McDonalds in Crisis
Introduction: McDonald’s is currently facing a crisis. ... Major problems impacting on this decline include: • Increased awareness of health related diseases • No new successful products • BSE crisis • Current ‘Anti American’ stance taken by some countries • Too much emphasis put on subsidiaries • Service issues • Price Wars Each of these suggested problems currently facing McDonald’s is seen as contributing to the overall business failures and will be discussed in detail with possible strategies and implications. Health Risks In late 2002 a court-case was put against McDonalds. ... McDonalds food has been seen to contain many artificial preservatives and ingredients, which are seen as possible links to health-related diseases such as heart disease and diabetes as well as the risk of obesity. ... New menu items have in the past been seen as valuable contribution to the ever-growing McDonalds menu. ... BSE Crisis Far more dangerous for McDonald’s was the spread of bovine spongiform encephalopathy, or mad cow disease, which broke in 2000. ... The BSE crisis has sparked a collapse in beef sales worldwide, predominantly Europe. ... McDonalds Subsidiaries Partner brands, as they are known inside McDonald’s headquarters are known to be a pet project of former Chief Executive Jack Greenberg, who stepped down at the end of 2002. ... These new additions to the McDonalds family were supposed to be the answer to critics who said people are burnt out on burgers and fries yet still seeking a quick meal. ... It can be said that McDonalds can’t afford to expand its operations while its core business loses money. ... Other reasons for the decline in sales and performance can be attributed to the current focus on health related diseases and other factors such as the BSE crisis and the anti-American image that McDonald’s is facing.