CASE ANALYSIS McDonald's, Inc. COMPANY NAME: McDonald's, Inc. INDUSTRY: Food Service COMPANY WEBSITE: www.mcdonalds.com COMPANY BACKGROUND: As a company, McDonald's was first introduced in Des Plaines, Illinois in 1955 This was the very first McDonald's restaurant, it all started in San Bernardino, California in 1954 when Ray Kroc approached the McDonald brothers with a business proposal to start a new company. In 1965, McDonald's went public and was later added to the Dow Jones Industrial Average in 1985. (www.mcdonalds.com) The company has undergone several changes as CEOs have changed over the years, but the company appears to be on the right track with the arrival of CEO Jim Skinner, appointed in 2004. Skinner was appointed as the new CEO just in time to clean up after McDonald's first quarterly loss. He succeeded by showing that McDonald's revenue had increased by 11% during 2006 and net profits had increased by 36%. (Dess, Case 40 Pg. 1) SWOT ANALYSIS: STRENGTHS: Jim Skinner had to clean up a big mess after the 2003 crisis, and he did it by coming up with a strategy to change everything. Its strategy was to remain competitive with the numerous other fast-food restaurants popping up around the world. To maintain this, they had to reorganize how they presented themselves to the community. Jim Skinner did this by cleaning up customer service, cleaning up and modernizing the physical buildings, and changing the menu based on customers' changing tastes. McDonald's also introduced its "I'm Loving It" slogan to reach younger customers. The advertising is very targeted at teenagers and young adults. (Dess, Case 40) WEAKNESSES: The first weakness was the change of three different CEOs in a single year. These were unexpected changes, but they all had to be addressed by new CEO Jim Skinner, and right after McDonald's first quarterly loss in 2003. The second pain point is a problem trying to find new and exciting things to put on the menu . acquire new customers. Many of today's fast food customers prepare different types of food, such as Chinese and Mexican food, which are normal in the everyday menu. OPPORTUNITIES: McDonald's has many opportunities to change its appearance, menu, and customer service. McDonald's began constructing a newer building that incorporated the arch, along with more modern furnishings. The menu has changed by adding more breakfast items and introducing the McCafe in some areas.