...Running Head: MCDONALD’S AND OBESITY Case Study #1: McDonald’s and Obesity Monica Cassetta Central Michigan University-- MKT 560 February 1, 2014 Introduction Obesity is an ongoing problem not only in America, but seen all over the world. There are many assumptions in regards to why this has been on the rise in recent years, and who is to blame for this. Obesity and over-weight adults, as well as children, has become increasingly common, as well as seen. With over 1 billion overweight adults with 400 million of them being obese, and with 155 million children being over-weight worldwide (Cateora, Gilly, Graham, 2013), this issue needed to be addressed. With that said, the big question is, how do we stop this rise as a whole. An ongoing issue and example to today’s obesity is fast food chains i.e. McDonald’s, and how they advertise. And though McDonald’s is one of the leading companies in the fast-food chain industry across the globe, people have been outraged with their marketing and campaigns to eat their unhealthy menu items. Thankfully, even with the bad publicity McDonald’s had and has received on numerous occasions, they are still able to have a constant growth within their company. Question #1: When it comes to fast-food industries, marketing and advertising is the key to their success. They typically use the 4P’s of marketing which are, product, price, place, and promotion. “Having accurate research is essential in creating the right marketing” (Business...
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...lays the foundation for the remaining functions. Now what McDonald’s plan to do is be as healthy as possible. This new idea is their attempt to make a list items on their menu with low calories. The idea is to wage a war against overweight people while offering good food at low price. Organizing this plan is about the setup and how they are going to delegate the task of implement these new foods. Shipping to all the stores and surveying people to get ideas on what to put on their menu needs to be setup. Directing the subordinates and influencing their ideas on this war against obesity is the next step in McDonalds plan. The idea here is to get more and more people on board with the healthier side on McDonalds in order to produce hirer profits. Profits and the moral beliefs of Mounds are hoping to attract more and more investors who want to open stores in their home locations. Now the overall effect of McDonald’s war against bad foods needs to be monitored and watched. If the idea fails in the eyes of the people and these items are not being capitalized on then they will slip off the menus. McDonalds is trying to create a menu that attracts all but will not keep unwanted goods on the shelf. McDonald’s believes that reducing portion sizes and adding foods less than 400 calories will help those who want to lose weight. Their belief is that, with advertising and marketing, good food at cheap prices does not have to be bad for a person’s health. “We trust our customers to make...
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...multi-billion dollar a year industry, and they currently serve over 119 countries worldwide. Having once been the leader in fast-food, McDonald's has suffered a series of setbacks with short-lived successes since the early 2000's. Having to overcome the death of two new CEO’s, as well high employee turnover rate and a need to expand and change menus due to changing world health view. McDonalds has sought to overcome these challenges with strategic focuses of a “Plan to Win” and “being better, not just bigger”. With the focus being set and the help of new leadership, McDonalds has been able to overcome the challenges it faced. The golden arches are once again shining bright, and McDonald’s is now doing better than ever. II: Identification of the Problem: McDonald's faces two major problems - their employee turnover rate, and people's changing health views. As the obesity level in America rises, so do the lawsuits against fast food restaurants where the people eat. Even though McDonald's is not forcing consumers to eat their meals at their establishment several times a week, sometimes every meal during the day, they still are being pushed to provide nutritional labels on their food items, so that people are aware of the ingredients and calorie content. When it comes to employee turnover rate, it is hard to keep employees who want to work at McDonald's, because many see it as a temporary job, or a start to entering the workforce, but few view it as a life-long career. This lackluster...
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... When we talk about a company with the magnitude of The McDonald’s, it like said “take off the hats”, because it’s a symbol of growing, integrity, prosperity. Year by year has tried to fall in love with the customers either way. Specials, new item in the menu, new restaurants, or remodeling the old one, and new toys for kids, are the few tactics to get attention in public eyes. Some customers come for breakfast, some for lunch and some while the time away likes me. I had four boys and they loved happy meals of nuggets and the most important toys and the game room, gets them in his zone it’s fabulous. I have about six restaurants in my range, my favorite is the one with game room of course for my kids. Never rush at the time I get there, quiet and fun that any customer want when they go to eat or drink a hot coffee. For me do this specific project is significant because I was there long time ago and was my pleasure been there. Mid 90’s I stared work in McDonald’s, 1511 Roosevelt ave, caparra heights San Juan, PR. Was my first job, my shifts 5:30am to 3:oopm, the first station was biscuit, then salad, later French fries, at noon cashier, cleaning bathrooms and parking etc.… Saturdays and Sunday, birthdays parties, sometimes the host other the clown girl. That was fun I love it. Been there let me talk more clearly about this company, what are the weakness and what are the strength. They still have the same problems, bad pay, too much responsibility, a lot work and not training...
