percent of its revenues from overseas, 9 but the dollar’s current strength made McDonald’s trademark products
even more expensive for its international consumers.
In addition, the company faced tough competition on multiple fronts. Traditional quick-service competitors
such as Burger King, Wendy’s, and Taco Bell h ...
McDonald’s CorporationBy Frank T. Rothaermel & John KimSeptemb.docxjessiehampson
McDonald’s Corporation
By Frank T. Rothaermel & John Kim
September 1, 2017. Steve Easterbrook walked into his office in the McDonald’s corporate headquar-ters in Oak Brook, Illinois. Now two and a half years into the job of McDonald’s CEO, he is starting to see some of his early turnaround initiatives show results.
His thoughts turned to Don Thompson, his predecessor and friend. Thompson was in the top job for less than three years, overseeing a more than four percent decline in customer traffic in 2014. In spring 2015, Thompson retired. Easterbrook hoped to avoid this fate. They had both started their careers at McDonald’s early in the 1990s and had climbed the corporate ladder together. Easterbrook had not taken personal joy in seeing either his friend and mentor, or the company they both loved, struggle. Rather, he had hoped to take the helm at the company at its peak and then take it to new heights—not inheriting the corporate giant in a turnaround situation.
The company’s troubles had snowballed quickly. In 2011, McDonald’s had outperformed nearly all its competitors while benefitting from the fallout of the great recession (2008–2010) as more custom-ers flocked to its low-cost meal options. In fact, McDonald’s was the number-one performing stock in the Dow 30 with a 34.7 percent total shareholder return.1 But in 2012, McDonald’s dropped to number 30 in the Dow 30 with a –10.75 percent annual return. The company went from first to last in twelve brief months. In 2012, McDonald’s’ sales growth dropped by 1.8 percent, the first monthly decline since 2003.2 Annual system-wide sales growth in 2012 barely met the minimum three percent goal, while operating income growth was just one percent compared to a goal of six to seven percent.3
Things went from bad to worse. Sales continued to decline over the next two years. Net income in 2014 fell almost 15 percent to $4.76 billion, representing the company’s first annual drop in “like-for-like” sales since 2002.4 By early 2015, McDonald’s shares had dropped below their 2012 price point, while the overall market was up by 50 percent.5
Things were not much better overseas. The weak global economy was a further drain on domestic sales.6 When the dollar was relatively weak, it had been an asset for the company to generate almost 70 percent of its revenues from other countries, but the dollar’s current strength made McDonald’s trademark products even more expensive for its international consumers.7 Asian sales were still recovering from a 2014 scandal, where a major Chinese meat supplier had been accused of selling expired meat to McDonald’s restaurants. European sales were also soft due to political problems in Russia. Several McDonald’s outlets had “failed” inspection and been shut down in retaliation for U.S. sanctions against Russia.
Thompson had already tried revitalizing the menu (e.g., with the McWrap), eliminating poorly selling items, increasing customization, and restructuring U.S. operati.
McDonald’s CorporationBy Frank T. Rothaermel & John KimSeptemb.docxalfredacavx97
McDonald’s Corporation
By Frank T. Rothaermel & John Kim
September 1, 2017. Steve Easterbrook walked into his office in the McDonald’s corporate headquar-ters in Oak Brook, Illinois. Now two and a half years into the job of McDonald’s CEO, he is starting to see some of his early turnaround initiatives show results.
His thoughts turned to Don Thompson, his predecessor and friend. Thompson was in the top job for less than three years, overseeing a more than four percent decline in customer traffic in 2014. In spring 2015, Thompson retired. Easterbrook hoped to avoid this fate. They had both started their careers at McDonald’s early in the 1990s and had climbed the corporate ladder together. Easterbrook had not taken personal joy in seeing either his friend and mentor, or the company they both loved, struggle. Rather, he had hoped to take the helm at the company at its peak and then take it to new heights—not inheriting the corporate giant in a turnaround situation.
The company’s troubles had snowballed quickly. In 2011, McDonald’s had outperformed nearly all its competitors while benefitting from the fallout of the great recession (2008–2010) as more custom-ers flocked to its low-cost meal options. In fact, McDonald’s was the number-one performing stock in the Dow 30 with a 34.7 percent total shareholder return.1 But in 2012, McDonald’s dropped to number 30 in the Dow 30 with a –10.75 percent annual return. The company went from first to last in twelve brief months. In 2012, McDonald’s’ sales growth dropped by 1.8 percent, the first monthly decline since 2003.2 Annual system-wide sales growth in 2012 barely met the minimum three percent goal, while operating income growth was just one percent compared to a goal of six to seven percent.3
Things went from bad to worse. Sales continued to decline over the next two years. Net income in 2014 fell almost 15 percent to $4.76 billion, representing the company’s first annual drop in “like-for-like” sales since 2002.4 By early 2015, McDonald’s shares had dropped below their 2012 price point, while the overall market was up by 50 percent.5
Things were not much better overseas. The weak global economy was a further drain on domestic sales.6 When the dollar was relatively weak, it had been an asset for the company to generate almost 70 percent of its revenues from other countries, but the dollar’s current strength made McDonald’s trademark products even more expensive for its international consumers.7 Asian sales were still recovering from a 2014 scandal, where a major Chinese meat supplier had been accused of selling expired meat to McDonald’s restaurants. European sales were also soft due to political problems in Russia. Several McDonald’s outlets had “failed” inspection and been shut down in retaliation for U.S. sanctions against Russia.
Thompson had already tried revitalizing the menu (e.g., with the McWrap), eliminating poorly selling items, increasing customization, and restructuring U.S. operati.
FEBRUARY 24, 2013. Don Thompson looked over the 2012 Annual .docxtarifarmarie
FEBRUARY 24, 2013. Don Thompson looked over the 2012 Annual Report that was to be released to
McDonald’s shareholders the next day. This year had been a disappointment compared to the company’s past
success. In 2011, McDonald’s had outperformed nearly all of its competitors while riding the economic recovery
from a deep economic recession. In fact, McDonald’s was the number-one performing stock in the Dow 30 with
a 34.7 percent total shareholder return. 1 But in 2012, McDonald’s dropped to number 30 in the Dow 30 with a
–10.75 percent return. The company went from first to last in just 12 brief months (see Exhibit 1 ). As Thompson
read the report, he wondered how McDonald’s could win again.
This was not good news for Don Thompson, who became Chief Executive Officer (CEO) in July of 2012.
He replaced the popular Jim Skinner, who had been with the company for over 40 years. Skinner had guided
McDonald’s through the last decade with his “Plan to Win,” which was fundamental to McDonald’s continued
growth in a challenging economic environment. Breaking from McDonald’s historical emphasis on new store
growth, Skinner emphasized the importance of improving the food, service, and atmosphere at existing stores. 2
Instead of accumulating real estate, he modernized McDonald’s restaurants to create a more café-like ambience
and introduced new menu items that appealed to a more diverse customer base. 3
Thompson, who served as Chief Operating Officer (COO) and President of McDonald’s USA under Skinner,
had successfully implemented the first stages of “Plan to Win.” Now as CEO, his job was to build upon Skinner’s
success and continue to foster McDonald’s growth by focusing on three strategic goals: (1) optimizing and evolv-
ing the menu; (2) modernizing the customer experience; and (3) broadening accessibility to the brand. 4
Thompson knew that early results were well below expectations. In October 2012, McDonald’s sales growth
dropped by 1.8 percent, the first monthly decline since 2003. 5 Annual system-wide sales growth in 2012 barely
met the minimum 3 percent goal, while operating income growth was just 1 percent (compared to a goal of 6
to 7 percent). 6 Sales declined yet again in January and February of 2013. 7 Despite stock prices at relative highs,
McDonald’s was struggling to convince its cash-strapped customers to purchase more food, which was hamper-
ing the company’s free cash flows. Meanwhile, the weak global economy was dragging down its meager gains
in domestic sales. 8 When the dollar was relatively weak, it had been an asset for the company to generate almost
70 percent of its revenues from overseas, 9 but the dollar’s current strength made McDonald’s trademark products
even more expensive for its international consumers.
In addition, the company faced tough competition on multiple fronts. Traditional quick-service competitors
such as Burger King, Wendy’s, and Taco Bell h.
FEBRUARY 24, 2013. Don Thompson looked over the 2012 Annual .docxadkinspaige22
FEBRUARY 24, 2013. Don Thompson looked over the 2012 Annual Report that was to be released to
McDonald’s shareholders the next day. This year had been a disappointment compared to the company’s past
success. In 2011, McDonald’s had outperformed nearly all of its competitors while riding the economic recovery
from a deep economic recession. In fact, McDonald’s was the number-one performing stock in the Dow 30 with
a 34.7 percent total shareholder return. 1 But in 2012, McDonald’s dropped to number 30 in the Dow 30 with a
–10.75 percent return. The company went from first to last in just 12 brief months (see Exhibit 1 ). As Thompson
read the report, he wondered how McDonald’s could win again.
This was not good news for Don Thompson, who became Chief Executive Officer (CEO) in July of 2012.
He replaced the popular Jim Skinner, who had been with the company for over 40 years. Skinner had guided
McDonald’s through the last decade with his “Plan to Win,” which was fundamental to McDonald’s continued
growth in a challenging economic environment. Breaking from McDonald’s historical emphasis on new store
growth, Skinner emphasized the importance of improving the food, service, and atmosphere at existing stores. 2
Instead of accumulating real estate, he modernized McDonald’s restaurants to create a more café-like ambience
and introduced new menu items that appealed to a more diverse customer base. 3
Thompson, who served as Chief Operating Officer (COO) and President of McDonald’s USA under Skinner,
had successfully implemented the first stages of “Plan to Win.” Now as CEO, his job was to build upon Skinner’s
success and continue to foster McDonald’s growth by focusing on three strategic goals: (1) optimizing and evolv-
ing the menu; (2) modernizing the customer experience; and (3) broadening accessibility to the brand. 4
Thompson knew that early results were well below expectations. In October 2012, McDonald’s sales growth
dropped by 1.8 percent, the first monthly decline since 2003. 5 Annual system-wide sales growth in 2012 barely
met the minimum 3 percent goal, while operating income growth was just 1 percent (compared to a goal of 6
to 7 percent). 6 Sales declined yet again in January and February of 2013. 7 Despite stock prices at relative highs,
McDonald’s was struggling to convince its cash-strapped customers to purchase more food, which was hamper-
ing the company’s free cash flows. Meanwhile, the weak global economy was dragging down its meager gains
in domestic sales. 8 When the dollar was relatively weak, it had been an asset for the company to generate almost
70 percent of its revenues from overseas, 9 but the dollar’s current strength made McDonald’s trademark products
even more expensive for its international consumers.
In addition, the company faced tough competition on multiple fronts. Traditional quick-service competitors
such as Burger King, Wendy’s, and Taco Bell h.
FEBRUARY 24, 2013. Don Thompson looked over the 2012 Annual .docxShiraPrater50
FEBRUARY 24, 2013. Don Thompson looked over the 2012 Annual Report that was to be released to
McDonald’s shareholders the next day. This year had been a disappointment compared to the company’s past
success. In 2011, McDonald’s had outperformed nearly all of its competitors while riding the economic recovery
from a deep economic recession. In fact, McDonald’s was the number-one performing stock in the Dow 30 with
a 34.7 percent total shareholder return. 1 But in 2012, McDonald’s dropped to number 30 in the Dow 30 with a
–10.75 percent return. The company went from first to last in just 12 brief months (see Exhibit 1 ). As Thompson
read the report, he wondered how McDonald’s could win again.
This was not good news for Don Thompson, who became Chief Executive Officer (CEO) in July of 2012.
He replaced the popular Jim Skinner, who had been with the company for over 40 years. Skinner had guided
McDonald’s through the last decade with his “Plan to Win,” which was fundamental to McDonald’s continued
growth in a challenging economic environment. Breaking from McDonald’s historical emphasis on new store
growth, Skinner emphasized the importance of improving the food, service, and atmosphere at existing stores. 2
Instead of accumulating real estate, he modernized McDonald’s restaurants to create a more café-like ambience
and introduced new menu items that appealed to a more diverse customer base. 3
Thompson, who served as Chief Operating Officer (COO) and President of McDonald’s USA under Skinner,
had successfully implemented the first stages of “Plan to Win.” Now as CEO, his job was to build upon Skinner’s
success and continue to foster McDonald’s growth by focusing on three strategic goals: (1) optimizing and evolv-
ing the menu; (2) modernizing the customer experience; and (3) broadening accessibility to the brand. 4
Thompson knew that early results were well below expectations. In October 2012, McDonald’s sales growth
dropped by 1.8 percent, the first monthly decline since 2003. 5 Annual system-wide sales growth in 2012 barely
met the minimum 3 percent goal, while operating income growth was just 1 percent (compared to a goal of 6
to 7 percent). 6 Sales declined yet again in January and February of 2013. 7 Despite stock prices at relative highs,
McDonald’s was struggling to convince its cash-strapped customers to purchase more food, which was hamper-
ing the company’s free cash flows. Meanwhile, the weak global economy was dragging down its meager gains
in domestic sales. 8 When the dollar was relatively weak, it had been an asset for the company to generate almost
70 percent of its revenues from overseas, 9 but the dollar’s current strength made McDonald’s trademark products
even more expensive for its international consumers.
In addition, the company faced tough competition on multiple fronts. Traditional quick-service competitors
such as Burger King, Wendy’s, and Taco Bell h ...
FEBRUARY 24, 2013. Don Thompson looked over the 2012 Annual .docxaryan532920
FEBRUARY 24, 2013. Don Thompson looked over the 2012 Annual Report that was to be released to
McDonald’s shareholders the next day. This year had been a disappointment compared to the company’s past
success. In 2011, McDonald’s had outperformed nearly all of its competitors while riding the economic recovery
from a deep economic recession. In fact, McDonald’s was the number-one performing stock in the Dow 30 with
a 34.7 percent total shareholder return. 1 But in 2012, McDonald’s dropped to number 30 in the Dow 30 with a
–10.75 percent return. The company went from first to last in just 12 brief months (see Exhibit 1 ). As Thompson
read the report, he wondered how McDonald’s could win again.
