The case examines the gradual decline in the performance of MacDonald in the recent. MacDonald being one of the largest fast food multinational has been going through a series of challenges that have hampered the continuous growth it once enjoyed. The business reputation has been greatly damaged in the recent past. The case study identifies four causes to be the main contributors of the sharp decline. This includes: poor public relations, generation lost, loss of identity and management failure. This paper will analyze the case study and suggest possible strategies that MacDonald’s management can implement to restore the business back into the old ways.
Based on the analysis of the above case study, there is enough evidence that level of customer satisfaction is currently low in MacDonald. Customer satisfaction is the key for establishing customer loyalty. One way of creating and maintaining customer loyalty is to ensure that organization deliver products and services that meet the exact customer needs (Laura, 2014). To achieve this, the management in MacDonald should establish a platform of interacting with customers receive complains compliments and inquiries. In the recent past, customer feedback has been widely used to generate innovative ideas across all industries in order to spur continuous growth and produce new products at ease. It is also notable that customer needs, taste and preference vary from time to time. Therefore, MacDonald’s management should consider reviewing their menu and production processes in order to incorporate current customers’ taste and preference (Soba & Aydin, 2011). Proper communication channels will also help the company to ensure that the customers are aware the ingredients in various food products MacDonald offer. This will reduce lawsuits that are related to lack of customer awareness about the product.
With regards to customer satisfaction, MacDonald should also carry out a Total Quality Management in their food products regularly. For instance, the case of expired meat being served in the MacDonald’s China restaurant is a sign of poor quality management in the business. Total Quality Management should be a continuous process t avoids incidences of quality compromise in the products and services (Crank, 1995). The management in MacDonald should consider revising the production processes. With more health sensitive customers in the fast food industry, the company should aim at using the ingredients that align with the dietary needs of the customers. The production processes should also include revising the menu to ensure that it doesn’t take customers too much time to peruse through.This will play a crucial role in cultivating a healthy public relationship and works towards restoring organization’s old reputation.
Change in business strategies
The new management in MacDonald should consider adopting a new business strategy. With stiff competition in the fast food industry, the company should consider merging differentiation with low cost. This will enable the company to overcome fierce competition from the emerging fast food businesses that offers their products at a slightly low cost. In addition, MacDonald should adopt new marketing strategies. For instance, MacDonalds have lost the market segment of the younger generation who are more sensitive to the food they consume. To achieve this, the management should design, marketing strategies to win the trust of this young generation which cover the larger niche. The company should consider being involved in Corporate Social responsibility (Laura, 2014).The company may consider planning events, sponsoring sport activities in schools and other institutions where young people meet and interact.
Crank, D. (1995). Total quality management techniques explored at Carolina Cream and Scott Speciality Foods: a case study. Journal of Agribusiness, vol 13 (2), 137-158.
Scott, L. (2014). Fast Food Marketing Strategies. Retrieved on 18th April 2015 from http://yourbusiness.azcentral.com/fast-food-marketing-strategies-2489.html
Soba, M., & Aydin, E. (2011). Ethical Approach to fast food products contents and their advertisement strategies. International journal of Business and Social Science. Vol 2 (24).