There was a further fall in McDonald’s UK’s sales in 2005 alongside those of other European McDonald’s outlets. In 2007, the company’s sales went up by 4.6 percent and it increased its market share. Inadequate localization, negative perception, and competition are some of the reasons for McDonald’s UK lagging behind.
The most critical problem confronting McDonald’s UK is inadequate localization. This manifests in the way its Britain customers were repulsed by its use of the red color on its company logo. The second most critical problem facing McDonald’s UK is negative perception and the Greenpeace lawsuit, low quality food, lack of variety on its menu and the low pay that the company offers its employees are responsible for the company’s negative perception. The least critical problem facing McDonald’s UK is competition. Some emerging coffee shops are competing with McDonald’s UK and other fast food businesses are offering more variety for what is considered healthy foods by Britain’s customers (Krishna & Chaudhuri 658).
Question 2: Some problems you identified in Question 1 may require a “quick fix” in the short run, while others may require a major shift in company strategy. Assuming that you cannot focus on all the problems at once, suggest the order in which the issues should be addressed and suggest an approach to solving each problem.
The problem of competition that is confronting McDonald’s UK is one that needs a quick fix. McDonald’s UK has the capacity to liaise with its parent firm to offer coffee as a primary item in its menu. Its initiative to introduce freshly ground Kenco beans suffices to introduce a coffee brand that is unique. The problem of negative perception should be the second problem that McDonald’s UK should address. The company can address this problem by making peace with Greenpeace activists in order to reassure the Britons that it takes responsibility for its mistakes.