Market Case Study: How McDonald’s face Issues

And Struggles they encounter.

MICHAEL ANGELO CALO ARCETA

ARRIZ MIGUEL PALACOL AYALA
MICHAEL JOSHUA MANIGBAS BUHAY
JOSHUA MAVERIC VELARDE PEDAYO
JHONMEL ASEDILLO REDENA
February 11, 2021

Introduction
We examine McDonald's, a business which is important in this case study
Headwinds of sustainability. McDonald's is our option as it illustrates the challenges of a
firm with a financial result that is not integrated in its negative externalities. It presents a
list of questions, like those of this series (on Philips and Air France-KLM) which enable
the analysts to integrate sustainability in investments analyses by linking sustainability
to business models, competitive position, strategy and drivers of value.
Our results show that McDonald's does not meet the sustainability challenges as
well as Philips. Like Air France-KLM, McDonald's has significant social (health) and
environmental (carbon footprint) sustainability issues. However, it has much higher
probabilities of addressing such headwinds than with Air France-KLM: McDonald's is
profitably more mature and has substantial options to answer these concerns in terms
of sustainability reporting and reflection.
McDonald's Company is one of the world's most popular restaurant chains. They
also employed effective management and international development strategies to
penetrate new markets and build a share of the fast-food global sector. This case shows
how McDonald's succeeded in this tremendous success, its best practices in the global
food industry, trends and challenges in international growth and numerous lessons
learned from its overseas expansion. In the entire case, McDonald's addressed how
both customer loyalty and brand loyalty to its goods and services is developed. This
case focuses on the global success, challenges and strategies of McDonald.

A. Problem
McDonald's restaurants lack adequate supervision, which has led to a
tremendous sales downturn in the course of the years. Many Far East shops have shut
down due to economic downturn. At the same time, customers switch from hamburgers
to other food styles their preferences and predilections. This has led to low sales as the
number of tourists to the shops has declined over the years.
Furthermore, the number of forward-looking franchisors decreased because
McDonald has exposed himself to poor customer attendance by offering excessive
discounts on his products. The company also has poor quality services and
uncleanliness because the top management has laxity in preventing them from
inspecting the franchises. Furthermore, the deferment of training sessions used to equip
workers often contributes to a shortage of qualified staff.

B. Analysis of Alternatives
In order to work comfortably with the changing market economy, the company
needs to work out its business models through adequate segmentation. It is necessary
to resume professional training for employees in marketing and sales strategies. At the
same time, the company needs to diversify its sales in order to catch up with changing
trends in tastes among consumers.
All those other products should include high quality service and reasonable
prices. McDonalds should also enhance their burgers' quality by inventing new and
unique products. Only the most creative franchises with highly qualified staff can
achieve this (McDonald et al 335-352).
Managers who are able to carry out company marketing programs and who
are able to build internal cohesion must also be recruited (Johlke and Duhan 265-267).
The manager must be able, from the franchises to the head offices, to motivate and
bring together staff.
 Managers must be able to manage and face major market changes and
challenges. Without relying so much on their previous performance, management needs
to acquire valuable information on current market trends. The level of interaction and
communication with their franchisee needs to be improved.

C. Recommended Solution
Each employee's regular compulsory training could lead to an improvement in
his skilled workforce level. This can be used to improve both marketing efficiency and
performance. Recruiting experienced managers ensures proper market control tactics
are implemented.
In this way, human resources would also have the right staff to right duties
(Cravens and Piercy 2009). Owing to low results and failure to adopt quality of service
policies, McDonalds has continued to change its managers. As in this case, bad
administration resulted in McDonalds closing seven hundred restaurants (Gogoi and
Michael 281-284).
The quest for alternative food for customers may not be successful at the
beginning because many consumers are accustomed to supplies from other potential
competitors. Improved recipes would not improve significantly as consumers continue to
be served by companies offering higher quality services according to research scores.

D. Implementation
According to the research carried out, companies like Wendy and Chick-fill-A
Inc were ranked a head of McDonald. McDonald’s competitors offer far better quality
food stuff than them and this might mean that McDonald will really have to improve on
their sales and marketing tactics in order to convince consumers (Kohli 53-8).

E. Results
In order to identify the best counteractive solution other rivals have to examine
their intentions and tactics. The need for a good management team would improve the
supply of a good brand and the articulation of all marketing mix elements. For
development and progress to be achieved, products, pricing and marketing strategies
must adjust.