In today’s challenging economic environment where global enterprises and corporations are reporting massive losses and catastrophic dips in quarterly profits, the lowly hamburger is once again winning the hearts of critics and investment bankers alike. From its latest premium coffee offerings to the staple Big Mac sandwich, McDonalds Corporation continues to court customers with its product selection, whilst riding on the success of one of the largest mission restructuring processes in fast food restaurant history. Setting the precedent for both its competitors and retail outlets, McDonald’scurrent development strategy may be the new “how-to” guide for the major players in the game of international business and commerce.
According to Ken Hullings (Martin, 2009), an owner of multiple McDonalds franchises in the United States, the vision for McDonald’sfuture “lacked direction in the late nineties. Indeed, the decade proved to be incredibly tumultuous for the company, as executives wrestled with several issues raised by the restaurant’s rapid global expansion. As new locations continued to open at a dizzying pace, the hygienic and safety standards in older locations began to slide, further alienating potential customers. Moreover, clientele were concerned with the nutritional value of menu fare, and bored with the lack of variety.
After undergoing extensive changes in executive leadership, McDonalds brought about massive changes in already existing locations by renovating old décor, and using new technology to lure in a younger crowd. Additionally, the company began to change it’s approach towards the heightened criticisms it had received regarding the content and nutritional values of its food. Eliminating the “super-size” option, adding milk and apple slices to the children’s menu, and switching to all white chicken meat in all poultry products furthered propelled McDonald’sredevelopment. Further adaptations to meet the needs of shifting consumer demands included the introduction of premium roasted coffees, including cappuccinos and lattes in thousands of locations.
McDonalds corporate players are optimistic about the future of the enterprise. Jim Skinner, the company’s chief executive, claims that while the restaurant is not recession-proof, it is “recession resistant,” (Martin, 2009). Indeed, McDonald’s rebirth certainly looks encouraging to other companies struggling in the face of massive obstacles brought about by the current economic state. A renewed focus on the core values of customer satisfaction, improvements to current product selection, and a continued development within existing storefronts is something that we shall no doubt see many retailers and restauranteurs attempting in the months and years ahead. As for McDonalds, the executive leadership is no doubt counting on it’s recent rebirth to encourage consumers across the world to continue to declare, “I’m Lovin’ It!”
Sources:
Martin, A. (2009, January 11). The Happiest Meal: Hot Profits :[Money and Business/Financial Desk]. New York Times (Late Edition (east Coast)), p. BU.1. Retrieved from National Newspaper Abstracts (3) database. (Document ID: 1624687081).
