MANAGEMENT

What functions of management has McDonald's leadership used in order to turn around the company and make it profitable?



What functions of management has McDonald's leadership used in order to turn around the company and make it profitable?

Nine years ago in 2003, McDonald's announced its first ever quarterly loss of $344m. The Golden Arches was ailing, losing market share, customers, brand equity, and was the whipping boy for an aggressive media. Who would have thought that the share price would see a six fold increase; that McDonald's would be the largest seller of coffee in major European markets; be the largest provider of free Wi-Fi in the US and that 14 million more customers would visit McDonald's EVERY DAY than in 2002? Leadership of McDonald's used four functions of management to tackle the laborious time.

Planning

McDonald's Corporation has made its turnaround by introducing a new healthier, and higher-quality image after announcing its first quarter loss of $343.8 million in early 2003. It believed that the lost in market shares is a result of several aspects that include an increasingly intense competition, poor management, bad publicity and lack of response to the changing needs of consumers and franchises (Capell, 2010). Hence, the purpose of this assessment is to examine McDonald's capabilities to enhance this turnaround in order to attain sustain growth and margin expansion in the long term McDonald's Corporations has made its turnaround by introducing a new healthier and higher-quality image after announcing its first quarter loss of $343.8 million in early 2003. It believed that the lost in market shares is a result of several aspects that include an increasingly intense competition, poor management, bad publicity and lack of response to the changing needs of consumers and franchises. Hence, the purpose of this assessment is to examine McDonald's capabilities to enhance this turnaround in order to attain sustained growth and margin expansion in the long term (Arndt, 2010).

Strategies

Leadership of McDonald's created a “Plan to Win” strategy which was put down as a one page document, which talked about People, Products, Price, Place and Promotion. One may feel that a one-page document would not suffice for a strategic purpose, but it is important to know that this “Plan to Win” strategy worked and brought about a significant turnaround for McDonald's because of sound implementation (Patton, 2011). McDonald's appeared to have been influenced by partner brands such as Chipotle Mexican Grill and Donato's ...