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...and children as their biggest market of sales. Wooing us with their propaganda while we shove poison down our throats. As they say, the rich gets richer while the fat get even fatter. When modern families opt out cooking meals and settle getting a pizza for dinner or a drive through at McDonald's not only are they ruining their health but also instilling the unhealthy lifestyle to their children. Parents don't prevent their children at all when they encourage them to eat processed fat in the form of a burger and fries. Upon growing up, many of these children will develop a love for this food that in turn they will pass on their kids and this vicious cycle will continue. A goal of marketing is to establish familiarity and easily recognizable symbols like the golden arch of McDonald's. Due to this, commercial ads only have to show that logo along with a burger to brainwash us into driving to the nearest McDonald's and grabbing our favorite burger. Lately there has been a rise on health concern in our society and many are blaming the fast food industry for target marketing on children; this has contributed in the decline of our youth's health nowadays. Fast food chains do not care how bad the food is to our health, and apparently we don't as well since we continue to...
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...competition among different food chains. Hence each and everyone plays a major role in attracting customers. The trend can be seen by the increasing number of food chains. That is why this topic was chosen for further study as this particular industry is fast becoming very competitive. Our project comprises of comparison between KFC and McDonald’s, and the various factors that could affect the same. We have tried to do a holistic study of what these factors could be, and how would they affect the perception of consumers regarding these two brands. Objectives of our Research: * Comparative perception of KFC vis-à-vis McDonald’s * Check whether the perception of males and females differ for these brands with regard to price, taste, quality and other such features * Check whether the perception of people from different regions differ for these brands with regard to price, taste, quality and other such features * Suggestions for improvements for KFC and McDonald’s Tool used for collecting data: Information collected by way of questionnaire. Techniques used for Evaluation: * Comparative perception of KFC vis-à-vis McDonald’s * Check whether the perception of males and females differ for these brands with regard to price, taste, quality and other such features * Check whether the perception of people from different regions differ for these brands with regard to price, taste, quality and other such features *...
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...Introduction McDonalds is a very successful and famous fast-food restaurant in the world, the reason in being successful for McDonald's Franchise is about: Consistency, innovation and resiliency. At first, the characteristics of consistency. "If I had a brick for every time I've repeated the Phrase Quality, Service, Cleanliness and Value, I think I'd probably be able to bridge the Atlantic Ocean with them (Ray Kroc, 1955)". Kroc saw a business opportunity that simply cannot be resisted that he decided to offer McDonalds a chance to begin a brand new area in franchising their restaurant concept. “Quality, Service, Cleanliness and Value” as Kroc's motto to opened his first McDonald's in 1955 in Des Plaines, Illinois. Based upon the four concepts, as well as lessons he had learned from his initial years in operating the franchise. Customers know what to expect and can take effort in that knowledge when making decision on where to eat. These efforts towards process repetition and efficiency not only help McDonald's stay on top in a culture where producing at a fast-paced, and also set the basis for McDonald's success from the position of customers' expectation. Besides that, McDonalds keeps a good relationship with stakeholders is the key factor in the company's success as well. ''So we must think through what management should be accountable for; and how and through whom its accountability can be discharged. The stockholders' interest, both short- and long-term, is one of...
