McDonalds Case Analysis - Discussions

McDonald's Case Study

Discussion Questions:

How are customer tastes changing in the fast food industry? What impact do these changes have on McDonald's?

Customer tastes in the fast food industry are changing younger customers are more aware of the foods they are ingesting. While many fast food chains have healthy substitutes to burgers, fries etc. the stigma these chains face is that all the foods they sell are greasy and unhealthy. The baby boomer generation is has also turned its attention to healthier sources of nutrition. This generation is older and continues to see increasing medical expenses and as a way to get or stay healthy are choosing foods that might be a little more expensive but offer less health risks from over consumption. Customers are also eating out less then before due to our nations recent recession. Customers are also choosing to eat at restaurants that have nicer dinning areas they might cost more then place like McDonalds but deliver food about as fast. These changes in society, and consumer tastes, and preferences have impacted the way McDonald's has had to adjust marketing, restaurant designs, efficiency in processes. This has impacted McDonald's sales as well causing stagnant year over year sales.

How well are these changes in customer tastes and preferences being reflected in competitive strategies in the industry?

These changes in customer tastes can be seen in the design of restaurants, pricing and marketing. We see companies in the industry advertising healthy options for customers. McDonalds recently started offering oatmeal, and introduced the McCafe a location that offers gourmet beverages, foods, and serves on dining ware like china and stainless steel flatware. Many fast food companies have added healthy choices for customers like new salads, and additional breakfast choices. Wendy's added some new salads, chicken sandwiches that have helped them to increase same store sales gains. Burger king has made pricing strategy changes buy implementing a permanent line of value priced offerings to help improve sales. Companies in this industry are aware customers tastes have changed and want things other then cheap burgers and fries. The nations largest fast food outlets have made necessary adjustments in order to recapture and improve market share.

What are McDonald's strengths and weaknesses and what conclusions do you draw about its future?

McDonalds strengths stem from its brand name, locations, industry leader, and flexibility. McDonalds is a company that has a brand name that is internationally recognized. This large company has numerous locations across the US and internationally. Mc Donald's is an industry leader and can make changes that affect the actions