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XXXXX XXXXXberg, CEO of McDonald’s Corporation, stared into the clear September skies
thinking about the “Big Mac Attack.” At one time, the term was an advertising slogan
referring to a craving for a McDonald’s Big Mac burger. However, “Big Mac Attack” now
referred to McDonald’s earnings declines in the late 1990s and early 2000s. Dynamic
market expansion, new products, and special promotional strategies had made McDonald’s
Corporation a leader of the fast-food industry. However, sales growth in the United States
had slowed to below the industry average in recent years. XXXXX XXXXXberg was trying to
decide on a set of appropriate strategies for the future in order to reverse the declines and
to stay ahead of competition.
The Fast-Food Industry
Years of profit drains and flat sales are driving fast-food chains to find new marketing
strategies to compete in a mature market. While McDonald’s and most other hamburger
A major change in the fast-food industry is the increase in the fast-casual segment that
includes restaurants like Boston Market, Panera Bread Company, and Atlanta Bread Company.
These chains offer deli sandwiches and meals that are more upscale than traditional
fast food, served in nicer restaurants with more comfortable surroundings, but faster than
in traditional restaurants. It is estimated that the fast-casual sector is growing from 15 to 20
percent per year, while growth in the quick service sector is only about 2 percent a year.
“People are willing to pay a couple dollars more for a better dining experience, yet don’t
want to sacrifice the convenience of quick service. Fast-casual combines all the elements
for what the on-the-go consumer—which seems to be almost everyone these days—is
looking for,” said one analyst.1
Americans are eating out less often compared to previous years and eating habits are
changing.2 Though the recession is a major reason why folks aren’t eating out as much at
upscale restaurants, it’s another story at fast-food restaurants. Many younger consumers are
getting tired of fast food and are thinking about their health. There seems to be a growing
dissatisfaction with the quality aspect of the McDonald’s and Burger Kings of the world. It’s
not just young adults who are turning away from fast food. Baby boomers are also looking for
“better” alternLooking for hits to reverse earnings declines, McDonald’s accelerated plans for
“New Tastes Menu” items.4 Products for limited-time offers included a fried chicken
sandwich of tenderloin strips under the Chicken Selects name, a new grilled chicken
sandwich, a brownie, a pork tenderloin sandwich, and a Philly cheese steak sandwich.
Facing competitors’ chicken sandwiches, like Wendy’s Spicy Chicken Filet and Burger
King’s Chicken Whopper, McDonald’s put chicken menu items at the forefront of its offerings.
The chain also added a chicken-honey biscuit item to its menu. Other entries included
a breakfast steak burrito similar to an existing sausage version, hot dog McNuggets for
kids, and an Italian-style burger similar to the Chicken Parmesan. The McRib sandwich
was reintroduced.
McDonald’s advertising message focused on tasty and nutritious food, friendly folks,
and fun. The company invested heavily in advertising its product and improving its public
image. McDonald’s annual Charity Christmas Parade in Chicago and its Ronald McDonald
House charity provided the company with a positive corporate image. Much of its promotional
budget was spent on games, giveaways and deals, including Monopoly II, Scrabble,
a Kraft salad dressing give-away, Happy Meals, plush toys, in-store kid videos, and various
Big Mac–related deals.
McDonald’s opened its first domestic McCafe with the expectation that the gourmet
coffee shop would move it closer to its goal of doubling sales at existing U.S. restaurants
over the next decade.5 The 32-seat McCafe occupies a 900-square-foot space that shares
an entrance with a traditional McDonald’s restaurant. The menu features a selection of
specialty drinks, including cappuccinos, lattes, teas, and fruit smoothies served via a
limited service front counter. Enhancing the coffee bar is a glass display case filled with a
variety of high-end cakes, pastries, cookies and soft pretzels. Customers can place carryout
orders that are packaged in disposable containers. If patrons opt to dine in the cafe, all
drinks and food items are served on china with stainless steel flatware. McCafe originated
in Australia in 1993 and has grown to more than 300 units in 17 countries. The gourmet
coffee concept was created to be placed within or adjacent to existing McDonald’s restaurants.
McDonald’s estimates that the new concept will boost sales by 15 percent. At McCafe,
cappuccino drinks start at $2.49 featuring a coffee imported from Italy. The drink menu
includes specialty coffees, listed as “Caramel Cream Steamer,” “French Vanilla” and “Milky
Way.” The pastries, including tiramisu, cheesecake, apple tart and muffins, range in price
from $1.59 to $2.59. Many of the items are baked on-site and the others are prepared daily
by various local suppliers. In addition to three on-premise bakers, the cafe has a staff of 15
