Problem Statement of McDonald’s
There is lack of proper management of resources within McDonald restaurants and
this has led to tremendous drop in sales over the years. Most of the stores in the Far
East have closed due to economic downturn. At the same time consumers are
shifting their tastes and preferences from hamburgers to other types of food. This
has contributed to low sales since the number of people visiting the stores
decreased over the years.
The number of prospective franchisees has also decreased. McDonald has exposed
itself by offering too much discounts on its products. The firm is also experiencing
poor quality services and uncleanliness; this is due to lack of strictness by the top
management. There is also lack of skilled manpower due to postponement of
training sessions that were once used to equip employees.
The company need to work out on their business models through appropriate
segmentation to enable them work comfortably with the changing market
economy. Professional training of the employees on the marketing and sales
strategies needs to be resumed. The firm at the same time need to diversify its sales
in order to catch up with the consumers changing trends on tastes.
These other food products must be accompanied by quality services including
reasonable prices. McDonalds should also improve on the quality of their burgers
by inventing new and unique recipe. This can only be achieved by utilizing the
most creative franchisees having high skilled employees.
There is need to recruit managers who are capable of implementing the firms
marketing programs and at the same time have the ability of building internal
bonding of employees. The manager must have the ability to motivate and unite
employees.
The managers must possess the ability to control and cope with major changes and
challenges within the market. The managers need to acquire valuable information
on the current market trends without relying so much on their past performances.
They need to improve on their level of interaction and communication with their
franchisee
