MCD 1020 McDonalds in crisis assignment 代写
Page 1 of 18MCD1020 Trimester 1 2017 Problem Based Assessment for Final ExamSource: The GuardianMcDonalds in crisisSteve Easterbrook, the new British chief executive of McDonald’s has his ownpersonal challenge: How to resurrect the world’s biggest burger chain. Easterbrookwill be putting the final touches to a plan he will be hoping will turn around the 60-year-old company which is rapidly losing customers.After decades of expansion that saw McDonald’s march into China, Russia andexpand around the world, the burger brand is no longer flavour of the month. Amillion people have turned their back on McDonald’s in 2014, and profits went withthem. Last year McDonald’s ’annual net income dropped 15% to $4.7bn – making2014 one of the worst years in the company’s history.Easterbrook is under no illusions about the scale of the task ahead of him, and hasbilled himself as an “internal activist” and “constructive agitator” unafraid to challengeconvention at the company. “We need to act now, and we need to make an impact.I’m not looking for incremental steps,” Easterbrook said last week as he announcedthe sixth straight quarter of sagging sales, depressed profits and another miserableoutlook. “As you go through turnarounds … they are a little bumpy by nature. Andthat does require some bold and decisive decision-making.”Financial analysts and restaurant consultants reckon that McDonald’s main problemis that it has largely ignored the changing tastes and ideals of its core customers andwill find it hard to catch up with the new wave of hipper, rival fast-food chains while atthe same time staying cheap and fast enough to satisfy its remaining loyalcustomers.“Can it be done? I’m just not sure it can,” said Patty Johnson, global food analyst atmarket research firm Mintel. “The consumer is continuing to evolve away fromMcDonald’s’ core mission which was to provide exceptional value in a quick manner.The operation was set up to produce food ahead of time, so when you got to thedrive-through it was all waiting for you. They had it down to a science.“But the consumer has evolved from wanting everything cookie-cutter. We are nowall about innovation and individualisation. [People] want gluten-free, vegetables,hold-the-mayo, we want ‘this’ but we don’t want ‘that’, we’re very specific. Butproviding for that will push up costs and wait times, jeopardising McDonald’s’ corevalues of speed and time.”Johnson said McDonald’s’ biggest challenge is winning over the most fought-overdemographic: millennials (people who became teenagers around the year 2000).“They have a whole different value equation, it’s not just about price and quality. It’sabout morality and ethics and wanting a healthy lifestyle,” she said.Page 2 of 18McDonald’s has tested a new initiative called Create Your Taste that would allowcustomers to create individualised burgers costing up to $8 with fries and a drink –compared to $5 for a standard value meal.Aaron Allen, a global restaurant consultant says that by feeding 69m people a dayacross the world, McDonald’s has a moral duty to improve the health of its food. “Butat the end of the day, if you’re McDonald’s you don’t want consumers to wanthealthier food and fresher food, because they’re just not able to deliver it.”Allen reckoned McDonald’s’ recent moves to improve its ethical and health image byincreasing US workers’ pay (by $1 to $9.90 from July), widening the range of healthyoptions and phasing out antibiotic-reared chicken was a “…begrudging change.They have continually fought these things, McDonalds ignored it, but these changeshave their customers who have changed their eating habits before McDonald’s haschanged its menu.”With more than 36,000 restaurants worldwide, including 14,350 in the US, sourcingenough baby carrots for Happy Meals or even cucumbers for new healthier wrapsproved too difficult. “Even if they wanted to go organic, for example, they justwouldn’t be able to,” Allen said. Indeed Chipotle, so often held up as an exampleMcDonald’s should follow, has itself struggled to source enough of the ethicallysound ingredients it is famous for.
MCD 1020 McDonalds in crisis assignment 代写Changing one of the world’s biggest supply chains will be a huge challenge, saidAllen – but not as immense as repairing McDonald’s reputation among bothcustomers and its own staff. “They’ve got to help us all feel less ashamed aboutgoing to McDonald’s. From the customers to the employees, everyone is ashamed ofgoing into a McDonald’s.“Even though staff are paid similarly to workers at other restaurants, McDonald’sworkers are ashamed of where they work. If you have 420,000 employees who arenot proud of where they work that will reflect in the service and quality.”Taken from: The Guardian http://www.theguardian.com/business/2015/may/02/steve-easterbrook-mcdonalds-fast-food-big-league-burgers-shake-shackPROBLEM BASED LEARNING ASSESSMENT ARTICLEYou now need to write a problem based assessment.You must: summarise the article identify and explain management problems in the article identify and explain suitable management theory for the article suggest solutions for the problems using management theory.
MCD 1020 McDonalds in crisis assignment 代写
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