Santa Monica College Adapting Benefits to a Changing Strategy Paper

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Business Finance

Santa Monica College

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Adapting Benefits to a Changing Strategy

McDonald’s is in the news quite a bit these days. As profits fall or fail to meet Wall Street expectations, senior management scrambles for answers to a changing environment: millennials are perceived to prefer products that are healthier; customers complain about long wait times in the drive thru; competitors offer burgers made to order that seem to resonate with today’s customers. In response McDonald’s has made a number of major changes. It is reducing the size of its menu to reduce the amount of preparation time. On the other hand, they have introduced a new kiosk environment where customers can build their own burger at the cost of a rise in wait time of several minutes. In addition, over the past years McDonald’s has worked hard to reduce its turnover. Among other efforts they have moved their average employee age up to the high 20s. They recently announced wage increases and more paid time off for all its corporately owned stores.

Given the facts from the case, what can you glean from news reports about McDonald’s, what do you think is going on? Specifically, how do corporate strategy and wage/benefit decisions either support or conflict with each other?

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In the present scenario, fast food consumption trends have changed vastly in the last
10 years, after almost being a plateau before that in the last century. There has been an
uprising and general trend of” make your own burgers” and various food chains where the
deliverables depend on the specifications of the order. The burger giant McDonald's must
deal with such problems as customized burgers, kiosk orders, and complex orders of freshly
made to order food. These problems have led t...


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