After many years of double-digit growth in sales and net revenue, the company’s sales grew only 1.12 percent and net revenue dropped 17.2 percent from 2000 to 2001
Title: Marketing Research and Consumer Behavior
(Case Study: MacDonald’s Corporation)
This case discusses McDonald’s Corporation and the situation it faced in 2001. After many years of double-digit growth in sales and net revenue, the company’s sales grew only 1.12 percent and net revenue dropped 17.2 percent from 2000 to 2001. The company is the market leader in the burger segment of the fast food industry and is closely identified with burgers and fries, foods that are no longer considered healthy.
1. How are customers’ tastes changing in the fast food industry? What impact do these changes have on McDonald’s sales and net income?
2. How well are these changes in customer tastes and preferences being reflected in competitive strategies in the industry?
3. What are McDonald’s strengths and weaknesses and what conclusions do you draw about its future?
4. Should McDonald’s develop a separate strategy for the heavy user segment of the fast-food industry?
5. What should Jack Greenberg do to grow sales, profits, and market share at McDonald’s?
(Case Study: Harley Davidson Inc.)
This case demonstrates how sound strategy formulation and implementation can turnaround a company on the brink of bankruptcy back to be a successful business and even compete effectively against powerful Japanese firms like Honda, Kawasaki, Suzuki and Yamaha. If you have the DVD that accompanies the text you can also watch the 10-minute video.
1. Summarize Harley-Davidson Motorcycle Division’s marketing mix. Are all of the elements consistent with the overall marketing strategy?
2. List the changes made by the company in manufacturing, human resources, marketing and finance during the initial turnaround. What was the relative importance of each of these for achieving the turnaround of the Harley-Davidson company?
3. What should the company do to continue to grow in market value, market share, sales, and revenues?