This was not good news for Don Thompson, who became Chief Executive Officer (CEO) in July of 2012.
He replaced the popular Jim Skinner, who had been with the company for over 40 years. Skinner had guided
McDonald’s through the last decade with his “Plan to Win,” which was fundamental to McDonald’s continued
growth in a challenging economic environment. Breaking from McDonald’s historical emphasis on new store
growth, Skinner emphasized the importance of improving the food, service, and atmosphere at existing stores. 2
Instead of accumulating real estate, he modernized McDonald’s restaurants to create a more café-like ambience
and introduced new menu items that appealed to a more diverse customer base. 3
Thompson, who served as Chief Operating Officer (COO) and President of McDonald’s USA under Skinner,
had successfully implemented the first stages of “Plan to Win.” Now as CEO, his job was to build upon Skinner’s
success and continue to foster McDonald’s growth by focusing on three strategic goals: (1) optimizing and evolv-
ing the menu; (2) modernizing the customer experience; and (3) broadening accessibility to the brand. 4
Thompson knew that early results were well below expectations. In October 2012, McDonald’s sales growth
dropped by 1.8 percent, the first monthly decline since 2003. 5 Annual system-wide sales growth in 2012 barely
met the minimum 3 percent goal, while operating income growth was just 1 percent (compared to a goal of 6
to 7 percent). 6 Sales declined yet again in January and February of 2013. 7 Despite stock prices at relative highs,
McDonald’s was struggling to convince its cash-strapped customers to purchase more food, which was hamper-
ing the company’s free cash flows. Meanwhile, the weak global economy was dragging down its meager gains
in domestic sales. 8 When the dollar was relatively weak, it had been an asset for the company to generate almost
70 percent of its revenues from overseas, 9 but the dollar’s current strength made McDonald’s trademark products
even more expensive for its international consumers.
In addition, the company faced tough competition on multiple fronts. Traditional quick-service competitors
such as Burger King, Wendy’s, and Taco Bell h ...
This case was written by Dr. Sam DeMarie, Pam Manhart, and .docxMARRY7
This case was written by Dr. Sam DeMarie, Pam Manhart, and Dr. Charles B. Shrader all of the Department of Management,
College of Business, Iowa State University, December 28, 2010. It is intended to be used as a basis for classroom discussion
rather than as a demonstration of either effective or ineffective management of a situation. The dialog included in the case is
fictional and is for illustrative purposes only.
Samuel M. DeMarie, Pam Manhart and Charles B. Shrader
McDonald’s: From Big Mac to P’tit Plaisir
Introduction1, 2, 3
Jim Skinner, current CEO of McDonald’s Corporation, sat in his office and reflected on his
company’s recent experiences. The firm had overcome many obstacles in its quest to be viewed
as a valued business partner in each of its operating regions. The future looked bright.
Was it only a few short years ago that McDonald’s had been the focus of demonstrations and
sometimes violent protests? McDonald’s had doggedly used its tried and true business practice
of standardization to create a consistent customer experience throughout the world. This allowed
the company to become the world’s largest fast food restaurant business. Yet somehow this
previously sound business strategy had unintentionally led to the company becoming an icon for
much that was wrong with global business. Those were challenging times and required
significant changes to rebuild the global brand of McDonald’s.
As Skinner considered his company’s situation the phone rang. It was Cindy Goody, Director of
Nutrition for the company. Goody told Skinner about a troubling commercial she had just
finished watching on US television. In the commercial the iconic Golden Arches appear
shackled over the feet of a dead man with the caption ‘I was lovin’ it’. A hamburger is clutched
in his hand, and a woman weeps over his body. Goody, knew this was exactly the type of thing
she and Skinner thought they had defeated. The commercial, developed by the nonprofit group
Physicians Committee for Responsible Medicine, was the latest in a series of attempts to blame
fast food consumption for increasing rates of heart-disease and obesity. Frustrated but resolute,
Goody knew the company was now committed to providing balanced menu choices for
customers, and that many of its menu items were healthy while being reasonably priced. She felt
confident in the company’s new menu that reflected traditional American tastes but also
incorporated foods from around the world. The new, more expansive menu now included
everything from one-dollar burgers and snack wraps to moderately expensive salads, and was
gaining appeal to an ever widening range of customers.
2 Iowa State University College of Business
Goody had been instrumental in developing the healthier and more international menu over the
past few years. Her work entailed traveling the world for menu ideas, infusing the menu with
healthier items, and hirin ...
Notes One-inch margins on all sides. Times Roman text (12 pt.). S.docxvannagoforth
Notes: One-inch margins on all sides. Times Roman text (12 pt.). Single line spacing,
Blank lines only for paragraph separations. Separate Title page and Cited References page, MINIMUM of four full discussion (body) pages. Minimum means more is expected.
See Syllabus 3.2 Individual Project for a complete discussion and requirements.
Sample Paper Reference Only
This paper received an B+ grade based on the rubrics noted in the Syllabus 3.2
There are four and one-half discussion (body) pages in this specific document.
McDonald's Globalization Franchising Strategy
By Past Excellent Student
December X, 201X
Introduction: McDonald’s Origin and Background
“The success of McDonald's is the business equivalent of the American Dream” (Home, 1). Richard and Maurice McDonald, the founding brothers of McDonald’s, had a vision in their mind from the beginning. At first in 1940, they came up with the idea to completely move their father’s food stand into a completely new building and renamed it from “The Airdrome” to “McDonald’s Bar-B-Que” with twenty-five items listed on the menu. In October of 1948, after running their restaurant for a few years, they realized that most of their profits were from the hamburgers compared to their other menu items, therefore, they closed down this restaurant to open a more streamline restaurant with a simple menu of hamburgers, cheeseburgers, potato chips, coffee, soft drinks, and apple pie. After a year, they swapped the apple pie and potato chips with milkshakes and French fries. Eventually after continual improvement, they joined up with Ray Kroc, a seller of Prince Castle brand Multimixer Milkshake Machines, where the McDonald brothers were using eight of his machines, so Kroc went to check out their restaurant.
After visiting, Kroc believed in them and gave them the idea franchise their restaurants throughout the country. They were skeptical at first but eventually agreed with it and McDonald’s first franchise opened in Illinois in 1955. Eventually, Kroc bought out the McDonald brother for 2.7 million dollars and then the fast food restaurant really began to take off. Kroc realized he needed to create an image for the restaurant that would make it stand out compared to others. The main two aspects that McDonald’s adopted early on that made the chain restaurant stand out is the famous double arch “M” was created along with assigning Ronald McDonald to be the face for the restaurant. Nowadays, it does not matter where you are visiting a McDonalds because it will be a very similar experience regardless of the location. With that being said, that highlights the vision of Ray Kroc, which helps with their strategic approach and their global franchising for continuous success and growth within their fast food chain.
McDonald’s Growth
There are thousands of McDonald restaurants around the world, and they are still continuing to grow, which makes them one of the top franchising companies in the world. When Kr ...
McDonald’s Case Study | McDonald’s Pest Analysis | BusinessStrategic Manageme...MyAssignmenthelp.com
Get MBA marketing strategy case study help? McDonald’s pest analysis is given as case study to management students around the globe to understand its marketing and maintaining brand loyalty concepts. Myassignmenthelp.com helps MBA students to complete their case studies on business strategic management questions.
Contact Information:
Website: http://myassignmenthelp.com/
Mail Id: contact@myassignmenthelp.com
Phone No: +61-2-6100-384
Hai,this is Anusha. am looking for a help with my research.docxJeanmarieColbert3
Hai,
this is Anusha. am looking for a help with my research papers. subject is homeland security and contemporary issues and the topics are
1.Border security is key to immigration reform??
2.walls won't keep us safe
may i get it done by Thursday evening. and also lemme know the amount for both the papers. am also attaching the paper rubric here
thank you.
.
Guys I need your help with my international law class, Its a course.docxJeanmarieColbert3
Guys I need your help with my international law class, It's a course on International Law but it's not in essence a law course but part of the concentration I'm in, which is International Relations (in the School of Humanities and Social Sciences) my essay question is the following:
Are the jurisdictions of states absolute and unlimited?
.
More Related Content
Similar to FRANk T. ROTHAERMEl JOHN kIMMcDonald’s Corporation
This case was written by Dr. Sam DeMarie, Pam Manhart, and .docxMARRY7
This case was written by Dr. Sam DeMarie, Pam Manhart, and Dr. Charles B. Shrader all of the Department of Management,
College of Business, Iowa State University, December 28, 2010. It is intended to be used as a basis for classroom discussion
rather than as a demonstration of either effective or ineffective management of a situation. The dialog included in the case is
fictional and is for illustrative purposes only.
Samuel M. DeMarie, Pam Manhart and Charles B. Shrader
McDonald’s: From Big Mac to P’tit Plaisir
Introduction1, 2, 3
Jim Skinner, current CEO of McDonald’s Corporation, sat in his office and reflected on his
company’s recent experiences. The firm had overcome many obstacles in its quest to be viewed
as a valued business partner in each of its operating regions. The future looked bright.
Was it only a few short years ago that McDonald’s had been the focus of demonstrations and
sometimes violent protests? McDonald’s had doggedly used its tried and true business practice
of standardization to create a consistent customer experience throughout the world. This allowed
the company to become the world’s largest fast food restaurant business. Yet somehow this
previously sound business strategy had unintentionally led to the company becoming an icon for
much that was wrong with global business. Those were challenging times and required
significant changes to rebuild the global brand of McDonald’s.
As Skinner considered his company’s situation the phone rang. It was Cindy Goody, Director of
Nutrition for the company. Goody told Skinner about a troubling commercial she had just
finished watching on US television. In the commercial the iconic Golden Arches appear
shackled over the feet of a dead man with the caption ‘I was lovin’ it’. A hamburger is clutched
in his hand, and a woman weeps over his body. Goody, knew this was exactly the type of thing
she and Skinner thought they had defeated. The commercial, developed by the nonprofit group
Physicians Committee for Responsible Medicine, was the latest in a series of attempts to blame
fast food consumption for increasing rates of heart-disease and obesity. Frustrated but resolute,
Goody knew the company was now committed to providing balanced menu choices for
customers, and that many of its menu items were healthy while being reasonably priced. She felt
confident in the company’s new menu that reflected traditional American tastes but also
incorporated foods from around the world. The new, more expansive menu now included
everything from one-dollar burgers and snack wraps to moderately expensive salads, and was
gaining appeal to an ever widening range of customers.
2 Iowa State University College of Business
Goody had been instrumental in developing the healthier and more international menu over the
past few years. Her work entailed traveling the world for menu ideas, infusing the menu with
healthier items, and hirin ...
Notes One-inch margins on all sides. Times Roman text (12 pt.). S.docxvannagoforth
Notes: One-inch margins on all sides. Times Roman text (12 pt.). Single line spacing,
Blank lines only for paragraph separations. Separate Title page and Cited References page, MINIMUM of four full discussion (body) pages. Minimum means more is expected.
See Syllabus 3.2 Individual Project for a complete discussion and requirements.
Sample Paper Reference Only
This paper received an B+ grade based on the rubrics noted in the Syllabus 3.2
There are four and one-half discussion (body) pages in this specific document.
McDonald's Globalization Franchising Strategy
By Past Excellent Student
December X, 201X
Introduction: McDonald’s Origin and Background
“The success of McDonald's is the business equivalent of the American Dream” (Home, 1). Richard and Maurice McDonald, the founding brothers of McDonald’s, had a vision in their mind from the beginning. At first in 1940, they came up with the idea to completely move their father’s food stand into a completely new building and renamed it from “The Airdrome” to “McDonald’s Bar-B-Que” with twenty-five items listed on the menu. In October of 1948, after running their restaurant for a few years, they realized that most of their profits were from the hamburgers compared to their other menu items, therefore, they closed down this restaurant to open a more streamline restaurant with a simple menu of hamburgers, cheeseburgers, potato chips, coffee, soft drinks, and apple pie. After a year, they swapped the apple pie and potato chips with milkshakes and French fries. Eventually after continual improvement, they joined up with Ray Kroc, a seller of Prince Castle brand Multimixer Milkshake Machines, where the McDonald brothers were using eight of his machines, so Kroc went to check out their restaurant.
After visiting, Kroc believed in them and gave them the idea franchise their restaurants throughout the country. They were skeptical at first but eventually agreed with it and McDonald’s first franchise opened in Illinois in 1955. Eventually, Kroc bought out the McDonald brother for 2.7 million dollars and then the fast food restaurant really began to take off. Kroc realized he needed to create an image for the restaurant that would make it stand out compared to others. The main two aspects that McDonald’s adopted early on that made the chain restaurant stand out is the famous double arch “M” was created along with assigning Ronald McDonald to be the face for the restaurant. Nowadays, it does not matter where you are visiting a McDonalds because it will be a very similar experience regardless of the location. With that being said, that highlights the vision of Ray Kroc, which helps with their strategic approach and their global franchising for continuous success and growth within their fast food chain.
McDonald’s Growth
There are thousands of McDonald restaurants around the world, and they are still continuing to grow, which makes them one of the top franchising companies in the world. When Kr ...
McDonald’s Case Study | McDonald’s Pest Analysis | BusinessStrategic Manageme...MyAssignmenthelp.com
Get MBA marketing strategy case study help? McDonald’s pest analysis is given as case study to management students around the globe to understand its marketing and maintaining brand loyalty concepts. Myassignmenthelp.com helps MBA students to complete their case studies on business strategic management questions.
Contact Information:
Website: http://myassignmenthelp.com/
Mail Id: contact@myassignmenthelp.com
Phone No: +61-2-6100-384
Hai,this is Anusha. am looking for a help with my research.docxJeanmarieColbert3
Hai,
this is Anusha. am looking for a help with my research papers. subject is homeland security and contemporary issues and the topics are
1.Border security is key to immigration reform??
2.walls won't keep us safe
may i get it done by Thursday evening. and also lemme know the amount for both the papers. am also attaching the paper rubric here
thank you.
.
