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Case Analysis: Mc Donald'S

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Question 1: How are customer's tastes changing in the fast-food industry? What impact do these changes have on Mc. Donald's?

There are around 40 Million American are considered obese. We live in a world, where everything is almost instant. We can go to a drive up window and receive a fast, hot meal in less than 3 minutes. Everything is about fast. That is the Mc Donald's golden years. But sometimes, going too fast is not good for us. Customers now substitute healthy food for a quick cheap meal, a healthy diet, included with healthy habits, can change our life. These changes are great for our world, but it is hurting the Mc Donald's profits.

Question 2: How well are these changes in customer tastes and preferences being reflected in competitive strategies in the industry?

Consumer tastes and preferences are changing and the [fast-food] industry need to be able to adapt to them. There is a huge opportunity to develop new products that appeal to the health conscious customer. To be more specific, they need to develop new products that appeal to young, health conscious women. Because consumer tastes are changing there is an opportunity to develop new healthier product lines that appeal to the new tastes of consumers that satisfied their tastes.

Question3: What are Mc Donald's strengths and weakness and what conclusion do you draw about it future?


- Industry's leader: McDonalds has been the leader in the fast-food industry for decades, literally changing the way Americans ate. Like every other business, McDonald's is subject to opportunities and threats in their specific and general sectors.

- McDonald's financial condition seems to be fair, but on the rise and could go back to being strong in the near future. The company has enough money to satisfy it short-term and long-term obligations and their interest payments, signifying that debt is not a major problem for them.

- Production: McDonald's has prided itself on its consistent product value. A Big Mac in New York tastes just like a Big Mac in Los Angles. Consistent product value has been strength for McDonald's because customers know what to expect when they go into a McDonalds. If a consumer wants a Big Mac they know that they can get one, with consistent taste and quality, at any McDonalds worldwide.

- Others: McDonald's, along with consistent product quality, delivers a consistent restaurant experience, a best supply chain in the industry and highest respect from its vendors.


- An old brand: McDonald's has been around for so long, and most Americans have eaten at McDonald's more times than they can count. It causes decreases in profits and puts a bad name on intangibles such as the McDonald's name and the golden arch logo.

- Current competition: McDonald's has been a part of fierce competitors between itself and other fast-food restaurants (Burger King, Taco Bell, Wendy's, Arby's, etc), but it seems to be getting more intense. Since the fast-food industry has a lot of growth potential, we are seeing thousands of new fast-food stores open every year. Quick meals can be found anywhere, supermarkets, convenience stores, and vending machines. The competition McDonald's faces are



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