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Mcdonalds' Case

In: Business and Management

Submitted By emilio507
Words 293
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Declining Fortunes McDonalds' fortune started declining from 2001 when it showed a disappointing performance.Compared to 2000, its total revenue grew from $14.243 billion to $14.87 billion but operating incomewent down from $3.33 billion to $2.697 billion and its net income declined from $1.977 billion to $1.637 billion...

"Plan to Win Strategy" 'Plan To Win' was the company's recovery strategy so that it could again start showing improved profit margins from its operations. The purpose of the strategy was also to recapture the essence of its mission statement to make the customer happy each time he visits a McDonald's store....

The main purpose of the strategy was to bring about improvement in the company's performance by building it around five key drivers of customer experience - People, Product, Price, Place and Promotion; and by identifying opportunities on the basis of the four basic aspects of its mission statement - Quality, Service, Cleanliness and Value.

The strategy was also based on what McDonald's considered as three essential components of success - Operational Excellence, Leadership Marketing and Innovation.

Abstract: McDonald's had been recording declining profits since 2001. Although turnover was increasing, there was a continuous decrease in its operating profit and net profit margins. To turnaround its fortune, the company adopted the "Plan To Win" strategy in 2003.

The main purpose of the strategy was to bring about improvement in the company's performance by building it around five key drivers of customer experience - People, Product, Price, Place and Promotion; and by identifying opportunities on the basis of the four basic aspects of its mission statement - Quality, Service, Cleanliness and Value.

The strategy was also based on what McDonald's considered as three essential components of success - Operational Excellence,

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