Case Report
Key Issues Facing McDonald’s And Recommendations
McDonald’s is a restaurant industry that has maintained its position as a top company player in fast food production. As a newly hired consultant at McDonald’s, I do not get to set the agenda on this new job; It has already been set by the market. I took the job of a consultant in this restaurant in difficult times. McDonald’s company is beset with several challenges, ranging from new competition to changing consumer preference. To try and ensure the company excels in the market, as the consultant I identified the various key issues facing the company together with their recommendations.
The first challenge facing this industry is the perception issue. The restaurant became popular during the fast era period. The kind of fast food the industry used to produce was only fit during those periods, where time all over the world was a premium commodity (Abdelgawwad, 2017). Because of this, the company failed to recognize that consumer preference was best for its survival in the market. Then in the market, the restaurant if facing criticism. The barrage of criticism publicly has brought a negative impact on the firm because of how the company sources its food practices. To solve this problem, as the consultant I recommended various measures of changing the industry perception among the restaurant’s customers such as reducing salt content in the foods, composting practices, and introduction of carrot sticks and fruits in the menu offered to customers.
The real estate problem, due to activist investors of the restaurant spinning off the shares into a separate entity (Abdelgawwad, 2017). The enthusiasm they have to generate more income from the restaurant holding cannot be understood. However, since the start of the company, it has not relented so far. For the industry to unlock its value for the investors I proposed the real estate investment of the entity to provide the restaurant with more extra cash to transit and experiment into a new operation industry and new brand identity.
Bad food image is another problem affecting the company. To defend the food produced by the industry, the company will launch a social media awareness and campaign week. The platform will invite clients to come and ask questions about the ingredients used in producing the food. Among the questions that will be addressed by the company will be questions like, “Is real chicken used in the company’s chicken McNugget?” and “Does your food rot?” and “Why is your food not rotting?”. The company will run similar platforms in all its market niches including Australia and Canada, where more customers have built trust with the company.
Slow, inaccurate service is another key issue challenge. The company executives introduced many items quickly into the market, such as McWraps and the options that were meant to substitute egg whites for the breakfast sandwiches. The introduction of these products slowed down services and led to orders being inaccurate to its customers. To try and solve this problem, the company will focus on the simplified menu that only highlights the most popular items that give specifications to the clients.
In conclusion, McDonald’s is a global restaurant industry producing fast food products. Nonetheless, this paper addressed the key issues that the company is facing, and provided necessary recommendations to ensure the industry strives in the global market expansion. The recommendations are the most relevant actions that the company should take.
References
Abdelgawwad, M. (2017). Evaluating Challenges Facing Global Quick Service Restaurants and Proposed Solutions. International Journal of Heritage, Tourism and Hospitality, 11(2), 310-321.