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This case was written by Dr. Sam DeMarie, Pam Manhart, and Dr. Charles B. Shrader all of the Department of Management, College of Business, Iowa State University, December 28, 2010. It is intended to be used as a basis for classroom discussion rather than as a demonstration of either effective or ineffective management of a situation. The dialog included in the case is fictional and is for illustrative purposes only. Samuel M. DeMarie, Pam Manhart and Charles B. Shrader McDonald’s: From Big Mac to P’tit Plaisir Introduction1, 2, 3 Jim Skinner, current CEO of McDonald’s Corporation, sat in his office and reflected on his company’s recent experiences. The firm had overcome many obstacles in its quest to be viewed as a valued business partner in each of its operating regions. The future looked bright. Was it only a few short years ago that McDonald’s had been the focus of demonstrations and sometimes violent protests? McDonald’s had doggedly used its tried and true business practice of standardization to create a consistent customer experience throughout the world. This allowed the company to become the world’s largest fast food restaurant business. Yet somehow this previously sound business strategy had unintentionally led to the company becoming an icon for much that was wrong with global business. Those were challenging times and required significant changes to rebuild the global brand of McDonald’s. As Skinner considered his company’s situation the phone rang. It was Cindy Goody, Director of Nutrition for the company. Goody told Skinner about a troubling commercial she had just finished watching on US television. In the commercial the iconic Golden Arches appear shackled over the feet of a dead man with the caption ‘I was lovin’ it’. A hamburger is clutched in his hand, and a woman weeps over his body. Goody, knew this was exactly the type of thing she and Skinner thought they had defeated. The commercial, developed by the nonprofit group Physicians Committee for Responsible Medicine, was the latest in a series of attempts to blame fast food consumption for increasing rates of heart-disease and obesity. Frustrated but resolute, Goody knew the company was now committed to providing balanced menu choices for customers, and that many of its menu items were healthy while being reasonably priced. She felt confident in the company’s new menu that reflected traditional American tastes but also incorporated foods from around the world. The new, more expansive menu now included everything from one-dollar burgers and snack wraps to moderately expensive salads, and was gaining appeal to an ever widening range of customers. 2 Iowa State University College of Business Goody had been instrumental in developing the healthier and more international menu over the past few years. Her work entailed traveling the world for menu ideas, infusing the menu with healthier items, and hirin ...
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WELCOME TO
THE WORLD OF McDonald’s
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“ One world,
One Burger”- McDonald’s
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PRODUCTS
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In Past 5
Years: Debt Ratio has dropped 25% Net Income after Taxes has increased 31% Profit Margin has increased 41%
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BYE BYE SEE
U AT McDonald’S Thank you
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