Guys I need your help with my international law class, Its a course.docxJeanmarieColbert3
Guys I need your help with my international law class, It's a course on International Law but it's not in essence a law course but part of the concentration I'm in, which is International Relations (in the School of Humanities and Social Sciences) my essay question is the following:
Are the jurisdictions of states absolute and unlimited?
.
hare some memories of encounters with people who had very different .docxJeanmarieColbert3
hare some memories of encounters with people who had very different expectations of their children compared to your own (it doesn't matter if you have children or not, just think about what you would have expected in their place). We tend to think of these situations in terms of good parents and bad parents, but speculate about the possible role of culture. Are there ways to avoid problems when parents with different cultural standards mix?
.
Hacker or SupporterAnswer ONE of the following questionsQuestio.docxJeanmarieColbert3
Hacker or Supporter
Answer ONE of the following questions:
Question A
In a 2-4 page paper, critique the case of Julian Assange, who created the Web site Wikileaks. Is Assange a glorified hacker and threat to national and international security or is he a supporter for human rights and freedom of speech?
.
HA415 Unit 6Discussion TopicHealthcare systems are huge, compl.docxJeanmarieColbert3
HA415 Unit 6
Discussion Topic
Healthcare systems are huge, complex, and constantly changing as they respond to economic, technological, social, and historical factors. The availability of technology has a profound effect on the health care costs and the availability of medical care. Local, state and national policy makers have an impact on these systems. Explain what you would do to encourage and increase technological advances and availability and try to decrease costs for all the stakeholders involved.
Needs 250 -300 words paper, strictly on topic and original with a Scholar References. Please No Phagiarism!
.
HA410 Unit 7 AssignmentUnit outcomes addressed in this Assignment.docxJeanmarieColbert3
HA410 Unit 7 Assignment
Unit outcomes addressed in this Assignment:
● Identify significant standards for healthcare documentation.
● Understand important factors involved in regulations pertaining to paper and electronic health records.
Course outcomes addressed in this Assignment:
HS410-4: Compare standards and regulations for healthcare documentation.
Instructions:
Your boss is the Director of Medical Records at a large academic medical center. He is finding it difficult to monitor the ongoing legislative and policy changes related to Health Information Management. He has asked that you do the following:
1) Visit the AHIMA website (www.ahima,org) and visit the “Advocacy and Public Policy” tab.
2) From there, visit both the “Legislation” and “News and Alerts” menu options.
3) Prepare two pages report highlighting the two most important items your boss should be aware of.
4) Recommend a course of action for each.
Paper should be 600- 800 words length, strictly on topic, informative, and original with 2-3 scholar referencess. No repeatation of words. Please use and read the attached document and follow all the instructions and use the grading rubrics below to do this assignment.
NO PHARGIARIAM!!
Unit 7 Assignment Grading Rubrics:
Instructors: to complete the rubric, please enter the points the student earned in the green cells of column E. Then determine point deductions for writing, late policy, etc in the red cells to calculate the final grade.
Assignment Requirements
Points possible
Points earned by student
Student understands issues related to health information management.
0-40
Student can assess policy and news items impact health information management.
0-40
Student can make well supported recommendations to address current legislative and policy issues in health information management.
0-40
Student prepares a well-crafted report in APA format using the AHIMA website and other sources, as needed.
0-30
Total (Sum of all points)
150
0
*Writing Deductions (Maximum 30% from points earned):
Grammar/Punctuation/Spelling:
30%
Order of Ideas/Length requirement (if applicable):
30%
Format
10%
*Source citations
30%
Late Submission Deduction: (refer to Syllabus for late policy)
Adjusted total points
0
*If sources are not cited and work is plagiarized, grade is an automatic zero and further action may take place in accordance with the Academic Integrity Policy as described in the university catalog.
Final Percentage
0%
Feedback:
.
hacer oír salir suponer traer ver 1. para la clase a la.docxJeanmarieColbert3
hacer oír salir
suponer traer ver
1.
para la clase a las dos.
2.
Los fines de semana mi computadora a casa.
3.
que me gusta trabajar los sábados por la mañana.
4.
Por las mañanas, música en la radio.
5.
Cuando tengo hambre, un sándwich.
6.
Para descansar, películas en la televisión.
.
H07 Medical Coding IDirections Be sure to make an electronic c.docxJeanmarieColbert3
H07 Medical Coding I
Directions
: Be sure to make an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use correct English spelling and grammar. Sources must be cited in APA format. Your response should be two (2) to four (4) pages in length; refer to the "Assignment Format" page for specific format requirements.
Lesson 1, 2, 3, and 4 of this course has covered a wide variety of topics. Thus far, you have learned a great deal of information on health insurance, medical contracts, HIPAA, physician and hospital medical billing, and Medicare and Medicaid.
For this writing assignment, please explain why the following course objectives are important for medical billers and coder to understand:
1.
Understand the history and impact of health insurance on health care reimbursement process and recognize various types of health insurance coverage.
2.
Identify the key elements of a managed care contract and identify the role HIPAA plays in the health care industry.
3.
Recognize and explain the different components of physician and hospital billing and differentiate between the two types of services.
4.
Explain the difference between Medicare and Medicaid billing.
Please include at least 3 scholarly articles within your response. Overall response will be formatted according to APA style and the total assignment should be between 2-4 pages not including title page and reference page.
.
Guidelines1.Paper consisting of 2,000-2,250 words; however,.docxJeanmarieColbert3
Guidelines:
1.
Paper consisting of 2,000-2,250 words; however, the reference page isn’t included as any part of the word count.
2.
Provide a thesis and/or main claim that is clear and comprehensive. This is the essence of the paper.
3.
APA formatting: in-text citations, headings, correct sentence structure, paragraph transition.
4.
Please apply the attached (4) readings to this homework.
5.
Address the following in the paper:
a.
Briefly describe the company
REI
using the Baldrige Performance Excellence framework.
b.
Using the Baldrige framework, outline
REI
organization's leadership structure and practices (
innovation, communication, and diversity
) chosen to study.
c.
Describe the evidence you find to identify that organization's leadership style (
servant and authentic
) by using specific references from the research literature to support your description.
d.
As a researcher of organizational leadership, how does the Baldrige framework help assess organizational leadership?
e.
Identify any
gaps
in assessment the framework does not address, and describe them with references from other sources.
.
Guidelines12-point fontCambria fontSingle space50 words ma.docxJeanmarieColbert3
Guidelines
12-point font
Cambria font
Single space
50 words maximum per section summarized (Be concise. I would prefer less than 50 words)
Sections to summarize-
(50 words summary for each topic )
Genetics Versus Epigenetics
Defining Epigenetics
DNA methylation
RNAi and RNA-directed Gene Silencing
From Unicellular to Multicellular Systems
.
HA425 Unit 2 discussion- Organizational Behavior and Management in H.docxJeanmarieColbert3
HA425 Unit 2 discussion- Organizational Behavior and Management in Health Care - Discussion
Discussion Topics
1.
Discuss the role and importance of organizational culture in promoting organizational change, organizational learning, and quality of healthcare.
2. Explain how teamwork is used in the CQI process and its impact on the process.
NO PHARGIARISM!!! Paper must be 500 words, strictly on topic, well detailed and original with 2-3 scholar referencsea. No repeatation.
.
GuidelinesPaper is based on one novel , Frankenstein. We ha.docxJeanmarieColbert3
Guidelines
Paper is based on one novel ,
Frankenstein
. We have
learned that one element crucial to horror stories is a monster. After reading the
entire novel , you will write a two- to three-page paper analyzing whether Victor Frankenstein or the
creation is the true monster in the novel.
You must pick one. Then state three
reasons/actions why he is the monster.
DO NOT:
o
Claim they are both monsters
o
Claim that neither is
o
Claim that there is no monster because Victor is hallucinating, has
a split personality, is dreaming, etc.
o
Claim that the real monster is abstract/philosophical--narcissism,
society, nature vs. nurture, etc
These are all innovative and great and may make a great essay but that's not
the assignment.
You must make a claim that Victor is the true monster
OR his creation is the true monster and support your claim.
Even though it is your interpretation of who the monster is, when you write
academic essays, you are really asserting a claim and attempting to convince
readers to agree with your stance. To do this effectively, it’s best to create a
more objective tone, pulling back on personal statements and writing in terms of
what Shelley intended and how readers in general perceive/infer the information.
In other words, avoid statements like: “I think the monster is really Victor
Frankenstein.” And use statements like: “After careful analysis of Shelley’s
characters, readers agree that Victor is the true monster of the novel.” Also, a
major pitfall to avoid: Do not claim that the monster is Victor then focus on the
creation in the body of the essay and why the creation is not the monster.
Throughout the semester, I have been posing questions on the Discussion Board
that you have been responsible for. You were then required in some weeks to
respond to a peer’s answers. The purpose of this is to cultivate interaction among
peers as you are working in such solitude when in an online environment.
However, I know that it is hard to routinely read a lot of what your peers have to
say. So this second paper is the one opportunity for you to truly HEAR several
angles of a discussion, much like in a traditional classroom, and assimilate the
opinions of your classmates.
For the essay, after you first come to your own observation about who the true
monster is then read through a handful of each of the four
Frankenstein
discussion threads (Storyline Shift, Victor Frankenstein, The Creation, and
Frankenstein Finale). Find a few posts that support your observation. You do not
need to read through all of the posts for each thread but read through enough to
help inform your selection. Throughout your essay you will need to
include at
least three quotes from two different threads (one per body
paragraph/reason).
These quotes need to support your claim. In other words, if
you claim that Victor is the monster, don’t include a quote by a peer that focuses
on the monster’s compassion. Also, be.
Guidelines1.Paper word count should be 1,000-1,250. Refer.docxJeanmarieColbert3
Guidelines:
1.
Paper word count should be 1,000-1,250. Reference page should not be counted in the word count.
2.
Following issues to be addressed in the paper:
a.
Discuss the conceptual differences between Transformational-Transactional Leadership and the visions of future developments in leadership Warren Bennis was predicting.
b.
Using the guidance of both leadership theorists and applied behavioral scientists, compose your basic definition of organizational leadership that is functional in organizations you know.
c.
Drawing from tenets of the Christian worldview related to organizational leadership, compare the key points of that guidance with two key elements (leadership and integrity) of organizational leadership.
d.
Support your comparisons with substantive documentation for each of the two key elements of current theories.
3.
Due date: No later than Wednesday, October 12, 2016 at noon (EST)
.
Guided Response Respond to at least two of your classmates. Ch.docxJeanmarieColbert3
Guided Response:
Respond to at least two of your classmates. Choose posts that address a different developmental period than you chose. Determine if the selected activity and toy is appropriate to the age group and is tied to Piaget’s theory. Provide feedback and suggestions for improvement.
Melissa Pieringer
An activity for the adolescent room: hypothetical problem solving
According to Piaget’s theory children 12 and over are in the formal operations stage of cognitive development. This is the final stage of cognitive development that takes place prior to adulthood. Children at this stage are developing abstract reasoning, deductive reasoning, and hypothetical thinking skills. Children at this stage are able to use hypothetico-deductive reasoning which involves forming a hypothesis, predicting a possible or likely outcome for a given scenario, and taking into consideration various factors that may influence the outcome (Mossler, 2014). At the formal operations stage children also develop the ability to think abstractly and weigh multiple potential outcomes for a given situation (Mossler, 2014). According to the Jean Piaget Society (2016), one of the best ways to promote the development of abstract thinking skills is to explore hypothetical topics, global issues, political issues, or social issues and allow children to come up with potential creative solutions to the problem (The Jean Piaget Society, 2016). A suggested hypothetical scenario to explore could be how humans could live in outer space (The Jean Piaget Society, 2016). Other present day issues to explore could include global warming, pollution, limited resources, war, poverty, famine, etc.
A toy or object for the adolescent room: art and crafting supplies
It is suggested that educators working with children at this stage use visual models such as charts, illustrations, and diagrams to keep children engaged in learning (The Jean Piaget Society, 2016). Furthermore, children should be encouraged to work creatively with a variety of materials. Art and crafting supplies could be used to create illustrations, diagrams, or posters demonstrating the solutions that they come up with to the topic or issue being explored. Therefore, I would request that a variety of art and crafting supplies be given to the adolescent room. Some ideas for materials could include the following:
· Poster paper or boards
· Paint
· Markers
· Colored pencils
· Crayons
· Scissors
· Glue or glue sticks
· Construction paper
· Old magazines
· Stencils
· Rulers
· String
References
Mossler, R. (2014).
Child and Adolescent Development
(2
nd
ed.) [Electronic ed.]. Retrieved
from:
https://content.ashford.edu/
The Jean Piaget Society. (2016). Educational implications of Piaget’s theory. Retrieved from:
http://piaget.weebly.com/educational-implications--activities.html
Christina Gutierrez
Cognitive De.
Guided ResponseReview the philosophies of education that your.docxJeanmarieColbert3
Guided Response:
Review the philosophies of education that your classmates chose and write a minimum 150-word response to at least two of them. Comment on whether you agree or disagree with their philosophies of education and their rational for them. Suggest additional ways in which the theories they have chosen could be applied to educational environments.
By:
Melissa
I have been in the classroom for over 12 years, and every day I learn something new. Every day I encounter a new student or discover something new about a student in my class that has been there the whole year. Every encounter is different, every child is different, and not one child thinks the same or learns the same. I discovered this early on in my teaching career, but I am constantly reminded how we cannot take for granted streamlined teaching in the classroom.
Teachers are not the only ones who teach in the classroom, the students in your classroom teach each other and teach you the teacher how to explain something differently and view things differently and reach the same destination to answer the same question correctly. I believe that being an effective teacher one must get to know students on a personal level. Not by reading their folders at the beginning of the year, but by asking open ended questions, listening to how they respond and how they express themselves either verbally or written expression. Teachers need to listen to their students not just hear them and move on, but take the child as a whole and help them reach another level in their education journey.