with about six employees working each shift. Created to enhance an upscale coffee shop
environment, the cafe’s decor features lace curtains, mahogany accents, a leather couch, an
antique mirror, wall sconces, and fresh flowers.
Major Competitors in the Hamburger Segment
McDonald’s has three major competitors in the hamburger segment. These include Burger
King, Hardee’s and Wendy’s. Both Burger King and Wendy’s have had small gains in
market share while Hardee’s lost share.
Burger King Corp.
Burger King Corp., in its ongoing effort to increase sales and market share, offered a new
salad line and a permanent array of value-priced offerings, endeavors already under way at
its fast-food competitors. The nation’s number 2 burger chain, hoping to show signs of aatives and fast food is not as appealing to this large group who frequently eat out.
turnaround in order to expedite its pending separation from parent Diageo PLC of London,
debuted more than 10 new or improved products, including the Chicken Whopper, which
officials said stimulated sales growth. The menu overhaul is one part of a major turnaround
strategy engineered by Burger King’s chairman and chief executive, John Dasburg, who
joined the chain in 2000.
As part of BK’s sweeping transformation program, restaurant operators had to make
extensive kitchen and drive-through upgrades. The Chicken Whopper, which debuted in
2001, generated “an enormous amount of trial” that led to double-digit same-store-sales
growth at restaurants. Burger King is developing a more permanent marketing strategy and
moving away from its previous tactical approach, which revolved around the monthly
changes in menu items and deals.
Hardee’s
Hardee’s parent, CKE Restaurants Inc., owns or franchises 2,784 Hardee’s and 112 Taco
Bueno restaurants and showed a 15 percent decline in net income in a recent quarter. The
chain posted year-to-year quarterly declines of 4.8 percent in company-owned same-store
sales. The efforts to reverse slowing but continuing sales erosion at Hardee’s, the industry’s
number 4 burger chain, had dominated management’s attention in its conversion of
Hardee’s to a format called “Star Hardee’s.”
The company attempted to reverse sliding sales by introducing new items on the menu
and joining the price-promotion burger wars. The company tested individual item discounts
at most of Hardee’s company-owned units. Franchisees in selected markets offered
sandwiches bundled with regular-sized French fries and a soft drink for $2.99. Other new
Hardee’s sales-spiking tactics included its midpriced sandwich option, the Famous Bacon
Cheeseburger for $1.59, and a new Croissant Sunrise breakfast sandwich for $1.79. The
chain hoped to increase breakfast sales by at least 2 percent; currently breakfast items
account for approximately 10 percent of Hardee’s sales.
CKE also owns or franchises 878 upscale fast-food chains, Carl’s Jr. It rolled out a premium
sandwich product that had first debuted on the Hardee’s menu in 1994 and recently
was second only to the Carl’s Jr.’s $3.99 sirloin steak sandwich in trial markets.
Wendy’s International
Wendy’s has had the strongest same-store-sales gains of the major burger chains in recent
years. Chain officials and Wall Street analysts attributed at least part of the growth to
Wendy’s line of four upscale salads called “Garden Sensations.” The nation’s No. 3 burger
chain holds an enviable position—analysts consistently rank it ahead of chief rivals in
quality, customer satisfaction, innovation, and unit-level sales. Citing Wendy’s planned
30 percent boost in media outlays to an estimated $308 million in 2002 and its strong focus
on in-store operations, one analyst stated, “This one-two punch looks like a formidable foe
for rival chains to face this year.”6Wendy’s same-store sales were expected to grow 3 percent
in 2002, eclipsing the 2 percent projections for Tricon Global Restaurants’ Taco Bell and
KFC, and a 1 percent to 2 percent projection for McDonald’s Corp.
Wendy’s product line includes four core menu items: burgers, chicken sandwiches, its
value menu, and its Garden Sensations salads. The salad line is designed to provide custom
taste comparable to salads offered by casual-dining chains and includes the $3.99 Chicken
BLT, Taco Supremo, Mandarin Chicken, and $2.99 Spring Mix salads. The Garden
Sensations line was expected to contribute 5 percent to total Wendy’s sales.7 The gradual shift of consumer preference toward hamburger substitutes has created strong
competitors for McDonald’s. Three of the major competitors offering nonhamburger fast
foods are Pizza Hut, Kentucky Fried Chicken, and Taco Bell.
Pizza Hut
Pizza Hut dominates the pizza segment with 22 percent of all restaurant pizza sales in the
country, with Domino’s lagging far behind with about 11 percent of sales. Papa John’s has
steadily expanded to the point where it is the country’s fourth largest pizza chain behind
Little Caesars.
Pizza Hut is owned by Tricon Global Restaurants, which also owns KFC and Taco Bell.
It scored a major success with its P’Zone, a portable, calzone-like item that company officials
call “the pizza that actually sold out in test market.”8 The $70 million national product
