The article published in Wall Street journal, written by Anne Gasparro, states the largest restaurant chain of USA, McDonalds is facing challenge in an aggressive competition with Chipotle Mexican Grill Inc. In order to deal with this ongoing competition the Chief Executive Steve Easterbrook vowed to remake the restaurant as the progressive modern company of Burger (In.reuters.com, 2015).According to speculators expectation, the sale of McDonalds was supposed to go down around 0.7%, but instead the company witnessed a fall down of 4% sales in the market. This has been a major failure because many initiatives were taken for McDonalds to increase its sales.
Despite of good marketing campaign including the first commercial of Super bowl in television, it couldn’t turn their customer to encourage for further consumption of their products. The campaign included a message of some customers paying for meal with a kind act. According to McDonald, they considered this campaign as a poor performance; all it needed was a reflection of the vital requirement to evolve with the customer of new age. This could be done with new business momentum and a shift in Strategic priorities.
The share of McDonald has reached an edge of $97.71 in this Monday and has a more than 10% growth (News.mcdonalds.com, 2015).This has been a huge enhancement for the company after Mr. Easterbrook had been appointed. It was during last week that McDonald felt the need of brainstorming menu ideas and boosting morale for which they held a” turnaround Summit” for the franchisees of McDonalds. These were initiatives to bring back their customers.
The valentine day theme promotion had been strong start for McDonald that enabled customers get their meals free for friendly acts, like giving a high-five to their cashier (Strategyonline.ca, 2015). This has been a very innovative strategy which attracted customers in their restaurants. Though many changes are taking place in the Restaurant, yet they are still on a mission to find out the flicker for spurring sales.
In Asian countries the sale had been in a restriction due to the food safety scandal and the strategy of same store sales in countries in the Middle East, African region and Asia Pacific region witnessed a fall of 4.4% (Rt.com, 2015). Here also according to the analyst it was found that the fall in sales was suppose to be 3.1%. I European countries thus strategy had been a good strategic implementation which rose 0.7% above the expectation of the analyst.
Through this article it was clear that the same strategy is successful in one place and turned out to be a terrible failure in another case. The boost by the current Chief Executive had been effective to some extent but on a global basis it didn’t earn much profit. For a retail restaurant chain it is very much needed to focus on the market segmentation and the strategic applications. There are tough competitions for the company but as per the boosting up of moral for the employees and key promotional strategy innovation is the ultimate solution.
In.reuters.com,. (2015). McDonald's Corp stock quote, McDonald's Corp company overview | Reuters India. Retrieved 13 March 2015, from https://in.reuters.com/finance/stocks/overview?symbol=MCD.N
News.mcdonalds.com,. (2015). McDonalds - McDonald’s – Official Global Corporate Website. Retrieved 13 March 2015, from https://news.mcdonalds.com/Corporate/news-stories/McDonald-s-Reports-Global-Comparable-Sales-For-Jan
Rt.com,. (2015). â€‹McDonald’s January sales fall 1.8% due to Asian food safety scare. Retrieved 13 March 2015, from https://rt.com/business/230923-mcdonalds-sales-drop-january/
Strategyonline.ca,. (2015). Op Ed: I’m not singing for my supper. Retrieved 13 March 2015, from https://strategyonline.ca/2015/02/09/im-not-singing-for-my-supper
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