Special education is more than just accommodations; it is accommodating children to their needs and finding what works for them. Some need verbal cues to know that they are doing well and motivate them to keep working towards success, while others need positive written expression to push them over the hump and work to accomplish their goals. Most children with learning disabilities suffer from low self esteem and act up or become the class clown are constantly in trouble. They become the trouble makers or the ones always in trouble for not completing homework assignments, and because teachers only see this on the surface they push them off to one side of the classroom. What most general education teachers don’t see is how much they are asking for help.
Education should be used to empower every student and every teacher. Being an educator is more than just teaching to a test, it is planting the seed of enjoying the love for learning. We need to remember that we are educating our future.
By:
Katrina
Children learn best in an environment where they feel safe, especially younger children in an early childhood program. For toddlers the progressivism philosophy is one that works best. Toddlers cannot sit still for long periods of time and they need things that are developmentally appropriate. They need activities that allow them to use all of their senses. As they are touching and seeing while list.
Guided Response When responding to your peers, suggest ways to.docxJeanmarieColbert3
Guided Response:
When responding to your peers, suggest ways to continue to strengthen the contribution listed, so that this influence remains strong in our education system today. Describe why you believe this contribution should continue to be a part of our current education system. Respond to at least two peers.
BY: Tiffany Futch
Improved teaching means teachers were taught to teach on more of a professional level by actual people qualified to teach. Normal schools broadened their curricula to the training of secondary school teachers, requirement of the completion of high school to be admitted to college for teacher training, teachers must have a bachelor’s degree. “High school completion was seldom required for admission, and the majority of instructors did not hold a college degree themselves.” (Diener, 2008). Society has come a long way when it comes to teaching, and who is qualified to teach. Higher education is required more than ever in today’s society, and all of these examples have helped with the success of the way teachers complete their degrees today.
When it comes to teaching in the 21
st
century, full time teachers are required to have a minimum of a four year bachelor’s degree. Technology helps play a role in the success of teachers and students in and out of the classroom. Like the rest of the class we are all completing our degree in an online program. When it comes to teaching in the classroom teachers can use computers and other devices to help children excel, and outside of the classroom, the students can utilize the internet to help them with projects, and even communicate with other students to help with projects.
Webb. L. D. (2014). History of American education: Voices and perspectives. San Diego, CA: Bridgepoint Education, Inc.
BY:Christine Rodriguez
Teacher training is very important for teachers because they should be able to teach multiple subjects and be qualified in what they are teaching. Strengthening of the normal school curriculum and standards was needed in order for the school system to get better. In the 1900's schools exploded from 50 to almost 350, but with the low academic levels, teacher and students were not able to teach or learn at a college level. Teachers did not have, at this point, a college degree themselves. As the population kept increases and there was a higher demand for education, everyone began to need a high school diploma to be admitted for a college degree.
University enter teacher training: "Teacher training at the college or university level, typically consisted of one or two courses in the "science and art" of teaching, had been offered at a limited number of institutions as early as the 1830s, and the universities had always been institutions for the education of those who taught in the Latin grammar schools, academies, and high schools" (Webb, 2014).
This did not qualify them as teachers when they took these courses, but it did make them becom.
Guided Response As you read the responses of your classmates, con.docxJeanmarieColbert3
Guided Response:
As you read the responses of your classmates, consider how their negative educational experience could have been changed to support student learning. Respond to at least two of your classmates’ posts. Provide additional suggestions for them in creating their own positive, stimulating learning environment. Be sure to respond to any queries or comments posted by your instructor.
Melissa Cagno
The biggest negative experience that I have had is with a previous employer, and it was my first day as a preschool teacher in a facility nearby. On my first day, I walked into a situation that made a huge impact on the way I viewed this facility. When I started that day, I was told that I would not be in “my classroom” that I would be filling in for a teacher that was out that day. I didn’t have an issue with that fact and was actually up for the challenge. But when I entered the classroom I noticed there were no rules, no structure, no lesson plans and the classroom was complete chaos. I managed to create some spur of the moment lessons and engaged in music as much as possible. Then when it was time for lunch, and I went to serve it, it was pure sugar and very unhealthy. I left for the day feeling defeated, tired, frustrated and stressed and nowhere to turn. I expressed my concerns throughout the day along with a lot of severe health issues to the owner and was brushed off. I care a lot about the children’s safety and their learning environment, and I felt like I was drowning. Needless to say, I ended up moving on from that position because I felt helpless and without a direction to improve anything.
I have had several positive experiences throughout my educational background. The classrooms were always welcoming, warm and inviting and it showed that the teachers cared about their classrooms and their students. Those classrooms made me excited about becoming a teacher and gave me something to work towards in the future.
“The foundation for successful learning and a safe and secure classroom climate is the relationship that teachers develop with their students (Sousa, Tomlinson, 2011)”. The teacher-student relationship is something that should be built on from day one. If the students do not trust or know you, they will feel uneasy and unsafe in the classroom environment. It is so important to form the relationship with your students to ensure communication and safety of your students. Another way to provide a positive learning environment is with your attitude. If you have a positive and fun attitude, it will show through your lessons and your students will enjoy being in your class every day which will affect how they learn. Lastly, the organization is a big key to a positive and stimulating learning environment. If your classroom is packed full of stuff or the students, do not know where materials are it can cause frustrations for you and your students.
I firmly believe there are no stupid questions! I want to ensure my stude.
Guided ResponseReview several of your classmates’ posts and res.docxJeanmarieColbert3
Guided Response:
Review several of your classmates’ posts and respond to at least two of your peers original posts. Please keep in mind that this assignment can be a sensitive subject and that people’s past experiences may have shaped their views. Choose one point from your peer’s post that made an impact on you and explain why this particular comment resonated with you. Share your thoughts on the disadvantages and advantages of segregation with your peers.
BY:
Tiffany
Bradley
When preparing for this week’s discussion post I was a little at awe, I personally had never heard of the little rock nine. And I’m not that far from Arkansas. The Little Rock Nine was a group of nine African American students that were enrolled in Little Rock Central High School in 1957. However, their enrollment was engaged by the Little Rock Crisis. Which the students were initially prevented from entering the racially segregated school by Orval Faubus, the Governor of Arkansas. When President Dwight D. Eisenhower done an intervention, the students were then allowed to attend the school. The nine students were Ernest Green, Elizabeth Eckford, Jefferson Thomas, Terrance Roberts, Thelma Mothershed, and Melba Pattillo Beals. (https://en.wikipedia.org/wiki/Little_Rock_Nine)
Personally, if I was in the situation that these nine students experienced I would have been lost, afraid, and felt like something was wrong with me. A child of any race should not have to be put in this situation to feel unwanted or that they are unwelcome because they are of a different color. Many times however that is not the case. And this was the case for these nine children. My reaction would have been a sense of sadness, and anger. I don’t believe I would not have made a seen, simply out of fear of being hurt. I would have wanted to stand up for myself as well as my peers of the same color. Nowadays, if the situation would arise that an African American child was not allowed into a while school, yes I would stand up. And voice my opinion. It should not matter the color of a child’s skin. They should be allowed to receive the proper education. Without first having to go through turmoil. This situation I’m sure was emotionally devastating for these nine children. Who simply just wanted to get an education. (Webb. L. D. (2014). History of American education: Voices and perspectives. San Diego, CA: Bridgepoint Education, Inc.)
De facto segregation, I believe does not have a detrimental effect on students nowadays. Some adults that were raised to racial, still are. But if children are taught not to be that way. Then most of the time children learn to except another student of a different minority. Where I live we have a lot of white and minority students. Which none are treated differently. They are all in school for the same reason to get an education. My own personal beliefs are we are all children of God, and just because we are different races, does not mean.
Guided ResponseYou must reply to at least one classmate. As y.docxJeanmarieColbert3
Guided Response:
You must reply to at least one classmate
. As you reply to your classmates, attempt to extend the conversation by examining their claims or arguments in more depth or by responding to the posts that they make to you. Keep the discussion on target and try to analyze things in as much detail as you can. For instance, you might consider sharing additional ways that information literacy skills can help them be critical consumers of information. Discuss similarities in how you and your classmates connected with the infographic or article
.
Guided ResponseRespond to at least one classmate that has been .docxJeanmarieColbert3
Guided Response:
Respond to at least one classmate that has been assigned a different position from you and offer a rebuttal. Be sure to provide evidence from the literature to support your opposition. Also, respond to your original post and provide your own opinion of inclusion based on the evidence from the research and the responses of your classmates. Did your thinking change after reading your classmates’ viewpoints? Share your concerns about working with students with special needs in the regular classroom.
BY:
Mallory Johnson
What is inclusion?
Inclusion is an educational environment in which all students are grouped together in the same classroom regardless of their intelligence level hence the phrase used, “Least Restrictive Environment”. This practice means that an increasing number of regular classroom teachers are called upon to teach exceptional children in regular classrooms, sometimes also termed inclusive classrooms (LeFrançois, G. 2011).
IDEA was established for children with learning disabilities and has been mandated as a part of every educational facility.
As defined by the American Psychological Association, “The Individuals with Disabilities Education Act (IDEA) ensures that all children with disabilities are entitled to a free appropriate public education to meet their unique needs and prepare them for further education, employment, and independent living.”
Not every student learns equally; however, every student should be given the equal opportunity to do so regardless of their learning abilities. With that, inclusion provides an environment where not only students will learn together, but regular students will respect and build friendships with students with learning disabilities. While I never had the change to experience this firsthand, this type of environment will enhance friendships and students helping one another. I think that when a child is included in something, their self confidence improves and they will strive to work harder.
Second, inclusion allows students to understand one another and learn from each other as far as customs and courtesies and attitudes. Students are vulnerable to imitate what they see whether it be good or bad. According to the text, one of the benefits of inclusion is the learning of socially appropriate behaviors by students with disabilities as a result of modeling the behavior of other students.
Lastly, inclusive classrooms provide students with learning disabilities access to general learning like the rest of their peers. They will learn the same information instead of the curriculum being adjusted which may omit valuable information. In this case, these students may be learning information that could be too easy depending on where they stand knowledge wise. For others, the adjustment may hinder learning more challenging information some could be ready for.
Individuals with Disabilities Education Act (IDEA). (n.d.). Retrieved July 17, 2016, from http://www.apa.org/about/.
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
Acetabularia Information For Class 9 .docxvaibhavrinwa19
Acetabularia acetabulum is a single-celled green alga that in its vegetative state is morphologically differentiated into a basal rhizoid and an axially elongated stalk, which bears whorls of branching hairs. The single diploid nucleus resides in the rhizoid.
Biological screening of herbal drugs: Introduction and Need for
Phyto-Pharmacological Screening, New Strategies for evaluating
Natural Products, In vitro evaluation techniques for Antioxidants, Antimicrobial and Anticancer drugs. In vivo evaluation techniques
for Anti-inflammatory, Antiulcer, Anticancer, Wound healing, Antidiabetic, Hepatoprotective, Cardio protective, Diuretics and
Antifertility, Toxicity studies as per OECD guidelines
Embracing GenAI - A Strategic ImperativePeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
Palestine last event orientationfvgnh .pptxRaedMohamed3
An EFL lesson about the current events in Palestine. It is intended to be for intermediate students who wish to increase their listening skills through a short lesson in power point.
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
FRANk T. ROTHAERMEl JOHN kIMMcDonald’s Corporation
1. FRANk T. ROTHAERMEl JOHN kIM
McDonald’s Corporation
September 1, 2017. Steve Easterbrook walked into his office in
the McDonald’s corporate headquar- ters in Oak Brook, Illinois.
Now two and a half years into the job of McDonald’s CEO, he
is starting to see some of his early turnaround initiatives show
results.
His thoughts turned to Don Thompson, his predecessor and
friend. Thompson was in the top job for less than three years,
overseeing a more than four percent decline in customer traffic
in 2014. In spring 2015, Thompson retired. Easterbrook hoped
to avoid this fate. They had both started their careers at
McDonald’s early in the 1990s and had climbed the corporate
ladder together. Easterbrook had not taken personal joy in
seeing either his friend and mentor, or the company they both
loved, struggle. Rather, he had hoped to take the helm at the
company at its peak and then take it to new heights—not
inheriting the corporate giant in a turnaround situation.
The company’s troubles had snowballed quickly. In 2011,
McDonald’s had outperformed nearly all its competitors while
benefitting from the fallout of the great recession (2008–2010)
as more custom- ers flocked to its low-cost meal options. In
fact, McDonald’s was the number-one performing stock in the
Dow 30 with a 34.7 percent total shareholder return.1 But in
2012, McDonald’s dropped to number 30 in the Dow 30 with a –
10.75 percent annual return. The company went from first to
last in twelve brief months. In 2012, McDonald’s’ sales growth
3. McDonald’s Corporation
Thompson had already tried revitalizing the menu (e.g., with the
McWrap), eliminating poorly selling items, increasing
customization, and restructuring U.S. operations to give local
franchises greater autonomy. Yet customers still seemed
confused by the complex menu offerings, distrustful of the
quality of ingredients, frustrated at how long it took to get their
food, and angry at the company’s “exploitative” labor
policies.9,10 According to analysts, “[Thompson] got fatally
behind the last couple of years” and “wasn’t inspiring people
the way he needed to be.”11 By the fall of 2017, there was
surpris- ingly little mention of Easterbrook in Wall Street
analyst reports, seemingly indicating that he was quietly, and
effectively, creating change behind the scenes.
As Steve Easterbrook took a sip from a can of a zero-calorie
Monster energy drink, he looked at the screen of his laptop.
He knew that early results from his strategic initiatives were
promising. As of fall 2017, McDonald’s (normalized) share
price had appreciated by more than 55 percent since his tenure
as CEO started in March 2013, outperforming the S&P 500
index by almost 35 percentage points (Exhibits 1 and 2). But, he
wondered how he could build upon these quick wins, and create
continued superior performance in an ever more uncertain and
competitive environment.
