Steve Easterbrook became CEO in March 2015 after it became clear that his predecessor's reversion strategy was not working. Financially, McDonald's is struggling with declining sales growth, a 15 percent decrease in net income, and stock prices below their 2012 price point, while the total marketplace is increasing. The organization is not benefitting from the economic recovery, as consumer preferences (and especially millennials) are shifting toward healthier choices for dining out. Meanwhile, competition is fierce, with several direct competitors (e.g., Wendy's), higher-end burger joints (e.g., In-and-Out Burger), and fast casual chains (e.g., Panera) all outperforming the burger giant. The company is fighting with defining its strategic identity.
McDonald's Corporation Case Study Solution
Menu diversification has increased functional complexity that has slowed service times. McDonald's size makes it an easy target for health promoters and labor activists, further compounding its public understanding problems. By striving to be all things to all individuals, McDonald's finds itself in a classic "stuck-in-the-middle" tactical predicament. Easterbrook must find a means to be a tactical leader who is willing to make tough choices and transform McDonald's into a "modern, progressive hamburger company."
PUBLICATION DATE: January 14, 2016 PRODUCT #: MH0037-PDF-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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