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...1-18. McDonald’s global marketing stagey is based on both of global and local marketing. Which is marketing mix element called glocalization by using 4Ps (product, price, promotion, and place marketing mix). McDonald’s business model that can set up everywhere in the world by franchisees and commitment to communities. In additions, McDonald’s provides three important thing to customer: inexpensive food with consistent taste regardless of location, quick service, and clean environment by promising and delivering. Aside from these things, standardization can be seen from McDonald’s appearance --- their trademark logo (Golden Arches). In terms of globalization, McDonald’s offer core menu items like hamburgers, French fries and soft drinks. Which are standardized products in the same way everywhere. McDonald’s is doing the “Think Globally, Act Locally” strategy for some of their marketing activities. An example of this is the company’s slogan. McDonald’s standardized the “I’m lovin’ it” and then adapted it to different languages based on the location. Another example is that while McDonald’s offers the same menu across the world, the food ingredients are produced locally or are coming from local sources. By this way, McDonald’s can minimize costs and also cater to customers’ desires. As Ken Koziol, the vice president for worldwide restaurant innovation said “McDonald’s built on a strong foundation of a core menu that we took around the world but we need to make sure...
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...name on the bottles and to try and persuade you to buy it because it has your name on it. McDonald’s- save4 menu- showing that there is something there for everybody. When did both campaigns run- Coca cola- 2012 during the summer –the Olympics. McDonald’s 2012 The marketing mix looks at the 4 p’s at the promotional mix looks directly at the promotions Personal selling does not apply to the business. Retailers of the product (coke) offer promotions. Public relations- McDonalds got sued for the beef patty they used to sell to customers which was made up of water and other harmful chemicals Coke- does not have any public relations. Direct marketing- coke are targeting people who specially want to buy their product. Sponsorship – both used the Olympics to boost sales, recognition of the products, improve sale i.e. revenue. * The purpose and objectives of the promotional mix Does it apply to McDonalds and coke? Corporate image – McDonald used this because they are a fast food restraint at it leads to bad things such as obesity. Most of the time they promote their products to businesses but in this case they promoted their products to individuals as customers could purchase a coke with their name on it and it would get sent to their house. Coke has a relatively stable market as they have bought innocent and are now in the healthy drink industry. McDonald’s is in a rapidly changing market as peoples tastes are changing and to suit their customers...
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...McDonald’s Corporation Analysis 1) Summary of the Company: McDonald’s Corporation is the world’s largest chain of hamburger fast food restaurants. There are over 31,000 McDonald’s locations worldwide primarily selling hamburgers, cheeseburgers, chicken products, french fries, breakfast items, soft drinks, and desserts. 2) Financial Ratios Analysis: 1. Net Profit Margin- The net profit margin of 18.34 percent for 2008 indicates that 18.34 cents of net income was generated for each dollar of sales. The significant increase of 7.83 percent, from 2007’s 10.51 percent, yielded an additional $1.84 billion in profit on the company’s $23.52 billion in revenue. 2. Gross Profit Percentage- McDonald’s gross profit percentage for 2008 was about 27.39 percent, which was a good increase from 2007’s gross profit percentage of 17.02 percent. The increase indicates McDonald’s made 10.37 cents more gross profit on each dollar of revenue, making the company’s cash flows more liquid. 3. Asset Turnover- The asset turnover ratio for 2008 was a relatively low 0.81, only a 0.3 increase from 2007. This indicates 0.81 of revenue was generated for every dollar's worth of assets in 2008, which is not so good. It also implies the company’s pricing strategy is of high profit margins. 4. Fixed Asset Turnover- The 1.14 fixed asset turnover ratio for 2008 is relatively low similar to 2007’s fixed asset turnover ratio of 1.13. This indicates McDonald’s generated about $1.14 in sales revenue for every...
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...great political stability which has enabled the company make investments. One excellent thing about McDonald is that it is mostly based on Western countries where political and legal activities are stable. Socio-culture environmental factor: McDonalds is now operated in different countries. Therefore, as McDonalds operate it has to take into consideration the country their operating in food’s culture. For instance, Portuguese people are being offered a soup while people in Indonesia are enjoying something called McRice. Tecnological Context: McDonald have introduced new technologies in their cooking methods to minimize the fats and cholesterol in their food since consumers have been hammering the company on their high calorie foods. McDonald’s have also developed an online ordering and delivery system in some countries. SWOT ANALYSIS SWOT analysis is a planning procedure usually done by business to evaluate their strength, weakness, opportunities, and threats. STRENGHT: what I recommend the company continue to do is their adaptation to...
