Assess the current global performances of McDonnalds. What impact will this have on the fast food service industry as a whole?

Essay by Guvna23University, Bachelor's February 2004

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Assessing Global performance

McDonalds global has not been doing to well of late. Over the last three years we have seen their stock slide 60%, which is catastrophic by any organisations standards. This year McDonalds had their first quarterly loss in their 47-year history. Despite their dismal performance in the USA, sale in Europe are only down by 1%. In the USA, McDonalds is only adding 200 outlets to its 6,070 that it already has which is 30% fewer then last year. In Japan McDonalds will be closing down 176 stores due to economic depression in the region. In the USA McDonalds has closed 200 outlets in 2002 and is expected to closed 519 in by the end of this year.

"Jack Greenberg, chairman and chief executive, said the company will "dramatically reduce restaurant openings" to 600 additional McDonald's units worldwide in 2003, down from 1,050 this year and from a high of nearly 2,000 in 1996.

In the U.S., it will add 100 McDonald's in 2003, down from about 300 to 350 this year".

Recently, a consumer surveys in the USA had shown that McDonalds is lacking in quality against its main rivals. In the early 90s, McDonalds headquarters decided to stop benchmarking their franchisees for cleanliness, skills, speed and other attributes that are vital to most organisations. The training programme got worst as restaurants fought for workers. As an obvious result, McDonalds had poorly trained staff, outlets that would not have met the standards for cleanliness and a slow moving shop floor.

This is a far cry from the days when potential franchisees were only too eager to be apart of the McDonalds dream. Now the franchises are seeing very difficult times and are making a less money then they were 10 years ago. One franchise in the...