What situation did Skinner inherit when he became CEO? What are the current forces in the external environment that affect Skinner’s ongoing strategy? 2. What source of competitive advantage does McDonald’s have, and is that position supported by its value chain and other internal resources? -Inherit the previous CEO Cantalupo’s turnaround strategy. This strategy referred as the ”Plan to win” tried to target various critical areas that needed to be addressed. -Rapid market fragmentation, which is describing the changes of consumer taste have made once-exotic foods like sushi and burritos everyday options.
Many fast food customers are looking for healthier and better tasting food. Moreover, competitions has been coming from quick meals of all sorts that can be found in supermarkets, convenience stores and vending machines. Demographic – customers now working around theclock, expecting 24 hour access to fast food, how toplease range of customers from kids to contractors? Sociocultural – customers preferences have changed tomore exotic foods, healthier food with better taste Economic – current economic downturn means customers might be trading down to McDonald’s if they ant to eat out Global – boundaries are disappearing, travelers moreopen to global consistency in food offerings – GoldenArches are accepted, and expected, everywhere
2. Cost leadership has been the traditional strategy for thefast- food industry, but McDonald’s kept costs under control in order to achieve parity with competitors -McDonald’s tried to develop a differentiationadvantagewhile keeping costs at a reasonable level -Differentiation requires the creation of something that isperceived industry-wide as unique and valued bycustomers -Differentiation s achieved by a firm configuring its valuechain activities to support its position so customers arewilling to pay a premium for something unique – could McDonald’s do this effectively? Value-Chain Analysis: -Sequential process of value-creating activities -The amount that buyers are willing to pay forwhat a firm provides them -Value is measured by total revenue -Firm is profitable to the extent the value itreceives exceeds the total costs involved increating its product or service Value ChainActivity How does McDonald’s create value? Primary: Inbound logistics: Hard to assess
The Term Paper on Food and Customer Satisfaction
Nestle has become the world number one largest food in the world. Many other company investigating how nestle become profitable. Nestle used the customer satisfaction as a key of Nestle becoming the world largest food in the world. Under customer satisfaction system Nestle shows how good Nestle manage the customer fulfillment needs and to get the loyalty to the product. Nestle has been done a lot ...
Operations: Strived for consistency across the chain, withdiffering results. Refurbishing of restaurants,change in hours may help draw customers. Outbound logistics: Hard to assess Marketing and sales: Many product innovations failed, $1 menu didn’t go well with franchisees. I’m Loving It campaign was attempt to reach all customers. Service: Hard to assess Value ChainActivity How does McDonald’s create value? Secondary: Procurement: Info not available in the case Technology development: Adoption of expensive cooking processesfailed to generate desired results.