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Essay / Case Study: Pros and Cons of Modernizing McDonald's
Situation Summary (Very Brief)From the early 1990s to 2003, McDonald's experienced a decade of decline with ineffective leadership. Since 2003, McDonald's has made tremendous strides improving customer service, food quality, revitalizing the restaurant's appearance, and creating many new popular menu items, ranging from healthy choices, like salads and fruit, to the many new coffee choices. fruit drinks and fruit smoothies, all in an effort to stay ahead of the competition to attract new customers while retaining its current customer base.Key Issues: Identification and AnalysisThe Downward SpiralService has become a big problem for McDonald's after the huge expansion of the 80s and 90s. As a result, this has tarnished McDonald's image and reputation for providing quality food quickly. With the focus on expansion, training was no longer a major priority. This affected the quality of food production and also had an effect on the speed of delivery to the customer, creating longer waiting times and unhappy diners. During this period, 40 products were introduced. None were truly successful due to poor execution resulting from poor training. Effective leadership would have recognized the need to maintain a high level of training to ensure a high standard of food and service quality, as well as expanding the chain globally. Leadership CEOs Quinlan and Greenburg have done more to try to diversify the product line by purchasing other chains and introducing new items instead of focusing on ensuring the fundamental elements of service, speed and quality of its main product line. Quinlan made the situation worse by ending the practice of inspecting stores to ensure they met required standards for speed, quality and cleanliness...... middle of paper... ...in the real world, time is a precious resource. merchandise that we do not want to waste wandering around a “fast food” restaurant. These major changes do nothing for older customers who only care about getting a quality burger and fries quickly. Will this attract a younger clientele? Maybe, but I suggest McDonald's continue with what it does best, cheap food, really fast.Pro: By minimizing unnecessary spending to achieve that modernized look, McDonald's can use the capital elsewhere. I would recommend R&D or increasing employee salaries. Cons: McDonald's could end up wasting this money without getting the additional sales as expected. Works Cited Horovitz, B. (May 9, 2011). McDonald's is revamping its stores to make them more upscale. Retrieved from www.usatoday.com: http://usatoday30.usatoday.com/money/industries/food/2011-05-06-mcdonalds-revamp_n.htm