A Brief History of McDonald’s
McDonald’s was started by the McDonald brothers in 1940 in
San Bernardino, California.12 By limiting the menu to burgers,
fries, and drinks, Dick and Mac McDonald could emphasize
qual- ity and streamline their operations. As a result, the
popularity of the restaurant grew quickly, and the brothers
4. started franchising McDonald’s to nearby locations. Alerted to
their success when the McDonalds placed a large order for eight
multi-mixers, Ray kroc joined the brothers in 1954. Together,
they founded the McDonald’s Corporation in 1955, with the
vision of establishing McDonald’s fran- chises throughout the
United States. kroc bought out the brothers’ shares in 1961, the
same year that he founded the Hamburger University (graduates
receive a bachelor’s degree in Hamburgerology). He continued
his plans for rapid expansion throughout the 1960s and 1970s,
establishing more than 700 new McDonald’s restaurants. In
1965, the company held its first public offering, debuting at
$22.50 per share.
kroc described his management philosophy as a three-legged
stool: one leg was the parent corpora- tion, the second leg was
the franchisees, and the third was McDonald’s suppliers. His
motto became, “In business for yourself, but not by yourself,”
as he built an ever-larger network of store owners and an
integrated supply-chain management system. Many new menu
items, such as the Big Mac and Egg McMuffin, were developed
by the franchisees. kroc encouraged his local owners to be
entrepreneurial as long as they maintained the company’s four
main principles: quality, service, cleanliness, and value.
Because of the volume of McDonald’s business, kroc found
many supply partners willing to adhere to his high standards.
McDonald’s both owns and operates its own restaurants, as well
as, franchisees them to others. The large majority of restaurants
are franchised (85 percent) and McDonald’s manage ment has
made it clear they expect that percentage to increase to 95
percent in the coming years. There are three primary franchise
ownership structures: 1) conventional franchisee, 2)
developmental license, and 3) affiliates.
Under a conventional franchise agreement, the company
typically owns the land and building, and leases the location to
the franchisee. The franchisee pays for “equipment, signs,
seating and décor.” As
5. 2
McDonald’s Corporation
the equipment depreciates or new facilities or food preparation
processes are required, the franchisee is expected to reinvest in
the business. McDonald’s also co-invests into specific strategic
initiatives to motivate franchisees to adopt changes. Franchisees
pay rent and royalties based on a percentage of sales, with
specific minimum rent payments and initial fees paid upon
opening a new restaurant or acquiring a new franchise. The
typical franchisee lease is 20 years.
The specific conditions of the franchise agreement vary on the
owner’s experience, credit capacity, and the local legal
environment. Franchisees can vary significantly in size. The
largest franchisee has a developmental license for 2,200
restaurants across latin America and the Caribbean.13 On the
other end of the spectrum, some franchisees own and operate a
single location.
The company opened its first international locations in 1967 in
Canada. The first McDonald’s stores in Japan and Europe
followed shortly thereafter in 1971. Meanwhile, kroc continued
to add new items to the restaurant’s menu. After the success of
the Big Mac (1968), the quarter pounder debuted in 1973, and
the Egg McMuffin in 1975. A full breakfast menu was available
by 1977. The first Happy Meals—complete with a circus wagon
theme—arrived in 1979. The company’s first drive-through
opened in Sierra Vista, Arizona in 1975 to serve soldiers
stationed at a nearby post, and the idea quickly spread to
other locations. Competition heated up in the “burger wars” of
the 1980s as Burger king and Wendy’s tried to steal market
6. share from McDonald’s. Despite their advances, McDonald’s
continued to expand globally into more than 30 countries. Even
more new products were introduced, such as Chicken
McNuggets in 1983 and fresh salads in 1987. At the same time,
McDonald’s used efficiency and technological advances such as
microwaves to gain operational advantages over its competitors.
When Ray kroc passed away on January 14, 1984, he left behind
a sprawling McDonald’s empire with more than 7,500
restaurants worldwide. He stayed involved in corporate affairs
up until the end, visiting the San Diego office almost daily in
his wheelchair. Three years later, Fred Turner, his long-time
colleague and successor as CEO, likewise stepped down and left
the company in the capable hands of Michael Quinlan. As the
first McDonald’s CEO to have completed an MBA, Quinlan was
a savvy businessperson who continued to grow the company
aggressively both at home and abroad.
Events in the 1990s finally slowed McDonald’s’ rapid pace of
domestic expansion, though the com- pany’s international
locations nearly doubled to 114 from 1991 to 1998. Several of
the newer locations required unique adaptations, which
McDonald’s proved increasingly willing to make: kosher
menus in Israel, Halal menus in Arab countries, and lamb
patties for non-beef-eating India.14, 15 At home, however, the
company was plagued by multiple failed attempts to add new
menu items such as pizza, fried chicken, fajitas, and pasta. The
Arch Deluxe sandwich line, targeted to adults, was similarly
short- lived. When Jack Greenberg became CEO in 1998, he
quickly took corrective action, announcing a geographic
reorganization, a new food preparation system (“Made for
You”), and first job cuts ever at McDonald’s, all while
scrapping plans for numerous store openings.16 Instead, he
diversified the com- pany’s portfolio by buying different
restaurant chains such as Chipotle Mexican Grill, Donatos
Pizza, Boston Market, and Aroma Cafe coffee shops.17 These
acquisitions were divested when McDonald’s strategy shifted
yet again in the early 2000s.
7. From 2003 to 2004, leadership at McDonald’s underwent a rapid
string of successions that would have crippled a company with a
less talented executive bench. Greenberg stepped down amidst
financial woes in 2003, yielding the reins to Jim Cantalupo,
who died suddenly of a heart attack the next year. The board
immediately named Charlie Bell to the head position after
Cantalupo’s death, only for Bell to be diagnosed with colorectal
cancer and relinquish the post after just a few months
3
McDonald’s Corporation
in office. This left Jim Skinner, previously vice chairman, in
charge of introducing and implementing the company’s “Plan to
Win” starting in late 2004.18 The plan was based on the three
pillars of “brand direction, freedom within a framework, and
measurable milestones” and had four goals: to attract more
customers, to convince customers to purchase more often, to
increase brand loyalty, and to become more profitable. Skinner
further distinguished five Ps—People, Product, Place, Price, and
Promotion—as essential to efforts at McDonald’s in achieving
these goals.19
In a saturated market, the main thrust of Skinner’s plan was to
shift from acquiring expensive real estate to generating
increased sales from existing restaurants.20 In the early 2000s,
McDonald’s was opening a new store somewhere in the world
every 4.5 hours; under Skinner’s watch, the pace slowed to just
50 to 100 new U.S. sites per year. To compensate, existing
stores started to stay open longer, extending their hours into the
8. late night and early morning. By 2007, roughly 40 percent of
McDonald’s’ locations were open nonstop, and some even
experimented with staying open on holidays.21, 22
Skinner used the money saved on fewer new openings to revamp
existing restaurants. The “new” McDonald’s look utilized a
gentler color scheme, replaced fiberglass and steel chairs with
leather seating, eliminated fluorescent lighting, and added such
amenities as flat-screen TVs, free Wi-Fi, live plants, piped-in
music, and the occasional fireplace.23 Headquarters provided
grants of up to $600,000 per site, with some projects costing as
much as $1.5 million.24 By the time all of the renovations were
completed, the company had invested over $1 billion in the
belief that “nicer-looking stores attract more business.”
At the same time, Skinner sent chefs at McDonald’s back to the
drawing board to research new menu possibilities more in line
with current health trends. The company had grown lax in its
product development efforts, as evidenced by its $100 million
Arch Deluxe mistake and other failures such as the McPizza,
McHotDog, and McSalad Shaker.25 McDonald’s also lagged
significantly behind its com- petitors in purging trans fats from
its recipes.26 Under Skinner, the company took the time to
conduct extensive market research and developed a new passion
for numbers. Potential new menu items had to pass a series of
tests before they could move on to the next stage of
development, based on an analysis of their sales, margins, costs,
and time and ease of production.27 This more rigorous approach
led to the development of the “Oven Selects” sandwiches, a
southern-style fried-chicken biscuit for breakfast, and of course,
the McCafé line of coffees, smoothies, and other beverages.28,
29
The other half of the equation involved cost cutting by
improving operational efficiency. Adamant that McDonald’s
would not make its burgers smaller just to save money, Skinner
directed his execu- tives to find more creative ways to increase
margins. So, the company cut travel, held meetings at
Hamburger University instead of expensive hotels, and
9. increased personal usage fees on company vehicles. Meanwhile,
the company continued to invest in time- and cost-saving
technologies such as more efficient drive-through windows and
computers.
By the time Don Thompson became CEO in 2012, most of the
low-hanging fruit had already been plucked. Thompson
graduated from Purdue University in 1984 with a degree in
electrical engineering, and he was recruited to McDonald’s four
years later to design robotics for food transport and control
circuits for cooking equipment. He soon changed his career
focus from engineering to operations, working a wide range of
jobs from fry cook to regional manager to understand the
company’s day-to- day activities.30 Ascending to serve as
Skinner’s COO, Thompson spearheaded the successful McCafé
campaign and seemed a natural selection to produce the next
“McHit.”31 McDonald’s struggled with weakening sales under
Thompson’s reign (see Exhibit 2) despite his efforts to optimize
the menu, improve the customer experience, and make
McDonald’s more accessible to a broader market base.
4
McDonald’s Corporation
Unable to produce the desired turnaround, Thompson retired in
January 2015 to make room for new leadership.32
Hailing from the U.k., Steve Easterbrook was appointed as the
CEO of McDonald’s on March 1, 2015.
Easterbrook came to the top spot having turned around the
McDonald’s Uk and European opera- tions, which were now
among the best performing in the company. He had worked his
10. way up to McDonald’s top brand officer by 2010, then left to
head two British restaurants (PizzaExpress ltd. and Wagamama
ltd.), before returning to his former position in June 2013.
Under Thompson, he subse- quently assumed responsibility for
corporate strategy and the restaurant solutions group. While
some questioned whether another inside succession could
provide the shake-up that McDonald’s needed, others argued
that Easterbrook had the right expertise in branding and media
and willingness to focus on the menu, the areas with the
greatest need of improvement.33 In his first press conference as
CEO, Easterbrook had presented himself as an “internal
activist” who was “comfortable making the big deci- sions that
were required to get the turnaround going.”34 Now it was
time to deliver on his promise to turn McDonald’s into a
“modern, progressive burger company.”35 Exhibit 3 shows
McDonald’s’ rev- enues by regions and market segments,
(2013–2016).
Given his low-key profile, observers were surprised when Steve
Easterbrook also announced that McDonald’s would move its
headquarters from Oak Brook, where it resided in a custom-built
campus for some four decades, to Chicago’s West Town
neighborhood in 2018. Easterbrook is moving the McDonald’s
HQ to this swanky area of Chicago full of restaurants and bars,
to be closer to the mil- lennials they want as employees and as
customers.36
By 2017, McDonald’s was pursuing an aggressive technology
upgrade to allow Starbucks-like interactivity to both smooth out
operational waiting times and improve the customer experience.
Franchisees were hesitant to invest the hundreds of thousands of
dollars required to upgrade with stand-alone kiosks, but they
were bound by stringent franchising contracts and pressure from
corpo- rate headquarters.
Trends in the Quick-Service Restaurant Industry
The U.S. quick-service restaurant industry is expected to reach
$224 billion in 2020 (see Exhibit 4). Yet despite expectations
11. for some growth, several environmental trends suggest
challenges ahead.
ECONOMIC TRENDS
The U.S. economy continues to bounce back from the 2008–
2010 great economic recession. The unemployment rate has
been cut in half from its 2009 peak at 10.0 percent to just 5.1
percent in 2015, and per capita real disposable income is near
record highs.37 These data present both good and bad news for
the fast food industry. On the one hand, more customers are
working and have more money to eat out; on the other hand,
customers with more disposable income are likely to “trade up”
to higher quality and higher priced food options. Recent data on
dining trends bear this out: For the first time ever, American
spending on dining out exceeded grocery sales in April 2015. A
closer look, however, reveals key differences among market
segments. Older consumers (51 to 69 year olds) reported spend-
ing more on groceries and less on restaurant dining compared to
recent years. The overall upward
5
McDonald’s Corporation
trend is due to the vast number of millennials who view dining
out as a social event and are more willing to pay for food
outside of home. According to the Restaurant Association,
millennials tend to favor quick service, deli, and pizza joints
12. over more traditional casual and high-end dining; ethnic foods
are also viewed as new and interesting.38
Since the end of 2016, the economy has picked up further with
the U.S. stock markets reaching all-time highs in 2017. By fall
of 2017, the U.S. unemployment rate had further declined to 4.3
percent. Around four percent unemployment is a level that many
economists consider “structural unemploy- ment,” under which
unemployment is unlikely to fall unless more structural factors
in the economy such as a mismatch between open jobs and skills
of labor force are brought into balance.39
HEALTH CONCERNS
The Mckinsey Global Institute estimates that the global obesity
epidemic costs $2 trillion per year in health care costs, a figure
roughly equivalent to Russia’s gross domestic product.40
Approximately one-third of the world population (~ 2.1 billion
people) is considered overweight, making obesity the third
largest human-caused economic burden. Obesity-related health
care expenses in the United States total $663 billion annually.41
Beef still comprises the highest proportion (58 percent) of meat
con- sumed in the United States, but health-conscious
consumers are increasingly shifting toward poultry and other
lean meats.42 In 2010, to support healthier food choices, The
Patient Protection and Affordable Care Act stipulated that
calorie counts must be displayed on all food service menus of
chains with at least 20 units and that restaurants must provide
additional nutritional information upon request. These trends
place considerable pressure on a fast food company that
depends on hamburgers for the main portion of its income.
McDonald’s has been sued (unsuccessfully) for making its
customers fat and was featured in an unflattering documentary
(Super Size Me), in which Morgan Spurlock grew increasingly
ill and gained 25 pounds after eating only McDonald’s food for
one month.43
Meanwhile, concerns over the increase in antibiotic-resistant
13. bacteria have led to calls for the elimination of subtherapeutic
antibiotic use in meat animals. Though banned in the EU and
Canada, the United States still permits farmers to administer
small doses of antibiotics to livestock to increase weight gain (a
three percent increase).