launch featured the P’Zone for $5.99, or two for $10.99. Each pie is made with a 12-inch
traditional crust, a layer of sliced mozzarella cheese and a choice of three different ingredient
combinations: pepperoni; a mixture of meats that includes pepperoni, sausage, beef
and ham; or sausage with green peppers and red onions. The P’Zone exceeded expectations
and drove same-store sales up 7 percent to 8 percent. Pizza Hut’s latest effort was called “a
well-executed, differentiated, yet value-oriented product that would drive traffic and sales
over the next several periods”9 by one industry analyst.
KFC
KFC (Kentucky Fried Chicken) operates 11,000 global outlets of which 5,400 are in the
United States. Its recent strategies included a “Kids Lap Top Pack” meal program to attract
more kids and families to its food offerings. KFC planned to introduce the meals as part of
its new product lineup for 2002.10 Roughly 80 percent of KFC’s domestic stores signed up
to offer the kids’ meals, which featured more food and variety of choices. The meals are
priced at $2.99 and offer 18 different food combinations. The kids’ meal containers,
designed to open as a laptop computer, featured colorfully illustrated interactive puzzles
and games. The idea built upon the latest batch of kids’ meals launched previously, which
introduced an education theme with crossword puzzles, word searches, and mazes. KFC
took away the staple of most kids meals—the plastic toy—after company research found
that children, especially older ones, were not interested in them. Instead, the new meals
included stickers or a paper-based prize. The chain doesn’t expect the new meal to generate
substantial returns immediately. “This is about brand building; it’s not about building sales
today,”11 said a company spokesperson.
Other new products at KFC for 2002 included a meal of three spicy Blazin’ Crispy
Strips with a choice of side and a biscuit priced at $2.99 and the Blazin’ Buffalo Twister
sandwich and a beverage in the price range of $2.29 to $2.79. In fiscal 2001, KFC led its
sister brands, Pizza Hut and Taco Bell, in same-store sales at U.S. company-owned stores,
posting growth of 3 percent. The dramatic rebound in sales at Taco Bell and a 19 percent increase in 2001 profits were
due to a strategy shift to higher-priced products, like the Grilled Stuft Burrito and Chicken
Quesadilla.12 Taco Bell’s success with high-priced offerings proved that the brand could
leverage its strengths to bring up the average meal price, as well as appeal to light and
medium users.13 Taco Bell planned to add more grilled extensions with higher quality
tortillas, beef and beans, and sell them at non-discounted prices. Officials said Taco Bell
would continue to experiment with ingredients, such as fish and pork, that are unique to
fast food.
McDonald’s Future
XXXXX XXXXXberg recognized the difficult task the company faced in trying to grow sales,
market share and profits in a fiercely competitive industry. He recognized the strengths of
competitors in the burger segment but also knew that other providers of fast food and other
meals were quick to take advantage of changes in customer preferences and tastes. He
knew he had to counter attack the “Big Mac Attack” and find market opportunities for
McDonald’s.
This is the case study sorry I didn't back space on each line. The paper can't be plagarized. My teacher will run each paper throught a plagarizer checker. If the paper is plagarized, I could be kicked out of school. Thank you for your help. I will probably need your help for the rest of this class.

ok that is fine. I have two other case studies that don't have to be completed until Wednesday can you do them if I submit them by tonite. I will add a bonus for your services.

I need this assignment by Wednesday. Can u help me with it ???? It can't be plagarized Create a 1-page outline of the important considerations that should be made when planning and executing an organization's downsizing.

It can't be plagarized Create a 1-page outline of the important considerations that should be made when planning and executing an organization's downsizing.

thank u. The outline can't be plagarized because I have to send it through a plagarizer checker call turn it in. Nothing copied from the internet. Thank u again. When u post that assignment, I have another one that is due by December 2,2011. I will post it tommorrow.

how is the outline coming

what time do u think u will have the outline posted????

are u finished with the outline yet???

write a brief report on a famous hacker. The report should be no longer than 3 pages, but should be at least two pages. Please upload the file as a Word or rich text document.
In your report, give a brief biographical sketch of the hacker, explain what the hacker did and how he or she did it, and describe the outcomes of the attack.
Please list at least three sources for the information you gather. Be very, very careful about using information. You may not cut and paste from the web or use another's writing verbatim. I only need two pages and I need this by Friday. with three references.
Please let me know if you have questions.