Macmillan International Higher Education

STRATEGIC
MARKETING
MANAGEMENT
CASE STUDY ANALYSIS

Answer a)
Some of the factors that led to the strong performance delivery in the past are as
follows. The prime factor was that of the larger market share as compared to the competitors.
The high revenues can be attributed to the volumes. The second major factor that led to the
high sales is the external factor of the consumer preferences. Earlier, mostly the American
consumers were not aware of the ingredients in the products, and did not have a preference
for a healthy lifestyle. Thus, the McDonald’s products were concentrated mainly on the fast
food category and matched with the sedentary lifestyle of the consumers, and hence the
higher market shares and the sales.
Answer b)
The key significant issue for the company is the falling market share of the entity to
the competitors. The global competitors like the Burger King and Wendy’s, as well as the
local competitors like Panera Bread, Shake Shack and others. Some of the external
developments that led to the issue are the raised awareness of the ingredients used by the
company in the products. This is combined with the change in the consumer tastes to the
products that offer fresh ingredients and a shift from the same old American Fast Food menu.
In addition, the decline in the sales is also due to the issues in the quality of the services
provided by the franchises in terms of the speed, service, and the cleanliness. The nest key
issue is the tighter labor market, which is being reflected in the quality of the services.
Answer c)
One of the key aspects of the business operations is the efficient marketing and
advertising of the products to address the competition (Lasserre, 2017). As the company is
undergoing the rebranding of the business model and the products, it is significant to
advertise the same and make the consumers aware of the changes the company has been
making. For instance, one of the biggest issues the products of the company faced was to be
labeled as unhealthy. As the entity is transforming its products with the healthier version of
the ingredients, in terms of the usage of the fresh ingredients, it should reach out to the
customers with the same goals. The best ways to implement the same is through marketing on
the social media websites, informative advertisements stating the nutritional values of the
reformed products. In addition, in terms of the cleanliness and services, the company can
provide strict protocols to be reported to headquarters to maintain the standard levels of