McDonald’s recently followed in the footsteps of several of its
competitors and announced its intent to stop selling chicken
products from birds treated with antibiotics important to human
health (non- human antibiotics are still permitted). Given that
McDonald’s claims to be the largest restaurant seller of chicken
in the United States, this move is likely to reverberate
throughout the poultry industry. Changes in cattle production
are likely to move much more slowly due to higher beef prices,
the lon- ger life span of cattle, and the fragmented nature of the
beef industry.44
Moreover, besides ending the use of antibiotics in the chickens
used, Easterbrook also decided to remove high-fructose corn
syrup from McDonald’s hamburger buns. He also laid out a 10-
year plan to only use suppliers that keep chickens cage free.
These moves could be potentially transformative for
McDonald’s, as chicken and eggs account now for roughly 50
percent of the menu items.45 One reason for the high
percentage level is Easterbrook’s early decision to offer all -day
breakfast, which was well-received in the U.S. market.
6
McDonald’s Corporation
14. INCREASING SUPPLY COSTS
Healthier menu items mean increased supply costs for
restaurants, even as customers remain price sensitive. Beef
prices began to rise sharply in late 2012 due to a severe drought
in Texas. Without rain, farmers were forced to turn to more
expensive forms of feed such as hay and corn, to ship cattle to
greener pastures in the north, or to cull their herds through sales
or sending heifers to the butcher instead of breeding them. By
January 2014, the number of cattle in the United States totaled
just 87.7 million, the lowest since 1951. Even though the Texas
drought ended in the spring of 2015, it takes years to rebuild a
herd, and California (the nation’s fourth largest cattle-
producing state) experienced extreme drought conditions during
2015. At the same time, demand for hamburger meat has soared
due to high beef prices (“hamburger is the new steak”) and the
popularity of new burger chains like Five Guys and Shake
Shack.46
Drought conditions in recent years have also made it more
expensive to raise agricultural products. Not only is corn one of
the main products used to feed both cattle and chickens, but
corn oil, meal, and other by-products are a significant
component of many grocery items. Soybean meal is a main
ingredient of animal feed, while the oil is used in cooking, salad
dressing, mayonnaise, and baked goods. Wheat, of course, is the
main ingredient in hamburger buns. In addition, egg prices
soared in 2015 due to an outbreak of the avian flu (broilers or
chickens raised for meat were not affected and remain in good
supply). The resulting price increases for supplies ranging from
bread to eggs to meat are squeezing already tight operating
margins.
Current Competitors
Traditionally, main competition for McDonald’s has come
from other quick-service restaurants such as Wendy’s, Burger
15. king, and Yum! Brands’ Taco Bell. McDonald’s is roughly
twice the size of its next largest global competitor (all three
Yum! Brands combined), but has slightly fewer outlets.47 It
controls almost half of the U.S. hamburger market, which is
more than three times larger than the market share held by
either Wendy’s or Burger king.
BURGER KING
On August 26, 2014, Burger king merged with the Canadian
restaurant chain Tim Hortons to form the world’s third-largest
quick-service restaurant chain (second largest in the United
States). The combined company has annual sales of $23 billion,
with over 18,000 restaurants in approximately 100 countries.
Because it is headquartered in Canada, the new parent firm
(Restaurant Brands International, or RBI), benefits from a
significantly lower corporate tax rate than its American
competitors.48 The firm denies that tax inversion was the
primary motive for the merger, but tax savings could total $1.2
billion through 2018. The private equity firm 3G Capital, which
took Burger king private in 2010, continues to hold 51 percent
of the shares.
7
McDonald’s Corporation
16. Changes made by the new ownership appear to be positive, as
the company has recently out-per- formed both McDonald’s and
Wendy’s. Analysts attribute Burger king’s success to its
simplicity: add- ing sauces, cheese, or bacon to its core burger
line to create new menu items from the same list of ingredients.
Coupled with successful limited time offers and attractive
promotions, Burger king has been able to innovate without
slowing service.49
In 2015, Burger king launched an aggressive attack against its
larger competitor, using strategic price increases to cover the
costs of aggressive promotions on popular products such as
chicken nuggets. The company has gained further recognition
with clever advertising, such as its letter to McDonald’s
offering a temporary ceasefire in the burger wars, suggesting
that they jointly make “McWhoppers” for international peace
day, with all proceeds going to the Peace One Day organization.
McDonald’s spurned the proposal, earning headlines accusing
them of throwing “their ‘love-themed’ brand idea out the
window” and choosing “pride over peace.”
In 2017, revenues for Burger king’s parent company, Restaurant
Brands International, were $4.3 bil- lion. Burger king
contributes most of sales. Besides Tim Hortons and Burger
king, RBI also acquired Popeyes in 2017 for $1.6 billion.50
WENDY’S
Wendy’s is the third largest U.S. burger chain, with more than
6,500 locations in 28 countries. Wendy’s strives to differentiate
itself as “a cut above” its competitors, with higher-quality food
that is made fresh-to-order. It successfully employs a “barbell”
approach to products and pricing, luring cost- sensitive
customers in with value-based burgers while offering higher-
17. end, premium items like the Pretzel Bacon Cheeseburger or
Bacon Portabella Melt to attract more affluent clientele.
Analysts offer several reasons as to why Wendy’s has succeeded
with this strategy while McDonald’s has struggled. Not only is
it easier for the smaller chain to implement short-term menu
changes, but it has long specialized in custom-building
sandwiches without compromising quick service. Wendy’s also
seems to have a better pulse on its customers and bets big on
just a few hit products, such as its pretzel buns.51
Wendy’s continues to invest in long-term brand development by
redesigning its stores, offering an expanded menu including
breakfast, and a new advertising campaign. At a price tag of up
to $700,000 per store, the remodeling cost the company $225
million in capital expenditures in 2012 alone, the first year of
its renovation program. The good news for Wendy’s is that the
physical upgrades appear to be associated with an increase in
same-store sales of five to 25 percent (i.e., the stores are gener -
ally recouping their expenses). Recent additions to Wendy’s
menu such as its sea-salt French fries, a new line of salads,
and organic Honest Tea, have proven quite popular, helping to
generate several consecutive quarterly sales increases for the
corporation. At the same time, Wendy’s continues to cut costs
by refranchising company-owned stores, with the goal of
decreasing its ownership from 15 to five percent of the total.
In 2017, Wendy’s revenues were $1.3 billion, down from $2.5
billion in 2013.
TACO BELL
Taco Bell (a division of Yum! Brands) is the most widely
recognized Tex-Mex option in the quick- service restaurant
category, with approximately 6,000 restaurants (80 percent of
which are franchises) in the United States. After a string of food
contamination and quality issues from 2006 through 2011,
18. 8
McDonald’s Corporation
the company started to rebound in 2012. Taco Bell’s leadership
credits its comeback to the successful introduction of its new,
healthier Cantina Bell product line and the popular “Doritos
locos Tacos.”
Taco Bell tries to launch eight to ten new items per year,
knowing that the sales bump from major hits like locos Tacos
levels off within about two years. It rolled out breakfast
nationwide in 2014 and con- tinues to expand its offerings;
breakfast now constitutes seven percent of sales or $70,000 to
$120,000 per store annually. In 2015, Taco Bell released its
Naked Crispy Chicken Taco (which uses batter-fried chicken as
the shell) in California and a new urban-store format that serves
alcoholic beverages in Chicago.
To appeal to millennials, the company has developed a food-
ordering app (live Mas) and is testing a new home delivery
service in conjunction with kentucky Fried Chicken. Managers
expected the app to speed up orders and decrease errors, but
they were pleasantly surprised to discover that customers spent
more than $10 average per online order, a 20 percent increase
over in-person transaction. Orders are not filled until the
customer gets within 500 feet of the restaurant and specifies
whether they plan to come in or drive through to pick up their
food. The app has already been downloaded more than three
million times. The chain plans to double its revenues from $7
billion to $14 billion and grow to 8,000 U.S. locations over the
next 10 years.
19. SUBWAY
A different sort of quick-service competitor that challenges
McDonald’s’ dominance is Subway. known for its healthier
menu items and fresh ingredients, Subway exceeds McDonald’s
in the number of total restaurants (45,000 globally, including
27,000 in the United States). The chain has become a popular
lunchtime destination for many Americans who value
convenience but do not want to com- promise their health.
Although Subway continues to open new restaurants around the
world, the former quick-serve superstar is also facing
significant challenges. Sales dropped by 3.3 percent to $11.9
billion in 2014 for the first time ever, the worst drop
among fast food chains; annual sales per store decreased
from $490,000 to $475,000. Subway is no longer the cool “new
kid” on the block compared to upstarts like Jersey Mike’s or
Firehouse Subs. While Subway remained content with being a
“healthy” option, competitors started to offer organic, GMO-
free, and transparently sourced ingredients. Insiders say the
company has lacked strong leadership ever since its
founder, Fred Deluca, was diagnosed with leukemia in 2013.
Before dying in 2015, Deluca promoted his sister, Suzanne
Greco, to president and CEO. By the fall of 2017, Suzanne
Greco still holds both jobs. In the same year, Subway’s sales
reached
$17 billion.
FAST CASUAL
Boundaries between quick-service and other restaurant segments
have become increasingly blurred. Fast-casual restaurants
provide high-quality food without table service, in a
distinctive atmosphere, at prices that are “low enough.” Some
observers describe fast casual restaurants as distinguished by
the 10 F’s: Full view preparation of food; Food quality; Fine
ingredients; “Fitter” wholesome food; Fresh; First-rate décor;
Fair price; Fast service; Friendly employees; and Flexibl e
20. offerings.52 Due to this successful combination of higher
quality and affordable prices, the fast-casual segment is one of
the few areas in the restaurant industry that is experiencing
steady growth.53 Combined fast-casual sales increased by
double digits in the last few years, and is expected to continue
into the near future. Even traditional sit-down restaurants are
9
McDonald’s Corporation
looking at ways to move into the fast-casual arena by offering
selected scaled-down dishes that appeal to value-seeking diners.
A sub-segment of the fast-casual restaurant industry is the
premium burger segment, which grew 10 times faster than
traditional fast food chains from 2008 through 2013.54
Customers have been flock- ing to burger chains such as
Five Guys, In-N-Out Burger, Shake Shack, Smashburger,
and Fatburger for higher-priced, higher-quality burgers, while
fast food restaurants such as McDonald’s, Burger king, and
Wendy’s have scrambled to counter with their own premium
offerings. Customers have been known to wait in line for nearly
an hour to get a Shake Shack burger and fries; the company’s
shares proved to be just as popular in its January 2015 IPO,
more than doubling in price from $21 to
$45.90 on the first day of trading. In the meantime, investors
cooled on Shake Shack, with its market capitalization falling
from $3.3 billion in the spring of 2015 to a mere $1.1 billion in
the fall of 2017. Revenues were $316 million in same year.
But much like the Arch Deluxe in the 1990s, McDonald’s more
21. recent efforts to compete in the premium segment have fallen
flat. Customers could not justify paying $4 to $5 for a one-third
pound Angus burger when there were sandwiches on the
McDonald’s Dollar Menu for much less. The com- pany
discontinued the Angus Deluxe product line in 2013 after just
four years.55
Other fast-casual restaurants such as Chipotle Mexican Grill,
Panera Bread, and more recently even Starbucks, have taken
away customers from McDonald’s.
COFFEE
McDonald’s expanding into specialty coffee drinks with the
McCafé line means that it also com- petes with more traditional
coffee shops such as Starbucks and Dunkin’ Donuts. Starbucks
answered the introduction of McCafé by distributing its
Seattle’s Best brand to other quick-service restaurants such as
Burger king and Subway. It purchased la Boulange Bakery in
2012 to expand its food offer- ings, which are now available in
more than 2,500 stores. In total, Starbucks has over 25,000
stores, and garnered revenues of over $22 billion in 2017.
Attempting to drive more store traffic in outside the morning
hours where customers need their daily caffeine shot, Starbucks
has added baked goods, sandwiches, and other food items to its
menu. To get more customers into its stores in the late
afternoon and early evening—traditionally its slowest time—
Starbucks stores now offer items such as vegetables, flatbread
pizza, plates of cheese, and des- serts. It even introduced
alcoholic beverages such as wine and beer, available after 4
p.m., as part of an “Evenings” program. Starbucks also
continues its efforts to find new levels of luxury offerings
catering to higher end customers within its existing customer
base. Online and in stores it produces limited- run exclusive
batches of varietal coffees for home use, at high price points.
Some stores also offer indi- vidually brewed cups of the same
higher-priced roasts. Since 2014 Starbucks has created
22. something called a Starbucks Reserve Roastery and Tasting
Room. The first of super high-end stores appeared in Starbucks’
home, in Seattle, with additional locations planned domestically
and around the world.
Dunkin Donuts, on the lower price point of the spectrum, plans
to triple its presence to 15,000 shops and is likewise expanding
its warm breakfast options to compete more effectively.56
Dunkin’ Donuts, which has served coffee for more than 60
years, made a failed bid to trademark its brew as
10
McDonald’s Corporation
the “Best Coffee in America.” As coffee shops sell more food
and restaurants dispense specialty coffees, competition between
these once distinct market segments is becoming more intense.
Target Market
Market research indicates that the typical American dines out
about five times per week. One of the main reasons so many
quick-service restaurants are focusing on new breakfast items is
that the early morning meal is the least saturated. For every
restaurant breakfast, the NPD Group estimates that the average
American consumes 2.5 lunches and almost two dinners outside
the home. Around 11 to 12 percent of these meals are eaten at
McDonald’s.57
A quick breakdown of a typical McDonald’s franchise in a
23. middle-class suburb of 25,000 residents provides additional
market insight. Roughly one out of 16 or 1,500 people in town
visit the local McDonald’s over the course of a given day.
Breakfast accounts for the largest proportion (30 percent) of
sales, followed by lunch (24 percent); afternoon, dinnertime,
and late night/early morning each account for another 15 to 16
percent of sales. The noon lunch hour is the busiest and most
profitable time of day, bringing in $200,000 in revenues.
Annually, the average franchise can be expected to bring in
about $1.7 million in sales, with an operating profit of around
$150,000.
