McDonald's struggled between 1997-2002 with falling stock prices and failed products. While continuing expansion, it also closed non-performing franchises. There was an imbalance between renovating stores, innovating menus, and marketing the brand. However, some regional leaders introduced successes - in France, menu and interior changes attracted more customers, while Australia's McCafe innovation boosted sales and the brand. The case highlights McDonald's revitalization efforts during this challenging period.

1. McDonald’s Corp. Case
A classic Tale of McDonald’s Struggle in the timeframe 1997 to 2002
By Aditi Sinha and Amit Vyas (MIT SCHOOL OF BUSINESS)

2. Brief of Case Facts
McDonald’s is a fast pace global fast food
chain which was founded in 1940 by Ray
Kroc.
Headquartered in Oak Brook, Illinois, USA
The Case highlights the brand’s struggle in
the timeframe of 1997 to 2002

3. What Went Wrong??
McDonald’s stock price was all time low
A fleet of failed products and weak franchisees
Focused on continuing expansion along with
cost cutting
Kept the expansion drive alive at the same
time closed down non-performing franchisees

4. What went wrong Contd..
Imbalance in three main circles of brand
building:
Renovation
Innovation
Marketing

5. The ‘Hope’ in some regions
In France, Dennis Hennequin introduced
menu modifications and redesigned the
interiors to attract customers
In Australia, Charlie Bell’s idea of McCafe was
an innovative move which boosted the
customer intake and contributed in uplifting
the McDonald’s brand.

6. The Solution
Brand Revitalizing!!!!
But How???

7. Here is how to do it !!!