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Situation Analysis McDonalds is one of the most recognizable brands in the world serving millions of customers daily in a multifaceted environment of more than 120 countries Ray Kroc established large scale operation from the ideas of the McDonald brothers He founded McDonalds system in 1956 with company land own franchises treated as partners implementing a business model founded in real estate operations with franchising was done through buying property and leasing it to franchisees His strategy was uniformity of operations while being committed to quality service and cleanliness Throughout the years and evolving environments many CEO have followed Krocs dream some making beneficial decision while some detrimental This paper will examine ups and downs of this company and the critical issues that caused the falters in such an iconic company and what it can do to alter operation to regain market share lost with increased competition Problems management is facing The problems that McDonalds is facing are the declining performance in the areas of customer service employee turnover and order processing time McDonalds now has a customer service ranking that was not only the lowest among all national fast-food chains an undesirable position it has held since 1994 but also lower than any US domestic airline and even lower than the US Internal Revenue Service They experienced a first ever quarter loss revenue growth has declined and same-store sales fell for 12 straight months The companys current situation has been attributed to increased competition poor management and marketing and a failure to respond to the changing needs of customers and franchisees Cantalupo CEO during the case time period is now left with many challenges and problems The company is also suffering form declining market share and a decrease in domestic sales The most significant questions remained whether the changes Cantalupo had made were sufficient to provide McDonalds with the core competencies necessary to build a sustainable competitive advantage in the global fast-food industry Competitive
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