The three main target market segments McDonald’s are mothers,
children, and young adults.58 Moms view McDonald’s as a
quick, easy, and affordable meal for families on the go, and
they usually are the ones who bring the children. But with 17
percent of U.S. youth considered obese, fast food chains find
themselves in an awkward position when marketing directly to
children. In response to parental demands for healthier kid meal
options, McDonald’s reduced its Happy Meal calorie count by
20 percent by adding apples and halving the amount of french
fries. McDonald’s has reduced the sodium content of its food by
15 percent, and plans to make further reductions in calories,
sugars, saturated fats, and portion sizes by 2020.59 Even this
was not enough for a nine-year-old girl who publicly took then-
CEO Thompson to task at a shareholders’ meeting, accusing the
company of trick- ing kids into eating junk food by using toys
and cartoon characters.60 Other chains, such as Jack in the Box,
have opted to eliminate toys from their kids’ meals, while Taco
Bell has dropped its children’s menu altogether.
The key demographic group for most fast food restaurants is
comprised of young, single profes- sionals who earn above-
average incomes. These so-called “heavy users” frequent a
given chain twice or more per week, providing a steady source
of sales and profit. A recent study, however, indicated that
McDonald’s was not even in the top 10 of the 18-to-32-year-old
age group’s favorite restaurants. Instead, millennials are more
24. likely to eat at fast-casual restaurants that emphasize ingredient
qual- ity and demonstrate an awareness of social issues like
environmental sustainability. Transparency is also important to
young adults. Restaurants such as Chipotle and Panera Bread
are known for demon- strating openness about their food
sourcing and preparation, whereas McDonald’s has been
plagued by perceived deceptions. As an example, vegetarians
raised an uproar once it was discovered that McDonald’s had
continued to use a small amount of beef tallow as flavoring
when cooking its french fries. McDonald’s was also forced to
discontinue making burgers out of “boneless lean beef
trimmings” mixed with ammonium hydroxide,after Jamie Oliver
exposed the company’s use of “pink slime” on national
television.61
11
McDonald’s Corporation
Current Challenges
MENU
In 2017, McDonald’s operated a total 37,000 restaurants
globally, with 14,300 of them in the U.S. One of Easterbrook’s
first major moves was to propose all-day breakfast in all U.S.
restaurants, the company’s biggest initiative in six years.
Testing started almost immediately after he took office, with a
rollout in fall 2015.
Consumers had long been asking for this change, but the
25. company resisted because stores use the same equipment to
cook both breakfast and lunch. All kitchens are now equipped
with separate grills for cooking eggs and burgers, rolling carts
and utensils to use just with eggs (to prevent contamina- tion),
and new toasters so that they can prepare both buns and muffins
at the same time (they toast at different temperatures). The
estimated cost for retrofitting each kitchen is $500 to $5,000,
depending on existing equipment. To make things a bit more
manageable, the all-day breakfast menu will be restricted to a
few popular items such as sausage burritos, hot cakes, Egg
McMuffins, or biscuit sand- wiches. Breakfast items will be
made continuously during peak morning hours, but cooked-to-
order during slower parts of the day. An internal McDonald’s
presentation projected that extending breakfast hours could
increase sales by 2.5 percent per year.62
Another way that Easterbrook is giving customers more choice
in what they eat is by giving fran- chises more freedom to offer
locally relevant menu items. For example, chorizo burritos are
more popular in Texas and the Midwest, while mozzarella sticks
sell better in New York and New Jersey. local restaurant
operators can choose items from the company’s global pipeline
and adjust them as needed to suit local tastes. Managers will
also be granted more freedom to run their own promotions to
increase store traffic.63
As a direct competitive response to the “better burger chains,”
McDonald’s is experimenting with “Build Your Own” tablets
where customers design their own sandwich from over 30
choices of meats, toppings, and buns. They can only be ordered
from inside the restaurant, cost $1.50 more than a Big Mac, and
take seven to eight minutes to prepare because the meat is
cooked fresh. It will cost each franchisee approximately
$100,000 per store to install the new system and stock the
required ingre- dients. This presents an interesting conundrum
for a quick-serve restaurant that generates roughly two-thirds of
its revenue from drive-through customers.64
To free up space for these new offerings, the company plans to
26. phase out underperforming fea- tures such as the snack wrap
and reduce the number of extra value meals. Still, the
McDonald’s menu has swollen to over 120 items, many of
which require specialized equipment and take more time to
prepare. That represents a 75 percent increase from 2004 and is
considerably more than the 33-item menu from 1990. While a
greater variety of menu options helps to draw new customers
into stores, too many items slow down the order fulfilment
process, increasing employee stress and customer frustrations.
The average service time for a McDonald’s drive-through has
slowed to 189.49 seconds, lagging rival Wendy’s average by
almost a minute.65 Complaints about speed of service have
“increased significantly” in recent years, with the McDonald’s
service experience described as “chaotic.”66
12
McDonald’s Corporation
PRODUCT QUALITY
Another item on Easterbrook’s to-do list is to improve public
perceptions of the McDonald’s brand. The size of McDonald’s
made it a convenient target, and more than a decade of negative
press including the 2001 book, Fast Food Nation, the 2004
documentary Super Size Me, and Jamie Oliver’s 2012 “pink
27. slime” exposé has taken its toll.67 In July 2014, the Big Mac
earned the dubious distinc- tion of being America’s worst
hamburger, placing last out of 21 in a study by Consumer
Reports.68 McDonald’s also ranked lowest among peers in the
2015 American Customer Satisfaction Index. Fast food
restaurants overall dropped 3.8 percent, but McDonald’s fell by
six percent from 2014, holding firm in the last spot.69
Easterbrook has declared improving food quality as one of his
top priorities. In addition to cur tailing antibiotic use in its U.S.
chicken supply, McDonald’s is now selling dairy products from
growth- hormone-free cattle. The company has also pledged to
examine its product ingredients and review its food preparation
procedures. Its goal is to become more “culinary inspired” and
to simplify food labels by reducing the number of
preservatives.70 There are still 19 ingredients in the French
fries McDonald’s serves in the United States, compared to just
five in Great Britain.71
Easterbrook simultaneously counterattacks McDonald’s’
naysayers with a media campaign high- lighting positive news
about the company’s food and workers. The company has
launched a video series entitled “Our Food, Your Questions,”
demonstrating how McDonald’s food items are made. The
company reports that it has already responded to 40,000
questions and that the increased transpar- ency has been well
received. In June 2015, Easterbrook hired two external
candidates to take over the company’s media affairs. He tapped
Robert Gibbs, former White House Press Secretary under
President Obama, to serve as executive vice president and
global chief communications officer, and Silvia lagnado,
previously with Bacardi ltd, to serve as head of global
marketing.72
APPEALING TO MILLENNIALS
One of the more perplexing problems that Easterbrook faces is
how to increase its appeal to mil- lennials. Between 2011 and
28. 2014, 19- to 21-year olds increased their monthly visits to fast-
casual restaurants by 2.3 percent, while their trips to
McDonald’s decreased by 12.9 percent. Customers aged 22 to
37 increased their fast-casual outings by 5.2 percent over the
same time period, while visits to McDonald’s stayed flat.73
They are consistently choosing “fresh and healthy” over “fast
and convenient” and “McDonald’s is having trouble convincing
them it can be both.”74
Thus far, Easterbrook’s main response has been to reach out
through digitization. In his words, mil- lennials “want to buy
into a brand not just from it. What we’ve got to do is find
interesting and engag-
ing ways to share that information with [them], not old-
fashioned corporate lecturing.”75 He hired a former Google
executive to lead McDonald’s “Experience of the Future,”
which includes an improved social media presence, development
of a smartphone app, and testing of mobile payment systems.76
LABOR
McDonald’s has serious staffing issues that need to be
addressed if it is to improve customer loy- alty. An internal
report that found its way to the media showed that one out of
every five customer complaints was about “rude or
unprofessional employees.”77 According to a national survey of
quick- service restaurants, McDonald’s ranks next to last in
“friendliness,” beating only Burger king. Part of
13
McDonald’s Corporation
29. the problem is that too many restaurants are understaffed during
peak breakfast and lunch hours. It is hard to be friendly whil e
work piles up and customers grow increasingly irritated at how
long it takes to place and get their orders. The annual turnover
rate in the fast food industry is 60 percent, as frustrated workers
seek to move on to less stressful and higher-paying jobs.78
It is too soon to tell whether McDonald’s pledge to raise pay to
at least $1 more per hour than the local minimum wage will be
enough to attract and retain motivated workers. The company
also granted employees the ability to accrue up to five days of
paid vacation annually after one year of employment. However,
this new HR policy applies only to the 90,000 employees of
company-owned stores, and risks upsetting franchisees who are
likely to feel pressured to match corporate’s offer with- out
equivalent financial resources. Meanwhile, activists continue to
lobby for an even larger pay raise (a $15-per-hour minimum) as
well as the right to unionize without retaliation. To force
McDonald’s to the negotiating table, the National labor
Relations Board’s (NlRB) general counsel has filed a suit
claiming that the company has enough control over franchise
operations to be considered a joint employer. As of fall 2017,
the case is still ongoing.
INTERNATIONAL MARKETS
like many U.S.-based global companies, McDonald’s has most
of its net-new growth from interna- tional markets. The secular
story that “consumers in emerging markets eat out more often as
their income increases” is still intact. Furthermore, BMO
Capital Markets, an investment bank, notes that the quick-
service-restaurant (QSR) hamburger sales have an annual
growth rate of 12–13 percent in China, and 21–22 percent in
Russia, for the last 10 years.79
In the fourth quarter of 2016, U.S. same-store sales dropped by
30. five percent, but that was better than estimates. In contrast,
during the same quarter, international growth was only 1.3
percent and the Wall Street analysts were notably “gloomy” at
the results.80 When McDonald’s reports their financial and
operational results, they further divvy up international r esults
into “international,” “high growth,” and “foundational” markets
(Exhibit 3). In the end, non-US growth matters.
McDonald’s has taken a differing approach to these markets. In
China and Hong kong, the com- pany recently sold an 80
percent stake in their 1,750 restaurants to Citic (state-owned
investment group) and the U.S. private equity firm, Carlyle.
They are currently looking for these partners to open an
additional 1,500 stores in China, Hong kong, and korea.81
Going Forward
The host of issues facing McDonald’s and its CEO Mr.
Easterbrook is daunting. The company is amid its most serious
identity crisis to date, and it desperately needs to define a clear
vision of what it wants to be and a plan for how to get there. In
trying to be all things to all people, it has ceded ground on
every front to its competitors. Fast-casual restaurants are
winning on taste and image, but the only way to catch them
seems to be to sacrifice speed, which at least used to be one of
the McDonald’s core competencies. Millennials want higher
product quality (and are willing to pay higher prices), but the
company can ill afford to alienate its value-driven customer
base. Menu variety brings a wide range
14
31. McDonald’s Corporation
of consumers through its doorways, but the added complexity
comes with increased costs and service delays. And after all this
time, 30 percent of the company’s sales still derive from just
five main items: Big Macs, hamburgers, cheeseburgers,
McNuggets, and fries.82 Other fast food restaurants are not only
faster, but (according to the polls) also have better food.
Instilling “stronger financial discipline, faster decision-making,
and hard-edged accountability”83 are good first steps, but none
of these actions mat- ter if Easterbrook fails to carve out a
viable strategy for McDonald’s in the 21st century.
In 2016, with the release of a feature film, Founder, staring
Michael keaton as Ray kroc, there has been a renewed interest
in the McDonald’s story. Although over 60 years of history
separate Ray kroc and Steve Easterbrook, the key challenges
remain largely the same:
· How to provide a product that balances quality, speed, and
affordability?
· How to innovate the menu without creating unnecessary menu
scope creep?
· How to respond to competitive threats without losing the
company’s core identity?
· How to prevent complacency, in spite of many years of
relative success?
In a recent talk at the Chief Executives Club, at Boston College,
Easterbrook said, “We don’t need to be a different McDonal d’s,
we just need to be a better McDonald’s.”84
39. 17
McDonald’s Corporation
EXHIBIT 3 McDonald’s Revenues by Regions and Market
Segments, 2013–2016 *, **
(
United
States
International lead
markets
High
growth
markets
Foundational
markets
&
corporate
$30
$25
$20
$15
$10
$5
$0
40. 2013
2014
2015
2016
)
* includes sales for both, franchised and company-owned
restaurants.
** International lead markets: Established markets, including
Australia, Canada, France, Germany, the U.K., among others.
High growth markets: markets with relatively higher restaurant
expansion and franchising potential, including China, Italy,
Korea, Poland, Russia, Spain, Switzerland, the Netherlands,
among others.
Foundational markets & corporate: Remaining markets, each
operating largely under the franchised model, including
corporate activities.
Source: Depiction of data in McDonald’s Annual Reports
(various years).
18
42. * Years 2018-2020 are estimates.
Source: Depiction of data from Statista.com.
19
McDonald’s Corporation
Endnotes
1 “2011 Annual Report,” McDonald’s, last modified March 9,
2012, http://bit.ly/NaoJsc.
2 B. Horovitz, “McDonald’s First Monthly Sales Drop in a
Decade,” USA Today, last modified November 8, 2012,
https://www.usatoday.com/story/money/business/2012/11/08/mc
43. donalds-don-thompson-sales-decline/1692631/.
3 “2012 10-k,” McDonald’s, accessed October 10, 2017,
http://buswk.co/GIYBkI.
4 Jason Dean, Ilan Brat, and Annie Gasparro, “McDonald’s
CEO is Out As Sales Decline,” Wall Street Journal, last
modified January 28, 2015,
https://www.wsj.com/articles/mcdonalds-ceo-steps-down-
1422485574.
5 “McDonald’s: A Sense of Urgency,” Economist, January 31,
2015.
6 “McDonald’s—Shares might offer even better value than its
value menu,” Seeking Alpha, last modified July 23, 2013,
http://bit.ly/16p58Pe.
7 “McDonald’s shifting expansion plan to Asia: Analysts mixed
in outlooks,” Medill Reports Chicago, last modified June 6,
2012, http://bit.ly/MoQmwJ.
