G.C.U.

P
CBM 321 (550)
Final Requirement

Image Change at McDonalds

Case questions:
How does the new strategy at McDonald’s depart from the company’s traditional
strategy? Is the new image likely to succeed?

Macdonald’s is one of the world's leading fast-food chains with over 30,000
restaurants in 120 countries. McDonald’s has its origins in the United States, where they
predominantly serve American meals such as burgers, fries, and beverages. The Big
Mac, a popular meal invented in 1958 and a major representation of globalization, is
served at McDonald’s chain of restaurants. The business employs intensive growth
strategies in order to achieve expansion and business development. That’s why, it was
quite easy for them to expand their business in 1995, not only in the United States but
also in other countries such as Europe and Asia. The company is also well-known for its
cultural consciousness, as evidenced by the fact that it serves culture-specific menus.
However, McDonald’s traditional strategy was to focus on growing and expanding the
business rather than on the socio-cultural aspect, specifically on the people’s health.

The business was so focused on growth that the health issue was simply
overlooked. Customers’ preferences were changing. They want to try something new
that is healthy and unfamiliar to them, but McDonald’s failed to notice. Customers were
not always satisfied with the food offered, therefore they made claims that it’s causing
people’s obesity, as the rate of obese people was dramatically increasing at the time.
According to a doctor who runs an obesity clinic, the company’s food (Big Mac, French
fries, soda) includes nearly all of the necessary daily calorie intake. As a result,
McDonald reevaluated their strategy for dealing with this issue. They take immediate
action to restore the company's reputation and show concern for the health of its
customers. The company created a new advertisement that emphasizes physical
activities, new menus with low calories like salads and fruits, restaurant renovations,
and “deplasticize” interiors that offer an entirely different experience for both the
business and the customers. The expansion has been placed on hold while quality,
service improvements, and long-term strategies are prioritized. Furthermore, the
company’s new image will undoubtedly work and prosper because today’s consumers
are much more health-conscious. They will favor high-fiber, low carbohydrates, and low-
calorie foods. The new strategy of McDonald’s was created with the goal of providing
customers with long-term satisfaction and increase customer loyalty. Focusing on food
quality rather than business expansion to increase their sales and profits is a great
approach. Also, revamping or renovating is a unique way to give both restaurants and
customers a fresh look.

To sum it up, McDonald’s is a globalized fast-food franchise that has fulfilled its
goal by expanding its restaurant globally. Changing their objectives and strategy is the
greatest option they took to regain customers’ trust and to increase profits. The socio-
cultural aspects, particularly the health factor, are the reason they place a greater
emphasis on keeping a positive image and continually redesigning with new ideas to
boost sales. McDonald’s new strategy will push them to the top and they’ll surely win
customers’ hearts.