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...students to the best they can be, and prepare them to be responsible citizens with a shared set of values and sense of community as well as compassion and responsibility etc. For McDonald’s they have many aims and objectives such as they’re committed to providing quality food quickly that their customers can trust with the best possible service, showing clear career paths to their employees that they can take, and helping out with the community and environment by litter picking for example. Stakeholders Stakeholders are an individual or group which is affected by a business, and has an interest in its success or failure and can be either an internal stakeholders i.e. employees, suppliers, managers; or external stakeholders i.e. customers, local community, trade unions. Customers Holly Lodge’s customers consist of its students and their parents. They both want good teachers and teaching environments otherwise they’re less likely to learn, with this they want the best grades possible so they can go on and get a good job and support themselves. Parents are also more likely to want the school to aid in teaching their child good values such as respect to others and a sense of responsibility that comes from doing and looking after their work. A final thing both types of customers want from the business is good school days; parents won’t want them too short because they may struggle trying to find someone to look after them if they’re young, and the students won’t want them too long...
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...Strategy Analysis McDonald’s System, illustrate that positive change can originate from anywhere and that everyone has a role to play in improving our environmental performance. From 2009 to now, McDonald’s has been intending to build a better business through effective environmental practices around the world. It pays attention to make healthy food and be environmental-friendly. In order to fulfill their purpose of going green, McDonald’s are taking several big changes in their operating strategies. 1. Logo Green This change was started from Europe. McDonald’s swapped its traditional red backdrop for a deep hunter green to promote a more eco-friendly image. With this new appearance, they want to clarify their responsibilities for the preservation of natural resources. Europe is just a start; McDonald’s will extend this idea into all over the world. 2. Energy Green McDonald’s Europe has provided its market with a unique toolkit to calculate an individual country’s carbon footprint. The easy-to-use web-based toolkit is currently implemented in 26 European markets. It enables the markets to generate a representative country carbon footprint to help them identify and measure the key reduction potentials. From economic point, their energy green strategy provides positive externality, which will not only benefit the countries, but also increase McDonald’s reputation. 3. Packaging Green In most McDonald’s stores, more than 85 percent packaging is fiber based...
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... Every year many of their employees are fired out of the restaurant * McDonalds mostly advertises products and food items that targets children. You will notice that bill boards always display the advertisements of Happy Meal and any other deal that is ordered for the kids mainly * Health conscious people seldom complain that they do not provide us with the organic and healthy food. This becomes their weakness when they get in the complaints * They also face quality issue at times. This affects the business as they are running the outlet worldwide, if one franchise gets affected others also get a bad name Strength * McDonalds holds a very strong brand name worldwide * They have large partnerships with other companies that provides them with their desired products, this increases the goodwill of the company * Socially responsible firms earn a good name in the market due to their projects they do to help people, McDonalds is one the most reputed firms who are socially responsible * It is said that McDonalds was the first food outlet to provide its customers with nutritional facts * Loyal employees and management and customers is their biggest strength * McDonalds makes sure that cultural and regional barriers are kept in mind while providing food to different countries * Clean environment and play areas for children...
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...1. How should McDonald’s respond when ads promoting healthy lifestyles featuring Ronald McDonald are equated with Joe Camel and cigarette ads? Should McDonald’s eliminate Ronald McDonald in its ads? 2. Discuss the merits of the law proposed by France that would require fast-food companies either to add a health message to commercials or pay a 1.5 percent tax on their ad budgets. 3. Propose a strategy for McDonald’s to pay the tax or add health messages, and defend your recommendation. 4. If there is no evidence that obesity rates fall in those countries that ban food advertising to children, why bother? 5. The broad issue facing McDonald’s U.K. is the current attitude toward rising obesity. The company seems to have tried many different approaches to deal with the problem, but the problem persists. List all the problems facing McDonald’s and critique its various approaches to solve the problems. 6. Based on your response to Question 4, recommend both a short-range and long-range plan for McDonald’s to implement. McDonald's and Obesity McDonald's and Obesity People around the world are spooked that their children will become as overweight as American children. In the US, roughly 30% of children are overweight or obese while 64.5% of Americans are overweight or obese, which is the highest ratio in the world. Obesity rates in children are rising in other countries with one out of five children in Britain, 30% of Spain, and 36% in Italy. Experts believe that the number of...
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