8 J. Jargon and C.Dulaney, “McDonald’s Decline in U.S. Sales
Accelerates,” Wall Street Journal, last modified December 8,
2014, https://www.wsj.com/articles/mcdonalds-november-sales-
fall-more-than-expected-1418044377.
9 “McDonald’s: A Sense of Urgency,” Economist.
10 Yuki Noguchi, “Big Mac Whacked,” NPR, last modified
December 9, 2014, http://www.npr.org/sections/
thesalt/2014/12/08/369402086/mcdonalds-reports-steep-drop-in-
sales-at-u-s-restaurants.
11 Jason Dean, Ilan Brat, and Annie Gasparro, “McDonald’s
CEO is Out As Sales Decline,” Wall Street Journal. 12 This
section is based on McDonald’s, “The Ray kroc Story”,
accessed October 2017, http://bit.ly/dwFmjY;
McDonald’s, “McDonald’s history,” accessed October 2017,
http://bit.ly/w3YNhe; and McSpotlight, “A brief history of
McDonald’s,” accessed October 2017, http://bit.ly/cWkxji.
13 McDonald’s, “Annual report, 2016, ” last modified March 1,
2017, http://bit.ly/2qXPprQ.
14 “How McDonald’s Copes with International Tastes,”
Strategic Creative, last modified May 1, 2013.
44. 15 “Why the French Secretly love the Golden Arches,” Slate,
last modified August 9, 2013, http://slate. me/19RRs4Z.
16 larry light and Joan kiddon, “Brand Revitalization:
Background to the Turnaround at McDonald’s,” InformIt, last
modified February 18, 2009, http://bit.ly/1b56yR.
17 light and kiddon, “Brand Revitalization: Background to the
Turnaround at McDonald’s,” InformIt.
18 P. Sellers, “How McDonald’s Got CEO Succession Right,”
Fortune, last modified August 23, 2011, http://
fortune.com/2011/08/23/how-mcdonalds-got-ceo-succession-
right/.
19 light and kiddon, “Brand Revitalization: Background to the
Turnaround at McDonald’s,” InformIt. 20 “Big Mac’s
Makeover,” Economist, October 14, 2004,
http://www.economist.com/node/3285898.
21 “Up All Night,” BusinessWeek, February 5, 2007.
22 Caroline Winter, “Who Eats at McDonald’s on Christmas?”
Bloomberg BusinessWeek, last modified December 18, 2012,
https://www.bloomberg.com/news/articles/2012-12-18/who-
eats-at-mcdonald-s-on-christmas.
23 “McDonald’s to look like Starbucks,” Huffington Post, last
modified July 9, 2011, https://www.huffingtonpost.
com/2011/05/09/mcdonalds-look-like-starbucks_n_859342.html.
20
McDonald’s Corporation
24 “Up All Night,” BusinessWeek.
25 “How to Make a McHit,” BusinessWeek.
26 “McDonald’s Fries, Hold the Trans-Fat,” CBS News, last
modified May 22, 2008, https://www.cbsnews.com/
45. news/mcdonalds-fries-hold-the-trans-fat/ .
27 “Up All Night,” BusinessWeek.
28 “Big Mac’s Makeover,” Economist, last modified October
14, 2004, http://www.economist.com/node/3285898.29 “Up All
Night,” BusinessWeek.
30 Melissa Harris, “New McDonald’s CEO Stays True to His
Roots,” Chicago Tribune,
last modified March 23, 2013,
http://articles.chicagotribune.com/2012-03-23/site/
ct-biz-0323-harris-confidential-20120323_1_cabrini-green-
olivet-community-center-don-thompson.
31 Barbara Thau, “McDonald’s next CEO: Don Thompson, the
Man Behind McCafé,” Daily Finance, last modified March 22,
2012, http://aol.it/GSjAoh.
32 Dean, Brat, and Gasparro, “McDonald’s CEO is Out As Sales
Decline,” Wall Street Journal. 33 Dean, Brat, and Gasparro,
“McDonald’s CEO is Out As Sales Decline,” Wall Street
Journal.
34 Annie Gasparro and Eric Morath, “McDonald’s Joins Trend
in Raising Pay,” Wall Street Journal, last modified April 2,
2015, https://www.wsj.com/articles/mcdonalds-to-raise-hourly-
pay-for-90-000-workers-1427916364.
35 David kesmodel, Jacob Bunge, and Annie Gasparro,
“McDonald’s to Curb Antibiotics in Chicken,” Wall Street
Journal, March 4, 2015, https://www.wsj.com/articles/
mcdonalds-to-curb-purchases-of-chicken-raised-with-
antibiotics-1425482366.
36 Samantha Bomkamp, “McDonald’s HQ Move is Boldest Step
Yet in Effort to Transform Itself,” Chicago Tribune, June 13,
2016, http://www.chicagotribune.com/business/ct-mcdonalds-
chicago-headquarters-0614-biz- 20160609-story.html.
37 “National Economic Trends,” Economic Research, accessed
October 2017, https://research.stlouisfed.org/
datatrends/net/page3.php.
38 Michelle Jamrisko, “Americans’ Spending on Dining Out
Just Overtook Grocery Sales for the First Time Ever,”
46. Bloomberg Markets, April 14, 2015,
https://www.bloomberg.com/news/articles/2015-04-14/
americans-spending-on-dining-out-just-overtook-grocery-sales-
for-the-first-time-ever.
39 Jeanna Smialek and Patricia laya, “The New Face of
American Unemployment,” Bloomberg Businessweek, last
modified February 7, 2017,
https://www.bloomberg.com/features/2017-new-unemployment/.
40 Mckinsey Global Institute, “Overcoming Obesity: An Initial
Economic Analysis,” last modified November 2014,
file:///C:/Users/fr37/Downloads/MGI_Overcoming_obesity_Full
_report.pdf
41 Jonathan House, “Obesity Epidemic Costs World $2 Trillion
a Year, Study Says,” Wall Street Journal blog post, last
modified Nov. 19, 2014,
https://blogs.wsj.com/economics/2014/11/19/ obesity-epidemic-
costing-world-2-trillion-a-year-study-says/.
42 C. R. Daniel, A. J. Cross, C. koebnick, and R. Sinha,
“Trends in Meat Consumption in the United States,”
Public Health Nutrition, 14(4) (2011): 575–583. 43 “Big Mac’s
Makeover,” Economist.
44 David kesmodel, Jacob Bunge, and Annie Gasparro,
“McDonald’s to Curb Antibiotics in Chicken,” Wall Street
Journal, March 4, 2015, https://www.wsj.com/articles/
mcdonalds-to-curb-purchases-of-chicken-raised-with-
antibiotics-1425482366.
21
McDonald’s Corporation
47. 45 Beth kowitt, “Inside McDonald’s Bold Decision to Go Cage
Free,” Fortune, last modified August 18, 2016,
http://fortune.com/mcdonalds-cage-free/.
46 David Gauvey Herbert, “What the Hell Has Happened to the
Price of Ground Beef?,” last modified July 2, 2015,
https://qz.com/442037/what-the-hell-has-happened-to-the-price-
of-ground-beef/.
47 “Big Mac’s Makeover,” Economist.
48 Trefis Team, “Burger king-Tim Hortons Cross-Border
Merger Much More Than Tax Inversion,” Forbes, last modified
August 29, 2014,
https://www.forbes.com/sites/greatspeculations/2014/08/29/
burger-king-tim-hortons-cross-border-merger-much-more-than-
tax-inversion/#78dab8743186.
49 Ashley lutz, “Burger king’s Secret to Becoming the Most
Successful Fast Food Chain,” Business Insider, last modified
June 2, 2015, http://www.businessinsider.com/burger-kings-
business-strategy-2015-6.
50 Julie Jargon, “Popeyes to Be Bought by Owners of Burger
king and Tim Hortons,” Wall Street Journal, last modified
February 21, 2017, https://www.wsj.com/articles/ popeyes-to-
be-bought-by-burger-king-tim-hortons-owner-1487685926.
51 kim Peterson, “Why Wendy’s is Running Circles Around
McDonald’s,” CBS Money Watch, last modified January 6,
2014. http://www.cbsnews.com/news/wendys-is-running-circles-
around-mcdonalds/.
52 Darren Tristano, “Technomic State of the Fast Casual
Industry,” presentation National Restaurant Association
Conference, Chicago, Il, May 20-23, 2017.
53 “Better Burgers, Choicer Chicken,” Economist, last modified
January 8, 2015, https://www.economist.com/news/
business/21638120-why-slightly-more-upmarket-outlets-are-
eating-fast-foods-lunch-better-burgers-choicer- chicken.
54 Ilan Brat and kelsey Gee, “IPO Sizzles as Shake Shack Tests
Big Chains,” Wall Street Journal, January 30, 2015,
48. https://www.wsj.com/articles/ipo-sizzles-as-shake-shack-tests-
big-chains-1422661092.
55 Josh Sanburn,“McDonald’s Removes Angus Burgers As it
Tries to Reverse Declining Sales,” Time, May 10, 2013,
http://business.time.com/2013/05/10/mcdonalds-removes-angus-
burgers-as-it-tries-to-reverse-declining-sales/.
56 “Up All Night,” BusinessWeek.
57 “Up All Night,” BusinessWeek.
58 “Big Mac’s Makeover,” Economist.
59 Stephanie Strom, “McDonald’s Trims its Happy Meal,” New
York Times, last modified July 26, 2011, http://
www.nytimes.com/2011/07/27/business/mcdonalds-happy-meal-
to-get-healthier.html.
60 Susanna kim and Alyssa Newcomb, “Girl Who Scolded
McDonald’s CEO Not Impressed With His Response,” ABC
News, last modified May 25, 2013,
http://abcnews.go.com/Business/ girl-scolded-mcdonalds-ceo-
impressed-response/story?id=19255994.
61 Julie Jargon, “McDonald’s Set to Offer All-Day Breakfast,”
Wall Street Journal, last modified September 1, 2015,
https://www.wsj.com/articles/mcdonalds-set-to-offer-all-day-
breakfast-1441134058.
62 leslie Patton, “McDonald’s Planning to Start Selling All -Day
Breakfast on October 6,” Bloomberg Business, last modified
September 1, 2015,
https://www.bloomberg.com/news/articles/2015-09-01/
mcdonald-s-planning-to-start-selling-all-day-breakfast-on-oct-6.
63 Julie Jargon, “McDonald’s to Pare Menu, Review
Ingredients,” Wall Street Journal, last modified December 10,
2014, https://www.wsj.com/articles/mcdonalds-planning-new-
menu-with-fewer-items-1418230599.
64 Stephanie Strom, “McDonald’s Seeks its Fast-Food Soul,”
New York Times, March 7, 2015, https://www.nytimes.
com/2015/03/08/business/mcdonalds-seeks-its-fast-food-
soul.html?_r=0.
49. 22
McDonald’s Corporation
65 Julie Jargon, “McDonald’s Menu Problem: It’s Supersized,”
Wall Street Journal, last modified December 3, 2014,
https://www.wsj.com/articles/mcdonalds-menu-problem-its-
supersized-1417631056.
66 Jargon, “McDonald’s Menu Problem,” Wall Street Journal.
67 Julie Jargon, “McDonald’s Faces ‘Millennial’ Challenge,”
Wall Street Journal, last modified August 24, 2014,
https://www.wsj.com/articles/mcdonalds-faces-millennial-
challenge-1408928743.
68 Joshua Brown, “McDonald’s Fixes its Marketing, Chipotle
Fixes its Product,” Fortune, last modified January 21, 2015,
http://fortune.com/2015/01/21/mc donalds-chipotle-integrity-
trust/.
69 Mary Bowerman, “What’s America’s Favorite Fast-Food
Restaurant?” USA Today, last modified July 1, 2015,
https://www.usatoday.com/story/money/2015/07/01/ chick-fila--
america-favorite-restaurant-mcdonalds-consumer-
survey/29554303/.
70 Jargon, “McDonald’s to Pare Menu, Review Ingredients,”
Wall Street Journal. 71 Strom, “McDonald’s Seeks its Fast-Food
Soul,” New York Times.
72 Strom, “McDonald’s Seeks its Fast-Food Soul,” New York
Times.
73 Jargon, “McDonald’s Faces ‘Millennial’ Challenge,” Wall
Street Journal.
74 Beth Kowitt, “Fallen Arches: Can McDonald’s Get its Mojo
Back?” Fortune, last modified November 12, 2014,
50. http://fortune.com/2014/11/12/can-mcdonalds-get-its-mojo-
back/.
75 Dean, Brat, and Gasparro, “McDonald’s CEO is Out As Sales
Decline,” Wall Street Journal.
76 “When the Chips are Down,” Economist, last modified July
22, 2010, http://www.economist.com/ node/16646178.
77 Julie Jargon, “McDonald’s Tackles Repair of ‘Broken’
Service,” Wall Street Journal, last modified April 10, 2013,
https://www.wsj.com/articles/SB10001424127887324010704578
414901710175648.
78 Jargon, “McDonald’s Tackles Repair of ‘Broken’ Service,”
Wall Street Journal.
79 Andrew Strelzik, “More McUpside as Plan Remains in Early
Days,” BMO Capital Markets, April 20, 2017.
80 “McDonald’s is Going for Healthier Fare and Digitization,”
Economist, last modified January 28, 2017, https://
www.economist.com/news/business/21715704-it-may-soon-be-
surpassed-starbucks-mcdonalds-going-healthier- fare-and-
greater.
81 “McDonald’s Agrees Chinese Franchise Sale,” BBC News,
last modified January 9, 2017, http://bbc.in/2frmkRk. 82
Kowitt, “Fallen Arches: Can McDonald’s Get its Mojo Back?”
Fortune.
83 Hayley Peterson, “McDonald’s CEO Reveals His Massive
Plan to Save the Business,” Business Insider, last modified May
4, 2015, http://uk.businessinsider.com/mcdonalds-ceo-reveals-
turnaround-plan-2015-5.
84 Steve Easterbrook, “McDonald’s CEO talk at the Chief
Executives Club,” Boston College Carroll School of
Management, February 14, 2017,
http://www.bc.edu/schools/csom/research/executives/events/201
7/ceo2017-02-02. html#content_calloutbox.