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Mcdonald's Product Positioning And Eps/Ebit Essay

844 words - 4 pages

Unit V Case Study
Corey Reed
Columbia Southern University
BBA 4951, Business Policy and Strategy
Professor Don Jernigan, MBA

McDonald’s Case Study V
McDonald’s perceived product positioning maps in comparison to their corporate strategy do line up to what is expected. There are areas for improvement in relation to their direct competition in every town. In reference to EPS/EBIT, it is relevant to their strategy implementation.
McDonald’s product positioning maps do line up with their corporate strategy. Their strategy or motto is “Plan to Win”. When I think of a fast food restaurant winning, I think of winning over the masses of customer traffic. They certainly do this well. What ...view middle of the document...

Chick-fil-A will win in the customer service. For areas like these, it would be a major strategic change in business that they may never try to win in these areas. It may not be accepted for such a change with their customer base due to it affecting the pricing strategy that they have. Customer service does not cost a thing. This all comes down to the expectation of what the company is willing to except from their employees. This could be a problem from their hiring committee. Hiring higher quality employees could affect their price strategy. When it comes to healthy choices, McDonald’s has recognized this as an area they need to make some changes and have done so with the oil that they use, offering apples instead of fries at the customers request, and lower calorie fries (McDonald's, "n.d."). With all of these changes, it is still too early to access if these tactics will change the mindset of the American people.
The relevance of their EPS/EBIT analysis in comparison to their strategy implementation coincides very well. With their strategy to continue to grow here in the US and abroad while being a more sustainable business, and continue to introduce new product lines and new business designs all cost money to fund these strategies. After conducting the analysis, the debt-financing model seemed to work better than the other options for funding these strategies. Their EPS during a recession was 3.86, normal was 4.68, and the boom was...

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