Case Study:

McDonalds: Addressing Changing Food Values

A Case Analysis Submitted to the Faculty

of the Graduate School of the
AMA Online University

In Partial Fulfillment of the requirement

for the Degree of Master in
Business Administration

ALMARIO G. PARCO, JR., CPA

20200113412
 Table of Contents
Page

TITLE PAGE......................................................................................................1

I. INTRODUCTION/BACKGROUND................................................................3

II. POINT OF VIEW...........................................................................................4

III. TIME CONTEXT...........................................................................................5

IV. STATEMENT OF THE PROBLEM..............................................................5

V. STATEMENT OF THE OBJECTIVES..........................................................6

VI. AREAS OF CONSIDERATION (S.W.O.T)..................................................6

VI. ALTERNATIVE COURSES OF ACTION....................................................7

VIII. STRATEGY FORMULATION....................................................................8

IX. ACTION PLAN/PROGRAMS......................................................................9

X. CONCLUSIONS............................................................................................9

XI. ATTACHMENT..........................................................................................10

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I. Introduction

Around two-thirds of Australian McDonald’s are currently run by the

franchisees. CEO Andrew Gregory of McDonald's Australia with its central
command in Sydney, Australia. Fundamentally, McDonalds is one of the
longest running cheap food chains on the planet that is adored by many.
Be that as it may, with the expanding wellbeing dangers related with
expending an excessive amount of food bought from drive-through joints,
customers are getting more and pickier and wellbeing cognizant.
Consequently, the primary focal point of this case study is on the impact of
society's changing food esteems on the snappy help restaurant industry. It
sums up McDonald's Australia's pledge to address those changing
qualities by finding out market needs and giving progressively decision to
the purchaser. Wellbeing and wellness have become progressively
significant issues in the twenty-first century. With worries about rising
stoutness levels and a more prominent comprehension of the significance
of good sustenance, buyers have been requesting more advantageous
food choices. This is maybe generally evident in the snappy help café
industry, which has needed to experience something of a transformation
as of late. The decision for the business was clear: react to changing
buyer needs or endure the results. For the reasons above, led statistical
surveying to begin rolling out proper improvements in its item and
administration contributions.

II. Point of View

The researcher might want the restaurant industry of this contextual

analysis to comprehend the significance of stakeholders’ needs in a
changing business environment, comprehend the significance of market
research in feedback to consumer needs and distinguish how McDonald's
Australia has made menu changes and conveyed these progressions to

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 the consumer. The business environment isn't static. It develops with time,
reflecting changes in the more extensive social environment; this makes it
progressively critical to guarantee addressing partner needs in an evolving
business. To react to consumer needs, McDonald's Australia's
methodology has been to tune in and learn, distinguish and roll out fitting
improvements, and convey these progressions to consumers.

III. Time Context

A regular tracking studies research conducted by McDonald’s

Australia every quarter measures the customers’ point of view on their
products and service offerings, to make appropriate changes during 2005.

IV. Statement of the Problem

As with other firms in the fast food industry, McDonald’s Australia

was attempting to answer with the following challenges:

1.) How the company address the business environment changes

to reflect the external environment; and

2.) How has McDonald’s used the media to communicate the new
healthier food options menus.

V. Statement of the Objectives

The following are the identified objectives for McDonald’s Australia

based on this case study:
1.) Meet stakeholder needs in a changing environment
2.) Be mindful of the effect it has on the broader community,
including the health of its youngest members

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3.) Be continually responsive to market demands, and accept
that there is always more to learn
4.) Clearly identify the necessary changes in its offerings, create
those changes and communicate accordingly to consumers

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VI. Areas of considerations

STRENGTHS WEAKNESSES

1.) In general, menu is unhealthy (high

I
1.) Its offerings for convenience being a in sugar
N
fast food chain and/or heavy in calorie)
T
2.) Active advertising and promotion 2.) Low quality of food/perception of
E
efforts unhealthy food
R
3.) Innovative in producing new
N
product lines that consider consumer
A
preferences for healthier options 3.) Low differentiation
L
4.) Fast food is generally cheap as
compared to prices in commercial
restaurants

OPPORTUNITIES THREATS
E 1.) New product lines on customers' 1.) Saturated fast food markets and
X menu threat of local
T fast food restaurants
E 2.) Changing customer habits and new 2.) Concerns about rising obesity levels
R customer and health
N groups risks associated with fast foods
A 3.) Increasing demand for healthier 3.) Concerns about rising obesity levels
L options which and health
the company can venture into risks associated with fast foods

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VII. Alternative course of action

To adapt capable realized by worries about rising obesity levels

and a more noteworthy comprehension of the importance of good
nutrition, and the way that consumers have been requesting healthier food
options. These endeavors are made to react to consumer needs just as
stakeholders’ issues in a changing business environment. McDonald's
Australia has made the following courses of action:

i. To conduct a regular qualitative and quantitative research

surveying required to begin rolling out the proper improvements in
its different contributions. McDonald's Australia conducts ordinary
following investigations each quarter that measure the customers'
perspective on their product and services, to roll out suitable
improvements;

ii. Improve existing products and making new ones. Existing products
were improved by strategies that include: changing to a canola and
sunflower oil blend, which is low in saturated fat and trans fatty
acids, diminishing the measure of sugar in buns to five percent,
which is like the measure of sugar found in bread overflows with the
supermarket, among others. New items include: The Salad Plus
run, with things containing under 10 grams of fat, the Deli Choices
go, again with things containing under 10 grams of fat, among
others.

VIII. Strategy Formulation

To understand the current issue on changing food values, the main

choice for McDonald's Australia is to react to these changing consumer

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demands. This included the way toward directing market research to
recognize what changes are to be made and truly make those changes,
which thusly would be communicated to consumers through different
methods of advertisement. Improvement to existing items and making new
ones are made conceivable after criticisms from customers are gotten
through the market research. Market research is a sorted-out exertion to
assemble data about objective markets or customers. It is a significant
part of business strategy, and McDonald's is well reacting to consumer
needs by conducting market research.

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IX. Programs

Action Specific Tasks Responsible Area

Be committed to the use of
sustainable business practices
Create changes in its
offerings
Respond to consumer needs
Meet stakeholder needs in a
changing business environment
Make significant changes in other
areas of its operations: customer
service, quality and speed, and its McDonald’s Australia
physical impact on the
environment
Improving existing products, and
McDonald’s Australia
develop new ones
Conduct market research both
qualitative and quantitative.
Conduct regular tracking studies
every quarter that measure the
customers' point of view. McDonald’s Australia
Customers are asked questions
regarding food image, brand
image, quality, service,
cleanliness and value.
Reconcile the interests of
stakeholders is
crucial to continued business
McDonald’s Australia
success and Practice corporate
citizenship and exercise social
responsibility

IX. Conclusion

In fast food restaurant industry, McDonald's Australia must be

exceptionally careful of the quickly changing inclinations of its consumers,
the pattern towards healthier menu options. It must be proactive in
reacting to changing consumer needs in the event that it needs to endure
the opposition. For an organization to support its business, particularly in
the cheap food industry, it must comprehend the significance of
addressing stakeholder needs in a changing business environment,
recognize the significance of statistical surveying in reacting to consumer
needs, and as the case may require, it is prescribed to make menu
changes and conveyed these progressions to the consumer in like
manner.

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 X. Attachments

https://mcdonalds.com.au/
https://customerthink.com/4-ways-the-food-industry-is-changing-what-
customers-want-and-how-to-give-it-to-them/
https://www.afrbiz.com.au/case-studies/mcdonald-s-addressing-changing-food-values-
through-market-research/Page-7.html

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