McDonald’s is the leading global foodservice retailer with 1.8 million employees serving nearly 69 million people in 118 countries each day from more than 34,000 local restaurants, 80% of which are franchised. ("Getting to know," 2013) McDonalds was facing a financial crisis The Dollar Menu is no longer producing the desired outcomes; providing a drawn for customers and profits for the franchise. The Dollar Menu its’ self has little opportunity to generate profits directly (6 cets per burger), but the indirect sales of higher profit generating items by customers once they were enticed into the store by the Dollar Menu was and remains profitable. (Ransom, 2009) The crisis was a cause of drought, inflation, recession, and several other issues that lead to increasing costs of preparing the food items and maintaining franchise locations. (Thompson, 2013) Falling profits, increasing dissatisfaction from franchise owners, and increasing costs was the crisis, the management team was observant and responsive enough to allow the crisis to be seen as a reality. (Patton , 2013) The change from an unprofitable, unsustainable Dollar Menu to the profitable Dollar and Up Menu was necessary to ensure the continued success of McDonalds franchise owners, corporate McDonalds, and most importantly the employees of McDonalds. ("McDonalds mission and," 2013)
A team that include members of the strategic change team, product development, finance, senior staff, store managers, marketing specialists, finance specialists, and franchise owners was formed to address these concerns and to develop corrective actions. The consensus of this team resulted in the development and implementation of an up dated, more sustainable version of the Dollar Menu, the Dollar and Up Menu. (Thompson, 2013) This change was communicated to all levels of the McDonald’s corporate family and advertising campaigns were developed to clearly communicate the change to the customers. (Munarriz, 2013) Posters, commercials, signs, flyers, ads, memos, and additional training were all used to not only make sure the customers knew about the change, and hopefully embraced it, but to also make sure the employees understood and embraced the change.
McDonalds was changing a staple of their business that had been in place since 2002. (Wong, 2013) This was a major change for customers, the employees, and the suppliers. Customers were educated and informed about the changes via the advertisement campaign. (Munarriz, 2013) Customer concerns and questions were answered honestly and directly. Employee hesitation and needs were addressed in training sessions and memos. The major hurdle would be ensuring the suppliers would remain...