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Consumer Insight
Consumer insight is evident in the international
variations of the McDonalds menu. Changes to classic
items include packets of seaweed flavoring for their
chips, shrimp burgers, Matcha flavored McFlurrys,
Jasmine Green Tea, taro pies and Teriyaki sauce on
their burger patties in Asian markets or the McAloo
Tikki or McSpicy Paneer in the Indian market (Peterson
2013). This targeting is a result of market research in
these regions; Asian consumers prefer more seafood
and traditional regional flavours, and the large
vegetarian population in India prompts providing. The
initial success of the 2006 Forever Young campaign,
the start of a company-wide rebrand, is proof of their
attention to consumer insight. This further extends the
concept of them being more than just family friendly,
and turning their attention to younger customers who
want a Wi-Fi-capable place to socialise and
businesspeople who can use the space for meetings
while quickly getting a meal into their schedules.

Organizational Readiness
The companys ability to act upon and implement
innovative ideas is highly prevalent and is good at
dealing with operational, political, cultural and
financial demands that follow. They show
organisational readiness by successfully complying
with the three dimensions associated. Cultural
readiness is shown by McDonalds willingness to
accept change shown by the expansion of its
customize burger menu. While previously they have
been responsible for meeting customers needs
through creation, they now have accepted that
consumer needs can be satisfied further by
allowing people to add their own premium toppings
such as guacamole, mushrooms and tortilla chips.
Process readiness is also demonstrated by sales
being made more efficient through the use of
technology. This allows for consumer satisfaction to
be increased as the serving food process is
optimized. Structural readiness is also a barrier to
implementation that McDonalds have managed to
break. This is supported by CEO, Steve Eastbrooks
plans to restructure the business to a fast-food
chain that is a modern, progressive burger

Industry Foresight
McDonalds began their innovation process in the
1970s, when they began entering emerging markets.
By doing so they applied industry foresight with a
global perspective. The company addressed a driver,
customer demand, and aligned it with the trend of
American food. Social media now further extends
this trend.
Managed Innovation Process

Disciplined Implementation
McDonalds have shown disciplined
implementation in a number of cases
whereby they have scrapped innovative
ideas due to recognising it may not be a
beneficial decision for them to make. To
come to this conclusion and determine the
validity of an idea rapid prototypes may be
created and tested in the market. This was
done by McDonalds when they tested a
premium sirloin burger however sales
expectations were not met. Discipline was
shown and the product was scraped due to
it not meeting the needs of its customers.

McDonalds operates through

incremental innovation. They are
essentially producing the same
menu items while tailoring them to
emerging markets. The companys
products overlap with those of
their competitors, but they
continue to dominate the market as
a cost leader. To respond to a
recent drop in sales, a consumercentric managed innovation
process was designed. Market pull
forced the company
to improve
Core Technologies
and
overall customer service.
Competencies
McDonalds strongest core
competency lies in their logo: the
Golden Arches made to look like
an M. When seeing this,
consumers all over the world make
associations with the brands
image and the products they offer.
Other core competencies include
the companys partnership with
Coca-Cola, and their streamlined
production method. The latter
represents an assembly line, and
ensures consumers receive the
promise of fast food.