Kimberly Foulkes

Lindsay Cohen

Heather Gibson Joey Paolini

Final Presentation and Scenario Analysis

MatthewMarynowicz

Agenda

• Background Info and Current Strategy

• What could happen to McDonalds?

• Major Scenario with Recommendations

• Implications of Recommendations

Background Information

First Canadian location in Richmond, BC

They serve 68 million customers daily

Current StrategyMcDonald’s vision is to be the world’s best quick service restaurant experience

Logistics, Operations, Marketing, Service, R&D, HRM, and Corporate Governance

Competitive Premise

Creates diversification while maintaining great customer service to make you come back for more.

Possible Scenarios

Workers Walking off the Job

McDonalds is a part-time and low-wage workforce, keeping our costs low

Issue a public apology and increase the minimum wage by 50 cents per hour

Tax on Unhealthy Food

Unhealthily fatty food will make McDonald’s too expensive and undesirable for consumer, and profits will decrease

Actively involved in athletic endeavors to give brand an athletic image

Tax on Unhealthy Food

Add campaign to portray McDonald’s food as wholesome supplier of food

Improve materials management

MGMT 4000 Scenario

It’s official. McDonald’s food has been considered as cancerous by multiple new studies. The US government, under extreme pressure by the public, decides to regulate the company’s activities. This is a huge hit to the company’s supply and sales, and of course, their brand, and revenue. What strategic options are available to McDonald’s? What recommendations do you make?

Alternative 1 – Switching Suppliers

Extremely expensive (short-term) process but will pay off in revenue increases and help rebuild brand perception

Causes loss of expertise Gain better management of the outsourced activity. Gain strategic optimization

Alternative 2 - Research

Difficult task to identify the cause

Start to simplify the menu

Continue re-branding

Alternative 3 – Media Campaign

Focus on improvements

Fixed the Issue

Marketing tactics and

social media

Recommendation

Honesty to customers

Switching suppliers

Advertise images/videos of McDonald’s execs eating McDonalds food

Future Strategic Direction

Health ConsciousDelivery McCafe

Health Conscious

Following trend without losing brand identity

Expand available options

Delivery

Necessary in order to keep up with competition

Online or app order placement

Meeting demands of busy consumers

Entering an additional market

Appeals to parents, students, and working people

McCafe Promotions!

Questions?