McDonald's is the world's largest hamburger fast food chain with over 32,000 restaurants globally. It began franchising in the 1950s under Ray Kroc and expanded aggressively overseas in the 1980s. However, this led the company to lose focus and direction. In 2003, McDonald's implemented a "Plan to Win" strategy to refocus on quality over quantity and cheap offerings. More recently, McDonald's has partnered with health organizations to offer more nutritious choices and address changing consumer preferences around health. Going forward, McDonald's faces risks around health-conscious consumers switching to healthier brands, new competition, and adapting to changing market tastes like those of millennials.

1. McDonalds
By: Norwilyne Garcia
Michelle Isaac
Jason Que
MM 230 - Marketing Management
University of the Philippines
Prof. Mita Angela M. Dimalanta

2. McDonald’s is the world’s leading hamburger
fast-food chain,
with over 32,000 restaurants in 118 countries.

3. 1955 - Ray Kroc franchised the then
hamburger restaurant from the McDonald
brothers known for its famous 15 cent
hamburger.

4. 1980s - expanded overseas throughout Europe,
Asia, the Philippines, and Malaysia.
- Company lost focus and direction, expanding
by 2,000 new restaurants a year.
- Led to poor customer service and dirtier
restaurants.

5. 2003 - McDonald’s implemented a strategic
effort called the “Plan to Win”
to refocus on offering
a better, higher-quality consumer experience
rather than a quick and cheap fast-food option.

6. What are McDonald’s core brand values?

7. Have core values changed ?
The company lost focus during
expansion in the 80s
After so many years,
the company sticks to their core values -
the center of their business model.

8. McDonald’s did very well during the
recession in the late 2000s.
McDonald’s did exceptionally well
in the recession compared to its
peers.
The reason: its cheap offerings
which attracted customers in
times of financial troubles.

9. Should McDonald’s change its strategy?
Changes can be made to
leverage on improved
economic conditions of
the global market
to maintain
their edge
among
their
competitors.

10. Should McDonald’s change its strategy?
Incorporate their core values
to shifting trends in food.

11. Should McDonald’s change its strategy?
Ability to cater to customers’ nutritional needs of
even at a higher price than their usual products

12. Should McDonald’s change its strategy?
Focusing on serving more fruits,
vegetables, whole grains, and low-fat dairy
Reducing salt content, sugar, and calories
across their menu.

13. Should McDonald’s change its strategy?
Their aspirational goal 2020 aims
to strengthen customer nutritional profile &
to improve product sustainability.

14. Should McDonald’s change its strategy?
Partnering with Alliance for a
Healthier Generation led them to
identify commitments to increase
consumer access to healthier food choices
and to disseminate nutritional information.

15. Should McDonald’s change its strategy?

16. What risks do you feel McDonald’s will
face going forward?
Health conscious consumers
may switch to brands
offering healthier options

17. What risks do you feel McDonald’s will
face going forward?
Competition from local fast food
chains
Need to win back customers hearts
among the
sea of new tastes and food options
saturating the market.

18. What risks do you feel McDonald’s will
face going forward?
Training employees rapidly and
effectively during expansion drives
Consider increasing staff wages as
company earned bad reputation
from giving minimum wage

19. What risks do you feel McDonald’s will
face going forward?
Transition of major market
composition to millennials
Preferences are fickle and often very
particular in their ability to customize
products that they purchase.

20. Sources:
https://www.mcdonalds.com/us/en-us/about-us/our-history.html
http://corporate.mcdonalds.com/content/mcd/sustainability/food.ht
ml
http://www.businessinsider.com/the-7-biggest-challenges-facing-
the-new-mcdonalds-ceo-2015-1