Preview

F 2014 McDonalds 2

Good Essays
Open Document
Open Document
1497 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
F 2014 McDonalds 2
McDonald's Faces 'Millennial' Challenge by: Julie Jargon
Aug 25, 2014

TOPICS: Change; Competitive Positioning
SUMMARY: McDonald's is losing its luster with younger consumers. Customers in their 20s and 30s are defecting to competitors, in particular so-called fast-casual restaurants like Chipotle Mexican Grill and gourmet-burger chain Five Guys. Younger diners are seeking out fresher, healthier food and chains that offer customizable menu options for little more than the price of a combo meal.
TERM PAPER APPLICATION: In analyzing the predicament, it is vital to cite facts and numbers, not just subjective impressions. To start with, Consumer Reports magazine said that in a survey of more than 32,000 subscribers, readers rated McDonald's burgers as the worst-tasting of 20 rival burger chains. A decade ago, there were 9,000 fast-casual restaurants in the US, versus nearly 14,000 McDonald's. Now, fast-casual restaurants number more than 21,000, while McDonald's US restaurant count has risen only slightly.
QUESTIONS:
1. Why is it that you are probably not eating at McDonald's? How would you define the 'Millennial' Challenge?

2. For your generation, what is the main problem with McDonald's? Are you tired of hamburgers generally? Or are you just tired of hamburgers at McDonald's?

3. Beyond just your own impression, what FACTS are cited in the article about the competitive position of McDonald's? Which of these facts does McDonald's most need to focus on?

4. In terms of the organizational life cycle, is McDonald's now starting to decline? Or is this setback just a dip in a much more open-ended process?
Reviewed By: Mark Lehrer, Suffolk University

McDonald's faces 'millennial' challenge
Customers in their 20s and 30s are defecting to fast-casual restaurants like Chipotle, Five Guys

By Julie Jargon August 25, 2014 9:10 AM
Behind McDonald's Corp.'s worst slump in a decade is a trend that may auger even tougher times
The world's largest restaurant company by revenue

You May Also Find These Documents Helpful

  • Good Essays

    Hr 587 - Project

    • 1257 Words
    • 6 Pages

    With McDonald’s change to refocus their product lines, they must reevaluate their consumer to understand what the consumer wants, needs, and overall goals. A more health focus consumer base will be more concerned with what they are ingesting into their bodies for fuel and will select restaurants that are aligned with their over goals.…

    • 1257 Words
    • 6 Pages
    Good Essays
  • Better Essays

    This paper will address the following: identify the segmentation criteria that will affect McDonald’s target market selection, identify McDonald’s target market, describe the organizational buyers and consumers of McDonald’s product and the factors that influence their purchasing decisions, discuss how these factors will affect McDonald’s marketing strategy, and analyze current competitors and define the competitive landscape for your product or service.…

    • 1524 Words
    • 7 Pages
    Better Essays
  • Good Essays

    Throughout the years’ hamburgers have encountered numerous changes, to become a part of American society and an icon for fast food restaurants. They were first introduced to United States as hamburger steaks then changed to hamburger sandwiches. People were mainly attracted to burgers due to their affordability; for example, during the 1920’s people could purchase a burger for five cents from White Castle. Later, corporations, such as McDonald’s defeated White Castle and took over the spotlight. McDonald’s was not just focused on affordability, it was also concerned about convenience and taste. For instance, McDonald’s Big Macs are convenient for consumers, since they are quickly made and are considered a meal themselves. Also, McDonald’s…

    • 145 Words
    • 1 Page
    Good Essays
  • Satisfactory Essays

    Question #1) Using the four I’s – issues, institutions, interests and information – that characterize the nonmarket environment, develop and analysis of the fast food industry using McDonald’s as your primary focus.…

    • 318 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    01 SPRINGSMBA51028 1

    • 1236 Words
    • 5 Pages

    Competition is a common factor in the restaurant industry and McDonald’s, along with other industry leaders, strive to remain current in today’s evolving and changing markets (Talpau, A. et al). McDonald’s initial strategy and focus was on their products, and now is struggling with other industry leaders, whose strategy is mainly…

    • 1236 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Mcdonald's Case Analysis

    • 1888 Words
    • 8 Pages

    About everyone at some age, at some point or another, and in some country has gotten a sample of American's symbol for fast food through the golden arches of McDonald's. This report will attempt to analyze the external and internal sectors that affect the company's success. The external analysis will provide opportunities and threats while the internal analysis will show indicators of strength and weakness. It will then follow up with critical issues, strategic alternatives, recommendations and implementation. The case studied is found in Appendix 2 of Mary Coulter's "Strategic Management in Action" book.…

    • 1888 Words
    • 8 Pages
    Good Essays
  • Good Essays

    • Many people are defying the stereotypical patterns linked with their age group. These behavioral changes express themselves as older adults become more accepting of casual dress wear and activities usually associated with younger adults, teens walk around with wallets full of allowance money, and young people with first-time credit cards are eager to exercise their spending power. The marketing strategies and advertising pitches that have been used to attract these groups must be reassessed. The challenge: How can your restaurant keep up with the products and services that these groups now seek…

    • 582 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    However, in the early 1990’s, Mcdonald’s was facing problem due to changing customer preferences and increasing competition. Customers were becoming increasingly health conscious and they wanted to avoid red meat and fried food.…

    • 1081 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    It is imperative marketers do not neglect senior citizens as this group makes up 13 percent of the population and they have money to spend (Perrault, Cannon and McCarthy, 2009, p. 140). However, younger consumers are heavy users of chain restaurants and should not be left out of the mix either. For those born after 1980, about 25 percent of restaurant visits are to burger franchises, followed by pizza restaurants at 12 percent (Negrete, 2008). If Quinn only focuses on the senior citizen market, she is seriously inhibiting future growth of the restaurant she manages.…

    • 897 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Mc Café

    • 376 Words
    • 2 Pages

    5. What sort of organizational structure does McDonald’s have that has made the McCafe concept effective?…

    • 376 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    McDonalds advertising

    • 1757 Words
    • 8 Pages

    Even though many know McDonalds may be unhealthy many still choose to eat there. This choice may be based on the influence of McDonald’s advertisements or personal choice. McDonalds has a long history that some have grown up to know and have shared this with their children. Some of the reasons society chooses to still eat there is because of their prices, advertisements and convenience. These ads that McDonalds produces create a rhetorical situation that involve and convince the audience that they have a need. From a survey conducted on their ads, the results are clear that McDonalds advertisements do make some impact and convince the consumer to buy their product. McDonalds is one of the most popular fast food restaurants in the world and that popularity has built over time from their influence in advertisements and other media outlets.…

    • 1757 Words
    • 8 Pages
    Powerful Essays
  • Better Essays

    McDonald’s analyzed current trends and examined the results of its current strategies. McDonald’s made the determination that rather than focusing on building more restaurants in the U.S. they needed to focus on making those established restaurants more appealing and modern. They also determined that they needed to grow outside of the US. The Menu and décor needed to be evaluated and adjusted to compete with other fast food establishments. Employees also needed to be more knowledgeable and trained better as managers.…

    • 854 Words
    • 4 Pages
    Better Essays
  • Good Essays

    ay lmao

    • 1030 Words
    • 5 Pages

    Many assume that in order to change the food industry, we must only focus on the adults consumers in the U.S.; the reality is, the young adults and children are also very, (if not more) important to the food companies in our country. Major food companies are known to target the younger audience watching at the other end of the television, sitting at the other end of the picture, or listening at the other end of the radio. Food companies are known to target the youth, because in the end, they know that this certain age of consumer is where the profit is at. David Barboza says, “McDonald’s corporations want to be everywhere that children are,” (If You Pitch It, They Will Eat, 9). McDonalds include cartoons, movies, and many different television show characters in their “happy meals” to lure kids in and…

    • 1030 Words
    • 5 Pages
    Good Essays
  • Better Essays

    Mcdonald's Uk Turnaround

    • 1009 Words
    • 5 Pages

    1. Identify the problems confronting McDonald's U. K. and list them from the most to the least critical. For each problem identified, explain your reasoning.…

    • 1009 Words
    • 5 Pages
    Better Essays
  • Better Essays

    The Obesity Epidemic

    • 1183 Words
    • 4 Pages

    The need for fast, reliable, affordable, and convenient food, along with an increasing acceptance among Americans of a more homogenous culture, led to the rise of the fast food industry (Woloson 71). “Americans eat fewer meals at home than they once did. Fast-food restaurants are very effective at promoting the convenience and dollar value of their offerings” (Murphy 59). “Annual sales of fast food in the United States have grown from about $6 billion in the late 1970s to more than $140 billion in the twenty-first century” (Murphy 59). In 1996, 7% of the population ate at the 11,400 McDonald 's each day in the United States (Woloson 74). It’s easier for people to “grab and go”. Meaning that many families have after school activities like soccer practice or trumpet…

    • 1183 Words
    • 4 Pages
    Better Essays